DHL Supply Chain will invest €130 million (560 million SAR) to establish a new regional logistics and distribution hub at Saudi Arabia’s Special Integrated Logistics Zone (SILZ) in Riyadh. For this strategic project, the World’s leading contract logistics provider has signed a land lease agreement with SILZ, reinforcing its commitment to Saudi Arabia’s Vision 2030 and the Kingdom’s ambition to become a global logistics hub. This new facility forms part of DHL’s broader investment in the Kingdom of Saudi Arabia.
The new facility will occupy a 78,000 sqm land plot, featuring 53,000 sqm, including leasehold commitments for a 26-year term. This multi-user warehouse will cater to diverse sectors, including technology, retail and consumer, automotive, energy, and e-commerce, providing tailored solutions for each industry. Construction is scheduled to begin in the first quarter of 2026, with completion expected by the second quarter of 2027. The new warehouse is part of the €500 million investment DHL Group has recently announced for the Middle East through 2030.
“The Middle East is one of the fastest-growing logistics regions globally, and Saudi Arabia sits at the centre of this transformation. Our approach is to invest ahead of demand, creating scalable infrastructure that supports high-growth sectors such as technology, e-commerce, and new energy. Our new multiuser facility at SILZ will not only accelerate supply chain resilience and connectivity but also enable global businesses to migrate their distribution centres to the Kingdom, positioning them to thrive in a market that is becoming a true gateway between Asia, Europe, and Africa,” said Hendrik Venter, CEO DHL Supply Chain.
Commenting on the step, Dr. Fadi Al-Buhairan, Chief Executive Officer of the Special Integrated Logistics Zone Company, stated: “Our vision has always been to build the next generation of smart logistics infrastructure. Our partnership with DHL is a fusion of SILZ Company’s premium infrastructure and DHL’s speed and global network. This is a milestone deal as DHL will be our anchor tenant in logistics, making this facility their regional hub. The entry of a partner the size of DHL into the Riyadh Integrated ecosystem reflects confidence in our stimulating regulatory environment”.
Strategically located just eight kilometres from King Khalid International Airport and connected via a bonded corridor, the new hub will offer unparalleled proximity to global air routes. This will ensure faster lead times and seamless access to and from the Middle East’s largest consumer market – supporting efficient inbound flows into the Kingdom and enabling the growing outbound export trade.
Mostapha Mokdad, DHL Supply Chain KSA’s Managing Director emphasized during the signing ceremony that “In line with the Kingdom’s Vision 2030, DHL Supply Chain has prioritized the National strategy of establishing Saudi Arabia as a global logistics hub, our lighthouse site at SILZ is a testimony of supporting our global customers to actively serve the Kingdom of Saudi Arabia as the largest market in the region along with the wider Middle East and Africa region, through KSA”
The agreement marks a key milestone in DHL Supply Chain’s long-term expansion in the Kingdom and reflects the strong alignment between the company’s growth ambitions and Saudi Arabia’s Vision 2030 objectives. The facility is expected to create new employment opportunities, contributing to local workforce development in line with Vision 2030.
Both parties will continue to collaborate closely through the construction and development phases, with operations expected to enhance regional connectivity and unlock significant long-term economic value. The partnership with SILZ underscores the zone’s role as a dynamic platform for enabling high-impact investments and world-class development across the local logistics sector.
