Global supply chain giant DHL earmarked EUR 130 mn (SAR 561 mn) for building a new Riyadh logistics hub, located in the city’s special integrated logistics zone next to King Khalid International Airport, DHL Middle East and Africa CEO Orkun Saruhanoglu told Bloomberg. The hub is scheduled to open in 2027.

Construction on the new hub is slated to kick off next year. The 78k sqm project will offer its services to DHL’s customers over a variety of expanding industries, including the tech, e-commerce, and automotive sectors. The bonded warehouse will act as a bonded corridor to King Khalid International Airport and is expected to slash clearance times in the Kingdom.

Part of a EUR 500 mn investment plan: DHL Group is planning to invest over EUR 500 mn in the Middle East between 2024 and 2030, with a focus on Saudi Arabia and the UAE. The investment spans the company’s four divisions — DHL Express, DHL Global Forwarding, DHL Supply Chain, and DHL eCommerce.

Saudi Arabia is DHL’s fastest-growing market in the region, Saruhanoglu said, noting that the company is mulling over further expansion in the Kingdom, without disclosing further details. The company’s new hub is forecast to support domestic and regional trade flows by boosting the country’s capacity for manufacturing and distribution activities.

DHL has lots of hands in the Kingdom: DHL Supply Chain tapped oil giant Aramco to form a joint venture, Advanced Supply Management Operations (ASMO), in 2023. The JV inked a 15-year agreement with Aramco in January to manage procurement and logistics services for the energy firm. The JV also locked in SAR 300 mn in agreements with Aramco Digital, SAP, and Oracle in January to digitalize the transformation of the supply chain and procurement landscape.

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