Global supply chain giant DHL has earmarked EUR 130 mn (SAR 561 mn) for 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 launch next year. The project — spanning 78k sqm — will offer services to DHL customers across a variety of expanding industries, including tech, e-commerce, and automotive sectors. The hub will feature bonded warehouses and is expected to slash clearance times in the Kingdom.

Part of EUR 500 mn push: 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.

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

DHL has many interests in the Kingdom: DHL Supply Chain tapped oil giant Aramco to form a joint venture (JV) called 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 to digitalize and advance the transformation of the supply chain and procurement landscape.

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