Alandalus buys Riyadh land for warehouses, Al Sharqi opens AED 70 mn cold-chain hub in Dubai

Riyadh’s newest landlord

Saudi developer Alandalus Property is moving into logistics. The firm’s wholly owned subsidiary Marafiq Alandalus Allujistiyah has bought a 44.55k sqm plot in Riyadh’s Al Mashael district for SAR 83.8 mn, including taxes and brokerage fees, to develop logistics warehouses, according to a Tadawul filing. The move is part of the company’s 2026-2030 strategy to diversify into logistics and will be funded from its own resources or bank facilities. Alandalus expects it to show up in its 4Q 2026 financials. The filing doesn’t say what the warehouses will cost, how much space they’ll hold, or when they’ll open.

Riyadh is short on quality space. Industrial occupancy in the capital hit 98% in 1H 2025, with rents up 16% y-o-y to an average SAR 208 per sqm, according to Knight Frank. Some businesses are pausing their entry into Saudi because they “refuse to settle for subpar Grade B assets,” Knight Frank’s Adam Wynne told us in January.

REMEMBER- Al Mashael already has a DP World warehouse: DP World opened its first multi-user Saudi warehouse there in July, a 15.25k sqm facility with more than 17k pallet positions.

Cooling down

Al Sharqi opens AED 70 mn Dubai logistics hub: UAE-based Al Sharqi Shipping has opened an AED 70 mn (USD 19 mn) multi-temperature logistics and distribution hub at TECOM Group’s Dubai Industrial City, according to a statement. The site has 280k sq ft of built-up storage and a 200k sq ft open yard, holding 22k palletized tons at temperatures from ambient to -18°C. Its 38 loading lanes can handle up to 178 trucks a day for food, retail, and quick-commerce clients. The hub lifts Al Sharqi’s combined capacity to 37.8k pallet positions.

REMEMBER- Dubai Industrial City keeps pulling in food logistics money. Silver Line Gate Group broke ground on an AED 200 mn food manufacturing and warehousing project there in 2024.