{"id":86505,"date":"2025-05-22T00:00:00","date_gmt":"2025-05-22T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2025\/05\/22\/emirati-group-esg-inks-16-year-agreement-for-warehouse-space-in-ksa\/"},"modified":"2025-05-22T00:00:00","modified_gmt":"2025-05-22T00:00:00","slug":"emirati-group-esg-inks-16-year-agreement-for-warehouse-space-in-ksa","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/05\/22\/emirati-group-esg-inks-16-year-agreement-for-warehouse-space-in-ksa\/","title":{"rendered":"Emirati group ESG inks 16-year agreement for warehouse space in KSA"},"content":{"rendered":"

ESG <\/strong>expands to Saudi Ar<\/strong>abia<\/strong>:<\/strong> Emirates Stallions Group (ESG) \u2014 a subsidiary of International Holding Company \u2014 has acquired a 16-year usufruct agreement for 13k sqm of warehouse space in Saudi Arabia through its subsidiary Vision Furniture & Decoration Factory, according to a press release (pdf)<\/a>.<\/p>\n

The details:<\/strong> The agreement, signed with the Saudi Authority for Industrial Cities and Technology Zones, includes two facilities covering 6k and 7.4k sqm. The warehouses are set to be operational by 3Q 2025 and will be used to produce and store furniture, the statement said.<\/p>\n

DATA POINT-<\/strong> Saudi Arabia is home to nearly 12.5k warehouses<\/a> with a combined area of 22.8 mn sqm. Riyadh has 6.6k warehouses covering 10.6 mn sqm, leading in both count and area, followed by Makkah with 2.2k warehouses covering 6.5 mn sqm. General warehouse licenses constituted 55.6% of total warehouse licenses at 6.9k. Humidity-controlled warehouses followed with 2.1k licenses and refrigerated warehouses with 2k.<\/p>\n

Warehouse demand is surging in the region: <\/strong>Warehouse facilities in both UAE and KSA saw a robust surge in demand<\/a> earlier last year on the back of booming non-oil industries leading to major surges in industrial leasing prices over the past few years. Grade B warehouses\u2019 rents saw an over 38% y-o-y surge in 1H 2024. In KSA, warehouse rents grew by an average of 20% y-o-y in Riyadh and 15% in Jeddah in 1H 2023 \u2014 with occupancy rates at around 96%.<\/p>\n","protected":false},"excerpt":{"rendered":"

The warehouses are set to be operational by 3Q 2025 and will cater to furniture production<\/p>\n","protected":false},"author":1,"featured_media":86506,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[221],"tags":[31,207,129],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-86505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-storage-warehouses","tag-saudi-arabia","tag-storage-warehouses","tag-uae","wpautop","entry"],"acf":{"mongo_id":"6509269e-011e-4bcb-b4c5-ad547a3e9cff","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/5\/1890.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Emirati group ESG inks 16-year agreement for warehouse space in KSA","related_issue":[86495],"teaser":"The warehouses are set to be operational by 3Q 2025 and will cater to furniture production","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/5\/.172521c9-92f2-4942-b0e5-4cd81b4c4894.mp3"},"yoast_head":"\nEmirati group ESG inks 16-year agreement for warehouse space in KSA - 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