DHL to invest EUR 130 Million in new logistics hub at Saudi Arabia’s SILZ

Major Investment to Support Saudi Vision 2030

DHL Supply Chain will invest EUR 130 million (561.5 million SAR) to build a new regional logistics and distribution hub at Saudi Arabia’s Special Integrated Logistics Zone (SILZ) in Riyadh. The company signed a long-term land lease agreement with SILZ, reinforcing its commitment to supporting Saudi Arabia’s Vision 2030 and the Kingdom’s ambition to become a global logistics hub.

New Facility to Serve Multiple Industries

The project will occupy a 78,000 sqm site and include 53,000 sqm of advanced multi-user warehouse space. It will support sectors such as technology, retail, consumer goods, automotive, energy, and e-commerce. Construction will begin in Q1 2026, with completion expected in Q2 2027. The hub forms part of DHL Group’s broader EUR 500 million Middle East investment planned through 2030.

Strategic Location Strengthens Connectivity

Located eight kilometers from King Khalid International Airport and linked through a bonded corridor, the new facility will offer fast access to global air routes. It will improve inbound logistics and support Saudi Arabia’s growing export flows.

DHL Highlights Long-Term Growth Potential

“The Middle East is one of the fastest-growing logistics regions globally,” said Hendrik Venter, CEO of DHL Supply Chain. “Our new facility at SILZ will strengthen supply chain resilience and enable global businesses to shift their distribution centers to the Kingdom.”

SILZ Welcomes DHL as Anchor Tenant

Dr. Fadi Al-Buhairan, CEO of the Special Integrated Logistics Zone Company, called the agreement a milestone. “Our partnership with DHL reflects confidence in our advanced regulatory environment. DHL will be our anchor tenant for logistics operations.”

Boost to Local Economy and Workforce

The project aligns with Vision 2030 workforce goals and will create new employment opportunities. DHL Supply Chain KSA Managing Director Mostapha Mokdad emphasized that the site will help global customers serve Saudi Arabia and the wider Middle East and Africa region more efficiently.

Next Steps

DHL and SILZ will continue collaborating through construction and development phases. Once operational, the hub is expected to enhance regional connectivity and deliver long-term economic value.

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