Warehousing space in Riyadh has grown into 16 Mn sqm in 2022. Registering a growth rate of ~6%. Will KSA continue to support the warehousing Market in future? : Ken Research
1. Saudi Vision 2030
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The expansion of the logistics Industry has been emphasized in Saudi Arabia’s Vision 2030, a comprehensive strategy for economic diversification. The government wants to make the nation a hub for global logistics by luring foreign capital and creating a welcoming environment for storage and logistics businesses.
50% non-oil exports as percentage of GDP by 2030, up from 16% in 2016 has boosted need for warehouses in KSA.
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2. Warehousing space in Riyadh have even stayed resilient during COVID situation having space of 16.3 Million sqm in 2022 growing at the rate of ~6%
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- The majority of Riyadh’s existing stock is characterized by low quality space, with limited services and amenities that take the form of conventional sheds such as dry warehouses and also open yards.
- With huge e commerce Market in Riyadh, companies such as Amazon are trying to increase their space improving their fulfillment centers in Riyadh.
- Real estate developers are more inclined to build new stock based on confirmed demand, or according to the tenants’ specifications i.e., built to suit warehouses in Riyadh.
Checkout: Major Players in KSA Warehousing Market
3. Trade and Industrial Growth boosting Warehousing Market in KSA
Saudi Arabia sits between three continents – Europe, Africa and Asia – giving it a unique advantage when it comes to the Asia-Europe trade routes and distributing goods through the Arabian Peninsula making it an attractive and an active hub for trade.
KSA’s strategic location as a gateway between Europe, Asia, and Africa makes it an attractive hub for trade. The country has been actively promoting foreign trade and industrialization, attracting international companies to set up manufacturing facilities and distribution centers. This leads to an increased demand for warehousing services to support import, export, and local supply chains.
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