SAL Zones Secures SAR 2.5bn Logistics Financing

SAL Zones Company, a subsidiary of SAL Saudi Logistics Services Co., has signed a Shariah-compliant credit facility worth SAR 2.5 billion with Saudi Awwal Bank (SAB) to finance the development of logistics zone projects across Saudi Arabia. The agreement was signed on 24 August 2026 and disclosed on the Saudi Exchange the following day.

The financing carries a tenor of 15 years and is intended to cover capital and operating expenditures for the SAL Logistics Zone project. This includes construction works, infrastructure development, and equipping the logistics zone to support cargo and logistics services nationwide. The facility is structured as long-term Islamic financing rather than short-term funding, aligning with Shariah requirements.

As security for the facility, SAL Saudi Logistics Services Co. issued a bank guarantee in favour of Saudi Awwal Bank, alongside promissory notes provided as additional collateral.

Part of a larger expansion plan

The project forms part of SAL's broader plan to invest around SAR 5 billion in logistics infrastructure, aimed at scaling operations and expanding cargo handling capacity and logistics zones in the Kingdom. Separately, SAL holds an existing SAR 500 million loan facility with a commercial bank to fund cargo terminal projects under construction, repayable in semi-annual installments from 30 March 2024 to 30 March 2030.

SAL's expansion program also covers the refurbishment and expansion of cargo facilities at King Khalid International Airport in Riyadh, with plans to increase handling capacity, add roughly 70,000 m² of operational station space, and a long-term lease for 90,000 m² of air cargo facilities.

For residents and businesses that rely on efficient freight movement, the investment signals continued growth in the Kingdom's logistics capacity — supporting faster cargo handling and expanded infrastructure to serve both local and international trade.

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