SAR 5bn Logistics Park Planned for South Jeddah

LogiPoint and Al Rajhi Capital have signed an agreement to develop a major logistics and industrial park in South Jeddah, with a total planned investment of about SAR 5 billion. The two companies are establishing a dedicated investment fund to finance and build the project.

Known as the South Jeddah Logistics and Industrial Park, the development will sit adjacent to Industrial City One in Jeddah. It will span roughly 1.9 million square meters, offering around 1.5 million square meters of leasable space for tenants.

The mixed-use project is designed for manufacturers, logistics service providers, distributors, and regional supply chain operators. Planned facilities include dry warehouses, cold storage and temperature-controlled units, light industrial spaces, and staff accommodation. The developers also plan build-to-demand and build-to-suit facilities tailored to anchor tenants.

Timeline and next steps

A memorandum of understanding and an agreement to establish the investment fund have already been signed, and preliminary approvals for the project have been obtained. Final agreements are targeted for completion by the end of 2026, with ground-breaking expected in the first half of 2027.

The park will be delivered in phases, beginning with purpose-built facilities for anchor tenants before expanding in line with market demand.

For the community, the project points to expanded warehousing and industrial capacity in Jeddah, supporting businesses that rely on modern logistics infrastructure and potentially creating new jobs as construction and operations get under way. As of now, no exact rental rates, sale prices, or service fees for units within the park have been publicly disclosed.

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