Amazon to add 11 new buildings to its Saudi fulfillment, delivery network

Amazon says it will add 11 new buildings and create more than 1,500 jobs in Saudi Arabia in 2021. The expanded delivery network will take Amazon’s total footprint in the kingdom to six fulfilment centres – where goods are stored, and 13 delivery stations – from where parcels are dispatched.

This investment will expand Amazon’s fulfilment network’s storage capacity by 89 per cent and increase its delivery network area across Saudi by 58 per cent. Amazon also partners with Saudi Post and a network of 10 Delivery Service Partners in the country.

Amazon’s increased storage capacity in Saudi Arabia will be achieved through new openings, closure of older buildings, and upgrades of existing facilities, the company said.

By the end of 2021, Amazon’s fulfilment network will reach across a total floor area of over 867,000 square feet, or the equivalent of more than 10 football fields.

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The current Amazon network in Saudi Arabia includes three fulfilment centres in Riyadh and Jeddah, 11 delivery stations, two sort centres and a network of 11 Delivery Service Partners.

“These new investments reiterate our commitment to Saudi Arabia, contributing to the local economy through the creation of new job opportunities,” said Prashant Saran, director of Operations for Amazon Middle East and North Africa (MENA). “Our investments in technology and infrastructure align with Saudi’s digital transformation goals, enabling world-class fulfilment offerings to our independent seller partners, and faster delivery on an expanded product selection to our customers.”

Amazon started operations in Saudi Arabia through the acquisition of Souq in 2017 for $580m. Amazon.sa replaced Souq.com last year. In January this year, Amazon Prime was launched in Saudi Arabia, bringing same-day and next-day delivery to more customers in the country.

Amazon’s biggest competitor in the region is noon.com, a joint venture between Saudi’s sovereign Public Investment Fund (PIF) and Dubai-based businessman and Emaar CEO Mohamed Alabbar.

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