Kuwait’s Agility invests $163m to build Jeddah Logistics Park in Saudi Arabia

Kuwaiti supply chain services and infrastructure company Agility is set to build a large logistics park for storage and distribution near Jeddah, as part of a land-concession agreement announced by Saudi Arabia’s State Properties General Administration (SPGA).

The project at Jeddah- Al Mahjar will see the construction of a modern warehousing complex on a 576,760 square metres parcel south of Jeddah, starting in the first quarter of 2023.

The opening of the Agility Logistics Park – Jeddah is anticipated in Q1 2025.

Agility will invest SAR611m ($163m) to build the park and have the right to operate it for 25 years.

Agility currently operates the country’s most advanced logistics parks: Agility Logistics Parks in Riyadh (870,000 square metres) and Dammam (200,000 square metres).

The announcement comes days after the Saudi government unveiled a plan to transform the kingdom into a global logistics center as part of Saudi Arabia’s broad Vision 2030 strategy.  The Global Supply Chain Resilience Initiative (GSCRI) is intended to attract $11bn in fresh investment in its first two years and position the country as a key link in global supply chains through development of logistics and industrial infrastructure, economic cities, and green energy, innovation and manufacturing.

The new Agility Logistics Park in #Jeddah will be a state-of-the-art warehousing complex, helping boost #SaudiArabia’s aim to be global #logistics center. Find out how we’re supporting #KSA’s #Vision2030: https://t.co/bMiBUiKrhN pic.twitter.com/0TiHdeWMUD

— Agility (@Agility) November 3, 2022

Governor of the State Properties General Administration Ihsan Bafakih said: “This step will help the SPGA pursue and achieve its strategic objective of efficient management of its real estate assets in a way that maximises the benefits for the development of the economy. The SPGA is studying its real estate portfolio and working towards transforming its assets into lucrative investment opportunities by providing suitable property for sustainable, pioneering projects with private-sector partners.”

Bafakih said initiatives such as the Agility facility in Jeddah offer an opportunity to enhance the contribution of the country’s real estate assets to GDP while increasing the value of the government-held property, developed infrastructure and sustainable buildings.

Agility said the park in Jeddah will serve international and local customers in the retail, consumer goods, technology, automotive, energy and e-commerce sectors.

“Agility’s Jeddah complex will accelerate Saudi economic growth and make it easier for international and local companies to expand in the kingdom,” said Michel Saab, CEO of Agility Logistics Parks/Global Operations. “Ultra-efficient warehousing and distribution are a huge competitive advantage. Companies operating from these parks shorten their time-to-market, reduce cost and risk, increase inventory turns and boost productivity.”

Agility recently received the post-construction EDGE Advanced certification (Excellence in Design for Greater Efficiencies) for a warehouse at its Riyadh park. EDGE Advanced buildings are ‘zero-carbon ready’ structures that are at least 40 per cent more energy efficient than others in the market.