Al Rajhi, LogiPoint launch $1.3bn Jeddah logistics park

Al Rajhi Capital and LogiPoint are setting up a SAR5 billion ($1.3 billion) investment fund to develop a logistics and industrial park in South Jeddah, with construction planned to start in the first half of 2027.

The 1.9 million sq m project will include about 1.5 million sq m of leasable space for warehouses and logistics facilities. It will offer dry warehouses, cold storage and temperature-controlled facilities, along with light industrial units and purpose-built facilities for major customers.

The project is expected to add logistics capacity in Jeddah, giving manufacturers, distributors and logistics companies more space for storage, distribution and other supply chain activities.

On the partnership, LogiPoint CEO Farooq Shaikh said: "Saudi Arabia's logistics sector is entering a new phase of growth, where customers increasingly require integrated developments that combine modern infrastructure, operational flexibility, and long-term scalability."

"The South Jeddah Logistics and Industrial Park has been designed to meet those evolving requirements. Through our partnership with Al Rajhi Capital, we are bringing together institutional investment and logistics expertise to deliver infrastructure that supports industrial growth, attracts new investment, and strengthens the kingdom's position as a regional logistics hub," he added.

Located next to Modon’s Industrial City One, the park will connect industrial activity with warehousing and logistics operations. This could help companies move goods between manufacturing, storage and distribution facilities within the same area. The development will be built in phases, starting with facilities for anchor tenants and expanding based on demand.

Al Rajhi Capital will manage the fund, while LogiPoint will manage the development and assets. Preliminary approvals have been secured, with final agreements expected by the end of 2026. The project is part of Saudi Arabia’s wider push to expand logistics and industrial infrastructure under Vision 2030.