Strategic deal to build future-ready logistics hub in Saudi

Garbe Industrial from Germany and ARTAR from Saudi Arabia have agreed to work together on new logistics real estate projects in the Kingdom. The two companies signed a memorandum of understanding to form a joint venture called AG Logistics Partners. The focus will be on building modern logistics and light industrial facilities across Saudi Arabia.

Christopher Garbe, Managing Partner of Garbe Industrial, said: "Our ambition is to attain quality leadership in regard to modern high-end logistics real estate in Saudi Arabia within the framework of this joint venture. Working closely with ARTAR, we will merge local know-how with international experience in order to build up a highly productive logistics infrastructure that will attract international companies to Saudi Arabia."

Demand for high-quality warehouses is rising fast in the Kingdom, driven by Vision 2030, e-commerce growth, and expanding trade and manufacturing activity. However, there is a shortage of Grade A logistics space, especially in major cities. The new joint venture aims to help close this gap.

The partnership plans to develop warehouses and distribution centres in key locations such as Riyadh, Jeddah, and Dammam. Over the next five years, several large logistics projects are expected to be delivered to international standards.

The facilities will include energy-saving systems, modern layouts, and smart designs to support automation and efficient operations. These features are meant to support businesses that rely on fast and reliable supply chains. Construction work is expected to begin in early 2026, marking Garbe’s deeper entry into the Middle East logistics market.