12/08/2026 05:20 AST
Al Rajhi Capital and LogiPoint have signed a Memorandum of Understanding (MoU) establishing a dedicated investment fund for the development of the South Jeddah Logistics and Industrial Park, a landmark mixed-use logistics and industrial development in South Jeddah with a total investment value of approximately SAR5 billion ($1.3 billion).
Strategically located adjacent to Modon's Industrial City One in South Jeddah, the project is expected to become one of the kingdom's largest integrated logistics and industrial developments, supporting Saudi Arabia's continued economic diversification and reinforcing its position as a global logistics hub under Vision 2030.
Spanning 1.9 million sq m, the key development offers around 1.5 million sq m of leasable space designed to meet the growing requirements of manufacturers, logistics providers, distributors, and regional supply chain operators.
The master-planned development will feature a diversified mix of logistics and industrial assets, including dry warehouses, cold storage and temperature-controlled facilities, Light Industrial Units (LIUs), staff accommodation, including purpose-built Built-to-Demand (BTD) and Build-to-Suit (BTS) facilities for anchor tenants and leading regional and international businesses.
Together, these components will create an integrated ecosystem capable of supporting a broad range of industrial, logistics, and value-added operations.
Under the agreement, alrajhi capital will serve as Fund Manager, while LogiPoint will act as Asset and Development Manager, leveraging its expertise in the development and management of large-scale logistics infrastructure across Saudi Arabia.
One of Saudi Arabia's leading investment institutions, Al Rajhi Capital provides a comprehensive range of investment solutions and financial services, including asset management, brokerage, investment banking, and wealth management.
LogiPoint is a leading Saudi logistics real estate developer and integrated logistics operator, providing logistics parks, bonded logistics facilities, Grade-A warehouses, and build-to-suit developments.
Al Rajhi Capital said all preliminary approvals for the project have been obtained, with final agreements expected to be signed by the year-end and groundbreaking set for the first half of 2027.
The project will be delivered through a phased development strategy, beginning with purpose-built facilities for anchor tenants, providing a strong foundation for long-term growth while ensuring infrastructure is developed in line with market demand, said Al Rajhi Capital. The project developer is already working in alignment with Modon's long-term strategy for the area, it added.
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.
Hussam Al Basrawi, the Chief Executive Officer of alrajhi capital, said this partnership reflects its commitment to enabling strategic investments that contribute to the kingdom's economic development and the advancement of high-quality infrastructure projects.
"By combining our investment expertise with LogiPoint's development capabilities, we aim to deliver sustainable long-term value for our investors while supporting Saudi Arabia's Vision 2030 and strengthening the Kingdom's logistics ecosystem," he stated.
Through its client-centric approach and strong investment expertise, Al Rajhi Capital is committed to delivering sustainable value, supporting capital market development, and contributing to the objectives of Saudi Vision 2030.
The company operates Saudi Arabia's first and largest Bonded and Re-Export Zone at Jeddah Islamic Port, enabling businesses to manage cargo, access regional markets, and expand their operations, he added.
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