DHL Supply Chain has announced a €130 million investment to establish a state-of-the-art regional logistics and distribution hub at the Special Integrated Logistics Zone (SILZ) in Riyadh. The company signed a land lease agreement with SILZ as part of its broader strategy to expand operations in Saudi Arabia and contribute to the Kingdom’s Vision 2030 ambitions of becoming a global logistics powerhouse.
The hub will be constructed on a 78,000 sq. m site, featuring 53,000 sq. m of multi-user warehousing designed to support sectors such as technology, retail, consumer goods, automotive, energy, and e-commerce. Construction is scheduled to begin in Q1 2026, with completion targeted for Q2 2027. The project is part of DHL Group’s €500 million investment commitment for the Middle East through 2030.
Hendrik Venter, CEO of DHL Supply Chain, said the Middle East is emerging as one of the fastest-growing logistics regions globally, with Saudi Arabia at its centre. “Our approach is to invest ahead of demand, creating scalable infrastructure that supports high-growth sectors such as technology, e-commerce, and new energy. Our new multi-user facility at SILZ will accelerate supply chain resilience and connectivity, while enabling global businesses to migrate their distribution centres to the Kingdom,” he noted.
Dr. Fadi Al-Buhairan, CEO of the Special Integrated Logistics Zone Company, described the agreement as a major milestone. “Our partnership with DHL is a fusion of SILZ’s premium infrastructure and DHL’s global network. As our anchor logistics tenant, DHL’s entry into the Riyadh Integrated ecosystem reflects confidence in our forward-looking regulatory environment.”
Located just eight kilometres from King Khalid International Airport and linked through a bonded corridor, the site is expected to significantly reduce lead times for imports and exports, bolstering Saudi Arabia’s position as a strategic gateway between Asia, Europe, and Africa.
Mostapha Mokdad, Managing Director of DHL Supply Chain KSA, said the investment aligns with the Kingdom’s national logistics strategy. “Our lighthouse site at SILZ demonstrates our commitment to supporting global customers in serving Saudi Arabia—the region’s largest market—while strengthening connectivity across the Middle East and Africa.”
The facility is expected to create new employment opportunities and drive workforce development in line with Vision 2030. DHL and SILZ will work closely throughout the construction and development phases to enhance regional trade flows and deliver long-term economic impact.
