
Warehouse occupancy in Saudi Arabia nearing saturation: Knight Frank
The firm's latest 'Saudi Arabia Industrial and Logistics Market Review' highlighted a booming sector driven by e-commerce expansion, strategic government initiatives, and surging foreign investment.
The Kingdom's logistics hubs — Riyadh, Jeddah, and the Dammam Metropolitan Area— are operating at near-full capacity.
Riyadh leads with a 98 percent occupancy rate, while Jeddah and Dammam follow closely at 97 percent each.
This momentum was also reflected in occupancy rates, with Abu Dhabi's industrial and logistics market maintaining near-full capacity, mirroring Dubai's tight supply.
Key hubs like Khalifa Economic Zones Abu Dhabi and Abu Dhabi Airports Free Zone saw sustained demand, driven by strategic infrastructure projects and growing manufacturing activity, according to a separate report by Knight Frank.
Riyadh's prime warehouse spaces now command rents exceeding SR250 ($66.6) per sq. meter, while city-wide averages hit SR208.
'Despite a slowdown in demand during the second half of the year, city-wide rental rates increased by 16 percent year-on-year,' the report said.
Jeddah's lease rates for Grade B facilities rose to SR238 per sq. meter, with the high-end Asfan district maintaining 100 percent occupancy at SR387 per sq. meter. Dammam Metropolitan Area saw rents jump 14.8 percent to SR202 per sq. meter, fueled by a chronic shortage of quality logistics space.
E-commerce and mega-projects fuel growth
Rapid urbanization, a tech-savvy consumer base, and giga-projects like the Special Integrated Logistics Zone and Sino-Saudi Logistics Zone are reshaping demand.
'Demographic shifts including rapid urbanization, increased female workforce participation, and a tech-savvy Gen Z and millennial consumer base are accelerating the growth of the e-commerce sector,' the report stated.
The 3-million-sq. meter Special Integrated Logistics Zone has attracted global players like SHEIN and Apple, while the 4-million-sq. meter Sino-Saudi zone aims to strengthen trade ties with China.
Government initiatives and private investment
The National Industrial Development and Logistics Program is a cornerstone of the Kingdom's industrial strategy, aiming to increase the transport and logistics sector's contribution to the gross domestic product to 10 percent by 2030, from 6 percent in 2021.
Public-private partnerships are flourishing, with projects like the Tamer Logistics Park and Agility Logistics Park set to expand supply in key regions.
'Substantial investments to improve and expand connectivity and trade infrastructure, along with regulatory reforms are helping transform Saudi Arabia into a logistics powerhouse,' the report emphasized.
Sustainability and digital transformation
The sector is also pivoting toward sustainability and automation. Companies like Maersk and Agility are adopting solar-powered warehouses, while digital tools streamline operations.
'Sustainability has become a major market driver, with companies integrating renewable energy fields and LEED-certified buildings,' said Adam Wynne, partner at Knight Frank.
With 36,000 factories projected by 2035 and FDI reforms attracting multinationals, Knight Frank predicts sustained growth.
'Saudi Arabia is on track to become a regional logistics powerhouse,' Wynne said, citing the Kingdom's integration of 'global expertise, modern infrastructure, and green initiatives.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Asharq Al-Awsat
a day ago
- Asharq Al-Awsat
Apple Expands its Presence in Saudi Arabia with Launch of Arabic Online Store
Apple has officially launched its online store in Arabic for customers in Saudi Arabia, marking a significant step in the company's expansion strategy for the region. The move also aligns with its plans to open a physical retail store in the Kingdom as part of a broader effort to deepen its regional presence. According to Deirdre O'Brien, Senior Vice President of Retail and People at Apple, this step reflects the company's growing commitment to Saudi Arabia and its rapidly expanding customer base. The Arabic-language store is now accessible through Apple's website and via the Apple Store app on smart devices. In an interview with Asharq Al-Awsat, O'Brien expressed strong enthusiasm about bringing the Apple retail experience to Saudi Arabia. She emphasized the company's longstanding presence in the Kingdom and noted that Saudi customers are deeply passionate about Apple products. This launch, she said, will help strengthen Apple's direct relationship with communities across the country. She also explained that both the online store and the upcoming physical location are part of Apple's broader strategy in the Middle East. The company already operates several retail locations in the United Arab Emirates and continues to see strong demand for its products across the Gulf. Investing in local economy When asked about Apple's investment in the Saudi economy, O'Brien pointed to initiatives such as the Apple Developer Academy, which is focused on nurturing and empowering local talent. She described the company's investment as one that aims to inspire individuals and support creativity. By combining Apple's technology with passionate communities, she said, remarkable things can be achieved. Apple has tailored the online store to meet the specific needs of Saudi customers. Features include live chat with Apple specialists in Arabic, customizable product options for devices like Mac and Apple Watch, and the ability to engrave AirPods and other accessories in Arabic or with emojis. O'Brien highlighted the importance of making the full Apple experience accessible to customers in Saudi Arabia both online and in-store. She also noted that Apple offers device trade-in programs to accommodate users from different segments. With e-commerce on the rise in Saudi Arabia, Apple is aiming to deliver a seamless shopping journey that blends both digital and physical experiences. O'Brien stated that Apple's retail model has been designed to reflect modern shopping behavior, where customers move easily between online and in-store interactions. Whether a purchase begins online and ends in a store, or vice versa, Apple aims to provide consistent, high-quality support throughout. Landmark store in Riyadh Apple's first physical store in Saudi Arabia is set to open in Diriyah, a UNESCO World Heritage site and a prominent cultural destination in Riyadh. O'Brien described Diriyah as a unique and special location. She said Apple is committed to ensuring each of its stores reflects the local identity and culture, and that the new store in Saudi Arabia will be no exception. She encouraged local customers to visit once the store opens, expressing confidence that the experience will be both unique and memorable. Retail services Apple is continuing to strengthen its presence in Saudi Arabia by focusing on innovation, engaging more closely with the local community, and delivering a retail experience designed to support and serve users throughout the Kingdom. The new Arabic online store allows Saudi customers to browse and purchase Apple's full product lineup. The experience is personalized, offering product recommendations based on the customer's current devices. Customers can also compare models, access saved items, and track orders directly through the app. For the first time, Apple is offering free consultations in Arabic and English through the Saudi store website. These sessions allow users to personalize products like AirPods, Apple Pencil, and AirTag with Arabic or English text and numbers, enhancing the individuality of each device. Apple's retail offering also includes pre-purchase support through chat and phone to help users find the best product for their needs. Post-purchase, the company provides services like personalized setup, secure data transfer for those switching to iOS, and eSIM activation. As part of its long-term strategy, Apple has announced plans to open its first flagship retail store in Saudi Arabia by 2026. This store will be the first in a broader rollout of retail locations across the Kingdom.


Leaders
2 days ago
- Leaders
Apple Arrives in Saudi Arabia with Online Store
Apple has boosted its retail presence in Saudi Arabia through the launch of the Apple Store online and the Apple Store app, according to Apple official website. Both the store and the app offer direct support in Arabia for the first time in the history of Apple. 'We are thrilled to bring the Apple Store online and the Apple Store app to Saudi Arabia, offering customers a new way to explore and shop Apple's extraordinary lineup of products and services,' said Deirdre O'Brien, Apple's Senior Vice President of Retail and People. Now Saudis can shop all Apple's products with extraordinary services from talented team members. By launching the Apple Store online, Apple is opening a new era for Saudi customers to explore its exceptional lineup of products and services. 'Our customers in Saudi Arabia are passionate about the things they can do with technology, and our teams can't wait to connect with customers and help them discover how Apple innovations can meaningfully enrich their daily lives,' O'Brien said. Interestingly, Saudi customers can enjoy a personalized shopping experience and smooth tracking for their orders. Moreover, free engraving is now available in both Arabic and English for the first time ever. Therefore, customers can personalize their AirPods, Apple Pencil, AirTag, and more with text, emoji, and numbers in dual language. Looking ahead, Apple plans to open multiple stores in the Kingdom starting in 2026, including a remarkable location in Diriyah. Related Topics: Apple to Officially Launch Stores in Saudi Arabia in 2025 Apple Highlights Apps Developed by Saudi Tuwaiq's Graduates iPhone is Getting 'Glow' up. What to Expect from Apple's Monday Event Short link :


Arab News
2 days ago
- Arab News
Apple launches online store in Saudi Arabia with Arabic support, local delivery
RIYADH: US tech giant Apple has launched its online store and Apple Store app in Saudi Arabia, offering next-day delivery and, for the first time, direct Arabic-language support. 'This launch will make the 40th country and territory around the world with an Apple Store online,' Karen Rasmussen, Apple's head of Online Retail, said. 'It is going to be our first Apple Store online fully in Arabic,' she added. Originally launched in 1997, Apple's online store has since expanded to over 40 countries and territories worldwide. Starting July 22, customers in Saudi Arabia can shop for Apple products online through the website or the app, with the promise of faster delivery, new customization options, and local-language support. The site offers Arabic and English customer service, flexible payment options, and product personalization. The Apple executive noted that most orders will be delivered the next day. 'We built a distribution center in the Kingdom of Saudi Arabia to be able to support all of our customers in the fastest possible way,' Rasmussen told Arab News. Free engraving is now available in both Arabic and English, allowing customers to personalize products such as AirPods, Apple Pencil, and AirTag with text, emoji, and numbers. The company has partnered with Saudi-based buy-now-pay-later platform Tamara to offer customers the ability to pay in four monthly installments at zero percent interest. Apple is also introducing Arabic-language, in-country shopping assistance. 'We will provide in-country, in-Arabic shopping support, where a specialist is trained exactly the same way as any Apple specialist, whether online or in the store,' she said. Hardware support and express replacement services will also be available in Arabic through the new online platform. AppleCare+ has been updated to allow customers to subscribe on a monthly basis, rather than making a single annual payment. Another addition is Apple Trade In, which enables Saudi customers to exchange their current Apple devices for credit toward new purchases. The Apple Education Store will also be accessible through the online platform, offering special pricing on Macs and iPads for university students, educators, and their families. 'All year long, we offer special education discounts for verified students and educators,' Rasmussen explained. Additionally, a back-to-school offer valid until Oct. 21 will give eligible buyers the option to receive AirPods or another accessory when purchasing an eligible Mac or iPad. However, the long-awaited question on the minds of Apple device users in Saudi Arabia is: When will there be a physical store in the Kingdom? The company confirmed plans to open its first flagship Apple Store in Saudi Arabia in 2026. 'We absolutely have plans to open stores in the country as well, starting in 2026,' she said. 'My favorite store, which is coming a little after that, is going to be the one we are planning in Diriyah,' added Rasmussen. Apple is currently in the early planning stages for a second store in Diriyah, a UNESCO World Heritage site. When asked about the first physical store's location, Rasmussen said: 'It's a subsequent store... We have been partnering very particularly on the Diriyah site, but it's not going to be the first one,' she told Arab News. 'The investment in Saudi Arabia is something that Apple has been very focused on for a very long time,' Rasmussen stated. 'This is just one step in a broader journey of long-term investment in the Kingdom.' 'Up until now, for the past five years, we have spent more than SR10 billion ($2.67 billion) in development initiatives such as the Apple Developer Academy,' the head of online retail told Arab News.