According to a land-concession agreement issued by Saudi Arabia’s State Properties General Administration, Kuwaiti supply chain services and infrastructure business Agility plans to construct a sizable logistics park for storage and distribution close to Jeddah (SPGA).
Beginning in the first quarter of 2023, the Jeddah-Al Mahjar project will witness the construction of a contemporary warehouse complex on a 576,760 square metre plot to the south of Jeddah. Agility Logistics Park – Jeddah is scheduled to open in Q1 2025. In order to create the park, Agility will invest SAR611m ($163m), and it will have a 25-year operating licence.
The most cutting-edge logistics parks in the nation are currently run by Agility: Agility Logistics Parks in Riyadh (870,000 square metres) and Dammam (200,000 square metres).
As part of Saudi Arabia’s comprehensive Vision 2030 vision, the Saudi government has presented a plan to turn the country into a worldwide logistics hub. The Global Supply Chain Resilience Initiative (GSCRI) aims to position the nation as a vital link in global supply chains by developing logistics and industrial infrastructure, economic cities, green energy, innovation, and manufacturing. Its first two years are budgeted to bring in $11 billion in new investment.
According to Bafakih, projects like the Agility facility in Jeddah present a chance to boost the GDP contribution of the nation’s real estate assets while also raising the value of the government’s property, built infrastructure, and sustainable structures.
For a warehouse in Riyadh Park, Agility just achieved the post-construction EDGE Advanced certification (Excellence in Design for Greater Efficiencies). EDGE Advanced buildings are “zero-carbon ready” constructions that use at least 40% less energy than comparable structures.
Governor of the State Properties General Administration Ihsan Bafakih said: “This step will help the SPGA pursue and achieve its strategic objective of efficient management of its real estate assets in a way that maximises the benefits for the development of the economy. The SPGA is studying its real estate portfolio and working towards transforming its assets into lucrative investment opportunities by providing suitable property for sustainable, pioneering projects with private-sector partners.”
“Agility’s Jeddah complex will accelerate Saudi economic growth and make it easier for international and local companies to expand in the kingdom,” said Michel Saab, CEO of Agility Logistics Parks/Global Operations. “Ultra-efficient warehousing and distribution are a huge competitive advantage. Companies operating from these parks shorten their time-to-market, reduce cost and risk, increase inventory turns and boost productivity.”
