DHL Supply Chain plans EUR130 million regional logistics hub at SILZ
The project is part of the EUR500 million investment DHL Group has announced for the Middle East through 2030.
DHL Supply Chain will invest EUR130 million to build a new regional logistics and distribution hub at the Special Integrated Logistics Zone(SILZ) in Riyadh. The company has signed a land lease agreement with SILZ as part of its plan to expand operations in Saudi Arabia and support the Kingdom’s Vision 2030 objectives.
The facility will be developed on a 78,000-square-metre site and will include 53,000 square metres of multi-user warehousing space. DHL said the site will serve sectors such as technology, retail, consumer, automotive, energy, and e-commerce. Construction will begin in the first quarter of 2026 and is slated for completion in the second quarter of 2027. The project is part of the EUR500 million investment DHL Group has announced for the Middle East through 2030.
Hendrik Venter, CEO of DHL Supply Chain, said, “The Middle East is one of the fastest-growing logistics regions globally, and Saudi Arabia sits at the centre of this transformation. 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 multiuser facility at SILZ will not only accelerate supply chain resilience and connectivity but also enable global businesses to migrate their distribution centres to the Kingdom, positioning them to thrive in a market that is becoming a true gateway between Asia, Europe, and Africa.”
Dr Fadi Al-Buhairan, Chief Executive Officer of the Special Integrated Logistics Zone Company, said, “Our vision has always been to build the next generation of smart logistics infrastructure. Our partnership with DHL is a fusion of SILZ Company's premium infrastructure and DHL's speed and global network. This is a milestone deal, as DHL will be our anchor tenant in logistics, making this facility their regional hub. The entry of a partner the size of DHL into the Riyadh Integrated ecosystem reflects confidence in our stimulating regulatory environment.”
The site is located eight kilometres from King Khalid International Airport and connected by a bonded corridor. DHL said this will enable faster lead times for imports and exports and support the Kingdom’s position as a gateway to regional and global markets.
Mostapha Mokdad, Managing Director for DHL Supply Chain KSA, said, “In line with the Kingdom's Vision 2030, DHL Supply Chain has prioritised the national strategy of establishing Saudi Arabia as a global logistics hub. Our lighthouse site at SILZ is a testimony of supporting our global customers to actively serve the Kingdom of Saudi Arabia as the largest market in the region, along with the wider Middle East and Africa region, through KSA.”
The agreement marks an expansion of DHL Supply Chain’s long-term plans for Saudi Arabia. The facility is expected to create employment opportunities and support workforce development aligned with Vision 2030. DHL and SILZ will continue collaborating during construction and development to strengthen regional connectivity and generate long-term economic impact.
