Asmo Company, a joint venture between DHL and Saudi Aramco, today announced a partnership with Alcapita Group Holdings Limited (“Alcapita”), a leading global alternative investment company, to develop a 1.4 million square meter specialized logistics facility in King Salman Energy City “Spark”. The project will be a qualitative step in the Saudi logistics infrastructure development process, as it will be implemented through a pre-financing model that reflects long-term investment in state-owned assets that will support industrial growth and increase supply chain efficiency.
Under the partnership, Arcapita Group will provide financing and retain ownership of the facility, while ASMO will develop, lease and operate it under a 22-year operating lease. The facility includes a 43,000 square meter first-class logistics warehouse with a temperature-controlled system, as well as more than 3,000 square meters of office and employee facilities, a 3,500,000 square meter dedicated area for chemical storage, and a 1.2 million square meter open operating yard. This investment reflects a shared vision to develop a flexible and scalable infrastructure that will help meet growing demand in the Kingdom.
The facility is designed to support large-scale industrial businesses by implementing advanced warehouse and building management systems, robotic systems, automated storage and retrieval systems, and an integrated digital architecture that increases operational efficiency. The facility will also adhere to the highest global standards for sustainability, including installing solar energy systems, providing charging stations for electric vehicles, and achieving LEED Gold certification.
Salem Al Freish, Chairman of ASMO’s Board of Directors, said: “This project reflects the strategic direction of ASMO’s business and confirms ASMO’s role in providing flexible and future-proof supply chains. By investing in long-term infrastructure and establishing strategic partnerships, we will support Saudi Arabia’s industrial ambitions and contribute to the development of integrated logistics capabilities to serve the country’s priorities and global markets.”
This “Spark” facility is the first logistics center developed specifically for Asmo as part of the plan to establish four strategic locations that will form the fundamental pillars of the national logistics network to achieve the goals of Saudi Vision 2030, in line with the National Transport and Logistics Services Strategy (NTLS). Once operational, the facility will serve Saudi Aramco and its subsidiaries, as well as other major Saudi industry groups.
Suleiman Alrubayan, Saudi Aramco’s senior vice president of procurement and supply chain management, said: “Spark’s new ASMO logistics center will expand Saudi Aramco’s supply chain by providing a highly efficient central logistics facility at the heart of Saudi Aramco’s energy sector. As a central party, we appreciate the importance of strategic investments in logistics infrastructure by ASMO and strive to provide innovative solutions tailored to market requirements across various supply chain activities.
Sheikh Issa bin Hussam Al Khalifa, Alcapita Group’s Director of Real Estate Management in the Middle East and North Africa, said: “This transaction strengthens Alcapita Group’s track record in developing and investing in first-class logistics and industrial assets. Combining our local expertise in the Kingdom of Labia and our experience in executing complex development projects that were funded before completion, we are pleased to work with ASMO to support the development of a facility specifically designed for energy supply.” Our collaboration with the Kingdom’s industrial sector allows us to add high-quality assets to our investment portfolio. ”
Mishal Al Zogaibi, CEO of King Salman Energy City (SPARK), also welcomed this partnership with ASMO and expressed his pleasure at this strategic partnership that strengthens the city’s position as a major logistics center in line with the goals of Saudi Vision 2030, noting that this qualitative investment embodies the close cooperation of all parties involved. He further added, “The advanced infrastructure and integrated services offered by Spark were a major motivator for Asmo’s decision to establish an advanced logistics center in the city.”
Spark City is strategically located within the Kingdom’s energy system, linking the Port of Dammam with Saudi Aramco’s facilities in Abqaiq and Al-Ahsa provinces, enabling direct and integrated communications across the energy and industrial sector networks across the Kingdom. The city has successfully attracted more than 70 investors from 16 countries, offering modern infrastructure and advanced digital readiness to support highly efficient business integration. Investments in the first phase of infrastructure development amounted to approximately USD 1.6 billion, reflecting the region’s status as a promising industrial and logistics center.
Asmo Company, a joint venture between DHL and Saudi Aramco, today announced that it has partnered with Alcapita Group Holdings Limited (“Alcapita”), one of the world’s leading alternative investment companies, to develop a specialized logistics facility covering an area of 1.4 million square meters in King Salman Energy City ‘Spark’. The project represents a qualitative step in the development of Saudi logistics infrastructure, as it will be implemented through a pre-financing model that reflects long-term investment in state-owned assets that supports industrial growth and increases supply chain efficiency.
Under the partnership, Arcapita Group will finance and retain ownership of the facility, while Asmo will develop, lease and operate it under a 22-year operational lease agreement. The facility will include a 43,000 square meter first-class logistics warehouse with a temperature-controlled system, as well as over 3,000 square meters of office and employee facilities, a 3,500 square meter dedicated area for drug storage, and a 1.2 million square meter open operating yard. This investment reflects a shared vision to develop flexible and scalable infrastructure to meet the growing demands in the Kingdom.
The facility is designed to support large-scale industrial operations by implementing advanced systems for warehouse management, buildings, robotic systems, automated storage and retrieval systems, and an integrated digital infrastructure that increases operational efficiency. The facility will also adhere to the world’s highest sustainability standards, including the installation of solar energy systems and provision of charging stations for electric vehicles, achieving LEED Gold certification.
Salem Al-Fraish, Chairman of Asmo, said: “This project reflects Asmo’s strategic direction and confirms Asmo’s role in providing a future-ready and flexible supply chain. By investing in long-term infrastructure and establishing strategic partnerships, we will support Saudi Arabia’s industrial ambitions and contribute to the development of integrated logistics capabilities that serve national goals and global markets.”
This ‘Spark’ facility is the first logistics center developed specifically for Asmo, in line with the National Transport and Logistics Strategy (NTLS), as part of the plan to achieve the goals of Saudi Vision 2030 and establish four strategic locations that will form the basis of the national logistics network. Once operational, the facility will serve Saudi Aramco and its subsidiaries, as well as other major Saudi industry groups.
Sheikh Isa bin Hussam Al Khalifa, Alcapita Group’s Property Management Director for the Middle East and North Africa, said: “This agreement strengthens Alcapita’s track record of developing and investing in premier logistics and industrial assets. Combining our expertise and experience in executing complex pre-financed development projects, we are pleased to work with Asmo to support the development of a facility specifically designed to serve Saudi Arabia’s energy and industrial sectors.” Kingdom allows us to add high-quality assets to our investment portfolio. ”
Mishal Al Zuhairi, CEO of King Salman Energy City (Spark), welcomed this partnership with Asmo and expressed his pleasure at this strategic alliance that strengthens the city’s position as a major logistics hub in line with the goals of Saudi Vision 2030, noting that this qualitative investment embodies the close cooperation between all stakeholders. He further added, “The advanced infrastructure and integrated services provided by Spark are a major driving force behind Asmo’s decision to establish an advanced logistics center in the city.”
King Salman Energy City (Spark) is strategically located within the Kingdom’s energy ecosystem, linking the Port of Dammam with Saudi Aramco’s facilities in Abqaiq and Al Ahsa governorates, enabling direct and integrated connectivity across the energy and industrial sectors across the Kingdom. The city offers modern infrastructure and advanced digital readiness to support the integration of operations with high efficiency, and has successfully attracted more than 70 investors from 16 countries. Investments in the first phase of infrastructure development amount to approximately $1.6 billion, reflecting the region’s status as a promising industrial and logistics hub.
