ASMO, a joint venture between Saudi oil giant Aramco and multinational logistics company DHL Supply Chain, has signed a partnership agreement with global alternative investment firm Alcapita Group Holdings to develop a 1.4 million square meter purpose-built logistics facility in Saudi Arabia’s King Salman Energy Park (Spark) designed to support the next stage of Saudi logistics and supply chain development.
Key facilities include a 43,000 square meter temperature-controlled Grade A distribution warehouse, over 3,000 square meters of office and staff facilities, 5,300 square meters of dedicated chemical storage space and 1.2 million square meters of open yards.
The investment reflects the parties’ shared goal of developing resilient, scalable and future-proof institutional-grade logistics infrastructure in the Kingdom, ASMO said in a statement.
It says the facility is designed for large-scale industrial operations and boasts advanced warehouse and building management systems, digital integration, automated storage and retrieval systems, robotics, solar compatibility, electric vehicle charging, and compliance with globally recognized sustainability standards, including LEED Gold certification.
Under the agreement, Arcapita will finance and retain ownership of the facility, while ASMO will develop, lease and operate the asset under a 22-year occupational lease.
It added that the project will be realized through forward financing transactions that reflect long-term investments in national infrastructure.
Regarding the strategic partnership, Salem Al Huraysh, Chairman, said that this development reflects the strategic intent behind ASMO’s mission and reaffirms ASMO’s role in enabling resilient and future-ready supply chains.
“By investing in long-term infrastructure and strategic partnerships, ASMO is supporting Saudi Arabia’s industrial ambitions and contributing to the development of integrated logistics capabilities that serve both national priorities and global markets,” Al-Fraish said.
The facility is ASMO’s first purpose-built logistics center and forms part of four planned strategic locations supporting the national logistics network in line with the National Transport and Logistics Strategy (NTLS) under Saudi Vision 2030, the official said.
He added that once operational, it will serve Aramco and its affiliates, as well as other major industrial companies across the Kingdom.
Sulaiman Al Rubaian, Aramco’s senior vice president of procurement and supply chain management, said ASMO’s new logistics hub in Spark will help strengthen the resilience of Aramco’s supply chain by providing a centralized, high-efficiency facility in the heart of Saudi Arabia’s energy sector.
Mr Al Rubaian said: “As a major customer, we recognize the value of ASMO’s strategic investments in logistics infrastructure, demonstrating ASMO’s ambition to provide innovative and customer-focused solutions across the supply chain.”
Located within Saudi Arabia’s energy ecosystem, Spark is strategically located between Dammam Seaport, Aramco’s Abqaiq facility and Al Hassa, enabling direct connectivity across the Kingdom’s energy and industrial networks.
The site supports integrated operations through state-of-the-art infrastructure and digital readiness, and has attracted more than 70 investors from 16 countries, with total infrastructure investment in the first phase reaching $1.6 billion.
Isa Al Khalifa, Director and Head of Mena Real Estate at Alcapita, said the transaction builds on the company’s established track record in developing and investing in Grade A logistics and industrial assets.
He said: “We are pleased to partner with ASMO to combine our local expertise in Saudi Arabia with our experience in complex prepaid developments to support the development of purpose-built facilities that support the Saudi energy and industrial sectors, while securing high-quality assets.”
Mishal Al Zugaibi, President and CEO of Spark, said: “We are pleased to welcome ASMO to Spark as part of a strategic partnership that will further strengthen our position as a premier logistics hub in line with the Kingdom’s Vision 2030.”
“This significant investment reflects the strong collaboration and ambition of all involved. Spark’s advanced infrastructure and comprehensive services were key factors in ASMO’s decision to establish a state-of-the-art logistics center within the park,” he added.
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