Dammam: ASMO, a joint venture between Aramco and DHL Supply Chain, has partnered with Arcapita Group Holdings Limited (Arcapita), a global alternative investment firm, to develop a 1.4 million square meter purpose-built logistics facility in Saudi Arabia. This facility is designed to support the next phase of the Kingdom's logistics and supply chain development. The project will be delivered through a forward funding transaction, reflecting a long-term investment in national infrastructure.
According to Bahrain News Agency, Arcapita will fund and retain ownership of the facility, while ASMO will develop, lease, and operate the asset under a 22-year occupational lease. The facility will encompass a 43,000 square meter temperature-controlled Grade-A logistics warehouse, over 3,000 square meters of offices and staff facilities, 5,300 square meters of dedicated chemical storage space, and a 1.2 million square meter open yard. This investment demonstrates a shared goal by the parties to develop resilient, scalable, and future-ready logistics infrastructure in the Kingdom.
The facility is designed for large-scale industrial operations and will feature advanced warehouse and building management systems, digital integration, automated storage and retrieval systems, robotics, and adherence to globally recognized sustainability standards. These include photovoltaic readiness, electrical vehicle charging, and a LEED Gold certification.
Salem Al Huraish, Chairman of ASMO, stated that this development reflects the strategic intent behind ASMO's mandate and reaffirms its role in enabling resilient and future-ready supply chains. He emphasized how investing in long-term infrastructure and strategic partnerships supports the Kingdom's industrial ambitions and contributes to the development of integrated logistics capabilities serving both national priorities and global markets.
The facility is ASMO's first purpose-built logistics center and forms part of four planned strategic sites underpinning ASMO's national logistics network. This aligns with the National Transport and Logistics Strategy (NTLS) under Saudi Vision 2030. Once operational, it will serve Aramco, its affiliates, and other key industrial players across the Kingdom.
Sulaiman Al Rubaian, Aramco Senior Vice President of Procurement and Supply Chain Management, noted that ASMO's new logistics hub at SPARK strengthens Aramco's supply chain resilience by delivering a centralized, high-efficiency facility in the heart of Saudi Arabia's energy sector. As an anchor customer, Aramco recognizes the value of ASMO's strategic investments in logistics infrastructure, highlighting their ambition to deliver innovative, customer-focused solutions across the supply chain.
Shaikh Isa bin Hussam Al Khalifa, Director and Head of MENA Real Estate at Arcapita, commented on the transaction, highlighting Arcapita's established track record in developing and investing in Grade-A logistics and industrial assets. By combining local expertise in Saudi Arabia with experience in complex, forward-funded developments, Arcapita is pleased to partner with ASMO to support the development of a facility that supports the Kingdom's energy and industrial sectors while securing a high-quality asset.
Mishal Al Zughaibi, President and CEO of King Salman Energy Park (SPARK), expressed pleasure in welcoming ASMO to SPARK as part of a strategic partnership that enhances SPARK's position as a premier logistics hub aligned with the Kingdom's Vision 2030. The significant investment reflects the strong collaboration and ambition of all parties involved.
Strategically located within Saudi Arabia's energy ecosystem, SPARK is positioned between Dammam Seaport, Aramco's Abqaiq facilities, and Al Hasa, enabling direct connectivity across the Kingdom's energy and industrial network. The site supports integrated operations through modern infrastructure and digital readiness and has attracted more than 70 investors from 16 countries, with Phase One infrastructure representing a total investment of $1.6 billion.