Riyadh - Sharikat Mubasher: ASMO, a joint venture between Saudi Aramco and DHL Supply Chain, partnered with Arcapita Group Holdings Limited to establish a 1.4 million-square-meter purpose-built logistics facility in King Salman Energy Park (SPARK).
The project will support the Kingdom’s logistics and supply chain development and will be delivered through a forward funding transaction, AMSO announced in a press release yesterday.
Under this partnership, Arcapita will fund and retain ownership of the facility, while ASMO will develop, lease, and operate the asset under a 22-year occupational lease.
Designed for large-scale industrial operations, the facility will include 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.
The investment reflects the shared commitment of parties to developing resilient, scalable, and future-ready institutional-grade logistics infrastructure in the Kingdom.
Salem Al Huraish, Chairman of ASMO, said: “This development reflects the strategic intent behind ASMO’s mandate and reaffirms its role in enabling resilient and future-ready supply chains. By investing in long-term infrastructure and strategic partnerships, ASMO is supporting the Kingdom’s industrial ambitions and contributing to the development of integrated logistics capabilities that serve both national priorities and global markets.”
For his part, Sulaiman Al Rubaian, Aramco Senior Vice President of Procurement and Supply Chain Management, emphasized that ASMO’s new logistics hub will strengthen Aramco’s supply chain resilience by delivering a centralized, high-efficiency facility in the heart of the Saudi energy sector.
The facility represents ASMO’s first purpose-built logistics center and forms part of four planned strategic sites underpinning ASMO’s national logistics network. Once operational, it will serve Aramco, its affiliates, and other key industrial players across the Kingdom.
Isa Al Khalifa, Director and Head of MENA Real Estate at Arcapita, stated that the transaction builds on Arcapita’s established track record in developing and investing in Grade-A logistics and industrial assets. “Combining our local expertise in Saudi Arabia with our experience in complex, forward-funded developments, we are pleased to partner with ASMO to support the development of a purpose-built facility that supports the Kingdom’s energy and industrial sectors, while securing a high-quality asset.”
The new facility will boast advanced warehouse and building management systems, digital integration, automated storage and retrieval systems, robotics, adherence to globally recognized sustainability standards, including photovoltaic readiness, electric vehicle charging, and a LEED Gold certification.