ASMO, a joint venture between Aramco and DHL Supply Chain, has partnered with Arcapita Group Holdings Limited, a global alternative investment firm, to develop a 1.4 million-square-metre purpose-built logistics facility in Saudi Arabia 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.
Through the 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. The facility will include a 43,000-square-metre temperature-controlled Grade-A logistics warehouse, more than 3,000 square metres of offices and staff facilities, 5,300 square metres of dedicated chemical storage space, and a 1.2 million-square-metre open yard. The investment reflects a shared goal to develop resilient, scalable and future-ready institutional-grade logistics infrastructure in the kingdom.
Designed for large-scale industrial operations, the facility will help boast advanced warehouse and building management systems, digital integration, automated storage and retrieval systems, robotics, adherence to globally recognised sustainability standards, including photovoltaic readiness, electric vehicle charging, and a LEED Gold certification.
“This development reflects the strategic intent behind ASMO’s mandate and reaffirms its role in enabling resilient and future-ready supply chains”, said Salem Al Huraish, chairman of ASMO.
“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.”
The facility represents ASMO’s first purpose-built logistics centre and forms part of four planned strategic sites underpinning ASMO’s national logistics network, aligned with the National Transport and Logistics Strategy under Saudi Vision 2030. Once operational, it will serve Aramco, its affiliates, and other key industrial players across the Kingdom.
“ASMO’s new logistics hub at SPARK helps to strengthen Aramco’s supply chain resilience by delivering a centralised, high-efficiency facility in the heart of Saudi Arabia’s energy sector. As an anchor customer, we recognise the value of ASMO’s strategic investments in logistics infrastructure, demonstrating their ambition to deliver innovative, customer-focused solutions across the supply chain,” said Sulaiman Al Rubaian, Aramco senior vice president of procurement and supply chain management.
Isa Al Khalifa, director and head of Mena real estate at Arcapita, said: “This 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.”
Mishal Al Zughaibi, president and chief executive of King Salman Energy Park, said: “We are pleased to welcome ASMO to SPARK as part of a strategic partnership that further strengthens SPARK’s position as a premier logistics hub aligned with the kingdom’s Vision 2030. This significant investment reflects the strong collaboration and ambition of all parties involved. SPARK’s advanced infrastructure and comprehensive services were a key factor in ASMO’s decision to establish its state-of-the-art logistics centre within our park.”
Within Saudi Arabia’s energy ecosystem, SPARK is strategically 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.
