Riyadh – Mubasher: ASMO, a joint venture (JV) between the listed Saudi Arabian Oil Company (Aramco) and DHL Supply Chain, has teamed up with global alternative investment firm Arcapita Group Holdings Limited to develop a 1.40 million square meter purpose-built logistics facility at King Salman Energy Park (SPARK) in Saudi Arabia.
Arcapita will fund and retain ownership of the facility, while ASMO will develop, lease, and operate the asset under a 22-year occupational lease, according to a press release.
The facility is designed to support the next phase of Saudi Arabia’s logistics and supply chain development, while the project will be delivered through a forward funding transaction that reflects a long-term investment in national infrastructure.
With 43,000 square meter allocated for temperature-controlled Grade-A logistics warehouse, the project will have more than 3,000 square meters of offices and staff facilities, in addition to comprising a 5,300 square meters of dedicated chemical storage space and a 1.20 million square meter open yard.
The facility represents ASMO’s first purpose-built logistics center and forms part of four planned strategic sites underpinning ASMO’s national logistics network, aligned with the National Transport and Logistics Strategy (NTLS) under Saudi Vision 2030.
Once operational, the project will serve Aramco, its affiliates, and other key industrial players across Saudi Arabia.
Chairman of ASMO, Salem Al Huraish, 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.”
The facility is designed for large-scale industrial operations and will help boast advanced warehouse and building management systems, digital integration, automated storage and retrieval systems, robotics, adherence to globally recognized sustainability standards, including photovoltaic readiness, electrical vehicle charging, and a LEED Gold certification.
Sulaiman Al Rubaian, Aramco Senior Vice President of Procurement and Supply Chain Management, noted: “ASMO’s new logistics hub at SPARK helps to strengthen Aramco’s supply chain resilience by delivering a centralized, high-efficiency facility in the heart of Saudi Arabia’s energy sector.”
Al Rubaian added: “As an anchor customer, we recognize the value of ASMO’s strategic investments in logistics infrastructure, demonstrating their ambition to delivering innovative, customer-focused solutions across the supply chain.”
Arcapita’s Isa Al Khalifa, the Director and Head of MENA Real Estate, 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.”
Meanwhile, Mishal Al Zughaibi, President and CEO of SPARK, said: “This significant investment reflects the strong collaboration and ambition of all parties involved.”
Al Zughaibi concluded: “SPARK’s advanced infrastructure and comprehensive services were a key factor in ASMO’s decision to establish its state-of-the-art logistics center within our park.”
It is worth noting that SPARK is strategically positioned between Dammam Seaport, Aramco’s Abqaiq facilities, and Al Hasa, enabling direct connectivity across the energy and industrial network of Saudi Arabia. The site supports integrated operations through modern infrastructure and digital readiness and has attracted more than 70 investors from 16 countries, with Phase I infrastructure representing a total investment of $1.60 billion.
