Al Rajhi Capital and LogiPoint Sign MoU for Jeddah Logistics Park

Al Rajhi Capital and LogiPoint have signed a Memorandum of Understanding (MoU) to establish a dedicated investment fund for the development of the South Jeddah Logistics and Industrial Park. The project, which is billed as a mixed-use logistics and industrial development in South Jeddah, has a total investment value of US $1.3 billion. Spanning 1.9 million square meters, it will offer 1.5 million square meters of leasable space tailored to meet the demands of manufacturers, logistics providers, distributors, and regional supply chain operators. This project is poised to emerge as one of the Kingdom’s significant integrated logistics and industrial developments. It aims to bolster Saudi Arabia’s ongoing economic diversification efforts and solidify its position as a global logistics hub under Vision 2030. The master-planned development will encompass a diverse range of logistics and industrial assets, including dry warehouses, cold storage and temperature-controlled facilities, Light Industrial Units (LIUs), and staff accommodation. The development will include purpose-built Built-to-Demand (BTD) and Build-to-Suit (BTS) facilities specifically designed to accommodate anchor tenants and regional and international businesses. LogiPoint CEO, Farooq Shaikh said, “Saudi Arabia’s logistics sector is entering a new phase of growth, where customers increasingly require integrated developments that combine modern infrastructure, operational flexibility, and long-term scalability. The South Jeddah Logistics and Industrial Park has been designed to meet those evolving requirements. Through our partnership with Al Rajhi Capital, we are bringing together institutional investment and logistics expertise to deliver infrastructure that supports industrial growth, attracts new investment, and strengthens the kingdom’s position as a regional logistics hub.” Hussam Al Basrawi, CEO, Al Rajhi capital added, “This partnership reflects its commitment to enabling strategic investments that contribute to the Kingdom’s economic development and the advancement of high-quality infrastructure projects. By combining our investment expertise with LogiPoint’s development capabilities, we aim to deliver sustainable long-term value for our investors while supporting Saudi Arabia’s Vision 2030 and strengthening the Kingdom’s logistics ecosystem.” Under the agreement, Al Rajhi Capital will serve as Fund Manager, while LogiPoint will act as Asset and Development Manager. LogiPoint will leverage its expertise in the development and management of large-scale logistics infrastructure across Saudi Arabia. Al Rajhi Capital said it has obtained all preliminary approvals for the project. Final agreements are expected to be signed by the end of the year, and groundbreaking is scheduled for the first half of 2027.