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New Logistics Zone Boosts Saudi Supply Chain

Falcon City development enhances logistics efficiency

by Huda Marshad
April 7, 2025
in Logistics
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A new logistics zone valued at SR4 billion ($1.06 billion) is set to be developed in Falcon City, northern Riyadh, following a collaboration between Saudi companies SAL and Sela Co. This initiative aims to enhance supply chain efficiency through integrated infrastructure, Class A warehouses, and smart logistics technologies.

The project, supported by the Private Sector Partnership Program (Shareek), seeks to bolster Saudi Arabia’s status as a global logistics hub. The Kingdom plans to inject over SR1 trillion into the logistics sector by 2030, with the number of facilities already increasing by 267% since 2021.

Omar bin Talal Hariri, CEO of SAL, described the SAL Logistics Zone as a model for future integrated logistics services, emphasizing the use of technology and sustainability to attract investment and support economic growth.

The 1.5 million sq. meter logistics zone agreement was signed in Riyadh, attended by Minister of Transport and Logistics Services Saleh Al-Jasser, Minister of Investment Khalid Al-Falih, and CEO of the Shareek Program Center Abdulaziz bin Abdulrahman Al-Arifi, among other officials and business leaders.

Falcon City is envisioned as an integrated economic destination that will include the Riyadh Exhibition and Convention Center, a modern logistics zone, an aviation runway, and an aircraft maintenance hub. The development will also feature economic, commercial, and residential areas, along with hospitality, entertainment zones, and an outlet mall.

This strategic partnership aligns with Saudi Vision 2030 by enhancing logistics connectivity, fostering local and international investments, and developing modern infrastructure to attract businesses. It strengthens Saudi Arabia’s role in regional and international trade, promoting sustainable economic growth and positioning the nation as a leading logistics powerhouse.

Tags: Falcon CityPrivate Sector Partnership ProgramSaudi Vision 2030Smart Logisticssupply chain efficiency
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