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Riyadh logistics zone: SAL invests SAR 4.2bn

30-year lease at Falcon City to build tech-enabled warehouses and boost Vision 2030 logistics.

by Huda Marshad
October 10, 2025
in Logistics
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Saudi Logistics Services Company (SAL) plans to build one of Saudi Arabia’s largest privately developed logistics zones at Falcon City in northern Riyadh. The company expects to invest about SAR 4.2 billion ($1.14 billion), according to the company’s announcement.

To secure the site, SAL signed a 30-year lease for 1.57 million square metres with Sela Company, with a 15-year extension option and a three-year grace period, according to a statement to the Saudi stock exchange. The lease starts at SAR 16 per square metre annually and rises 1.5% each year, the filing showed.

The development will feature high-capacity, tech-enabled warehouses, including digital inventory systems, temperature-controlled facilities, and automated handling. It is designed to support cargo handling, distribution, e-commerce logistics, and a range of industrial activities.

Positioned to link with major air, sea, and land corridors, the project aligns with the National Transport and Logistics Strategy and Saudi Arabia’s Vision 2030 goals to strengthen global connectivity. Public-private partnerships and infrastructure upgrades are expected to accelerate its rollout.

Industry observers see rising demand for Grade A space and integrated logistics solutions amid e-commerce growth, industrial expansion, and trade activity. SAL’s investment is anticipated to create jobs, enhance supply chain resilience, and bolster Saudi Arabia’s appeal to regional and international investors.

Tags: E-commerce LogisticsFalcon City RiyadhGrade A warehousesSAL Saudi Logistics ServicesVision 2030 logistics
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