GFH Financial Group to Develop Saudi Logistics Sector

Saudi Arabia has moved another step forward in its plans to become a preferred logistics hub in the region with the Bahrain-based GFH Financial Group (GFH), a leading financial institution with a strategic focus on logistics infrastructure, signing two separate agreements with as many companies to develop 500,000 sq. m. of state-of-the-art logistics facilities in Saudi Arabia.

In the first agreement signed during the last week’s Future Investment Initiative summit, the collaboration focuses on creating high-quality logistics and industrial infrastructure across key cities, including Riyadh, Jeddah, and Dammam with a total planned investment of $500 million over the coming five years, and an initial allocation of $ 00 million to support Phase 1 and other development initiatives.

Panattoni is one of the world’s largest private developers of industrial real estate and from the start of its operations in 2005, it has been a leader in Europe.

The second agreement pertains to GFH signing a Head of Terms with the Qatar-based Gulf Warehousing Company (GWC), one of the GCC’s premier logistics providers. This partnership also aims to establish 200,000 sq. m. of state-of-the-art Grade A logistics facilities across major Saudi Arabian trade hubs, including Riyadh, Jeddah, and Dammam.

First Phase

The first phase of the partnership with Panattoni includes the development of a logistics park in South Riyadh, adjacent to Al Kharj Road. The facility will cover a built-up area of 50,000 sq. m., strategically designed to support the increasing demand for premium logistics solutions in and around the capital.

GFH Capital CEO Razi Almerbati said that the collaboration with Panattoni is a testament to their commitment to support Saudi Arabia’s Vision 2030, which aims to make the country a global logistics hub and a leader in sustainable and innovative logistics solutions.

He said that the logistics sector is a central pillar of the Kingdom’s diversification strategy, and we are proud to launch these investments which will drive economic growth by enhancing the quality of logistics infrastructure.

Panattoni will leverage its expertise in development management to ensure the highest standards in the design, construction, and delivery of the logistics facilities. In parallel, GFH will provide robust financial support and oversee the sourcing of tenants and leasing activities, ensuring seamless execution.

To this end, GFH’s agreement with GWC Logistics (GWC), one of the leading logistics providers in the GCC, will support GWC in its expansion through the leasing up to 200,000 sq. m. of logistics space developed by Panattoni over the next four years.

Daniele Sotti, Managing Director at Panattoni Saudi Arabia, said that their extensive experience in developing Grade ‘A’ logistics facilities will play a pivotal role in creating a sustainable and efficient logistics ecosystem in Saudi Arabia.

GWC’s involvement as an anchor tenant is a milestone in the project, reinforcing the long-term viability and operational relevance of the planned logistics facilities.

GWC will collaborate with the development team to ensure the properties meet its specific operational requirements, which include high-grade logistics standards, special infrastructure and temperature-controlled storage capabilities.