Jeddah, Saudi Arabia, August 11, 2026: 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, a major mixed-use logistics and industrial development with an estimated investment value of SAR 5 billion.
Located next to MODON’s Industrial City One in South Jeddah, the project is expected to become one of the Kingdom’s largest integrated logistics and industrial developments. The development supports Saudi Arabia’s wider economic diversification goals under Vision 2030 and aims to strengthen the Kingdom’s position as a regional and global logistics hub.
The project will cover approximately 1.9 million square metres, with around 1.5 million square metres of leasable space. The facilities will be designed to serve manufacturers, logistics companies, distributors, and regional supply chain operators.
The master-planned development will include a range of logistics and industrial facilities, including dry warehouses, cold storage and temperature-controlled facilities, Light Industrial Units (LIUs), and staff accommodation. It will also offer purpose-built Built-to-Demand (BTD) and Build-to-Suit (BTS) facilities for anchor tenants and major regional and international businesses.
Together, these facilities are intended to create an integrated environment supporting industrial operations, logistics services, distribution, and other value-added activities.
The development will be delivered in phases, beginning with purpose-built facilities for anchor tenants. This approach will allow infrastructure and capacity to expand in line with market demand while establishing a strong foundation for the project’s long-term growth. The development is also being planned in alignment with MODON’s long-term strategy for the area.
Under the agreement, Al Rajhi Capital will serve as the Fund Manager, while LogiPoint will act as Asset and Development Manager. The partnership brings together Al Rajhi Capital’s investment expertise and LogiPoint’s experience in developing and managing large-scale logistics infrastructure across Saudi Arabia.
All preliminary approvals for the project have been obtained. Final agreements are expected to be signed before the end of 2026, with groundbreaking targeted for the first half of 2027.
“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,” said Farooq Shaikh, Chief Executive Officer of LogiPoint.
“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,” he added.
Hussam Al-Basrawi, Chief Executive Officer of Al Rajhi Capital, said the partnership reflects the company’s commitment to strategic investments that contribute to Saudi Arabia’s economic development and infrastructure growth.
“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,” Al-Basrawi said.
The South Jeddah Logistics and Industrial Park adds to the Kingdom’s growing logistics infrastructure as Saudi Arabia continues to invest in industrial capacity, supply chain networks, and strategically located logistics facilities. The project is expected to support businesses seeking modern industrial and logistics space while contributing to the development of Jeddah as a key commercial and logistics gateway.
About Al Rajhi Capital
Al Rajhi Capital is a Saudi investment institution providing investment solutions and financial services across asset management, brokerage, investment banking, and wealth management. The company focuses on delivering long-term value while supporting capital market development and the objectives of Saudi Vision 2030.
About LogiPoint
LogiPoint is a Saudi logistics real estate developer and integrated logistics operator offering logistics parks, bonded logistics facilities, Grade-A warehouses, and Build-to-Suit developments. The company operates the Kingdom’s first and largest Bonded and Re-Export Zone at Jeddah Islamic Port, supporting businesses in cargo management, regional market access, and expansion across Saudi Arabia.
