Special Integrated Logistics Zone Company (SILZ) Signs Strategic Lease Agreement with DHL to Enhance Kingdom’s Global Logistics Hub Status with SAR 561.5 million Investment
The Special Integrated Logistics Zone Company (SILZ Company), the developer and operator of Riyadh Integrated (the Kingdom’s first Special Integrated Logistics Zone), today announced the signing of a strategic lease agreement with DHL, the world’s leading express logistics partner.
This partnership is part of SILZ Company’s continuous efforts to support the goals of Saudi Vision 2030 to transform the Kingdom into a global logistics platform connecting the continents of Asia, Africa, and Europe, while accelerating the growth of the digital economy and e-commerce in the region. The DHL facility, operating as a technology hub, will focus on advanced logistics for personal, infrastructure, and medical device technologies.
The agreement, spanning a duration of 26 years and covering a land area of 78,506 square meters, featuring 53,000 square meters of advanced multi-use warehouse space serving multiple industries, enables DHL to enhance its operational network in the region and benefit from the smart and integrated logistics infrastructure provided by SILZ Company, which will contribute to reducing the transit time of shipments to beneficiaries in the Kingdom and the wider region.
Commenting on the step, Dr. Fadi Al-Buhairan, Chief Executive Officer of the Special Integrated Logistics Zone Company, stated: “Our vision has always been to build the next generation of smart logistics infrastructure. Our partnership with DHL is a fusion of SILZ Company’s premium infrastructure and DHL’s speed and global network. This is a milestone deal as DHL will be our anchor tenant in logistics, making this facility their regional hub. The entry of a partner the size of DHL into the Riyadh Integrated ecosystem reflects confidence in our stimulating regulatory environment”.
Mostapha Mokdad, DHL Supply Chain KSA’s Managing Director emphasized during the signing ceremony that “In line with the Kingdom’s Vision 2030, DHL Supply Chain has prioritized the National strategy of establishing Saudi Arabia as a global logistics hub, our lighthouse site at Riyadh Integrated is a testimony of supporting our global customers to actively serve the Kingdom of Saudi Arabia as the largest market in the region along with the wider Middle East and Africa region, through KSA”.
The Riyadh Integrated zone spans 3 million square meters and is located near King Khalid International Airport, providing direct access to express air cargo operations, which is vital for the trade sector. The zone is designed as a “one-stop shop” allowing global companies to complete all operations, from storage and distribution to value-added services such as light assembly and maintenance.
DHL benefits from the competitive advantages offered by SILZ, including 100% foreign ownership and a 50-year tax exemption, creating an attractive and sustainable investment environment.
This partnership is expected to contribute to the development of innovative logistics solutions utilizing advanced technologies, reinforcing SILZ Company’s efforts to set a new global standard for operational efficiency in the region. It will also create quality opportunities for training and developing national talent in the fields of smart logistics and e-commerce, in line with the company’s goal of providing 60,000 jobs in the sector.
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About SILZ – Special Integrated Logistics Zone Company
The Special Integrated Logistics Zone Company (SILZ) is the developer and operator of the first Special Integrated Logistics Free Zone in Saudi Arabia. SILZ Company is responsible for Saudi Arabia’s first such zone, Riyadh Integrated.
Leveraging advanced technology and deep industry expertise, SILZ Company provides comprehensive and innovative logistics solutions. With a focus on efficiency and flexibility, it is setting new industry standards, contributing to the Kingdom’s economic growth, and offering a one-stop shop to companies looking to invest in the Kingdom and the region.
About Riyadh Integrated – The Special Integrated Logistics Zone
Riyadh Integrated is the Kingdom’s first Special Integrated Logistics Zone. Covering 3 million square meters in close proximity to King Khalid International Airport, the zone was designed in collaboration with industry leaders and anchor investors as a fully developed and integrated commercial ecosystem.
Riyadh Integrated caters to activities including light assembly, light manufacturing and repair; trade and distribution; import and export; logistics and value-added services; and recycling activities. Using global regulatory, technological, and infrastructure best practices, it offers numerous competitive advantages amid the Kingdom’s robust economy and strategic location.
