Saudi Arabia Warehousing & Cold Storage Market Grows Amid E-Commerce Surge & Vision 2030 Investments

JEDDAH, Saudi Arabia - March 28, 2025 - PRLog -- According to Makreo Research, in 2024, the Saudi Arabia cold storage market recorded a notable 8.7% year-on-year (YoY) growth, driven by the increasing need for temperature-controlled storage in key cities like Riyadh, Jeddah, and Dammam. As of January 2025, cold storage capacity across the Kingdom expanded by 5.38%, with significant developments in Makkah, Riyadh, and the Eastern Province, strengthening Saudi Arabia's warehousing infrastructure.

Driven by rising demand for advanced logistics, Saudi Arabia is emerging as a regional trade hub with a strong warehousing network and efficient transport routes.

E-Commerce Boom Fuels Demand in Saudi Arabia Warehousing and Cold Storage Market

The e-commerce boom has fueled Saudi Arabia's warehousing growth, with 91% of consumers shopping online in 2023 and 14% making daily purchases. This surge drives demand for temperature-controlled storage for pharmaceuticals, perishables, and cosmetics. Despite progress, gaps in automated cold chain logistics offer investment opportunities in high-tech refrigerated warehousing.

Strategic Developments & Major Investments

• Amazon is enhancing its warehousing infrastructure to support growing e-commerce demand.
• The Saudi Authority for Industrial Cities and Technology Zones (Modon) has initiated the development of 14 high-tech warehouses in Jeddah, catering to global e-commerce giants.
• The Saudi Ports Authority, in collaboration with Saudi Global Ports, is investing SAR 1 billion (USD 266 million) to build a logistics park at King Abdulaziz Port in Dammam, spanning over one million square meters.

Vision 2030: A Catalyst for Growth

Saudi Arabia's Vision 2030 is fueling warehousing and cold storage growth, targeting USD 103B in annual FDI and USD 450B in domestic investments by 2030. Major Riyadh projects like Diriyah Gate and King Salman Park are boosting demand, solidifying the city's role as a logistics hub.

Future Growth & Investment Opportunities

With increasing demand for warehousing infrastructure, leading logistics firms are making strategic moves:

• DB Schenker & Kaden are developing a custom-built logistics facility in Jeddah.
• Gulf Islamic Investments & Logipoint have launched a Grade A logistics platform worth SAR 1 billion (USD 300 million).
• Arcapita Capital & Flow Progressive Logistics are constructing an 80,000 m² mixed-use logistics hub in Riyadh.

Makreo Research's latest report, Saudi Arabia Warehousing and Cold Storage Market Size and Forecast (2019-2030), offers in-depth insights into market trends, major players, and investment opportunities.

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Saudi Arabia Warehousing and Cold Storage Market Size and Forecast (2019-2030) (https://www.makreo.com/report/saudi-arabia-warehousing-an...)

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