Arcapita and Flow Collaborate to Develop State-of-the-Art Logistics Complex in Riyadh
In a groundbreaking move, Arcapita Capital Company (Arcapita), a subsidiary of Arcapita Group Holdings Limited, joined forces with Flow Progressive Logistics (Flow), a leading end-to-end supply chain management company under Alsulaiman Group, to establish a cutting-edge class A logistics complex in Riyadh. This historic partnership was solidified during the Supply Chain and Logistics Conference held in the capital city.
Expanding Logistics Infrastructure
As per the agreement, Arcapita will spearhead the development of an 80,000 square meter mixed-use storage facility. This complex will boast a variety of storage options, including cold storage, dry storage, temperature-controlled facilities, as well as specialized areas for pharmaceutical and hazardous goods. Flow, renowned for its international shipping, customs clearance, warehousing, transportation, delivery, and reverse logistics services, will operate the facility under a long-term lease agreement.
Supporting Saudi Vision 2030
This collaboration marks a significant expansion of Arcapita’s logistics real estate portfolio in Saudi Arabia and aligns with the country’s Vision 2030 objectives to diversify the economy and enhance market infrastructure. The Ministry of Transport and Logistics has played a pivotal role in fostering sectoral growth, encouraging private sector involvement. The industrial and logistics sectors are integral components of Saudi Arabia’s Global Supply Chain Resilience Initiative, aiming to attract investments totaling SR 40 billion ($10.6 billion).
Voices of the Leaders
Isa Al Khalifa, Director of Real Estate Investments at Arcapita, expressed enthusiasm about the partnership, highlighting the positive supply-demand dynamics in the Saudi industrial and logistics market. He emphasized the growing need for modern logistics facilities in Riyadh, positioning the city as a strategic hub for regional and international businesses.
Achraf Ellili, CEO at Flow, echoed Al Khalifa’s sentiments, noting that the collaboration with Arcapita signifies a significant milestone for Flow’s expansion in the Kingdom. The new facilities will cater to the rising demand for comprehensive supply chain services, aligning with Saudi Arabia’s economic transformation goals.
Driving Innovation and Growth
Flow’s advanced logistics capabilities, including one of the largest fully automated logistics facilities in the region, showcase its commitment to digital innovation and client-centric solutions. Through this partnership, Flow aims to create employment opportunities for local talent, contributing to Saudi Arabia’s economic vision.
Strategic Real Estate Expansion
Arcapita Group’s significant presence in the GCC’s industrial real estate sector, managing over $1 billion in assets, positions it as a key player in the market. The firm’s ambitious goal to double its logistics assets under management by 2025 reflects its commitment to driving growth and innovation in the region.
Continued Growth and Investment
Since launching its GCC industrial strategy in 2010, Arcapita Group has strategically expanded its industrial asset portfolio across Saudi Arabia, the UAE, and Bahrain. With over 30 properties leased to 80 tenants, Arcapita Group remains a leading real estate platform in the region.
Exploring Opportunities in Saudi Logistics Sector
Arcapita’s investment report, ‘Opportunities Rising in the Kingdom’s Logistics and Other Sectors,’ delves into the growing significance of logistics in Saudi Arabia’s economic landscape. The report provides insights into key growth areas and strategic recommendations for navigating this high-potential market. For more information, visit www.arcapita.com.
