W arehouse occupancy across Saudi Arabia reached an unprecedented 97% by the close of H1 2024, driven by strong demand for warehouse and light industrial units (LIUs), according to Knight Frank’s Saudi Arabia Industrial and Logistics Market Review for H1 2024. The Kingdom’s warehouse and logistics sector has seen remarkable growth in both occupancy rates and rental prices per sqm, fueled by government-backed initiatives and significant investments in infrastructure, industrial complexes, and logistics facilities, the consultancy noted. Riyadh’s standout performance. Riyadh continues to lead the way, posting a 10.4% annual increase in average rental rates for light industrial and Grade B warehouse spaces. Logistic Park Riyadh commands the highest rates in the capital, at US$78.30 per sqm, and is operating at full capacity. On the supply side, Riyadh currently offers 28 million square metres of warehousing, with an additional 820,000 sqm of industrial and logistics space under development in several districts. The majority of this new space is located in the Industrial Gate district (456,000 sqm), followed by Jabal Ali district (130,000 sqm). Knight Frank also pointed to the city’s giga-projects as a key The country is looking to enhance its logistical capabilites. Logistics Image Credit: Canva 41 NIDLP seeks to position Saudi Arabia as a global leader in industry and logistics. ISSUE 4 2024 | www.technicalreviewmiddleeast.com Increasing warehousing capacity in Saudi Arabia