ASMO, the joint venture formed by Aramco and DHL, has begun construction of its first dedicated logistics hub at King Salman Energy Park (SPARK), marking a major step in expanding logistics infrastructure for Saudi Arabia’s energy and industrial sectors.
The large-scale project, spanning 1.4 million sq m, is being developed in partnership with global investment firm Arcapita Group Holdings following the signing of a long-term strategic agreement earlier this year.
The facility will include a temperature-controlled Grade A warehouse, chemical storage units, administrative offices, staff facilities and a large industrial storage yard. The development is also being designed with advanced automation and smart warehousing systems aimed at improving operational efficiency and supporting future expansion.
Developers said the project will incorporate high technical and safety standards, alongside sustainability-focused features including photovoltaic readiness, EV charging infrastructure and advanced fire protection systems. The site is also targeting LEED Gold certification.
The hub is expected to support the increasingly complex logistics demands of Saudi Arabia’s growing industrial and energy sectors, while strengthening domestic supply chain capabilities as the Kingdom continues to invest heavily in industrial diversification under Vision 2030.
Salem A. Al Huraish, chairman of ASMO, said the project forms part of a broader national logistics strategy.
“This facility represents an important step in building ASMO’s long-term logistics network in Saudi Arabia,” he said.
“As the first of three planned strategic sites across the Kingdom, it will strengthen in-Kingdom supply chain capabilities and support reliable, efficient logistics operations for the energy and industrial sectors.”
He added that the development aligns with Saudi Arabia’s ambition to position itself as a regional logistics and trade hub.
Once completed, the facility will support Saudi Aramco, its affiliates and a wider customer base operating across the industrial and energy sectors.
Sulaiman M. Al Rubaian, Aramco senior vice president of procurement and supply chain management, said high-quality logistics assets are becoming increasingly important for operational resilience.
“This facility marks an important step forward in advancing more integrated and resilient supply chain operations,” he said.
The project is also intended to respond to wider changes in global trade and supply chain structures, with companies increasingly prioritising regionalised and diversified logistics networks to improve reliability and continuity.
Sh. Isa bin Hussam Al Khalifa, managing director and head of MENA real estate at Arcapita, said demand for institutional-grade logistics assets is continuing to grow across Saudi Arabia.
“As the Kingdom continues to prioritise industrial development, supply chain resilience and self-sufficiency, demand for scalable, high-quality logistics infrastructure is increasing,” he said.
Mishal Al Zughaibi, president and CEO of SPARK, said the project further strengthens the park’s role as a regional energy and logistics centre.
Located close to key transport and operating corridors, SPARK offers direct access to logistics infrastructure, including one of the region’s largest privately owned dry ports.
ASMO starts work on major SPARK logistics hub
