Dubai Investor Pumps $300 Million into Saudi Logistics Venture

Dubai-based alternative investment firm Gulf Islamic Investments (GII) is setting its sights on Saudi Arabia's burgeoning logistics sector. GII signed a joint venture (JV) agreement with LogiPoint, a prominent Saudi industrial and logistics real estate developer, to establish a logistics platform worth over $300 million (1 billion riyals).

This partnership marks GII's second foray into the logistics arena within a short timeframe. Earlier this month, the Toronto-based Brookfield Asset Management acquired a majority stake in GII's Dubai logistics business. The Saudi venture, however, signifies GII's strategic expansion into the broader regional logistics market.

The GII-LogiPoint JV will focus on developing new logistics infrastructure across key Saudi cities. The initial phase will target Riyadh and Jeddah, Saudi Arabia's commercial and economic powerhouses. The venture aims to provide high-grade warehousing and handling facilities, catering to the needs of businesses throughout the kingdom.

This collaboration between GII, a Sharia-compliant investor with over $4. 5 billion in assets under management, and LogiPoint, a specialist in developing industrial and logistics real estate, is expected to create a powerful synergy. GII's financial muscle, combined with LogiPoint's expertise in the Saudi market, positions the JV to capitalize on the kingdom's booming logistics industry.

The Saudi Arabian logistics sector is experiencing significant growth, driven by several factors. The country's Vision 2030 economic diversification plan has placed a strong emphasis on developing robust logistics infrastructure. This focus, coupled with the rise of e-commerce and increasing trade volumes, is propelling demand for modern warehousing and efficient transportation networks.

The GII-LogiPoint JV is well-positioned to address this growing demand. By providing Grade A warehousing facilities in strategic locations, the venture can offer businesses efficient storage and distribution solutions. This, in turn, can contribute to streamlining supply chains, reducing operational costs, and enhancing overall business competitiveness.

Analysts believe that this JV is a positive development for the Saudi Arabian logistics sector. It reflects the growing investor confidence in the kingdom's economic prospects and its commitment to developing a world-class logistics infrastructure. The venture is expected to stimulate further investment in the sector, fostering innovation and propelling the country's position as a key logistics hub in the region.

Previous Article Next Article