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Bahraini-Saudi companies to build logistics hub in Riyadh

By Pramod Kumar
Arcapita managing director Muhannad Buhindi and Rikaz CEO Khalid bin Hassan Al-Qahtani at the launch of the new partnership to build a logistics hub in Saudi Arabia Arcapita Group
Arcapita managing director Muhannad Buhindi and Rikaz CEO Khalid bin Hassan Al-Qahtani at the launch of the new partnership to build a logistics hub in Saudi Arabia

A joint venture between Bahrain-headquartered Arcapita Group Holdings and Saudi developer Rikaz will develop a high-end logistics park in Riyadh to attract global and regional companies.  

The Node will cover three million sq m of development, with the first phase extending 400,000 sq m of Grade A warehousing facilities.

The project is anticipated to generate over 3,000 job opportunities.

Details on the value of the project and completion timelines were not given.

Industrial real estate is a critical platform to help better connect Riyadh to regional and international markets and presents a compelling investment opportunity, said Muhannad Buhindi, managing director at Arcapita Group.

Khalid bin Hassan Al-Qahtani, chairman and CEO of Rikaz, said that the company plans to launch eight new projects during the current year with a total investment of up to SAR5 billion ($1.3 billion). 

Arcapita, an alternative asset manager, currently manages $1 billion of industrial real estate assets in the GCC. It is targeting to double its GCC logistics assets under management to $2 billion by 2025. 

The company’s logistics real estate portfolio, primarily across Saudi Arabia and the UAE, consists of a combined built-up area of over 325,160 sq m across 30 properties, which is leased to over 80 local, regional, and global tenants.

Rikaz’s real estate portfolio includes over 40 million sq m across multi-asset classes in Saudi Arabia valued at SAR12 billion.

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