Al Rajhi Capital and LogiPoint Sign MoU for $1.3B South Jeddah Logistics and Industrial Park

Al Rajhi Capital and LogiPoint have signed a Memorandum of Understanding to establish a dedicated investment vehicle to develop the South Jeddah Logistics and Industrial Park, a mixed-use logistics hub with an estimated investment of SAR5 billion (roughly $1.3 billion). The site covers 1.9 million square metres, of which approximately 1.5 million square metres will be leasable area targeted at manufacturers, logistics operators, distributors and regional supply-chain players. The development, sited adjacent to Modons Industrial City One, is planned to be delivered in phases with preliminary approvals already secured and final contracts expected by the close of 2026.

“Saudi Arabia’s logistics industry is undergoing a new phase of expansion, with customers increasingly seeking integrated developments that offer modern infrastructure, operational adaptability, and long-term scalability,” said Farooq Shaikh, CEO of LogiPoint. “The South Jeddah Logistics and Industrial Park is tailored to meet these demands, and the collaboration with Al Rajhi Capital merges institutional investment with logistics know‑how to foster industrial growth, draw fresh investment, and reinforce the kingdom’s role as a regional logistics hub.”

The agreement sets Al Rajhi Capital as the Fund Manager and names LogiPoint as Asset and Development Manager, leveraging LogiPoint’s experience managing large-scale logistics infrastructure across Saudi Arabia. Al Rajhi Capital — a major national investment firm that provides asset management, brokerage, investment banking and wealth management services — also manages the country’s first and largest Bonded and Re-Export Zone at Jeddah Islamic Port, a facility the firm says helps businesses handle cargo, reach regional markets and expand operations.

Project scope and planned assets

• Gross site area: 1.9 million sqm; leasable area: ~1.5 million sqm.
• Estimated total investment: SAR5 billion (about $1.3 billion).
• Location: South Jeddah, adjacent to Modons Industrial City One.
• Planned assets: dry warehouses, cold storage and temperature-controlled space, Light Industrial Units, staff housing, Built-to-Demand and Build-to-Suit facilities for anchor tenants.
• Delivery schedule: final contracts expected by end-2026; construction slated to begin in H1 2027; phased rollout starting with purpose-built facilities for anchor tenants.

Hussam Al Basrawi, CEO of Al Rajhi Capital, framed the partnership as a strategic move to channel institutional capital into infrastructure that supports the kingdom’s economic objectives. “The partnership underscores the firm’s dedication to facilitating strategic investments that advance the kingdom’s economic progress and support high‑caliber infrastructure projects,” he said, adding that pairing Al Rajhi Capital’s investment expertise with LogiPoint’s development strengths is intended “to generate lasting value for investors while advancing Saudi Arabia’s Vision 2030 and enhancing the logistics ecosystem.”

Analysts and market participants will watch the development’s phased approach closely: initial build‑outs focused on anchor tenants are intended to establish operational momentum, while subsequent phases will expand capacity and diversified facilities to meet demand for temperature‑controlled storage, bonded services and tailored industrial space. With construction targeted for the first half of 2027 and the project coordinated with Modon’s long‑term regional plans, the partnership aims to position the South Jeddah park as one of the kingdom’s largest integrated logistics and industrial hubs.