Saudi Arabia Warehousing & Cold Storage Market Surges with 8.7% YoY Growth, Driven by Vision 2030 Investments and Rising Logistics Demand

In 2024, the Saudi Arabia cold storage market recorded a notable 8.7% year-on-year (YoY) growth, driven by the increasing need for temperature-controlled storage in key cities like Riyadh, Jeddah, and Dammam. As of January 2025, cold storage capacity across the Kingdom expanded by 5.38%, with significant developments in Makkah, Riyadh, and the Eastern Province, strengthening Saudi Arabia's warehousing infrastructure.

Saudi Arabia's economy is witnessing unprecedented growth, fueled by the ambitious Vision 2030 initiative aimed at economic diversification. This rapid expansion has increased the demand for advanced logistics, warehousing, and infrastructure to support the nation's growing industrial and commercial sectors. Strategically positioned as a gateway between East and West, Saudi Arabia has established itself as a pivotal trade and commerce hub with a comprehensive network of ports, airports, and land routes facilitating efficient regional and global goods movement.

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Saudi Arabia Warehousing and Cold Storage Market Size and Forecast (2019-2030)
https://www.makreo.com/report/saudi-arabia-warehousing-and-cold-storage-market-size-and-forecast-2019-2030

► Key Cities Driving Saudi Arabia's Warehousing and Cold Storage Market
The Saudi Arabia cold storage and warehousing market is primarily concentrated in Jeddah, Riyadh, and Dammam. Jeddah leads in market share, benefiting from its strategic location along the Red Sea trade routes, facilitating the smooth import and export of goods. Meanwhile, Riyadh and Dammam serve as key hubs for domestic distribution and industrial storage, supporting the nation's growing logistics infrastructure.

A representative from Makreo Research stated, "Despite significant strides in local production, only 20% of Saudi Arabia's food products are manufactured domestically, while approximately 80% are imported. This highlights the urgent need to strengthen domestic food production and underscores the importance of expanding cold storage facilities to preserve the quality of imported perishables."

► E-Commerce Growth Fuels Demand for Specialized Warehousing in Saudi Arabia
The Saudi Arabia warehousing market is witnessing a transformation, driven by the rapid expansion of e-commerce and specialized storage needs. In 2023, 91% of Saudi consumers engaged in online shopping, with 14% making daily purchases, significantly increasing the demand for temperature-controlled storage in Saudi Arabia to accommodate pharmaceuticals, cosmetics, and perishable goods.

While the country has a well-established warehousing infrastructure, there remains a notable gap in specialized cold chain logistics in Saudi Arabia and automated storage solutions. This presents lucrative investment opportunities for Grade A logistics infrastructure, particularly in refrigerated warehousing and high-tech fulfillment centers, ensuring efficiency in the evolving Saudi Arabia logistics sector.

► Major Industry Players Drive Expansion in Saudi Arabia's Warehousing and Cold Storage Market
• Amazon is expanding its KSA warehousing market presence to support the surging demand for Saudi Arabia e-commerce warehousing.

• The Saudi Authority for Industrial Cities and Technology Zones (Modon) has announced the development of 14 high-tech warehouses in Jeddah, strategically designed to accommodate global e-commerce giants.

• The Saudi Ports Authority, in collaboration with Saudi Global Ports, is investing SAR 1 billion (USD 266 million) to establish a logistics park at King Abdulaziz Port, Dammam. Spanning over one million square meters, this initiative aims to strengthen Dammam logistics and warehousing, further cementing Saudi Arabia's position as a key regional logistics hub.

► Vision 2030 Fuels Growth in Saudi Warehousing & Cold Storage
As part of Vision 2030 logistics investments, Saudi Arabia's National Investment Strategy aims to position the Kingdom as a global trade and logistics hub. The initiative seeks to attract USD 103 billion in annual foreign direct investment (FDI) and drive USD 450 billion in domestic investment by 2030, creating substantial opportunities for the warehousing and cold storage sector.

► Strategic Investments to Strengthen Saudi Arabia's Warehousing Infrastructure
To bridge the gap in high-quality warehousing infrastructure in Saudi Arabia, the Saudi Authority for Industrial Cities and Technology Zones (Modon) has signed an agreement to develop 14 advanced warehouses in Jeddah, catering to the growing needs of global e-commerce players. This initiative reinforces Saudi Arabia's position as a leading hub for logistics and warehousing in the region.

In addition, the Saudi Ports Authority, in collaboration with Saudi Global Ports, is investing SAR 1 billion (USD 266 million) to establish a state-of-the-art Logistics Park at King Abdulaziz Port in Dammam. Spanning over one million square meters, this facility will provide comprehensive storage solutions, including temperature-controlled storage in Saudi Arabia for perishable goods and industrial storage for dry goods, further enhancing the Dammam logistics and warehousing sector

► Riyadh: The Epicenter of Warehousing Demand - Drivers and Developments
As demand for warehousing infrastructure in Saudi Arabia surges, Riyadh has emerged as a pivotal location, fueled by large-scale giga projects and strategic investments. Developments such as Diriyah Gate, King Salman Park, New Murabba, and Qiddiya are transforming the city's industrial landscape, increasing the need for Saudi Arabia storage solutions to support rising construction material demands.

Additionally, Riyadh's expanding transportation networks are accelerating the growth of logistics hubs in Saudi Arabia, reinforcing its role as a central hub for industrial storage, cold chain logistics, and e-commerce warehousing. These advancements are shaping the future of Saudi Arabia's warehousing market, ensuring efficient storage and distribution solutions to meet the nation's evolving supply chain needs.

► Noteworthy Investments by Industry Leaders:
• DB Schenker & Kaden: Partnering on a custom-built logistics facility in Jeddah, designed to streamline supply chain operations and improve Saudi Arabia storage solutions.
• Gulf Islamic Investments (GII) & Logipoint: Developing a Grade A logistics platform worth over SAR 1 billion (USD 300 million) to expand Jeddah's logistics and warehousing market.
• Arcapita Capital & Flow Progressive Logistics: Constructing an 80,000 m2 mixed-use logistics hub in Riyadh, incorporating temperature-controlled storage, cold storage, dry warehousing, and specialized zones for pharmaceuticals and hazardous materials.

► Opportunities under Vision 2030 and the National Investment Strategy
Saudi Arabia's Vision 2030 logistics investments and the National Investment Strategy are accelerating the expansion of the Saudi Arabia cold storage market and warehousing infrastructure. With a goal to attract USD 103 billion in annual foreign direct investment and USD 450 billion in domestic investment by 2030, the sector is witnessing unprecedented opportunities for growth.

Makreo Research has released a comprehensive report, "Saudi Arabia Warehousing and Cold Storage Market Size and Forecast (2019-2030)," offering an in-depth analysis of key regions, including Riyadh, Jeddah, and Dammam. The report covers leading industry players such as Agility Logistics, United Warehousing Company, Cold Stores Group of Saudi Arabia, Advanced Storage Co., Logipoint, Hala Supply Chain Services, Mosanada Logistics, A.P. Moller-Maersk, Tamer Logistics, Almajdouie Logistics, Wared Logistics, and SAL Saudi Logistics Services Company.

It provides detailed insights into Saudi Arabia's supply chain solutions, covering pallet storage capacities, regional revenue distribution, financial performance, and strategic developments that are shaping the KSA warehousing market.

► Key Market Insights:
• Industrial Regions Driving Warehousing Growth
Saudi Arabia's warehousing infrastructure is strategically concentrated in key industrial regions, including Special Economic Zones (SEZs). The Riyadh warehousing market, along with Jeddah cold storage facilities and Dammam logistics and warehousing hubs, play a crucial role in meeting the rising cold storage demand in Saudi Arabia. These metropolitan areas exhibit distinct warehouse supply trends, shaping investment and expansion strategies across the sector.

• Advancements in Cold Chain and Storage Solutions
The development of cold chain logistics in Saudi Arabia is a pivotal element of the country's evolving logistics sector. The latest report by Makreo Research assesses the Saudi Arabia cold storage market, covering both commercial and public sector storage facilities. The study highlights Saudi Arabia's refrigerated warehousing advancements, ensuring temperature-controlled storage solutions for industries such as food, pharmaceuticals, and e-commerce. These enhancements are driving efficiency in the Saudi Arabia supply chain solutions, reinforcing the nation's position as a logistics powerhouse.

► Market Segmentation
• By Type of Cold Storage
• By Industry / End-use Application
• By Geography / Industrial Clusters

► Key Market Players Covered:
• Agility logistics
• United Warehousing Company (UWC)
• Cold stores group of Saudi Arabia
• Advanced storage Co.
• Logipoint
• Hala Supply Chain Services
• Mosanada Logistics
• A.P. Moller - Maersk
• Tamer Logistics
• Almajdouie Logistics
• Wared Logistics
• SAL Saudi Logistics Services Company

► Key Questions Answered:
• What is the scale of the warehousing and cold storage capacity in Saudi Arabia?
• How developed is Saudi Arabia's warehousing and cold storage sector?
• What is the average space of cold storage in Saudi Arabia?
• What is the pallet capacity of cold storage in Saudi Arabia?
• What is driving the demand for warehousing and cold storage in the Kingdom?
• What are the biggest challenges faced by cold storage providers in Saudi Arabia?
• What are the different types of warehouses and cold storage facilities available?
• What is the total warehouse space available in Saudi Arabia, and how is it growing?
• Which industries need warehousing and cold storage the most (food, pharma, e-commerce, etc.)?
• Which are the major companies operating in this market?
• How is Vision 2030 impacting warehousing and cold storage development in the Kingdom?
• How is Saudi Arabia's growing e-commerce and other major sectors affecting the need for warehousing?
• What are the future growth opportunities for the Saudi warehousing and cold storage market?

► Related Reports:
• Ras Al Khaimah Industrial Developments and Logistics Opportunities Report
https://www.makreo.com/report/ras-al-khaimah-industrial-developments-and-logistics-opportunities-report

• UAE Cold Chain Market Size and Forecast (2019-2029)
https://www.makreo.com/report/uae-cold-chain-market-size-and-forecast-2019-2029

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