Riyadh - Sharikat Mubasher: The logistics and warehousing sector in Saudi Arabia is witnessing significant growth, driven by the booming e-commerce market and increasing demand for Grade A warehousing, according to a recent report by JLL, a leading global commercial real estate and investment management company.

The report, titled ‘Emerging Trends Shaping Saudi Arabia’s Logistics and Warehousing Market,’ showed that global institutional investors across various industries shifted from traditional Grade B/C warehouses, which comprise around 90% of the market, to sophisticated Grade A facilities, demanding built-to-suit warehouses, cold storage facilities, and last-mile delivery hubs.

This growth was fueled by the National Industrial Development and Logistics Program (NIDLP) and Vision 2030, which aim to position Saudi Arabia among the top 10 countries in the Logistics Performance Index, increase the sector's GDP contribution to 10% by 2030, and localize 70% of the supply chain.

Additionally, the logistics and industrial real estate market benefits from the Kingdom’s position as the largest e-commerce market in the GCC, powered by high internet penetration (97%), a young and tech-savvy population, and a growing consumer preference for online shopping.

Moreover, the report anticipated modern commerce and e-commerce to contribute around 80% to the retail sector by 2030, stimulating significant demand for modern warehouses, strategically located fulfillment centers, and last-mile delivery hubs.