ASMO partners with Arcapita to develop 1.4 million sqm logistics facility at SPARK

Real Estate

ASMO partners with Arcapita to develop 1.4 million sqm logistics facility at SPARK

ASMO, a joint venture between Saudi Aramco and DHL Supply Chain, has partnered with Arcapita Group Holdings Limited to develop a 1.4 million square metre purpose-built logistics facility at King Salman Energy Park (SPARK).

The project, structured as a forward funding transaction, represents a long-term investment in Saudi Arabia’s logistics infrastructure. Under the agreement, Arcapita will fund and retain ownership of the asset, while ASMO will develop, lease and operate the facility under a 22-year occupational lease.

Institutional-grade logistics infrastructure

The development will include a 43,000 sqm temperature-controlled Grade-A warehouse, more than 3,000 sqm of office and staff facilities, 5,300 sqm of dedicated chemical storage, and a 1.2 million sqm open yard designed for large-scale industrial operations.

The facility will feature advanced warehouse and building management systems, digital integration, automated storage and retrieval systems, and robotics. Sustainability elements will include photovoltaic readiness, electric vehicle charging infrastructure and a target of LEED Gold certification.

Salem Al Huraish, Chairman of ASMO, said the development reinforces the company’s role in enabling resilient and future-ready supply chains aligned with national industrial priorities.

Supporting Vision 2030 and national logistics strategy

The facility marks ASMO’s first purpose-built logistics centre and forms part of four planned strategic sites underpinning its national logistics network, aligned with the National Transport and Logistics Strategy (NTLS) under Saudi Vision 2030.

Once operational, the hub will serve Aramco, its affiliates and other key industrial players across the Kingdom.

Sulaiman Al Rubaian, Senior Vice President of Procurement and Supply Chain Management at Aramco, described the hub as a key step in strengthening supply chain resilience through a centralised, high-efficiency facility located within Saudi Arabia’s energy ecosystem.

Isa Al Khalifa, Director and Head of MENA Real Estate at Arcapita, said the transaction builds on the firm’s track record in developing and investing in Grade-A logistics and industrial assets across the region.

Strategic location within SPARK

Mishal Al Zughaibi, President and CEO of SPARK, highlighted the park’s advanced infrastructure and digital readiness as critical factors in attracting the investment.

Strategically positioned between Dammam Seaport, Aramco’s Abqaiq facilities and Al Hasa, SPARK enables direct connectivity across Saudi Arabia’s energy and industrial network. The park has attracted more than 70 investors from 16 countries, with Phase One infrastructure representing an investment of $1.6 billion.

The ASMO-Arcapita partnership underscores growing private-sector investment in Saudi Arabia’s logistics and industrial infrastructure, supporting the Kingdom’s ambition to become a leading global logistics hub.