Riyadh – Sharikat Mubasher: Saudi Arabia has launched its first logistics investment fund to develop a logistics city in Jeddah with investments totaling SAR 650 million ($173 million), marking a major step in expanding the Kingdom's logistics infrastructure.

Maher Bilal, Chairman of Missan for Real Estate Development, told Al Eqtisadiah that the project follows the signing of partnership agreements with ANSAB Contracting Company and FAAD Partners to establish the ‘Missan Logistics Opportunities Fund’.

The project will span 320,000 square meters in northern Jeddah. Development is expected to take around 18 months, after which the serviced logistics plots will be offered for sale based on market demand.

Bilal said the development is designed to address the rapid growth of logistics activities in Jeddah, where warehouse occupancy reached 97% in 2024 across an estimated 18 million square meters of available space, with annual demand growing by 4.8%.

Once completed, the project is expected to meet around 5% of Jeddah's warehouse market demand, helping narrow the gap between supply and demand ahead of its planned market launch by the end of 2027.

Mohammed Almukhadab, Board Member at ANSAB Contracting Company, said infrastructure works across the project's three phases will begin shortly, with major infrastructure targeted for completion within 12 to 18 months, paving the way for the full development of the logistics city.