ASMO, a joint venture between Aramco and DHL, has commenced construction of its first purpose built logistics hub at King Salman Energy Park (SPARK), marking a significant milestone in the development of long term logistics infrastructure supporting Saudi Arabia’s energy and industrial sectors.
The 1.4 million square meter development is being delivered and funded in partnership with Arcapita Group Holdings Limited (“Arcapita”), a global alternative investment firm, following the signing of a long term strategic agreement earlier this year.
The facility has been designed to support large scale, complex logistics requirements and will include a temperature controlled Grade A logistics warehouse, chemical storage, offices and staff facilities, and an extensive open yard for industrial storage and handling. It is being developed to high technical, safety, standards, incorporating advanced automation and smart warehouse technologies to enhance operational efficiency and scalability. The development will also include fire protection systems, photovoltaic and EV charging readiness, and is aiming to achieve LEED Gold certification.
In parallel, the development reflects broader structural shifts in global supply chains, as economies move toward more regionalized and diversified trade models. As production and sourcing networks become more fragmented, the logistics sector is increasingly becoming central to enabling coordination, resilience, and continuity across multiple markets. This is driving sustained demand for high-quality logistics infrastructure, particularly assets that support storage, distribution, and long-term operational reliability. Against this backdrop, institutional-grade logistics and industrial real estate is emerging as a critical component of national infrastructure, particularly in markets such as Saudi Arabia that are investing to strengthen industrial capacity, supply chain and global trade connectivity.
“This facility represents an important step in building ASMO’s long term logistics network in Saudi Arabia,” said Salem A. Al Huraish, Chairman of ASMO. “As the first of three planned strategic sites across the Kingdom, it will strengthen in Kingdom supply chain capabilities and support reliable, efficient logistics operations for the energy and industrial sectors. The development also aligns with Saudi Arabia’s Vision 2030 ambition to further establish the Kingdom as a regional logistics hub.”
Once operational, the facility will serve Saudi Aramco, its affiliates, and other energy and industrial customers, while enhancing ASMO’s ability to deliver more centralized and efficient logistics solutions across its customer base.
Sulaiman M. Al Rubaian, Aramco’s Senior Vice President of Procurement & Supply Chain Management, said:
“As ASMO’s anchor customer, Aramco recognizes the critical role that high-quality logistics infrastructure plays in enhancing service reliability and enabling efficient, large-scale supply chain operations. This facility marks an important step forward in advancing more integrated and resilient supply chain, reflecting a long-term vision for efficient development and operational excellence, and aligning strategic infrastructure with integrated operational capabilities.”
The project follows a long term development and operating structure, aligning long-duration capital with integrated operating capabilities, combining Arcapita’s investment and asset ownership with ASMO’s role as long term operator of the facility.
Sh. Isa bin Hussam Al Khalifa, Managing Director and Head of MENA Real Estate at Arcapita, said:
“This investment reflects the growing importance of institutional quality logistics and industrial assets in Saudi Arabia, particularly those underpinned by long term operating demand. As the Kingdom continues to prioritize industrial development, supply chain resilience, and self-sufficiency, demand for scalable, high-quality logistics infrastructure is increasing. The development brings together a strategic location, strong industry fundamentals, and a clear use case within one of the Kingdom’s most important energy and industrial ecosystems.”
Mishal Al Zughaibi, President & CEO of King Salman Energy Park (SPARK), said:
“We are delighted to celebrate the groundbreaking of this major investment. Since the signing of the agreement, our teams have worked diligently and collaboratively to accelerate the early stages of the project, enabling the achievement of this important milestone. This partnership reinforces SPARK’s position as a leading world-class energy and logistics hub. Through its proximity to the largest privately owned dry port in the region, ASMO will have access to a comprehensive range of logistics services.”
Located at the heart of Saudi Arabia’s energy sector, SPARK offers direct connectivity to key operating and logistics corridors, enabling efficient movement, storage, and handling of materials across the energy and industrial value chain.
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