Enabling Scalable Logistics Development in Saudi Arabia Aligned with Vision 2030. - Logistics Executive
Advisory, Case Studies

Enabling Scalable Logistics Development in Saudi Arabia Aligned with Vision 2030.

Strategic localisation and compliance support enabling scalable, sustainable logistics real estate development aligned with Saudi Arabia’s Vision 2030 growth ambitions.

By Rohit Mahajan and
May 19, 2025 | 5 min read
At a Glance
  • Global logistics real estate developer expanding into Saudi Arabia to deliver sustainable, high-quality warehouse assets aligned with Vision 2030.
  • Navigate regulatory complexities, assess market demand, and localise design standards for efficient, compliant, and commercially viable warehouse developments across key cities.
  • Delivered market intelligence, regulatory workflows, Saudi-specific design guide, cost modelling, procurement strategy, and logistics park case study with speculative development configurations.
  • Enabled data-driven investment, streamlined authority engagement, reduced development risk, and positioned client for scalable, compliant growth across Saudi logistics corridors.
Reading Time: 5 minutes

In the rapidly evolving logistics landscape of the Middle East, Saudi Arabia has emerged as a focal point for investment and infrastructure expansion. With Vision 2030 serving as a national roadmap for economic diversification, global logistics developers are positioning themselves to capitalise on the surge in demand for modern, sustainable warehousing solutions. Against this backdrop, our consultancy was engaged by a leading global warehouse developer to support their strategic entry into the Saudi market. Our mandate was comprehensive: provide end-to-end advisory services encompassing market intelligence, regulatory strategy, technical design, and process mapping all tailored to local conditions and aligned with long-term investment ambitions.

The client, a globally recognised warehouse investment and development firm, had identified Saudi Arabia as a key market for growth. However, their expansion ambitions faced a multitude of challenges. Firstly, the Saudi logistics sector is at an inflection point with traditional warehousing models giving way to purpose-built, technologically enabled, and sustainable logistics parks. The client required a clear understanding of the market’s demand drivers, competitive landscape, and regional growth nodes to inform investment priorities and reduce exposure to risk.

Secondly, navigating the regulatory environment in Saudi Arabia posed a significant hurdle. With different permitting procedures and planning standards across municipalities such as Riyadh, Jeddah, and Dammam, there was an urgent need for a framework that provided clarity on submission protocols, authority touchpoints, and approval timelines. A misstep in this area could result in costly delays and non-compliance with evolving statutory obligations, particularly in areas such as civil defence, structural safety, and environmental impact.

Lastly, the client’s internal development model needed customisation. Their global design templates and procurement methodologies had to be assessed for local compatibility. Saudi-specific warehouse configurations whether for build-to-suit (BTS) or speculative projects needed to reflect local operational requirements, land-use norms, sustainability standards, and compliance with municipal and national regulations. Selecting the right procurement approach, balancing cost, control, and speed-to-market, was central to ensuring timely delivery and successful asset performance.

Recognising the complexity of the client’s ambitions, we adopted a holistic and structured consultancy model. The approach was rooted in aligning local market conditions with global best practices in logistics real estate development. Our role was not merely to advise but to co-develop actionable, scalable, and regulatory-compliant strategies that enabled confident investment decisions and streamlined implementation.

We began by embedding ourselves within the client’s development and strategy teams, working in close collaboration throughout the engagement. This allowed us to gain clarity on their global standards, sustainability mandates, risk appetite, and commercial expectations. From there, we set out a project roadmap focused on four key pillars: market validation, regulatory intelligence, technical design guidance, and development process optimisation.

The first pillar centered on comprehensive market intelligence. We analysed warehouse demand and supply trends across Saudi Arabia’s three major logistics nodes Jeddah, Riyadh, and Dammam. Using proprietary tools and local data sources, we mapped demand drivers such as e-commerce growth, retail consolidation, government-backed industrial zones, and transport infrastructure investment. A competitor benchmark was conducted to identify existing and upcoming warehouse parks, occupancy rates, and leasing structures, providing the client with a granular understanding of the competitive environment.

Simultaneously, we developed a tailored Saudi Arabia Warehouse Design Guide, designed to bridge global standards and local execution realities. This included modular design templates for BTS and speculative developments, taking into account warehouse bay configurations, loading dock layouts, fire and life safety requirements, insulation standards, and green building codes. Sustainability was central, our templates embedded energy-efficient HVAC options, rainwater harvesting potential, and solar-ready rooftops in line with Vision 2030’s green building ambitions.

The regulatory stream was equally pivotal. We outlined the full authority submission lifecycle for logistics park development across Riyadh, Jeddah, and Dammam. This included a step-by-step guide for planning, permitting, and compliance, covering civil defence clearance, structural approvals, architectural and MEP design submission protocols, and utility coordination. We complemented this with indicative authority timelines, required documentation, and escalation pathways ensuring the client’s internal teams and local consultants could engage authorities effectively.

As a practical output, we delivered a 300,000 sqm logistics park case study, showcasing potential configurations for multi-warehouse speculative development. The concept illustrated how local site constraints, phased infrastructure rollouts, and modular warehouse scaling could be integrated to create a flexible and capital-efficient development plan. The site design also factored in lorry movement patterns, green buffer zones, and infrastructure readiness for future automation and e-commerce fulfilment needs.

Lastly, we provided an in-depth comparative analysis of procurement models, Traditional, Design & Build (D&B), and Engineering, Procurement, and Construction (EPC) tailored to the Saudi market. Our report included contract risk profiles, payment structures, design control levers, and delivery timelines. Based on the client’s priorities, we recommended an adaptive hybrid model allowing early contractor engagement (ECI) during the design stage while retaining sufficient design control to align with their operational requirements and global branding standards.

The outcome of this engagement was transformative for the client. Armed with market insights and a forward-looking logistics park case study, the client was able to confidently initiate their investment review process with data-backed justifications. They now had a clear picture of where demand was concentrated, what tenants expected in terms of layout and sustainability, and how their offering could be differentiated in a competitive landscape.

The Saudi-specific design guide significantly de-risked the client’s development process. It enabled them to align procurement partners, engineers, and architects around a shared blueprint that was not only functional but compliant with municipal and national regulations. This reduced the time and cost of design iterations, accelerated authority submissions, and positioned the project for fast-track approvals.

Equally, the clarity on regulatory and authority workflows allowed the client to pre-empt planning hurdles. They were now equipped to engage early with the relevant authorities and consultants, prepare submission packages with precision, and navigate timelines with realistic expectations. This proactive regulatory mapping reduced exposure to project slippage, avoiding the common pitfalls of procedural ambiguity and non-alignment between global developers and local planning authorities.

This engagement highlights the critical role of integrated consultancy support in enabling successful logistics infrastructure development in emerging markets. The combination of market intelligence, regulatory mapping, design localisation, and development planning provided a comprehensive platform for strategic entry into Saudi Arabia, a market with unique dynamics and significant opportunity.

As Saudi Arabia continues to invest in logistics as part of Vision 2030, success will hinge on developers’ ability to localise, comply, and innovate. By aligning our client’s global standards with local realities, we enabled not just project readiness but strategic positioning for long-term growth. Our approach underscores a simple truth: data-driven decisions, informed design, and regulatory foresight are indispensable in the successful execution of cross-border logistics infrastructure projects.

Here are four key takeaways that are important for organisation to consider:

  1. Local Market Intelligence is Essential: Thorough market intelligence enabled strategic decision-making by identifying demand clusters, growth corridors, and competitive benchmarks in key Saudi logistics cities.
  2. Tailored Design Guides Add Value:A Saudi-specific warehouse design guide aligned global standards with local sustainability, regulatory, and operational requirements, reducing risk and design inefficiencies.
  3. Regulatory Clarity Drives Efficiency:Step-by-step authority submission workflows provided clarity on planning approvals, accelerating compliance and minimising delays across multiple Saudi municipalities.
  4. Procurement Strategy Must Be Context-Specific: Comparative procurement model analysis allowed optimal delivery strategy selection, balancing speed, control, cost, and risk for local project execution.
  5. Integrated Consultancy Delivers Strategic Advantage:Integrated consultancy support ensured localisation, compliance, and scalability, enabling confident market entry aligned with Saudi Vision 2030 logistics ambitions.

AI’s Disruptive Impact on Supply Chain Security

Read Next Story down-arrow
Authors
Rohit Mahajan
Logistics Solution Engineer

How We've Helped Clients

Supply Chain & Logistics Consulting
Read More down-arrow
Warehouse Design & Internal MHE
Read More down-arrow
Building & Facility Design Engineering
Read More down-arrow