Saudi Arabia Warehousing and Cold Storage Market Size and Forecast (2019-2030)

Executive Summary

Saudi Arabia's warehousing and cold storage market is witnessing significant expansion, with the market expected to have a double-digit growth in CAGR between 2019 and 2024, driven by its strategic location, economic diversification initiatives, and the surge in e-commerce. While traditional dry warehouses dominate the market, there is a growing demand for specialized facilities, particularly for pharmaceuticals, perishables, and temperature-sensitive goods. In this, the warehousing segment contributes more than half of the warehousing and cold storage market in 2024.

Geographical Concentration of Warehousing and Cold Storage in Saudi Arabia

• Saudi Arabia’s warehousing and cold storage facilities are predominantly located in Jeddah, Riyadh, and Dammam, forming key logistics and distribution hubs within the country. Jeddah holds the largest market share, strategically positioned along the Red Sea, providing direct access to major international trade routes. This makes it a crucial gateway for imports and exports, particularly for goods arriving from Africa, Europe, and Asia.
• Meanwhile, Riyadh, the capital and economic center of the Kingdom, plays a pivotal role in domestic distribution and supply chain management. Its central location allows efficient transportation of goods across the country, catering to the growing demand for storage solutions in retail, healthcare, and e-commerce sectors. Dammam, located in the Eastern Province, is another critical hub, serving the industrial zones and energy sector while facilitating trade with the Gulf Cooperation Council (GCC) nations.

Strategic Location and Investments in Logistics Infrastructure

• Saudi Arabia’s geographic positioning between the Persian Gulf and the Red Sea makes it a key player in global trade, handling a substantial portion of international cargo traffic. With 13% of global trade passing through its waters, the Kingdom is strengthening its logistics infrastructure to capitalize on this advantage.
• Major investments are being made in port expansions, transportation networks, and free trade zones to enhance supply chain efficiency. The government’s push for Vision 2030 includes significant upgrades to existing warehousing and cold storage facilities, aligning with its broader goal of transforming Saudi Arabia into a regional and global logistics powerhouse. These strategic developments are set to further solidify the country's position as a critical hub for trade, distribution, and industrial storage solutions.

Rising Demand for Warehouse Facilities in Riyadh: Drivers, Developments, and Challenges:

• Across Saudi Arabia, demand for warehouse facilities continues to grow, with Riyadh emerging as the focal point. This surge is driven by multiple factors, including the rapid expansion of e-commerce, the Kingdom’s ambitious giga projects, and the adoption of advanced technologies like robotics.
• Major Projects (Giga Projects) Driving Riyadh’s Industrial Market: Landmark developments such as Diriyah Gate, King Salman Park, New Murabba, and Qiddiya are significantly contributing to Riyadh’s industrial market growth. These projects are increasing demand for construction materials and leading to the creation of new industrial and logistics hubs. The large-scale transportation networks and commercial complexes associated with these giga projects are further fuelling the demand for storage and distribution facilities across Riyadh.
• E-Commerce Fuels Demand for Modern Warehousing: The burgeoning e-commerce industry is another key driver of demand for warehouse facilities. Businesses are investing in state-of-the-art distribution centres to efficiently manage inventory and meet customer expectations. Advanced technologies like robotics and inventory management systems are being implemented in modern warehouses, enhancing operational efficiency and widening the quality gap between modern facilities and older, less-equipped warehouses.
• Supply Growth Lagging Behind Demand: As of H1’2024, Riyadh’s warehouse and logistics stock has increased.

Key Developments

• Saudi Arabia's food consumption is projected to grow from an estimated to reach more than 30 million MT by 2027.
• Saudi Arabia's healthcare sector transformation, driven by its Vision 2030 objectives, presents substantial opportunities for the warehousing and cold storage market, particularly in pharmaceuticals, vaccines, and medical supplies. The Ministry of Health’s plans to establish virtual hospitals for each of the 21 health clusters, along with the expansion of e-health services, highlight the increasing demand for efficient cold storage solutions.
• Saudi Arabia's National Investment Strategy and Vision 2030 are unlocking substantial opportunities for the warehousing and cold storage market. The National Investment Strategy, launched in 2021, aims to attract USD 103 billion in annual foreign direct investment and USD 450 billion in domestic investment by 2030.

Scope of the Work

Makreo Research has recently published a detailed report titled “Saudi Arabia Warehousing and Cold Storage Market Size and Forecast (2019-2030)”, offering an extensive analysis of the market across key cities, including Jeddah, Riyadh, and Dammam. The report provides insights into major industry players such as Agility Logistics, United Warehousing Company, Cold Stores Group of Saudi Arabia, Advanced Storage Co., Logipoint, Hala Supply Chain Services, Mosanada Logistics, A.P. Moller – Maersk, Tamer Logistics, Almajdouie Logistics, Wared Logistics, and SAL Saudi Logistics Services Company.

Additionally, it presents comprehensive company profiles, detailing aspects such as warehousing capacity, pallet storage capabilities, regional revenue distribution, strategic developments, and financial activities of these market leaders.

Market Segmentation

• By Type of Cold Storage
• By Industry / End-use Application
• By Geography / Industrial Clusters

Market Players Covered

• Agility logistics
• United Warehousing Company (UWC)
• Cold stores group of Saudi Arabia
• Advanced storage Co.
• Logipoint
• Hala Supply Chain Services
• Mosanada Logistics
• A.P. Moller – Maersk
• Tamer Logistics
• Almajdouie Logistics
• Wared Logistics
• SAL Saudi Logistics Services Company

Key Questions Answered

1. What is the scale of the warehousing and cold storage capacity in Saudi Arabia?

2. How developed is Saudi Arabia’s warehousing and cold storage sector?

3. What is the average space of cold storages in Saudi Arabia?

4. What is the pallet capacity of cold storages in Saudi Arabia?

5. What is driving the demand for warehousing and cold storage in the Kingdom?

6. What are the biggest challenges faced by cold storage providers in Saudi Arabia?

7. What are the different types of warehouses and cold storage facilities available?

8. What is the total warehouse space available in Saudi Arabia, and how is it growing?

9. Which industries need warehousing and cold storage the most (food, pharma, e-commerce, etc.)?

10. Which are the major companies operating in this market?

11. How is Vision 2030 impacting warehousing and cold storage development in the Kingdom?

12. How is Saudi Arabia’s growing e-commerce and other major sector affecting the need for warehousing?

13. What are the future growth opportunities for the Saudi warehousing and cold storage market? Show more