Al Muhaidib and ESR launch $5bn logistics company in Saudi Arabia

Al Muhaidib Group and ESR Group announced the establishment of an equal joint venture between them to invest up to $5 billion in industrial and logistics real estate inside Saudi Arabia over five years.

The project targets the cities of Riyadh, Jeddah and Dammam, according to EnterpriseAM, with operations expected to begin in the first quarter of 2027.

The step comes as demand expands for warehouses, distribution centres and industrial facilities in the kingdom, a sector directly linked to e-commerce activity and supply chains.

The venture combines Al Muhaidib's local presence with ESR Group's experience in industrial asset investment and management, with operations to begin in the first quarter of 2027 as announced by the two parties.

What do these terms mean?

Joint venture: An entity established between two or more parties, in which partners share ownership, management and profits according to their stakes.

Industrial and logistics real estate: Facilities dedicated to production, storage and distribution such as factories, warehouses and shipping centres, whose feasibility is measured by the movement of goods.

Supply chains: The series of steps a good passes through from factory to consumer, including transport, storage and distribution.