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

Saudi Arabia Warehousing and Cold Storage Market Size

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

• Jeddah holds the largest market share, strategically positioned along the Red Sea, granting direct access to major international trade routes. This makes it a crucial gateway for imports and exports, particularly for goods from Africa, Europe, and Asia, reinforcing its role in Saudi Arabia’s logistics and warehousing market.

• Riyadh, as the capital and economic center, is integral to domestic distribution and supply chain management. Its central location ensures efficient transportation, catering to the rising demand for storage and distribution solutions in retail, healthcare, and e-commerce warehousing.

• Dammam, situated in the Eastern Province, is another critical hub, supporting industrial zones, the energy sector, and trade with Gulf Cooperation Council (GCC) nations. The city plays a vital role in Saudi Arabia’s logistics infrastructure, particularly in temperature-controlled logistics and third-party logistics (3PL) services.

Saudi Arabia’s Strategic Positioning in Global Trade

Saudi Arabia’s geographic advantage between the Persian Gulf and the Red Sea positions it as a crucial player in global trade, handling a significant share of international cargo traffic. With 13% of global trade passing through its waters, the Kingdom is actively enhancing its logistics infrastructure to leverage this strategic advantage.

• Major investments are underway in port expansions, transportation networks, and free trade zones to improve supply chain efficiency and strengthen Saudi Arabia’s logistics and warehousing market.

• As part of Vision 2030, the government is upgrading warehousing and cold storage facilities, supporting the growth of Saudi Arabia’s cold chain market, temperature-controlled logistics, and third-party logistics (3PL) services.

• These developments are set to reinforce Saudi Arabia’s position as a regional and global logistics powerhouse, driving advancements in warehouse automation, storage and distribution solutions, and industrial storage infrastructure.

Saudi Arabia Warehousing and Cold Storage Industry Insights

Saudi Arabia Exports by Country, % Share, 2023

Rising Demand for Warehouse Facilities in Riyadh

• 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 centers 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.

Saudi Arabia Cargo Volume, ‘000 Tons, FY’19 – FY’23

Saudi Arabia Warehousing and Cold Storage Market Revenue Forecast, 2025 – 2030 (USD Billion)

Key Developments in Saudi Arabia’s Warehousing and Cold Storage Market

The Saudi Arabia warehousing market is witnessing rapid growth, driven by increasing food consumption, advancements in healthcare logistics, and large-scale investments under Vision 2030.

• Rising Food Demand Fuels Storage Growth: Saudi Arabia's food consumption is projected to surpass 30 million metric tons (MT) by 2027, driving demand for storage and distribution solutions, particularly in frozen food logistics and temperature-controlled warehousing.

• Healthcare Transformation Boosting Cold Storage Demand: The Saudi Arabia pharmaceutical cold storage segment is expanding as the healthcare sector undergoes a transformation under Vision 2030. The Ministry of Health’s initiatives, including virtual hospitals for 21 health clusters and the expansion of e-health services, are accelerating demand for cold chain logistics, particularly for vaccines, pharmaceuticals, and medical supplies.

• Investment Strategy Driving Logistics Growth: 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. This is fostering the growth of Saudi Arabia’s logistics infrastructure, enhancing opportunities in third-party logistics (3PL), warehouse automation, and the cold warehousing market.

Scope of the Study for the Saudi Arabia Warehousing and Cold Storage Market

Makreo Research has recently released an in-depth analysis titled “Saudi Arabia Warehousing and Cold Storage Market Size and Forecast (2019-2030)”, offering a comprehensive evaluation of the Saudi Arabia logistics and warehousing market across major cities, including Jeddah, Riyadh, and Dammam.

The report provides key insights into the Saudi Arabia warehousing market, covering leading 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 offers detailed company profiles, analyzing:

• Warehousing capacity and pallet storage capabilities

• Regional revenue distribution and market positioning

• Strategic developments and financial activities

This report serves as a valuable resource for stakeholders looking to understand Saudi Arabia’s logistics industry, explore warehousing growth trends, and assess opportunities in cold chain logistics, temperature-controlled storage, and supply chain management.

Saudi Arabia Warehousing and Cold Storage Market Segmentation

Companies Covered in the Saudi Arabia Warehousing and Cold Storage Market