Aramco & DHL Seek Investors for USD 267M Dammam Logistics Hub

Saudi Aramco and logistics major DHL are negotiating with would-be investors, including Canada's Brookfield Asset Management and Saudi and Gulf high-net-worth families, to fund and build a huge logistics hub in Dammam.

The project, estimated at nearly SAR 1 billion (USD 267 million), will be tailored to meet tenant specifications, with investors retaining ownership of the site. The facility aims to enhance the kingdom’s logistics infrastructure and cater to the industrial, energy, chemical, and petrochemical sectors.

Key highlights:

• Aramco and DHL are in talks with Brookfield Asset Management and Gulf high-net-worth families to fund a SAR 1 billion (USD 267M) logistics hub in Dammam
• The hub will provide end-to-end procurement and supply chain services for industrial, energy, chemical, and petrochemical sectors
• DHL is investing Euro 500M (USD 585M) in the region, with Saudi Arabia and the UAE at the core of its expansion strategy

Aramco and DHL signed an agreement in March 2023 to create a procurement and logistics hub in Saudi Arabia to improve supply chain efficiency and sustainability. The hub at Dammam, which was initially anticipated to start operations this year, will provide end-to-end integrated procurement and supply chain services.

"This hub will be a game changer for regional supply chains, facilitating greater operational efficiency and helping the kingdom's economic diversification objectives." stated a Saudi Aramco official.

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DHL has been growing aggressively in the region. The company announced this year a Euro 500 million (USD 585 million) investment plan, with Saudi Arabia and the UAE at its center. "Our investment is a testament to the region's growing role in bridging Asia, Europe and Africa. We are witnessing growth and export opportunities in the region's ecommerce market," stated John Pearson, CEO of DHL Express.

After becoming operational, the Dammam hub will function as a strategic gateway for logistics, enhancing Saudi Arabia's presence along international trade lanes.