ASMO, a joint venture between Aramco and DHL, has commenced construction of its first purpose-built logistics hub at King Salman Energy Park (SPARK), marking a milestone in Saudi Arabia’s industrial infrastructure development.
The $1.4 million square meter project is being delivered and funded in partnership with Arcapita Group Holdings Limited, a global alternative investment firm, following a strategic agreement signed earlier this year.
Designed to handle large-scale, complex logistics, the facility will feature a Grade A temperature-controlled warehouse, chemical storage, and an extensive open yard for industrial handling. The hub will incorporate advanced automation and smart warehouse technologies, aiming for LEED Gold certification with integrated photovoltaic and electric vehicle charging capabilities.
The development aligns with global shifts toward regionalized and diversified trade models. As supply chains become more fragmented, institutional-grade logistics real estate is emerging as a critical component of Saudi Arabia’s national infrastructure.
“This facility represents an important step in building ASMO’s long-term logistics network in Saudi Arabia,” said Salem A. Al-Huraish, chairman of ASMO. “As the first of three planned strategic sites across the Kingdom, it will strengthen supply chain capabilities and support Saudi Arabia’s Vision 2030 ambition to establish the Kingdom as a regional logistics hub.”
Once operational, the hub will serve Aramco and its affiliates while centralizing logistics solutions for the broader energy and industrial sectors.
Sulaiman M. Al-Rubaian, Aramco’s senior vice president of procurement and supply chain management, noted the importance of the project for service reliability.
“As ASMO’s anchor customer, Aramco recognizes the critical role that high-quality logistics infrastructure plays in enabling efficient, large-scale supply chain operations,” Al-Rubaian said.
The project follows a long-term development structure, combining Arcapita’s investment with ASMO’s role as the long-term operator.
Sh. Isa bin Hussam Al-Khalifa, managing director and head of MENA Real Estate at Arcapita, highlighted the growing demand for industrial assets in the Kingdom.
“As the Kingdom continues to prioritize industrial development and self-sufficiency, demand for scalable, high-quality logistics infrastructure is increasing,” he said.
Mishal Al-Zughaibi, president and CEO of SPARK, celebrated the groundbreaking as a reinforcement of the park’s status as a world-class energy hub.
“Through its proximity to the largest privately owned dry port in the region, ASMO will have access to a comprehensive range of logistics services,” Al-Zughaibi said.
Located in the heart of the Eastern Province, SPARK provides direct connectivity to key operating corridors, facilitating the movement and storage of materials across the energy value chain.
