Best Areas to Set Up a Warehouse in Saudi Arabia

When selecting the best location for your warehouse in Saudi Arabia, several key factors need to be considered, such as proximity to transport hubs, cost-effectiveness, accessibility to major business districts, and availability of skilled labor. Saudi Arabia offers a diverse range of strategically located areas that cater to businesses looking for warehouse space. Below are some of the prime locations in Saudi Arabia ideal for setting up a warehouse.

1. 2nd Industrial City – Riyadh

Location Overview:
The 2nd Industrial City in Riyadh is one of the Kingdom’s most established industrial zones. Strategically located on the southern edge of the capital, it provides seamless access to central logistics corridors, including the Eastern Province and Riyadh’s core markets. The area is designed for heavy industrial, warehousing, and logistics operations, with reliable infrastructure, highway access, and proximity to the dry port and cargo terminals.

Why Choose DIP?

Accessibility:
Strategically located on the southern edge of Riyadh, with easy access to key logistics corridors and the Riyadh Dry Port, ensuring smooth distribution within the Kingdom and beyond.
Warehouse Space:
Offers large-scale, cost-effective warehouse spaces designed for industrial and logistics operations, with flexible leasing terms.
Affordable Rates:
Competitive rental rates compared to more central areas in Riyadh make it an excellent option for cost-conscious businesses.
Zoning:
Dedicated to industrial, manufacturing, and logistics operations, ensuring optimal zoning for warehouse use.

Usual Price Range:

SAR 180–250 per sqm/year

2. King Abdullah Economic City (KAEC) – Rabigh

Location Overview:
King Abdullah Economic City, located along the Red Sea coast near Rabigh, is a next-generation logistics and industrial hub. With its world-class infrastructure and master-planned layout, KAEC is designed to support global supply chains, offering seamless access to the King Abdullah Port, one of the fastest-growing ports in the region. The city’s economic zones cater to diverse sectors, including logistics, manufacturing, and trade.

Why Choose KAEC?

Port Connectivity:
Immediate access to King Abdullah Port enables direct import-export activities and efficient maritime logistics.
Modern Infrastructure:
Built with state-of-the-art utilities and digital infrastructure, ensuring operational efficiency.
Integrated Ecosystem:
Offers residential, commercial, and educational facilities, creating a live-work environment for employees.
Business Incentives:
Tax benefits, streamlined licensing processes, and foreign ownership allowances make it attractive for international investors.

Usual Price Range:
SAR 220–300 per sqm/year

3. Jeddah Islamic Port Area – Jeddah

Location Overview:
Located adjacent to one of the busiest ports in the Middle East, the Jeddah Islamic Port area is a prime logistics and distribution zone. With direct shipping routes to Africa, Europe, and Asia, it is ideal for businesses seeking regional and international outreach. The area supports warehousing, cold storage, and transshipment facilities.

Why Choose Jeddah Port Area?

Strategic Coastal Access:
Proximity to Jeddah Islamic Port ensures fast turnaround for maritime shipments.
Customs Efficiency:
Integrated customs and clearance services support the quick processing of goods.
Versatility:
Suitable for a wide range of industries, including perishables, automotive, and consumer goods.
Transport Links:
Well-connected to major highways and air cargo terminals for multimodal logistics.

Usual Price Range:
SAR 200–270 per sqm/year

4. Dammam 2nd Industrial City – Eastern Province

Location Overview:
Situated in the heart of the Eastern Province, Dammam’s 2nd Industrial City is known for its proximity to the Arabian Gulf ports and the oil industry. It is a well-developed area with robust infrastructure, ideal for petrochemical, logistics, and heavy manufacturing operations.

Why Choose Dammam 2nd Industrial City?

Oil & Gas Proximity:
Access to energy sector clients and vendors makes it ideal for oilfield services and support logistics.
Transport Efficiency:
Close to King Abdulaziz Port and Dammam’s international airport, enabling global distribution.
Skilled Workforce:
Eastern Province has a strong industrial labor pool, particularly in engineering and technical fields.
Industrial Focus:
Purpose-built zones for warehousing and fabrication with strong power and utilities infrastructure.

Usual Price Range:
SAR 170–240 per sqm/year