SAL to Establish SAR 4 Billion Logistics Zone in North Riyadh

SAL Saudi Logistics Services Company signed a preliminary agreement with Sela Company to lease a 1.56 million square meter plot in Falcon City, north of Riyadh, for the development and operation of a logistics zone. The project aims to enhance SAL’s logistics capabilities and expand its service offerings.

The 30-year lease agreement, extendable for an additional 15 years upon mutual agreement, includes a three-year grace period. SAL will pay a rental fee of SAR 16 per square meter, with an annual inflation adjustment of 1.5% after the grace period.

The total investment for planning, construction, and operation is expected to reach SAR 4 billion. As part of the agreement, SAL will make a non-refundable payment of SAR 25 million to Sela for infrastructure costs, including electricity and road preparation.

SAL stated that the project will support its expansion strategy, providing a new revenue stream. The financial impact is expected to reflect in the company’s results in the coming years once the logistics zone is completed and operational.