By: AGBI

Saudi Aramco and logistics major DHL are reportedly seeking investors to finance and develop a logistics hub in the coastal Saudi city of Dammam.

The joint venture has approached Canada’s Brookfield Asset Management and high-net-worth families in Saudi Arabia and across the Gulf, Bloomberg reported citing people aware of the matter.

The project, which will be customised to a tenant’s specifications, is expected to cost nearly SAR1 billion ($267 million).

Investors will retain ownership of the site in Dammam.

In March 2023 the two companies signed an agreement to develop a new procurement and logistics hub in the kingdom to improve supply chain efficiency and sustainability.

The hub, which was expected to start operations this year, will provide end-to-end integrated procurement and supply chain services to customers in the industrial, energy, chemical and petrochemical sectors.

Earlier this year DHL announced plans to invest over €500 million ($585 million), with Saudi Arabia and the UAE at the centre of its strategy. 

“Our investment reflects the region’s increasing importance in connecting Asia, Europe and Africa. We are seeing dynamic growth and export potential in the region’s ecommerce sector,” said John Pearson, CEO of DHL Express.