Arcapita Capital Company, a subsidiary of Arcapita Group Holdings Limited (Arcapita Group), has teamed up with Flow Progressive Logistics (Flow) to establish a modern class A logistics complex in Riyadh.
The partnership was announced during the Supply Chain and Logistics Conference that took place in Riyadh. Under the collaboration, Arcapita will develop an 80,000 square meter mixed-use storage complex. The facility will include various storage options, such as cold storage, dry storage, temperature-controlled facilities, and spaces for pharmaceutical and hazardous goods.
Flow, which offers international shipping, customs clearance, warehousing, transportation, delivery, and reverse logistics, will operate the facility under a long-term lease agreement. This collaboration seeks to expand Arcapita’s logistics real estate portfolio in the Kingdom, supporting Saudi’s economic goals, as outlined in Vision 2030.
The Ministry of Transport and Logistics Services has been playing a key role in driving growth in this sector, and its support continues to empower private sector. The industrial and logistics sectors are key components of the Kingdom’s Global Supply Chain Resilience Initiative, which is set to attract SAR 40 billion ($10.6 billion) in investments.
Achraf Ellili CEO – Flow
“The collaboration with Arcapita is a milestone for Flow as we continue to scale our operations in the Kingdom. The new facilities will allow us to meet the increasing demand for comprehensive supply chain services and offer advanced solutions to our clients in various sectors, including pharmaceuticals and hazardous goods. This partnership helps us align with Saudi Arabia’s broader economic goals and play our role in the Kingdom’s transformation.”
Isa Al Khalifa, Director of Real Estate Investments at Arcapita, commented that, “We are extremely pleased to expand our partnership with Flow through this new development. The Saudi Arabia industrial and logistics market continues to demonstrate positive supply-demand dynamics that are likely to support rental growth in the foreseeable future. This partnership will contribute to meeting the growing demand for modern logistics facilities and services in Riyadh, where demand is outstripping supply particularly when it comes to higher-quality assets. Riyadh is positioning itself as a key logistics hub for both regional and international companies making it an attractive destination for investment capital.”
With fully automated logistics facilities and a growing fleet that caters to diverse client needs, Flow has established itself as a leader in end-to-end supply chain services. Through this partnership, Flow further strengthens its commitment to advancing digital innovation in logistics and flourishing employment opportunities for local talent, contributing to Saudi Arabia’s broader economic goals.
Arcapita Group currently manages over $1 billion of industrial real estate assets in GCC, making it one of the largest real estate platforms in the GCC. By 2025, the firm is expected to double its GCC logistics AUM to $2 billion. Arcapita Group embarked on its GCC industrial strategy in 2010 by establishing a series of funds dedicated to industrial assets.
Today, Arcapita Group’s industrial real estate portfolio, principally across Saudi Arabia, the UAE, and the Kingdom of Bahrain, consists of a combined built-up area of over 3.5 million square feet across more than 30 properties, leased to over 80 tenants.
