American eCommerce giant Amazon has planned to expand its operations network in Saudi Arabia this year with 11 new buildings and over 1,500 new jobs, allowing for quicker and more flexible delivery options for customers.
The online retail behemoth aims to increase its storage space in the country by 89 percent with 11 new towers. Amazon has stated that its storage capacity will hit 867,000 square feet, which is the equivalent of more than ten football fields, by the end of the year.
According to the company statement, the expansion would increase Amazon’s distribution area by about 58 percent.
The global conglomerate currently operates three warehouses, 11 delivery stations, and two sorting centers in the Kingdom. By the end of the year, this will be increased to six warehouses and 13 delivery stations. The company has not yet disclosed the value of its new investment in Saudi Arabia.
Prashant Saran Director of Operations Amazon MENA
“In 2021, we continue to prioritize the safety and well-being of our associates while delivering more products to more people in Saudi Arabia than ever before. These new investments reiterate our commitment to Saudi Arabia, contributing to the local economy through the creation of new job opportunities. Our investments in technology and infrastructure align with Saudi’s digital transformation goals, enabling world-class fulfillment offerings to our independent seller partners, and faster delivery on an expanded product selection to our customers.”
The eCommerce sector in the Kingdom has climbed in the wake of COVID-19, as people were forced to stay at home and do their shopping online. According to German research firm Statista, Saudi Arabia’s eCommerce revenue is expected to hit $7.051 billion this year and rise at a 5.38 percent annual pace to $8.697 billion by 2025.
