Chalhoub Group to open fulfillment centre at Riyadh Integrated

The General Authority for Civil Aviation (GACA) in Saudi Arabia has issued a license to the Chalhoub Group to operate a fulfillment centre at Riyadh Integrated, the kingdom’s first ‘Special Integrated Logistics Zone’.

The Chalhoub Group and the Riyadh Integrated operator – Special Integrated Logistics Zone – have signed a new lease agreement for 50 years to this effect.

The Special Integrated Logistics Zone was launched in October 2022 in Riyadh. The strategically located zone will serve billions of potential customers in easy reach in Africa, Asia, and Europe and help to significantly increase Saudi’s cargo capacity to more than 4.5 million tonnes per annum.

Set to open in mid-2025, Chalhoub Group’s fulfillment centre at Riyadh Integrated will serve as a flagship centre for the region.

Once operational, the facility will also reduce lead time to market and strengthen last-mile deployment whilst enabling sustainable growth through enhanced customer service by utilising advanced automation and technological solutions.

Covering a surface area of 40,000 square metres, with a built-up area of up to 24,000 square metres, the fulfillment centre is expected to quadruple the Chalhoub Group’s fulfillment capacity to service the region, create an estimated 200 new job opportunities, and support the local drive for recruitment across key growth sectors, including logistics.

GACA president Al Duailej said: “I would like to congratulate Chalhoub Group on the issuance of a license to operate at Riyadh’s Special Integrated Logistics Zone and we look forward to working together towards the successful operation of their fulfillment centre in 2025. Riyadh Integrated is a testimony to the Saudi Aviation Strategy under Vision 2030, positioning the kingdom as a global logistics hub connecting three continents, attracting the largest companies in the world, like Chalhoub Group, to the kingdom as our logistics sector is transformed.

“As a vital enabler for Saudi Arabia’s logistics sector, the Special Integrated Logistics Zone offers a unique value proposition to multi-nationals based on enhanced fiscal and regulatory incentives. It will strengthen Saudi Arabia’s position as the largest, fastest growing market and leading strategic trading nation in the Middle East and continue Vision 2030’s mission to connect the kingdom to the world.”

Chalhoub Group is the second investor at Riyadh Integrated

Patrick Chalhoub, group president at Chalhoub Group, said: “Our plans to launch a new state-of-the-art facility at Special Integrated Logistics Zone underlines our support for the kingdom’s Vision 2030, the Saudi Aviation Strategy and the Kingdom’s drive to increase job localisation.

“As Riyadh continues its upward trajectory and grows in size and ambition, our new fulfillment centre is reflective of our commitment to further developing and strengthening our operations to meet the growing demands of our customers across Saudi Arabia, while supporting the kingdom’s dynamic and evolving business and technology landscape.”

Chalhoub Group is the second investor at Riyadh Integrated.

The group’s fulfillment centre has been strategically designed to streamline its practices and optimise efficiency through technology, digitalisation and sustainable developments to ensure a competitive edge.

According to a statement, the new facility will be designed and built on international green building best practices by using sustainable construction materials, incorporating renewable energy sources, and increasing overall natural greenery landscaping to minimise its carbon footprint.