Jeddah warehouse & logistic market driven by strong fundamentals
With the Government of Saudi Arabia targeting a contribution of 20% of GDP from the industrial sector by 2020, up from 10% in 2013, Jeddah’s warehouse, logistics and manufacturing market is set to play a key role in meeting this objective, according to Colliers International’s Jeddah Warehouse & Logistics Market Overview.
The report reveals that approximately 45 million sqm of land has been allocated to Modon, a quasi-government organisation that promotes investment and job creation in industrial manufacturing sector through the development of industrial cities. Of this, 25 million sqm have already been developed in Jeddah, with the remaining 20 million sqm still in the construction pipeline.
The market has continued to witness significant development as strong demand fundamentals from the automotive, consumer and construction sectors are being actively addressed by the planned expansion of the city’s logistics capabilities.