Saudi Arabia Warehousing and Storage Market Outlook

According to the report by Expert Market Research (EMR), the Saudi Arabia warehousing and storage market achieves a value of approximately USD 7.10 billion in 2024. Driven by the rapid growth of e-commerce, industrial expansion, and increasing trade activities in the region, the market is projected to expand at a CAGR of 5.90% between 2025 and 2034, reaching an estimated value of USD 12.60 billion by 2034.

Warehousing and storage services play a pivotal role in the supply chain ecosystem, offering solutions for inventory management, distribution, and logistics optimization. With Saudi Arabia emerging as a regional trade hub and undergoing transformative industrial growth under initiatives like Vision 2030, demand for efficient, modern, and scalable warehousing solutions is increasing. The market encompasses various types of storage, including cold storage, dry storage, bonded warehouses, and automated fulfilment centers, catering to many industries such as food and beverages, pharmaceuticals, retail, oil and gas, and e-commerce.

The growth of the Saudi Arabia warehousing and storage market is further supported by the strategic geographical location of Saudi Arabia, acting as a gateway between Asia, Europe, and Africa. Investments in logistics infrastructure, the development of industrial cities, and the expansion of free zones are significantly boosting the warehousing and storage sector in the country.

Saudi Arabia Warehousing and Storage Market Size and Share

The Saudi Arabia warehousing and storage market in 2024 was valued at USD 7.10 billion, with the dry storage segment accounting for the largest share due to its wide applicability across industries. Cold storage is a rapidly growing segment driven by increasing demand for temperature-sensitive products, such as pharmaceuticals, fresh produce, and frozen food.

By end-user industry, e-commerce, retail, and FMCG (Fast-Moving Consumer Goods) dominate the market share, reflecting the growing need for integrated and responsive supply chain solutions. The pharmaceutical and healthcare sectors are emerging as high-growth areas, particularly due to the rising importance of cold chain logistics for medicines and vaccines.

Geographically, urban and industrial hubs such as Riyadh, Jeddah, and Dammam are major contributors to market revenue, supported by proximity to ports, airports, and key commercial zones. The expansion of industrial cities and economic free zones such as NEOM and King Abdullah Economic City is expected to further drive demand for advanced warehousing solutions.

Get a Free Sample Report with Table of Contents@ https://www.expertmarketresearch.com/reports/saudi-arabia-warehousing-and-storage-market/requestsample

Saudi Arabia Warehousing and Storage Market Trends

1. E-commerce-Driven Demand: The rapid growth of e-commerce in Saudi Arabia is transforming warehousing requirements. Retailers and logistics providers are increasingly investing in large-scale, technologically advanced fulfilment centres to handle fast delivery expectations and high-volume order processing.

2. Rise of Cold Storage Solutions: With the increasing import of perishable goods and pharmaceuticals, cold storage facilities are becoming a critical part of the warehousing infrastructure. Investment in temperature-controlled warehouses ensures product quality, regulatory compliance, and reduced wastage.

3. Automation and Smart Warehousing: Automation technologies, including robotics, automated guided vehicles (AGVs), and warehouse management systems (WMS), are being widely adopted to enhance operational efficiency. Smart warehouses with IoT-enabled monitoring and AI-driven analytics are helping businesses streamline inventory management, reduce errors, and improve order fulfilment speed.

4. Green and Sustainable Warehousing: Environmental sustainability is gaining attention, with companies adopting energy-efficient designs, solar-powered storage facilities, and eco-friendly packaging. Green logistics is increasingly being incorporated to align with national sustainability goals and reduce operational costs.

5. Outsourced and Third-Party Warehousing: Businesses are increasingly outsourcing storage and distribution operations to third-party logistics (3PL) providers to reduce capital expenditure, improve flexibility, and focus on core operations. The 3PL segment is witnessing strong growth, particularly for SMEs and e-commerce companies.

Drivers of Growth

1. Vision 2030 and Industrial Expansion: Saudi Arabia’s Vision 2030 initiative aims to diversify the economy and reduce dependence on oil revenues. The growth of industrial sectors, logistics hubs, and economic cities is driving demand for modern and large-scale warehousing infrastructure.

2. Increasing Trade and Logistics Activities: The country’s strategic location as a regional trade corridor encourages investments in storage and distribution facilities to support imports, exports, and domestic supply chains.

3. Rising E-commerce and Retail Penetration: The surge in online shopping and organised retail has created a need for warehouses that support fast inventory turnover and last-mile delivery solutions. Companies are investing in automated and scalable facilities to manage high-volume e-commerce operations efficiently.

4. Technological Advancements: The adoption of warehouse management systems (WMS), robotics, AI, and IoT-enabled monitoring is helping businesses reduce operational costs, improve inventory accuracy, and increase storage capacity, thereby encouraging market growth.

5. Growing Cold Chain Requirements: Increasing demand for perishable goods, pharmaceuticals, and processed food is accelerating the need for temperature-controlled storage solutions, ensuring product safety and compliance with regulatory standards.

Saudi Arabia Warehousing and Storage Market Segmentation

The market can be divided based on types of warehouse, ownership, end use and region.

Competitive Landscape

Some of the major players explored in the report by Expert Market Research are as follows:

• DHL Saudi Arabia  
• Wared Logistics  
• ATC-logistics 
• A.P. Moller - Maersk 
• Arabian Logistics Solutions 
• BSL Logistics 
• Diggipacks  
• Almajdouie Logistics 
• Advanced Storage Co. 
• Aiduk 
• Others

Challenges and Opportunities

Challenges:

• High Infrastructure Costs: Setting up advanced warehousing and cold storage facilities requires significant capital investment.

• Energy Dependency: Cold storage and automated warehouses consume large amounts of electricity, leading to high operational costs.

• Skilled Workforce Shortage: Limited availability of trained personnel for managing automated systems can impede operational efficiency.

• Regulatory Compliance: Adherence to local standards, food safety regulations, and export-import compliance may pose challenges for storage operators.

Opportunities:

• E-commerce and Retail Expansion: Rising online sales and organized retail create demand for strategic warehouse locations and fulfilment centers.

• Cold Chain Growth: Investment in temperature-controlled storage for food and pharmaceuticals is expected to accelerate significantly.

• Industrial Zones and Free Trade Areas: Development of NEOM, King Abdullah Economic City, and other industrial hubs provide strategic opportunities for warehousing expansion.

• Technological Integration: Adoption of IoT, AI, robotics, and WMS solutions offers competitive advantage and operational efficiency.

• Sustainability Focus: Green warehousing solutions present opportunities for reducing operational costs while complying with environmental initiatives.

Saudi Arabia Warehousing and Storage Market Forecast

The Saudi Arabia warehousing and storage market is projected to grow at a CAGR of 5.90% over the forecast period of 2025-2034, reaching an estimated value of USD 12.60 billion by 2034. Dry storage facilities will continue to dominate in terms of market share, while cold storage and automated warehouses are expected to register the fastest growth.

E-commerce fulfillment centers and third-party logistics services will play a key role in shaping market dynamics. Automation, AI, and IoT adoption will further enhance warehouse efficiency, reduce operational costs, and meet growing customer expectations for fast, accurate delivery. The expansion of industrial cities and trade hubs will strengthen the demand for large-scale, modern, and strategically located storage facilities.

Media Contact:

Company Name: Claight Corporation
Email: sales@expertmarketresearch.com
Toll Free Number: +1–415–325–5166 | +44–702–402–5790
Address: C-130 Sector 2 Noida, Uttar Pradesh 201301
Website:  https://www.expertmarketresearch.com