The Saudi Authority for Industrial Cities and Technology Zones (MODON), in partnership with the National Center for Privatization & PPP (NCP), has launched the Expression of Interest (EOI) for the Dammam Logistics Zone PPP project. This initiative follows a Public-Private Partnership (PPP) model under a Design-Build-Finance-Operate-Maintain-Transfer (DBFOMT) contract with a 30-year concession. Covering 850,000 square meters in Dammam 2nd Industrial City, the project will enhance Saudi Arabia’s logistics infrastructure. It will provide modern warehousing, improve supply chains, and integrate industries. The EOI submission deadline is March 9, 2025, at 3:00 p.m. KSA time.
Dammam 2nd Industrial City plays a key role in Saudi Arabia’s logistics network due to its location near King Abdulaziz Port, the country’s largest commercial port on the Arabian Gulf. The Dammam Logistics Zone PPP will boost cross-border trade with the UAE, Bahrain, and Kuwait. It will strengthen the regional logistics ecosystem. The project includes gated and non-gated areas, leasable warehouses, and a utilities zone. The private sector will finance, design, build, operate, and maintain the logistics infrastructure. Additionally, it will attract tenants and manage leasing. Saudi Arabia aims to raise the logistics sector’s GDP contribution from 6% to 10% by 2030. This project is critical for economic growth.
Saudi Arabia is using PPPs to speed up infrastructure development in logistics, transportation, and industry. The Dammam Logistics Zone PPP aligns with the National Transport and Logistics Strategy (NTLS). The goal is to place the Kingdom among the top 10 global logistics hubs by 2030. The PPP model allows the private sector to contribute expertise, funding, and innovation. Meanwhile, the government ensures regulatory compliance and strategic oversight. The Saudi logistics market is expected to grow at a 6.7% CAGR, reaching USD 25 billion by 2027. PPP projects in logistics have already attracted major investments. These projects drive economic diversification, job creation, and international trade growth.
Saudi Arabia’s logistics sector offers strong investment potential. The Dammam Logistics Zone PPP presents a key opportunity for investors. They will benefit from a supportive regulatory framework, rising industrial demand, and government-backed incentives. The hub will serve manufacturing, automotive, e-commerce, and petrochemical industries. This ensures long-term profitability. Saudi Arabia has pledged over USD 100 billion for logistics infrastructure. This commitment strengthens its position as the Middle East’s leading logistics gateway.
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