Kingdom of Saudi Arabia Industrial Market Dynamics, Q1 2025
Summary and analysis of the Kingdom of Saudi Arabia's current Industrial real estate market conditions.
- Faraz Ahmed
- Muhammad Aijaz
- Taimur Khan
Prime industrial locations delivered exceptional results in Q1 2025, with Jeddah Islamic Port achieving 11.1% annual rental growth driven by sustained high demand.
Industrial Gate City in Riyadh reinforced its position as the market's premier industrial destination, commanding premium rates of SAR 300 per sq. m.
The Kingdom's rapidly expanding food and pharmaceutical sectors are driving substantial demand for temperature-controlled warehousing, necessitating increasingly sophisticated supply chain solutions.
Investors and developers are pivoting toward specialised facilities equipped with advanced technological capabilities to satisfy stringent regulatory requirements and elevated quality standards.
Purpose-built industrial cities and Special Economic Zones (SEZs) are generating powerful ecosystem advantages that attract substantial investment throughout the region.
These strategic developments offer unparalleled connectivity, state-of-the-art infrastructure, and compelling regulatory incentives that significantly enhance the Kingdom's logistics capabilities.
