Riyadh warehouse growth surged in the first half of 2025, reaching 98 percent occupancy. Industrial rents also increased sharply. Experts say this highlights the city’s growing dominance in Saudi Arabia’s logistics sector. Faisal Durrani, partner and head of research for MENA at Knight Frank, noted strong demand for modern, high-quality facilities is driving rental growth.
Industrial rents in Riyadh climbed to SR208 ($55) per square meter, reflecting a 16 percent increase. This rise shows sustained demand despite 1.3 million square meters of new warehouse space added in the first half of 2025. Analysts say this expansion demonstrates Riyadh warehouse growth and the Kingdom’s industrial ambitions.
The city’s logistics sector growth aligns with Vision 2030, which aims to diversify the economy from oil dependence. Strong occupancy rates across Riyadh, Jeddah, and the Dammam Metropolitan Area indicate nationwide resilience. Rising rents show continued investor confidence and growing demand for industrial facilities.
Durrani emphasized that ongoing infrastructure projects will support further expansion. He said a large pipeline of serviced industrial land signals more opportunities for developers and investors. Modern warehouses and strategically located facilities remain highly sought after by tenants.
Knight Frank’s review shows demand still outpaces supply. Limited space, high-quality facilities, and strategic locations ensure the growth remains robust. Investors and businesses continue to show confidence in the Kingdom’s industrial sector.
The momentum in industrial rents has broader economic implications. Rising rates can attract investment, stimulate supply chain development, and support employment in logistics. Policymakers consider this growth a key part of Vision 2030’s industrial diversification goals.
Looking ahead, the warehouse is expected to continue. The Kingdom is investing in modern logistics solutions and industrial land development. Analysts predict occupancy rates will stay high and rents will increase steadily. This reflects sustained demand and long-term market confidence.
