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Saudi Arabia’s Warehousing Sector

Diversification - Challenges and opportunities

Riyadh, Saudi Arabia, 22 June 2020 – Colliers International, The Global Commercial Real Estate Leader, released its latest in-depth white paper on the warehousing sector in the kingdom. Featuring the results of an industry specific stakeholder survey, it examines the key drivers influencing the evolution of KSA’s warehousing industry. The report combines real data with market sentiment to capture the current and future impact of COVID-19.

The warehousing industry is exhibiting healthy growth, with technological advances continuing to be a key driver. The rise of automation and value-added services to attain competitive differentiation is changing the way warehouses operate, leading to a dynamic future across the globe.

Imad Damrah, Managing Director, Colliers International KSA:

“We see organisations leveraging technology to increase productivity and space utilisation. Preeminent amongst these are; automation by leveraging on technology in data-driven capacities, infrastructure and big data”.

The report discusses the key drivers of change in the warehousing sector which have a potential impact on all other sectors of the economy. In addition to highlighting the impact of COVID-19, the paper also captures the market land scape, demand-supply dynamics and key challenges for Riyadh, Jeddah, Dammam and Al Khobar.

The paper concludes with an outlook on the warehousing sector and how is it coping with the evolving demand drivers and with the “new normal”.

Imad adds:

“Significant financial impact, both positive and negative, is expected while business operators continue to evaluate different strategies to cope with the current realities of the pandemic impact and identifying potential within the new trends”.