Arcapita - billion dollar assets in Gulf industrial real estate

The Arkabita Group Holdings Limited (Arkabita), a global alternative investment holding company, will take over the management of a $1 billion industrial real estate portfolio. This will enable Arkabita to become one of the largest industrial real estate investment platforms in the Gulf region. The company expects to double the value of its managed industrial real estate portfolio in the Gulf region to US$2 billion by 2025.

Arkabita began its investment strategy in industrial real estate since 2010, creating a number of portfolios and specialized investment funds in industrial assets. It developed its assets by acquiring a variety of properties leased to large international and regional companies. Arkabita's industrial real estate portfolio now includes more than 3.5 million square meters of buildings across more than 30 sites leased to more than 80 tenants, mainly in Saudi Arabia and the UAE.

Simultaneously, Arkabita released a report on the logistics environment in Saudi Arabia, which drew attention to the growing demand for industrial real estate, supported by e-commerce growth of 21% from 2022 to 2027. The report examines the gap between supply and demand for industrial real estate in the Saudi market, leading to employment growth and annual rental rate increases in three major cities, Riyadh, Jeddah and Dhahran. The desire for quality properties that meet international standards is also supported by the growing number of international tenants who are demanding higher specifications for industrial properties.

The changes in Saudi Arabia's urban planning have significantly influenced a shift in consumer demand for real estate, from a concentration on the southern capital Riyadh to northern and northeastern areas with increasing urban development.

It is worth noting that the Kingdom is seeking to change the logistics environment with the launch of the "Common Plan for Logistics Centers", which envisages the development of more than 100 million square meters in 59 logistics centers, as part of a broader national strategy for transport and logistics. The plans aim to develop the logistics industry, improve international trade networks and attract international suppliers and financing to make the Kingdom a global logistics center.

On this occasion, Yousef Al-Abdallah, executive director and head of investments for the East Middle East and North Africa at Arkabita Group, said: "Industrial real estate, especially logistics real estate, offers investors the opportunity to participate in the Kingdom's unrivaled development, especially as the logistics industry is key to achieving Vision 2030. Arkabita is a leader in the local market and will be able to capitalize on the expected growth in the industry due to its extensive experience in the Saudi Arabian market. Our new investments will bring high added value to our investors and customers. "

Arkabita has successfully managed industrial and logistics properties around the world over the past 25 years, including approximately $6 billion worth of investments in the Gulf region.