Arkabit's billion dollars of assets in industrial real estate in the Kingdom and other Gulf countries

Alternative investment company Arcapita Group Holdings Ltd (Arcapita) manages a $1 billion industrial real estate portfolio spread across the Gulf Cooperation Council countries. The company plans to double the value of the portfolio by 2025.

The portfolio is supported by sovereign wealth funds and leading investment institutions and international investors. Since 2010, Arcapita has been pursuing its investment strategy in industrial real estate, creating a chain of portfolios and specialized investment funds in industrial assets. It has been able to develop its assets by acquiring a variety of properties leased to a wide range of tenants, including major international and regional companies.

Arcapita's portfolio includes more than 3.5 million square meters of buildings spread across more than 30 sites, with tenants mainly in Saudi Arabia and the United Arab Emirates. Along with this, Arcapita has released a report on the logistics environment in the Kingdom titled "Opportunities and Prospects: the Emerging Logistics Services Sector in Saudi Arabia," which reflects the growing demand for industrial real estate, supported by an estimated 21% growth in e-commerce demand over the period from 2022 to 2027.

The report examines the gap between supply and demand for industrial real estate in the Saudi market, reflected in high occupancy and annual rental rate increases in the three major cities of Riyadh, Jeddah and Damam. The study also points to a growing interest in favoring high-quality real estate, as the number of international tenants demanding higher standards of industrial properties is on the rise.

The changes in urban planning in the Kingdom have significantly influenced a shift in real estate demand areas from the southern capital of Riyadh to the northern and northeastern areas with the development of urban growth. This has led to the relocation of e-commerce and outsourced contracting companies to these new neighborhoods.

Investors and developers should therefore consider these changes and opportunities for the industrial real estate sector. It is worth noting that the Kingdom is seeking to change the logistics environment with the submission of the "General Plan for Logistics Centers", which includes the development of more than 100 million square meters distributed over 59 logistics centers, as part of a broader national transport and logistics strategy. These plans are aimed at developing the logistics services sector and improving international trade networks, attracting international supply chains and financing to make the Kingdom a global logistics platform.

On this occasion, Yousef Al Abdullah, executive director and head of investment sector for the Middle East and North Africa region at Arcapita Group, said: "Industrial real estate, especially logistics real estate, provides investors with the opportunity to participate in the unrivaled development in the Kingdom, especially as the logistics services sector is key to achieving visa 2030. Arcapita's local leadership position supports its ability to maximize the expected growth in this sector due to its broad and long experience in the Saudi Arabian markets. Our new investments will add high value for our investors and customers. "

It is worth noting that Arcapita has managed around $6 billion worth of industrial and logistics deals around the world over the past 25 years, including $1 billion worth of investments in the Gulf region.