Management of $1 billion in real estate, industrial and logistics assets in the GCC by Arkabit

Arkabita Group Holdings Limited (Arkabita), an international alternative investment holding company, is taking over the management of a $1 billion industrial real estate portfolio, making it one of the largest industrial real estate investment platforms in the Gulf region.

Arkabita plans to double the value of its managed industrial real estate portfolio in the Gulf region to $2 billion by 2025. The company has been pursuing its industrial real estate investment strategy since 2010, creating a chain of portfolios and investment funds specializing in industrial assets.

It has developed its managed assets by acquiring a variety of properties leased to a wide range of tenants, including major international and leading regional and local companies. Arkabita's industrial and logistics real estate portfolio comprises over 3.5 million square meters spread across more than 30 properties and leased to over 80 tenants, mainly in Saudi Arabia and the UAE.

Alongside this, Arkabita today released a report on the logistics environment in the Kingdom titled "Opportunities and Prospects: the emerging logistics services sector in Saudi Arabia", which is based on the growing demand for industrial real estate, driven by e-commerce demand growth expected to grow by 21% from 2022 to 2027.

The report analyzes the gap between supply and demand for industrial properties in the Saudi market, resulting in higher occupancy rates and annual rental price increases in the three major cities of Riyadh, Jeddah and Dammam, according to Knight Frank's 2023 study. These key market drivers are also underpinned by a clear preference for quality properties with high standards, as the number of international tenants demanding high standards of industrial properties continues to grow.

The study points to changes in urban planning in the Kingdom, resulting in changing areas of real estate demand from the southern capital Riyadh to the northern and northeastern areas with urban development.

Of note is the Kingdom's commitment to changing the logistics environment with the government's recent unveiling of the "Overall Plan for Logistics Centers," which includes the development of more than 100 million square meters spread over 59 logistics centers as part of a broader national transport and logistics strategy.

These plans aim to develop the logistics services sector and improve international trade networks, attracting global supply chains and financing to make the Kingdom a global logistics platform.

Yousef Al Abdalla, executive director and head of investments for the International Investment Sector East Arabia and North Africa region at Arkabita Group, said: "Industrial real estate, especially logistics real estate, offers investors the opportunity to participate in unrivaled development in the Kingdom, especially as the logistics services sector is key to achieving Vision 2030. Arkabita has a leading position in the local market and can maximize the expected growth in this sector due to its extensive experience in the Saudi Arabian market. Our new investment will bring high added value to our investors and customers."

Arkabita has successfully managed approximately $6 billion worth of industrial and logistics deals worldwide over the past 25 years, including $1 billion worth of investments in the Gulf region.