Dubai: GFH Partners has successfully completed the acquisition of a diversified logistics and industrial portfolio worth $150 million in Saudi Arabia and the UAE.
This portfolio includes assets strategically located in Riyadh and Dubai, encompassing various facilities such as light industrial and cold storage facilities, distribution centers, and warehousing assets.
These properties are leased to a mix of international and regional tenants, including blue-chip companies, GFH said in a statement on Saturday.
The investment in Saudi-based logistics is driven by the robust growth of the non-oil sector GDP in Saudi Arabia, expected to grow by 5.9 per cent in 2023 and over 4 per cent in 2024. Similarly, the UAE is projected to experience 3 per cent economic growth in 2023 and 4 per cent in the following year, primarily due to non-oil sectors.
Nael Mustafa, CEO of GFH Partners said, “Further to this acquisition, GFH Partners aims to rapidly expand our GCC logistics real estate platform to SR1 billion ($250 million) over the next 12-18 months, building on growth from favourable demographics, positive momentum in capital markets, and government initiatives to bolster their logistics industries, with Saudi Arabia set to become a key global logistics hub.”
GFH Partners plans to capitalize on this growth by developing logistics and light industrial facilities in partnership with local developers. Saudi Arabia's Vision 2030 initiative, which includes the development of 59 logistics centers spanning over 100 million square meters across the country, further supports this expansion.
Additionally, recent agreements reached at the 2023 G20 New Delhi summit will establish shipping and railway links between Saudi Arabia, the UAE, India, and the US, connecting Europe, the Middle East, and India.
