GFH Partners manages SAR 26B assets in regional, global markets: exec

The company is continuing to prioritize investments in regional markets, says GFH Partners’ Head of GCC Mohammed Ali

GFH Partners manages assets valued at SAR 26 billion across regional and international markets, Head of GCC Mohammed Ali told Argaam.

The dedicated investment platform focused on industrial and logistics real estate in the GCC has a total size of SAR 1.5 billion, he added.

The company continues to prioritize investments in regional markets, in line with its global investment approach, which is built around long-term structural growth drivers. These include industrial and logistics real estate, healthcare real estate and the residential real estate sector, Ali said.

GFH Partners’ strategy is anchored in a competitive advantage stemming from its ownership stakes in specialist investment-management firms operating in the same sectors and geographies where it deploys capital.

The company’s model is built on access to the best investment opportunities, which are evaluated and managed by expert teams.

Saudi Arabia’s logistics real estate market is experiencing rapid growth, driven by several key factors, including a booming e-commerce sector that now accounts for more than 20% of warehouse demand and is expanding at an annual rate of 6% through 2030.

Vision 2030 and the National Transport and Logistics Strategy are also enabling significant infrastructure investments, including plans to establish 18 specialized logistics zones, he added.

Industrial diversification, particularly in manufacturing, automotive and pharmaceuticals, is increasing demand for specialized storage facilities. Further, cold storage is the fastest-growing segment, expanding at more than 10% annually, supported by rising needs in the food and pharmaceutical sectors.

These factors position Saudi Arabia as one of the most attractive logistics real estate markets in the GCC, Ali said.

GFH Partners’ investments are aligned with these market dynamics, as its platform invested in cold-storage assets, a wide range of ready industrial facilities, and specialized logistics properties.

Additionally, Riyadh is the Kingdom’s primary logistics and distribution hub, supported by an extensive highway network linking the national regions, a dry port, and the Integrated Logistics Zone project at King Salman International Airport.

This came alongside steady economic expansion driven by Vision 2030 and mega projects such as Diriyah Gate, Qiddiya, and New Murabba, all of which contributed to strong population growth that boosted demand for logistics infrastructure and services.

As a result, Riyadh accounts for more than half of the Kingdom's total logistics and industrial real estate, with occupancy rates exceeding 98%. The majority of the company’s investments are in Riyadh, where the platform manages three logistics and industrial properties. It is currently developing a 100,000-square-meter Grade-A logistics facility in the south of the city.

The company is also developing a 100,000-square-meter logistics facility in southern Riyadh, tailored to the requirements of a major regional logistics provider. Cold-storage development has begun in Dammam, with the company currently designing a logistics warehouse at a strategic location in Jeddah.

The regional platform comprises 34 properties across GCC countries. The platform’s assets are leased to more than 120 tenants located within strategic industrial and logistics zones in Saudi Arabia and the UAE.

As for assets outside the GCC, they are concentrated in the US, where occupancy levels are high and rental growth is continuing, suggesting strong market demand. The company’s logistics portfolios in these markets span several sub-sectors, including industrial, manufacturing and transportation real estate, and are leased to more than 20 diversified tenants, enhancing portfolio diversification and stability.

Sustained and growing demand for logistics and industrial leasing in Saudi Arabia -supported by long-term structural drivers - is encouraging the development of new projects alongside the acquisition of income-generating assets, Ali stated. The company’s current strategy focuses on developing specialized, high-quality logistics assets in Riyadh, Dammam and Jeddah.

Speaking on the investment plans for the region, he said the company applies the same rigorous investment process used in global markets, considering factors such as location, access to transportation links, technical specifications, current tenant requirements and the asset’s suitability for future demand.