SAL to kick off construction work in Riyadh project within 60 days: CEO

Omar Hariri, CEO of SAL Saudi Logistics Services Co., said that the company has begun receiving the land for the Falcon City project in northern Riyadh, with infrastructure works set to begin within 60 days.

The first phase in the project will be completed by 2027, with the entire project scheduled for completion in 2030, he added.

In an interview with Al Arabiya TV, the top executive said that the project’s positive financial impact will begin reflecting on revenues starting from 2028, with investments to be injected gradually beginning in Q1 2026. He expects about 20% of the project’s value to be spent in the first year on infrastructure work.

Part of the project will be developed under a “build-to-suit” model, based on long-term contracts extending up to 25 years. The company will balance between self-financing and external funding programs, with the offer plan and details of the program set to be declare during H1 2026, according to the top executive.

Hariri also affirmed that SAL maintains a strong financial structure, noting that its current debt levels are low compared to the sector average.

Commenting on the company’s financial results, Hariri said that Q3 2025 net profit grew 16% year-on-year, backed by increased revenues across all operational segments.

He added that the company’s gross profit margin reached 46%, up by nearly 3% quarter-on-quarter, while the cargo handling segment posted a 49% profit margin, compared to 8% in the logistics services segment.

“The growth outlook for the Kingdom’s transportation and logistics sector is very promising, supported by the implementation of the National Transport and Logistics Strategy,” said the CEO, “The company is currently working on major expansion initiatives for its cargo terminals”.

He said the company serves national airlines and all carriers operating in the Kingdom, and is in negotiations with Riyadh Air on logistics-related services, adding that any agreements will be announced once finalized.

According to data compiled by Argaam, SAL signed a preliminary agreement in March with Sela Co. to lease land covering 1.56 million sqm in Falcon City, Malham area, north Riyadh, to develop, build, and operate a logistics zone with estimated investments of about SAR 4 billion.

Under the agreement, SAL will lease the land to implement its logistics projects and services for a period of 30 years, renewable for an additional 15 years upon mutual agreement, with a three-year grace period.

SAL signed, on Oct. 7, the final (sub usufruct) agreement with Sela to lease a land plot in Falcon City, north of Riyadh, covering a total area of 1.57 million square meters (sqm) - an increase of 12,220 sqm from the preliminary agreement.