SAL CEO says financing of Riyadh logistics zone not to affect dividend policy

Logo of SAL Saudi Logistics Services Co.

Omar Hariri, CEO of SAL Saudi Logistics Services Co., said all financing options for the new logistics zone project in Riyadh are on the table, including those provided by commercial banks and funds. Details will be duly announced after reviewing all proposals.

In an interview with Al Arabiya TV, Hariri explained that the company has strong untapped capacity in debt markets. It will secure the necessary facilities for the logistics zone project without compromising its current dividend policy.

The project aims to attract global companies in logistics, e-commerce, retail, and manufacturing. Its strategic location should play a key role in achieving this goal.

Hariri said this SAR 4 billion project will be executed in phases. The first phase — covering around 700,000 square meters (sqm) — is set for completion in 2027, with the entire project expected to be finalized by 2031.

He added that investments will be injected based on a predetermined timeline that complements all construction stages, with an expected payback period of around 10 years. The positive financial impact is anticipated to start reflecting in 2027.

SAL aims to increase the logistics segment's share of its total revenue from 19% currently to over 40% within the next five years.

Commenting on the stock decline since year-start, the CEO said these fluctuations will be short-lived and the company "is not concerned".

He emphasized that SAL showed an excellent performance in 2024 and still focuses on the implementation of its growth strategy. This includes the launch of its project in Falcon City, with more to be announced in due course. Earlier today, SAL signed a preliminary agreement with Sela Co. to lease a 1.56-million-sqm land plot in Falcon City, Riyadh, with estimated investments of SAR 4 billion. The lease period spans 30 years, subject to a 15-year extension on mutual agreement, with a grace period of three years, according to data available with Argaam.