SAL invests over SAR 5B in strategic projects: CEO

Omar Hariri, CEO of SAL Saudi Logistics Services Co. 

SAL Saudi Logistics Services Co. has transited from strategy to delivery, leveraging more than SAR 5.2 billion in strategic investments — including SAR 4 billion for the SAL Logistics Zone — to support the Kingdom’s vision of becoming a global logistics hub, CEO Omar Hariri said.

During the quarterly earnings call with analysts and investors, attended by Argaam, Hariri noted that SAL signed and renewed several agreements with international airlines, including ITA Airways, Philippine Airlines, and Azerbaijan Airlines, to provide warehousing and cargo handling services at all company terminals.

This forms part of expanding its partner network, enhancing operational efficiency, strengthening air cargo operations, and broadening its service network in line with the Company’s strategy and the national transport and logistics objectives.

SAL currently operates in 19 locations across the Kingdom, including four major stations in Riyadh, Jeddah, Dammam, and Madinah, across two main sectors: Cargo Handling and Logistics, with the third sector, the SAL Logistics Zone, to be launched soon.

CFO Haydar Ucar said the Company is advancing its planned logistics division transformation, showing encouraging early signs of margin recovery. H1 results reflected disciplined financial management and robust operational control despite softer volumes, the evolution of the logistics business, and other growth challenges.

Margins improved notably in the cargo handling division, driven by enhanced service offerings, strong client retention, and a leaner operational model, Ucar said.

He added that SAL continues to strengthen its balance sheet through disciplined working capital management, improved operational cash flows, and cost control, enabling precise capital deployment to fund infrastructure build-outs, develop logistics capabilities, and preserve financial flexibility for sustainable long-term growth.

H1 2025 net profit fell 13% year-on-year (YoY) to SAR 315.3 million from SAR 363.9 million, while Q2 profit rose 4% YoY to SAR 162.2 million from SAR 155 million, according to Argaam’s data.