Chalhoub Group recently hosted a ground-breaking ceremony to celebrate the launch of Tawreed, a new distribution hub at Riyadh Integrated. This significant milestone highlights the Group’s continued growth in Saudi Arabia and provides a valuable opportunity to engage with strategic partners both locally and across the region. It also strengthens the Group’s partnership with the Special Integrated Logistics Zone Company (SILZ), further cementing its local presence and commitment to investment, business growth, and nationalization in the Kingdom, and solidifies Riyadh Integrated position as a leading regional logistics hub.
Commenting on the initiative, Michael Chalhoub, CEO of Chalhoub Group said: “The launch of Tawreed represents a significant milestone in our journey in Saudi Arabia. This state-of-the-art logistics center is designed to elevate our ability to serve our Saudi clients—both online and offline—with a seamless, efficient experience, including reduced delivery times. Beyond serving as a distribution hub for Riyadh and KSA, Tawreed is strategically positioned to support our broader regional operations, servicing Kuwait, Qatar, and Bahrain. This facility not only reflects our commitment to Saudi Arabia’s vision for economic growth, innovation, and nationalization, but also strengthens local partnerships, creating new opportunities for Saudi talent. By enhancing our logistics capabilities, we are driving greater efficiency, empowering us to better serve our partners and meet the needs of our luxury customers across the Middle East.”
Dr. Fadi bin Saleh Al-Buhairan, Chief Executive Officer of SILZ, added: “This groundbreaking ceremony signifies the continued growth and success of SILZ as a key enabler of Saudi Arabia’s Vision 2030. Chalhoub Group’s investment underscores the confidence leading global companies have in our world-class infrastructure and strategic location. This partnership will not only boost the Kingdom’s logistics sector but also create significant job opportunities for Saudi nationals, contributing to the Kingdom’s economic diversification goals.”
The new facility (Tawreed) will serve as a bonded logistics hub within the Riyadh Integrated Logistics Zone, enhancing operational efficiencies, reducing costs, and optimizing inventory management. By strategically splitting inventory between JAFZA in Dubai and Tawreed in Riyadh, this model enables a more agile supply chain, ensuring seamless logistics operations across key regional markets.
Spanning a plot area of 39,000 sqm with a built-up area of 28,000 sqm, the facility is designed to support high-volume operations, accelerate speed-to-market, and enhance service quality across the region.
SILZ is revolutionizing Saudi Arabia’s logistics landscape by developing a fully integrated, high-value ecosystem that attracts global investors and enhances supply chain efficiency. Through strategic agreements and value-added services, SILZ is driving cost efficiencies and fostering a collaborative logistics network that benefits both tenants and investors. Riyadh Integrated offers a comprehensive ecosystem and a one-stop shop for logistics services, supported by competitive investor incentives, including 50-year tax relief, 0% corporate income tax, VAT and withholding tax exemptions, 100% foreign ownership, and streamlined certification processes
Looking ahead, Tawreed will not only solidify Chalhoub Group’s presence in Saudi Arabia but also serve as a gateway for regional expansion. By leveraging Riyadh Integrated’s strategic location and advanced logistics capabilities, the Group will enhance its operational reach, extending seamless distribution to neighboring markets such as Bahrain, Kuwait, and Qatar.
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