SAL CEO says Riyadh logistics zone not to affect dividend policy

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 commercial banks and funds. Details will be announced at the appropriate time 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 project without any change in its dividend policy.

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

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

He added that investments will be injected according to a defined timeline aligned with the construction stages, with an expected payback period of around 10 years, and the positive financial impact 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 the stock is subject to short-term fluctuations 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, such as the launch of its project in Falcon City, with additional initiatives to be announced in due course.

SAL signed today a preliminary agreement with Sela Co. to lease a land plot spanning 1.56 million sqm in Falcon City, Riyadh. The lease period spans 30 years, extendable by 15 years on mutual agreement, with a grace period of three years, and with estimated investments at SAR 4 billion, according to data available with Argaam.