Gulf Islamic Investments and Logipoint Create Powerful New Logistics Platform in Saudi Arabia
Gulf Islamic Investments (GII), a leading Gulf asset management group, and Logipoint, a subsidiary of SISCO, have announced a landmark joint venture to develop a robust logistics platform in Saudi Arabia. This collaboration, valued at over SAR 1 billion (approximately $300 million), aims to build Grade A warehousing solutions across the Kingdom, starting in key cities like Riyadh and Jeddah.
Logipoint, renowned for its industrial and logistics real estate development, manages both bonded and non-bonded logistics parks and zones in Saudi Arabia. The GII-Logipoint joint venture will establish new logistic infrastructure, providing essential warehousing and handling facilities to support a comprehensive logistical network serving various companies throughout the Kingdom.
This venture marks the second major logistics deal for GII this month. Earlier, Brookfield Asset Management acquired a majority stake in GII’s logistics business, which offers bespoke warehousing solutions for high-end, long-term clients in the UAE.
GII's logistics journey began in December 2017 with the acquisition of a logistics fulfillment center in Dortmund, Germany, in partnership with GARBE Industrial. This center was sold to an Asian investor in 2020, achieving an internal rate of return (IRR) of 18%. GII has since focused on investing in and developing logistics assets in the GCC, partnering with companies like Hellman, CEVA, Sinotrans, and Noon.
Pankaj Gupta, co-founder and co-CEO of GII, stated, “Our partnership with Logipoint extends GII’s logistic operations across Saudi Arabia to support the rapid expansion of the Kingdom’s infrastructure and its booming economy. This is a natural progression for GII following our recent transaction with Brookfield.”
Mohammed Alhassan, GII’s other co-founder and co-CEO, added, “This joint venture with Logipoint is a crucial part of GII’s growth strategy in Saudi Arabia. It complements our recent activities, including acquiring a CMA banking license for GII Saudi Arabia and the acquisition of Emad Bakeries in Jeddah.”
Farooq Shaikh, CEO of Logipoint, expressed, “This partnership with GII opens new investment opportunities. We are committed to leveraging our expertise in developing logistics zones and parks to drive our expansion strategy. Our collaboration with GII reinforces our leadership in the logistics industry, aligning with the Vision 2030 goals to transform Saudi Arabia into a global logistics hub.”
