GFH Bank, OCTO launch US$300M logistics platform for Saudi Arabia, UAE
GFH will serve as investment manager and development partner for the platform.
BAHRAIN – GFH Bank has signed a memorandum of understanding with OCTO Management Consultancies to develop a US$300 million logistics and industrial real estate platform across Saudi Arabia and the UAE.
The collaboration aims to capitalize on strong growth fundamentals across the GCC, driven by rapid e-commerce expansion, supply chain localization, manufacturing growth, and major infrastructure investments in both markets.
Asset Focus and Development Strategy
The platform will focus on large-format warehousing, multi-let industrial assets, cold storage facilities, and distribution centres. The strategy will primarily target development-stage assets, with a balanced mix of build-to-suit and speculative developments to meet growing occupier demand.
The inclusion of cold storage units addresses a critical gap in Gulf supply chains: temperature-controlled warehousing capacity for perishable imports and re-exports.
Build-to-suit developments allow food distributors to tailor facilities to specific cold chain requirements, while speculative developments provide ready-to-lease space to meet growing demand.
Investment Management and Regional Growth Drivers
GFH will serve as investment manager and development partner for the platform. The bank currently manages assets and funds valued at US$24 billion, including a global investment portfolio spanning the GCC, the US, and Europe, with investments across sectors including logistics, healthcare, education, technology, and real estate. GFH Bank is also listed on the Bahrain Bourse, the Abu Dhabi Securities Exchange, and Boursa Kuwait.
The initiative aims to capitalize on rising demand for industrial real estate, fuelled by the expansion of e-commerce and regional infrastructure improvements.
Saudi Arabia’s Vision 2030 and the UAE’s economic diversification strategies continue to drive investment in logistics infrastructure, with both governments prioritizing supply-chain resilience and local manufacturing.
Strategic Commitment to Gulf Logistics
This strategic move highlights a significant commitment to enhancing the industrial landscape across the Gulf Cooperation Council region. The project will prioritize the construction of large-scale warehouses, cold storage facilities, and distribution hubs through a mix of customized and speculative developments.
GFH’s US$24 billion global portfolio, spanning logistics, healthcare, and technology, brings cross-sector expertise to platform development. As e-commerce continues to expand across the Gulf, demand for last-mile distribution centres and cold storage units will accelerate.
Therefore, this platform positions GFH and OCTO to capture that growth while supporting regional supply-chain resilience.
Lastly, this partnership marks a major step towards enhancing the industrial landscape across the GCC, addressing the Gulf supply chain’s evolving needs through targeted logistics and industrial real estate development.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
