SAL Zones secures US$667M Shariah-compliant loan from Saudi Awwal Bank for logistics expansion
The financing will cover capital and operating expenses for the SAL Logistics Zone project.
SAUDI ARABIA – SAL Saudi Logistics Services’ subsidiary, SAL Zones, has signed a Shariah-compliant credit facility agreement worth SAR 2.5 billion (approx. US$667 million) with Saudi Awwal Bank (SAB) to support the development of logistics zones across Saudi Arabia as the company moves to enhance the Kingdom’s supply chain capabilities and regional connectivity through a 15-year financing arrangement.
The facility is intended to finance the capital and operating expenditures for the development of the SAL Logistics Zone project and is supported by a corporate guarantee issued by SAL and promissory notes.
The 15-year repayment period gives the company ample time to achieve its development goals. The organization aims to use these funds to enhance the country’s supply chain capabilities and regional connectivity.
Strategic Significance and Vision 2030 Alignment
SAL Zones, established in October 2025 as a wholly owned subsidiary of SAL Saudi Logistics Services, focuses on warehousing and enabling the seamless movement of goods across air, sea, and land, while strengthening multimodal connectivity.
The subsidiary is headquartered in Riyadh, with paid-up capital of SAR 500,000 (approx. US$133,152) and authorized capital of SAR 1.4 billion (approx. US$373 million).
In addition, the logistics zones are designed as premium, multi-tenant smart infrastructure facilities, strategically located near airports and transport corridors, offering direct highway access and future rail connectivity.
Furthermore, these zones serve as an anchor platform for recurring leasing revenues and ecosystem expansion, supporting the company’s broader strategy to transform into an integrated logistics platform with an international presence.
Financing Terms and Corporate Guarantee
SAL Saudi Logistics Services Co. owns 100% of SAL Zones’ capital. The facility is secured by a corporate guarantee from SAL, together with promissory notes. The financing will cover capital and operating expenses for the SAL Logistics Zone project.
Moreover, the development of logistics zones across Saudi Arabia is expected to strengthen the Kingdom’s position as a global logistics hub, aligning with Vision 2030’s goals of economic diversification and industrial development.
Finally, this strategic financial partnership marks a major investment in the future of Saudi Arabian commerce.
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