ASMO, a joint venture between Aramco and DHL, has commenced construction of its first purpose-built ASMO logistics hub at King Salman Energy Park (SPARK) in Dammam. The 1.4 million square meter facility marks a significant milestone in developing long-term logistics infrastructure for Saudi Arabia’s energy and industrial sectors.
The development is being delivered and funded in partnership with Arcapita Group Holdings Limited, a global alternative investment firm. The facility has been designed to support large-scale logistics requirements and will include a temperature-controlled Grade A warehouse, chemical storage facilities, offices, staff facilities, and an extensive open yard for industrial storage and handling.
Facility Features and Technical Standards
The ASMO logistics hub will incorporate advanced automation and smart warehouse technologies to enhance operational efficiency and scalability. The development includes fire protection systems, photovoltaic installations, and EV charging readiness. The facility is targeting LEED Gold certification for sustainable building practices.
Once operational, the facility will serve Saudi Aramco, its affiliates, and other energy and industrial customers. The project represents the first of three planned strategic sites across the Kingdom, strengthening in-kingdom supply chain capabilities and supporting efficient logistics operations for the energy and industrial sectors.
Strategic Location and Supply Chain Impact
Located at the heart of Saudi Arabia’s energy sector, SPARK provides direct connectivity to key operating and logistics corridors. The facility’s proximity to the largest privately owned dry port in the region enables efficient movement, storage, and handling of materials across the energy and industrial value chain.
“This facility represents an important step in building ASMO’s long-term logistics network in Saudi Arabia. As the first of three planned strategic sites across the Kingdom, it will strengthen in-kingdom supply chain capabilities and support reliable, efficient logistics operations for the energy and industrial sectors. The development also aligns with Saudi Arabia’s Vision 2030 ambition to further establish the Kingdom as a regional logistics hub.”
Salem A. Al Huraish, Chairman of ASMO
Partnership Structure and Investment
The project follows a long-term development and operating structure, aligning long-duration capital with integrated operating capabilities. Arcapita serves as the investment and asset owner, while ASMO operates the facility on a long-term basis. This model combines institutional investment with sector expertise and operational management.
“As ASMO’s anchor customer, Aramco recognizes the critical role that high-quality logistics infrastructure plays in enhancing service reliability and enabling efficient, large-scale supply chain operations. This facility marks an important step forward in advancing more integrated and resilient supply chain, reflecting a long-term vision for efficient development and operational excellence.”
Sulaiman M. Al Rubaian, Senior Vice President of Procurement and Supply Chain Management, Aramco
Global Supply Chain Context
The development reflects broader structural shifts in global supply chains as economies move toward regionalized and diversified trade models. Production and sourcing networks are becoming more fragmented, making the logistics sector central to enabling coordination, resilience, and continuity across multiple markets.
Institutional-grade logistics and industrial real estate is emerging as a critical component of national infrastructure, particularly in markets investing to strengthen industrial capacity and global trade connectivity. Saudi Arabia’s continued prioritization of industrial development and supply chain resilience is driving sustained demand for scalable, high-quality logistics infrastructure.
