Saudi Arabia's industrial and logistics real estate market recorded rental growth of up to 6.9% and sustained occupancy above 90% across Riyadh, Jeddah, and the Dammam Metropolitan Area (DMA) in Q2 2026, according to JLL's KSA Industrial Market Dynamics report.
The strongest gains were in the DMA at 6.9%, followed by Jeddah at 4.8% and Riyadh at 3.9%, with Industrial Gate City commanding the highest Riyadh rents at SAR 300 per square metre per annum. Structural demand is underpinned by rapid industrial base expansion (from 12,289 establishments a year ago to approximately 13,660 in April 2026), driving both new absorption and lease renewals.
Regional disruptions during Q2 redirected significant cargo flows to Jeddah Islamic Port and King Abdullah Port in Rabigh, a realignment reinforced by the launch of Mediterranean Shipping Company's new Middle East Express service linking Europe directly to both Red Sea hubs.
Gulf Economist Staff Writer