Saudi Arabia’s industrial and logistics real estate market recorded rental growth of up to 6.9% in the second quarter of 2026, while occupancy remained above 90% across Riyadh, Jeddah and the Dammam Metropolitan Area (DMA), according to JLL’s KSA Industrial Market Dynamics report.
The DMA recorded the strongest rental increase at 6.9%, followed by Jeddah at 4.8% and Riyadh at 3.9%. Industrial Gate City was Riyadh’s most expensive submarket, with rents reaching SAR 300 per square metre per year.
Saudi Arabia’s industrial base also expanded to approximately 13,660 establishments in April 2026, up from 12,289 a year earlier. The increase is supporting new space absorption and lease renewals, while limited Grade A supply continues to put pressure on rents.
Regional disruptions redirected cargo flows towards Jeddah Islamic Port and King Abdullah Port in Rabigh during the quarter. The shift was reinforced by Mediterranean Shipping Company’s new Middle East Express service, which links Europe directly with the two Red Sea hubs.
JLL said near-term freight costs are likely to remain elevated, but Saudi Arabia’s western ports could retain part of the diverted trade over the longer term. Occupancy is expected to remain high, with upcoming supply offering only modest relief in some areas.
Source: Gulf Economist
