Riyadh, 02 November 2026 – ESR Group Limited (“ESR”), a leading Asia-Pacific real asset owner and manager, and Al Muhaidib Group (“AMG”), one of the largest conglomerates in Saudi Arabia (the “Kingdom”), today announced the formation of a joint venture to develop, own and manage institutional-grade industrial and logistics real estate across key markets in the Kingdom.
The joint venture will target up to USD 5 billion of investments over the next five years, combining ESR’s development, asset management and capital formation expertise with AMG’s strategic land holdings, operating businesses and deep local market knowledge. Activities will centre on key cities, including Riyadh, Jeddah, and Dammam, with the joint venture pursuing new developments and strategic value-add acquisitions across Saudi Arabia’s industrial and logistics sector.
Demand for modern Grade A logistics facilities in Saudi Arabia continues to outpace available supply, supported by economic diversification, industrial expansion, evolving supply chains, and growing trade flows. The joint venture will develop build-to-suit facilities for businesses expanding in the Kingdom, alongside larger multi-phase logistics precincts with strategic connectivity to ports, airports, rail and industrial cities to support increasingly sophisticated multi-modal logistics requirements.
Stuart Gibson, Co-founder and Co-CEO, ESR, said, “Saudi Arabia is emerging as one of the world’s most compelling markets for industrial and logistics investment, supported by strong structural growth drivers and increasing demand for high-quality real assets. The Kingdom’s ambitions to strengthen industrial capabilities, expand trade corridors and modernise supply chains are creating significant demand for modern logistics infrastructure. Together, we are well positioned to support that growth while creating attractive long-term opportunities for institutional investors and value for the communities we serve.”
ESR will contribute its development, asset and fund management capabilities, while AMG will bring its development know-how, proven track record, strategic land accessibility, and local market understanding. Both partners will invest capital alongside the joint venture and collaborate on project execution and development delivery, with the joint venture structured to attract local, regional and global institutional investors as opportunities are advanced. Assets will be developed to ESR’s global Grade A standards and are expected to form part of long-term income-generating investment vehicles.
Essam A.K. Al Muhaidib, Chief Executive Officer of Al Muhaidib Group, said, “For more than eight decades, we have built and operated businesses supported by efficient warehousing and distribution networks across the region. This experience has given us a deep understanding of evolving customer needs and the increasingly important role that high-quality industrial and logistics infrastructure plays in supporting business growth. By combining our strong local market knowledge and development capabilities with ESR’s global expertise, this joint venture will deliver world-class industrial and logistics solutions that support the Kingdom’s continued industrial expansion and its ambition to become a leading global logistics hub, in alignment with Saudi Vision 2030.”
The joint venture is expected to commence operations in Q1 2027, with a dedicated team based in Saudi Arabia and strategic oversight provided by senior executives from ESR and AMG.
