Kingdom of Saudi Arabia Industrial Market Dynamics, Q2 2026

The Kingdom's factory base expanded significantly, with hundreds of new industrial licenses issued in April 2026, bringing the total to approximately 13,600 establishments nationwide. This pace reflects strengthening investor confidence and sustained momentum toward the Kingdom's broader industrial diversification objectives.

Occupancy levels remained above 90% in Riyadh, Jeddah and the DMA, sustained by robust underlying demand, both from lease renewals and consistent new absorption. The resilience of occupancy levels, even amid broader regional uncertainties, underscores the depth of occupier commitment and the structural supply-demand imbalance characterising both markets.

Rental rates across Jeddah, Riyadh, and the DMA continued to rise as persistent Grade A scarcity and structural demand growth outweighed the impact of regional geopolitical tensions.

Occupiers across the region are incorporating resilience and single-corridor risk considerations into their logistics planning, a shift expected to sustain long-term interest in Saudi Arabia's multi-port network. This emphasis is reinforcing demand for well-connected, strategically positioned industrial and logistics space beyond the immediate rerouting activity.