A qualitative leap in the Saudi logistics sector
In a strategic move aimed at reshaping the logistics sector in the Kingdom of Saudi Arabia, the Ministry of Transport and Logistics has issued the Technical Guide for the Construction and Operation of Warehouses for 2026. This publication is an integral part of the National Transport and Logistics Strategy, launched by His Royal Highness the Crown Prince as part of the objectives of Saudi Vision 2030. The guide aims to unify the planning and regulatory requirements for investors in all regions of the Kingdom, which will contribute to eliminating the phenomenon of haphazard storage that has long posed a challenge to supply chains, and will enhance Saudi Arabia’s position as a global logistics hub connecting the continents of Asia, Europe, and Africa.
Historical context and importance of the new organization
Historically, the warehousing sector in many regions has suffered from a lack of standardized regulations, leading to inconsistencies in safety and operational efficiency. With the Kingdom's rapid economic development, a comprehensive regulatory framework has become essential. The Ministry explained that the new guide provides a user-friendly platform to access all requirements issued by various relevant government entities. The guide's geographical scope includes new warehouses located within municipal boundaries, industrial cities, special economic zones, ports, and airports. Military warehouses and those located in areas subject to special legislation, such as NEOM and the Red Sea Project, are excluded from the guide's application, with the respective supervisory authority serving as the primary reference.
5 categories for classifying warehouses and safety standards
To ensure the highest levels of safety and efficiency, the guide classifies warehouses into three main risk categories: low, medium, and high risk, based on fire prevention and protection requirements. It also includes classifications based on type of use, such as general warehouses, refrigerated warehouses, open-air warehouses, chemical warehouses, and food warehouses. The Ministry resolved any overlap in jurisdictions by affirming the supremacy of the Saudi Building Code 2024, stating that in the event of any conflict between the Code's requirements and those of other government agencies or international codes, the Saudi Building Code's requirements shall prevail and be mandatory.
Facilitating the investor journey and supporting supply chains
The official document confirmed that the primary purpose of the guide is to clarify the investor's journey through interconnected steps. This journey is divided into three key phases: beginning with registration and licensing, progressing through design, construction, and approval of engineering plans, and culminating in operation and business activity. To accommodate industrial development, heights of up to 45 meters are permitted for warehouses with automated storage in industrial cities, and the maximum building coverage ratio is set at up to 60% in certain economic and industrial zones, while maintaining a flexible mechanism that allows investors to request technically and economically justified exceptions.
Economic impact and the future of smart storage
At both the regional and international levels, this guide enhances the attractiveness of the Saudi market for foreign direct investment (FDI). Regarding supply chain resilience, the guide outlines the operational mechanisms of third-party warehousing facilities managed by specialized logistics providers (3PLs). It also highlights customs warehouses in bonded zones, which allow importers to store goods with customs duties and taxes suspended, thereby boosting companies' cash flow and expediting cross-border trade.
The report looked ahead to future trends in the logistics sector, emphasizing the importance of adopting sustainable building practices, improving energy efficiency, and transitioning to advanced automation. It noted that the use of robotics, automated storage systems, and artificial intelligence will necessitate continuous updates to building codes and safety requirements to protect workers and property, positioning the Kingdom among the leading nations in smart logistics management.
