Ksa chalhoub group expands its presence in saudi arabia in partnership with special integrated logistics zone company, launching a new distribution hub in riyadh
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    Ksa chalhoub group expands its presence in saudi arabia in partnership with special integrated logistics zone company, launching a new distribution hub in riyadh

    Sun, Jun, 01, 2025

Commenting on the initiative, Michael Chalhoub, CEO of Chalhoub Group said: “The launch of Tawreed represents a significant milestone in our journey in Saudi Arabia. This state-of-the-art logistics center is designed to elevate our ability to serve our Saudi clients—both online and offline—with a seamless, efficient experience, including reduced delivery times. Beyond serving as a distribution hub for Riyadh and KSA, Tawreed is strategically positioned to support our broader regional operations, servicing Kuwait, Qatar, and Bahrain. This facility not only reflects our commitment to Saudi Arabia’s vision for economic growth, innovation, and nationalisation, but also strengthens local partnerships, creating new opportunities for Saudi talent. By enhancing our logistics capabilities, we are driving greater efficiency, empowering us to better serve our partners and meet the needs of our luxury customers across the Middle East.”

Dr. Fadi bin Saleh Al-Buhairan, Chief Executive Officer of SILZ, added: "We are proud to partner with Chalhoub Group on this landmark project, which underscores SILZ’s pivotal role in transforming Saudi Arabia into a global logistics powerhouse. Tawreed’s launch within Riyadh Integrated is a testament to our world-class infrastructure, strategic location, and commitment to fostering a business-friendly environment that attracts leading international brands. This collaboration not only strengthens the Kingdom’s logistics sector but also creates significant employment opportunities for Saudi nationals, supporting our economic diversification goals under Saudi Vision 2030."

The new facility will serve as a bonded hub in the Saudi International Logistics Zone (SILZ), contributing to improved operational efficiencies, cost reduction, and optimized inventory management. This model, which strategically splits inventory between JAFZA in Dubai and Tawreed in Riyadh, provides a strategic advantage by ensuring efficient logistics and streamlined supply chain operations. Tawreed also spans a plot area of 39,000 square meters with a total built-up area of 28,000 square meters, offering substantial space to meet Chalhoub Group’s growing operational needs. 

SILZ is revolutionizing Saudi Arabia’s logistics landscape by developing a fully integrated, high-value ecosystem that attracts global investors and enhances supply chain efficiency. Through strategic agreements and value-added services, SILZ is driving cost efficiencies and fostering a collaborative logistics network that benefits both tenants and investors.Riyadh Integrated offers a comprehensive ecosystem and a one-stop shop for logistics services, supported by competitive investor incentives, including 50-year tax relief, 0% corporate income tax, VAT and withholding tax exemptions, 100% foreign ownership, and streamlined certification processes

Looking ahead, Tawreed will not only solidify Chalhoub Group’s presence in Saudi Arabia but also serve as a gateway for regional expansion. By leveraging Riyadh Integrated’s strategic location and advanced logistics capabilities, the Group will enhance its operational reach, extending seamless distribution to neighboring markets such as Bahrain, Kuwait, and Qatar.

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ABOUT CHALHOUB GROUP:

INSPIRE | EXHILARATE | DELIGHT

For seven decades, Chalhoub Group has been a partner and creator of luxury experiences in the Middle East. The Group, in its endeavor to excel as a hybrid retailer, has reinforced its distribution and marketing services with a portfolio of ten owned brands and over 950 international brands in the luxury, beauty, fashion, and art de vivre categories. More recently, the Group expanded its expertise into new categories of luxury watches, jewelry, and eyewear. 

 

Every step at Chalhoub Group is taken with the customer at heart. Be it constantly reinventing itself or focusing on innovation to provide luxury experiences at over 770+ experiential retail stores, online and through mobile apps, each touch point leads to delighting the customer.  

 

Today, Chalhoub Group stands for over 16,000 skilled and talented professionals across eight countries in the Middle East, whose cohesive efforts have resulted in the Group being certified as a Great Place to Work in several countries. 

 

To keep the innovation journey going, the Group has set up “The Greenhouse”, which is not just an innovation hub, but also an incubator space and accelerator for start-ups and small businesses in the region and internationally. This is just one of the several initiatives taken by the Group to reinvent itself, catalyzed by forward thinking and future proofing. The Group has also been embedding sustainability at the core of its business strategy with a clear commitment towards people, partners, and the planet, and by being a member of the United Nations Global Compact Community and signatory of the Women's Empowerment Principles. 

 

 

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