Amazon doubles storage capacity in Saudi Arabia with new Riyadh facility.
In a move aimed at expanding its presence and enhancing selling opportunities for small and medium-sized businesses (SMBs), Amazon has launched a new fulfillment center in Riyadh, Saudi Arabia. The facility, which spans an impressive 390,000 square feet across five floors, has doubled the company’s total storage capacity in the country. With a remarkable capacity of 2.7 million cubic feet, it can now store over 9 million products, according to an official statement.
The introduction of the fulfillment center in the Saudi capital is expected to provide SMBs with a platform to showcase their products and broaden their customer base. Prashant Saran, the director of operations for Amazon in the Middle East and North Africa region, expressed his enthusiasm about the new facility, stating that it will offer sellers more storage options and aid in expanding their online businesses into new markets.
Saran highlighted the transformative impact of opening a new fulfillment center, citing its contribution to expanding product selection and availability, boosting e-commerce sales, nurturing talent development, and accelerating entrepreneurship. He emphasized that a significant portion of products sold on Amazon.sa originates from small and medium-sized businesses. In fact, many SMBs embark on their e-commerce journey for the first time by utilizing Amazon’s user-friendly and convenient services.
Amazon has been actively collaborating with Saudi Arabia’s General Authority for Small and Medium-Sized Enterprises, also known as Monsha’at, to facilitate the hosting of 40,000 sellers on Amazon.sa by 2025. By forging such partnerships, the e-commerce giant aims to bolster the growth and success of local businesses in the Kingdom.
Fulfillment centers play a vital role in Amazon’s operations, serving as hubs for storing millions of units of inventory and acting as distribution centers where associates handle order fulfillment, including picking, packing, and shipping. The new fulfillment center in Riyadh was officially inaugurated on Tuesday, with the presence of Suliman Al-Mazroua, CEO of the National Industrial Development and Logistics Program, and officials from the Ministry of Transport and Logistics Services, the Transport General Authority, and Monsha’at.
Al-Mazroua, commenting on Amazon’s expansion, noted that it supports Saudi Arabia’s logistics sector—one of the four key sectors identified by the National Industrial Development and Logistics Program. By introducing the latest innovations and technologies in e-commerce operations, the new fulfillment center is expected to empower local startups and entrepreneurs, enhancing their global connectivity and access to new markets.
Abdo Chlala, the country manager of Amazon in Saudi Arabia, emphasized that the fulfillment center, led by a diverse group of talented Saudi nationals in managerial positions, aligns with the Kingdom’s digital economy goals. Chlala believes that the facility will contribute to the localization efforts and aspirations of the country.
In line with Amazon’s commitment to sustainability, the facility operates on 100 percent electricity, including its heating and hot water systems. This design avoids the use of fossil fuel combustibles and prioritizes energy efficiency, supporting the company’s ambitious goal to achieve net-zero emissions by 2040.
Saran underscored Amazon’s dedication to supporting Saudi Arabia’s localization initiatives, mentioning the launch of Amazon Academy earlier in the year. This initiative provides training to 30,000 Saudi citizens in cloud technology, retail, and logistics. Saran also highlighted the company’s efforts to empower women in the workforce, stating that Saudi women at the new fulfillment center hold various leadership positions across multiple departments, including operations, human resources, learning and development, and IT.
The launch of Amazon’s new fulfillment center in Riyadh signifies a major step forward for Saudi Arabia’s e-commerce infrastructure. By expanding its storage capacity and providing a platform for SMBs to thrive, Amazon is poised to contribute significantly to the Kingdom’s digital economy and foster the growth of local businesses in the region.
