Logistics Feasibility Studies and Investment Assessments for New Assets in Saudi Arabia

The client was an entrepreneurial investment group evaluating the feasibility of launching a logistics facility in a rapidly emerging Saudi industrial zone. They required a detailed feasibility study covering demand projections, competition intensity, operational models, financial viability, and regulatory requirements. With significant capital at stake, leadership sought a robust decision-making foundation to validate project feasibility.

We conducted a full feasibility study incorporating demand analysis, competitive benchmarking, operational design, cost modelling, and financial projections. The solution examined multiple facility configurations, evaluated sensitivity scenarios, and assessed risk factors tied to market volatility and regulatory shifts. The study provided a balanced and realistic assessment of opportunities and constraints, enabling informed investment decisions.

• Conducted demand sizing and forecasting using industry growth metrics, population expansion, and consumption trends.
• Benchmarked comparable logistics developments across Saudi Arabia to assess pricing and utilization rates.
• Designed operational configurations and layout options for multiple facility sizes.
• Developed detailed financial models including CapEx, OpEx, breakeven timelines, and IRR projections.
• Evaluated regulatory requirements, licensing steps, and development risks impacting feasibility.

We recommended a phased facility rollout aligned with demand growth projections, minimizing upfront exposure while preserving scalability. Additional recommendations included selecting a modular layout, integrating automation-ready design, and securing long-term land agreements to stabilize future costs. We also advised forming early partnerships with anchor customers to enhance utilization predictability.

The feasibility study improved decision accuracy, reducing investment uncertainty by over 50%. The recommended configuration achieved projected IRRs between 15–17%, supported by realistic operational cost structures. Leadership used the findings to proceed confidently with a phased development strategy backed by clear risk mitigation measures.