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Saudi Arabia: Amazon opens new fulfillment centre, doubles storage capacity

Spanning an impressive 390,000 square feet across five floors, the new facility is set to double Amazon’s storage capacity in Saudi Arabia

Global e-commerce giant Amazon has unveiled its newest Fulfillment Center in Riyadh, Saudi Arabia.

The new facility is set to double Amazon’s storage capacity in the country, giving them even more room to delight customers with a vast selection of products. Spanning an impressive 390,000 square feet across five floors – that’s equivalent to five football fields – this centre can store over 9 million items, ranging from electronics and appliances to groceries, fashion, books, and much more.

This expansion comes at a pivotal time as Saudi Arabia is charging ahead towards a digital economy with a thriving e-commerce market. In line with the Kingdom’s commitment to fostering entrepreneurship and supporting small and medium enterprises (SMEs), the enhanced capacity of the Fulfillment Center will empower independent sellers to scale their businesses online. Through the Fulfilled by Amazon (FBA) offering, Saudi sellers can leverage Amazon’s infrastructure to store, pick, pack, and ship customer orders, allowing them to reach a wider customer base more efficiently. Working closely with Monsha’at, Saudi Arabia’s General Authority for Small and Medium Enterprises, Amazon aims to host 40,000 Saudi sellers on Amazon.sa by 2025.

Eng. Suliman Almazroua, the Chief Executive Officer of the National Industrial Development and Logistics Program (NIDLP), recognizsed the significant strides Saudi Arabia has made in creating top-notch infrastructure and business-friendly policies. Amazon’s expansion is a testament to the Kingdom’s commitment to the logistics sector, which is one of NIDLP’s key focus areas. By bringing the latest innovations and technologies in e-commerce operations to the country, the new Fulfillment Center in Riyadh will further bolster Saudi Arabia’s position as an attractive destination for investors. Moreover, it will empower local startups and entrepreneurs, providing them with improved global connectivity and access to new markets.

Eng. Saud bin Rashid Al-Askar, the Deputy Governor of Saudi Standards, Metrology, and Quality Organisation (SASO), commended Amazon’s efforts to conform to global standards and processes in the e-commerce sector. As Saudi Arabia strives for sustainable development in tandem with regional and international markets, ensuring consumer safety is a top priority. Amazon’s commitment to this aspect is commendable.

Abdo Chlala, Country Manager of Amazon Saudi Arabia, emphasised the company’s dedication to delivering an exceptional shopping experience to customers and providing Saudi businesses with enhanced access to Amazon’s fulfillment expertise, reliable countrywide delivery, and customer service. This expansion will also open up opportunities for local talent, with a diverse group of talented Saudi nationals occupying managerial positions within the Fulfillment Center.

Prashant Saran, Director of Operations for Amazon MENA, highlighted the pivotal role of technology in Amazon’s operations. With the opening of this advanced Fulfillment Center in Saudi Arabia, Amazon is geared up to provide an enhanced fulfillment offering to Saudi sellers. The company continuously innovates to ensure a fast, convenient, and reliable shopping experience for customers.

This Fulfillment Center is Amazon’s most advanced facility in Saudi Arabia, bringing over 25 years of global logistics technology and innovation to the region. Powered by Artificial Intelligence and Machine Learning, the center incorporates cutting-edge solutions to facilitate seamless fulfillment operations. With a network of conveyance equipment spanning over two and a half kilometers, the facility ensures efficient operations.

Amazon remains committed to the growth and development of local talent, offering comprehensive training, upskilling, and mentoring programs to empower employees. The Fulfillment Center provides ample opportunities for Saudi women, who hold leadership positions across various departments, including operations, human resources, learning and development, and information technology. The facility also takes into account the needs of people with disabilities, aiming to ensure their full and active participation. Amazon prioritises employee safety and deploys advanced technology to assist and protect its workforce while delivering for customers.

As part of its broader sustainability efforts, Amazon is committed to achieving net-zero carbon across its business by 2040. The Fulfillment Center in Riyadh reflects this commitment, with its 100% reliance on electricity, including heating and hot water systems. By avoiding the use of fossil fuel combustibles and prioritising energy efficiency, Amazon is taking significant steps to reduce its environmental impact. The building management system controls the heating, ventilation, and air conditioning (HVAC), ensuring a comfortable working environment while minimising unnecessary energy consumption. Furthermore, the facility utilises LED lighting that adjusts according to natural light availability and occupancy, while also constantly monitoring indoor air quality.

Since the launch of Amazon.sa in 2020, the company has been heavily investing in Saudi Arabia, aligning with the Kingdom’s vision of an accelerated digitalised and diversified future. With two Fulfillment Centers, three Sort Centers, a network of owned and third-party delivery stations, and a collaboration with small and medium businesses as Delivery Service Partners, Amazon Operations has firmly established its presence in the country.