Amazon is planning to hire 1,500 new employees in Saudi Arabia and add 11 new buildings for storage and dispatch purposes, media reports said. This expansion will boost the storage capacity in the Kingdom by 89 percent and its geographical delivery network by 58 percent. Amazon also partners with Saudi post and a network of ten delivery service partners in the country.
The global conglomerate currently owns three warehouses also called fulfilment centres in Riyadh and Jeddah, 11 delivery stations and two sorting centres. It is expected that by the end of 2021, the numbers will increase to six warehouses and 13 delivery stations and totalling a network with a gross floor area of 867,000 square feet. Although some older facilities of Amazon will be closed or upgraded, this announcement stated that 11 brand new buildings will be added to the network.
The Seattle-based company’s investments this year is expected to achieve an enhanced storage capacity to deliver a smarter, faster and more consistent experience for customers. Prashant Saran, Director of Operations for Amazon Middle East and North Africa addressed the media and said, “These new investments reiterate our commitment to Saudi Arabia, contributing to the local economy through the creation of new job opportunities. Our investments in technology and infrastructure align with Saudi’s digital transformation goals, enabling world-class fulfilment offerings to our independent seller partners, and faster delivery on an expanded product selection to our customers.”
Amazon started operations in Saudi Arabia through the acquisition of Souq in 2017 for $580 million. Amazon.sa replaced Souq.com in 2020. This January, Amazon Prime was launched in Saudi Arabia bringing same-day and next-day delivery services in the country. Noon.com is considered to be Amazon’s biggest competitor in the country which is a joint venture between Saudi’s Sovereign Public Investment Fund (PIF) and Dubai-based businessman and Emaar CEO Mohammad Alabbar.