Dubai: Saudi grocery retailer BinDawood Holding announces an investment of $390 million (Dh1.4 billion) in robotics and delivery hubs.
Ahmad BinDawood, the CEO of BinDawood Holding, revealed that this investment will be used to enhance the company's automated dark stores and the infrastructure required to support them.
These dark stores, which are primarily focused on fulfilling online orders, will vary in size from 30,000 to 50,000 square metres.
Additionally, smaller distribution centres ranging from 2,000 to 3,000 square metres will be established in various cities across Saudi Arabia, according to Arabian Gulf Business Insight.
BinDawood reported a 15 per cent increase in half-year profits, reaching $36 million (Dh132 million).
BinDawood plans to expand its network of dark stores dedicated to online orders. Additionally, a fully automated business-to-business mega dark store is expected to open in Jeddah this year.
E-commerce in Saudi Arabia’s retail sector is projected to double from 2020 to 2025, with an annual growth rate of 15 per cent, according to a report by the Small and Medium Enterprises Authority.
The Saudi central bank noted that electronic payments in retail rose to 70 per cent in 2023, up from 62 per cent the previous year, reflecting the government’s push to advance online banking and the fintech sector.
The growth in e-commerce supports the government's broader strategy to attract venture capital, promote small businesses, and diversify the economy beyond oil, which, according to government figures, reached 50 per cent of gross domestic product for the first time in 2023.
