SATS Ltd. (SATS) has announced the formal completion of Avilog Logistics Services Company's (Avilog) strategic investment in SATS Saudi Arabia Company (SATS SA), following the receipt of all regulatory approvals.

Avilog, a joint venture between Albawardi Group (ABG) and Al Muhaidib Group (AMG), has acquired a 49% stake in SATS SA. The exact monetary value of the investment hasn't been publicly disclosed.

SATS SA has established an important network of cargo handling operations across the Kingdom's three key aviation hubs, Dammam, Jeddah, and Riyadh, and is the second-largest provider of air cargo handling services in Saudi Arabia.

In Dammam, where operations began in 2017, and Riyadh, operational since 2021, SATS SA manages facilities with a combined annual capacity of 450,000 tons, featuring specialised infrastructure for temperature-sensitive cargo and advanced material handling systems.

In Jeddah, SATS SA currently operates cargo handling services with plans for expansion. Across these three locations, SATS SA serves more than 30 airlines and is now positioned for accelerated growth.

 [Source: SATS]

"The partnership will drive the expansion of SATS SA's infrastructure, including the development of a new state-of-the-art cargo facility in Jeddah with an annual capacity of 300,000 tons, scheduled for completion by Q1 2027, while broadening its reach into multi-modal logistics across the Kingdom," SATS said in the announcement.

It noted that Avilog's deep local expertise and established infrastructure is at the core of this collaboration.

Meanwhile, ABG brings extensive logistics capabilities and assets, including bonded zones, marine services, and warehousing, while AMG contributes a robust nationwide distribution network and diverse sector investments.

SATS pointed out that these capabilities will strengthen connectivity, enhance operational efficiencies, and enable SATS SA to deliver seamless, integrated cargo solutions tailored to Saudi Arabia’s evolving logistics landscape and serve the Kingdom’s fast-growing demand for air cargo handling services.

"This partnership is a defining step for Avilog as we focus on reshaping the logistics sector in Saudi Arabia. By combining SATS' industry-leading expertise in gateway services with Avilog's strong local foundation, we are uniquely positioned to support Vision 2030 and build a logistics ecosystem that is innovative, efficient, and globally competitive," said Isam Majid Al Muhaidib, chairman of Avilog.

Bob Chi, CEO Gateway Services Asia Pacific, SATS Ltd., noted that the completion of this investment marks an "important milestone" for SAT's Saudi Arabia operations.

"With our established facilities across the Kingdom's key aviation hubs, we can now harness Avilog's extensive regional network and deep market understanding."

"This collaboration strengthens our ability to create integrated logistics solutions that connect air cargo seamlessly with sea, rail, and road transportation across Saudi Arabia," Chi added, noting that the gateway services and a leading food solutions provider in Asia, is committed to advancing Saudi Arabia's transformation into a global logistics hub linking Asia, Europe, and Africa.

The partnership underscores a joint commitment to advancing innovation and operational excellence in Saudi Arabia’s logistics sector, while unlocking new opportunities across the Kingdom.

SATS noted that by merging its global best practices with Avilog's deep local expertise, the collaboration aims to raise air cargo handling standards and deliver enhanced value to customers.

Through SATS SA, both partners seek to support Saudi Arabia's position as a logistics and air cargo leader, in direct alignment with Vision 2030’s transportation goals.

SATS noted that the signing was witnessed by General Authority of Civil Aviation (GACA) President His Excellency Abdulaziz bin Abdullah Al-Duailej, Riyadh Airports Company CEO Ayman Abdulaziz AboAbah, and representatives from the Ministry of Investment, underscoring the strategic importance of the alliance.