Mandate I · Industrial real estate

Operational real estate at the centre of Saudi Arabia's industrial transformation.

OCTO Funds' industrial mandate deploys institutional capital into the operating layer of Vision 2030, alongside GFH Partners as developer and operator and NF Group as the deal sourcing partner. Logistics, warehousing, and light-industrial real estate, across the Kingdom and the wider GCC.

SR 415bn
Cumulative industrial funding disbursed
SR 378bn
Vision 2030 industrial capital
891
Active industrial projects, KSA
28.9M m²
Riyadh warehouse & logistics stock
~90%
Avg warehouse occupancy
Executed with
GFH Partners NF Group

Vision 2030

Leading transformation in the industrial sector.

Vision 2030 marks a transformative phase for Saudi Arabia, aiming to diversify the economy and reduce reliance on oil revenues. Non-oil sectors are targeted to contribute 50% of GDP by 2030, with industrial and logistics at the centre of the build-out.

Manufacturing

Doubling the sector's GDP share

The government plans to increase the manufacturing sector's contribution to GDP from 10% to 20% by 2030, positioning Saudi Arabia as a regional and global production hub.

10% → 20%
GDP contribution, target 2030
Logistics

Global logistics hub ambition

Saudi Arabia aims to become a global logistics hub, with the sector's contribution to GDP projected to rise from 7% to 10% by 2030, anchored on the Kingdom's position between Europe, Africa, and Asia.

7% → 10%
GDP contribution, target 2030
Renewables & Petrochemicals

Capital weight behind the energy transition

The renewable energy sector is expected to attract $50 billion in investments by 2030, with the petrochemical industry continuing to be a key growth driver.

$50bn
Renewable energy investment by 2030

Demand drivers

Industrial demand is driven by private and public capital alike.

Manufacturing activity, e-commerce growth, and the inflow of foreign investment are expanding industrial demand on every side. Each pulls the supply pipeline in the same direction.

Manufacturing

Sector continues to expand

Saudi industrial activity has experienced significant growth in recent years, driven by strategic initiatives, technological advancements, and substantial investments, all of which have positioned the Kingdom as a burgeoning industrial hub in the Middle East.

E-commerce

Soaring demand

The Covid-19 pandemic accelerated e-commerce, increasing demand for modern warehousing and logistics. In response, Saudi Aramco and DHL formed ASMO, a joint venture to meet that demand. Kitchens have surged, especially for smaller, centrally located warehouses.

Investment

Volumes growing

According to MODON, Saudi Arabia's industrial sector saw a 63% rise in new investments in 2023, totaling SAR 15bn ($3.99bn). In early 2024, private sector investments doubled, surpassing SAR 7bn ($1.8bn). By 2023, cumulative industrial funding reached SAR 415bn across 891 local and international projects.

Supply

New supply coming online

On the supply front, there have been several developments over the past 12 months. The majority of warehouse and light-industrial facilities have been completed in the industrial Gate City, bringing Riyadh's warehouse and logistics stock to 28.9 million sqm.

Market overview

Lease rates and occupancy across the Kingdom's industrial districts.

Snapshot of the three primary industrial markets across Saudi Arabia, tracking lease rate movements in SAR per sqm and average occupancy from 2020 to 2024. Rents have moved up in every market while occupancy has held above 80% across the board.

SR 378bn
Vision 2030 industrial allocation
891
Active industrial projects, KSA
SR 415bn
Cumulative funding disbursed
28.9M m²
Riyadh warehouse & logistics stock
+63%
New investment, 2023 YoY
59
Logistics centres in development
Riyadh
Central · capital region
Lease band SAR / sqm, 2024
Direction Up vs 2020 & 2023
Avg occupancy High 80s
Dammam
Eastern · multi-modal hub
Lease band SAR / sqm, 2024
Direction Up vs 2020 & 2023
Avg occupancy High 80s
Jeddah
Red Sea · gateway
Lease band SAR / sqm, 2024
Direction Up vs 2020 & 2023
Avg occupancy High 80s

Source: OCTO Funds research, Knight Frank, MODON.

Public Investment Fund

PIF builds the foundation, private capital scales the platform.

PIF's capital-intensive, long-horizon investments in logistics infrastructure (ports, airports, rail networks, integrated transport corridors) build the backbone. They create the conditions where private operators can develop assets at scale and unlock institutional-grade real estate without competing on infrastructure.

01

Foundational infrastructure builder

PIF focuses on capital-intensive, long-horizon investments that de-risk the market: ports, airports, rail networks, and integrated transport corridors. These backbone assets lower entry barriers for private capital.

02

Complementary market positioning

While PIF builds macro infrastructure, private operators excel in operational niches: last-mile delivery, cold-chain logistics, fleet management, tech-enabled freight forwarding, and warehouse automation, segments growing rapidly with Vision 2030's expansion.

03

Crowding in private capital

PIF's credibility reduces perceived risk and signals long-term policy support, drawing foreign logistics operators, private equity, and regional family groups who recognise opportunities layered atop the sovereign's infrastructure backbone.

04

Policy framework support

Government regulatory reforms enable PIF as the market enabler rather than market dominator, creating fertile ground for private sector growth whilst maintaining the scale and coordination needed for Vision 2030's logistics transformation.

Key challenges and opportunities.

01 Infrastructure
Challenge Limited infrastructure remains a key obstacle to warehouse sector growth in Saudi Arabia. Inadequate road networks increase transit times and costs, while unreliable electricity and water supply disrupt operations.
Opportunity Limited infrastructure remains a key obstacle to warehouse sector growth, while creating demand for modern, well-equipped facilities with reliable infrastructure breakdowns. Investors who deliver these assets unlock higher rental yields and long-term resilience.
02 Quality
Challenge Outdated or poorly maintained warehouses lead to higher maintenance costs, reduced tenant satisfaction, and lower occupancy rates. Substandard facilities lacking modern layouts, quality construction, and essential amenities (e.g. loading docks, parking, security) struggle to attract and retain tenants.
Opportunity Demand for high-quality, specification-driven space is rising, especially from e-commerce, pharmaceutical, and advanced manufacturing sectors. Investors who deliver modern, well-built warehouses with tailored amenities can achieve higher occupancy, command above-market rental rates, and maximise long-term asset value.
03 Competition
Challenge Saudi Arabia's light-industrial sector is becoming increasingly competitive, as more domestic and international players enter the market. Without differentiation, landlords risk lower pricing power and higher vacancy rates.
Opportunity Investors can differentiate by offering superior amenities, robust security, energy-efficient design, and automation technologies that improve tenant operations. Premium positioning through sustainability credentials, technology integration, and industry-specific fit-outs can attract high-value tenants and secure long-term leases.
Multi-modal logistics hub aerial
The operating layer
Where the macro thesis becomes operational real estate.

Our partners

The operating partnership behind OCTO Industrial.

Two institutional partners with complementary mandates, layered across each transaction. GFH Partners runs the deals on the ground in the region. NF Group selects and structures the projects on behalf of OCTO investors.

Operator · Developer

Responsible for projects in the region and development. GFH Partners is the institutional manager behind the GCC logistics fund family, with a track record of build-to-suit and build-to-rent execution across the UAE, KSA, and the wider GCC since 2010.

Sourcing · Selection

Responsible for selecting optimal projects for OCTO Funds investors. NF Group brings two decades of industrial real estate transaction experience, with a long history of warehouse and logistics deals and a portfolio under Parus Asset Management spanning offices, retail, and warehouses.

GFH Partners

Portfolio scale and track record.

GFH Partners is a regulated alternative-investment manager active since 2017, with assets across logistics, healthcare, living, hospitality, retail, office, and other sectors, deployed across the USA, GCC, UK, and Europe. The numbers below frame the platform that executes the mandate.

$7.4bn
Total AUM
~$6.4bn
Direct AUM
~$1.0bn
Indirect AUM
36
Total funds
2.9 yrs
Avg fund life
7
Asset classes
Cumulative equity deployed by asset class, $M
2017 to 2025 · logistics dominates the deployed capital base
900 600 400 200 0 2017 48.5 2019 117.3 2020 93.7 2021 312.3 2022 517.9 2023 672.7 2024 837.3 2025 512.6
Logistics Healthcare Living Office Other

Source: GFH Partners Track Record, March 2026.

GCC Logistics Track Record
Six funds across the GCC, 2010 to present
ARC Income Fund
ARC Income Fund Vintage 2010
US$ 350 M
  • Industrial & commercial assets in UAE and KSA
  • 4 logistics assets (1 UAE, 3 KSA), 2 commercial (KSA)
  • Tenants: CEVA Logistics, Alsafi Danone, Jarir, Panda
  • Exited 2015 · whole-portfolio exit via private sale
Exited · prior team track record
Oman Income Fund
Oman Income Fund Vintage 2011
US$ 40 M
  • Industrial assets in Oman
  • Logistics asset in South Batinah
  • Tenants: Enhance Logistics (W J Towell), Mazda
  • Exited 2013 · whole-portfolio exit via private sale
Exited · prior team track record
GCC Income Fund
GCC Income Fund Vintage 2013
US$ 100 M
  • Industrial & social infrastructure across the GCC
  • K-12 school campus in UAE
  • Grade-A FMCG logistics asset in Oman
  • Tenants: GEMS Education, Lulu Hypermarket
  • Exited 2018 · assets sold separately
Exited · prior team track record
UAE Logistics 1 to 3
UAE Logistics 1 to 3 Vintage 2015 to 2018
US$ 400 M
  • Development & acquisition of industrial and logistics assets in UAE
  • 9 logistics and industrial assets
  • Tenants: Iron Mountain, Al Nabooda, Horeca, MAG, K-Flex
  • IPO planned for 2025 to 2026
Active · IPO planned
KSA Logistics 1 and 2
KSA Logistics 1 & 2 Vintage 2017 to 2018
US$ 250 M
  • Industrial assets across KSA
  • Logistics assets across KSA
  • Tenants: Flow Logistics (IKEA), Takhzeen
  • IPO planned for 2025 to 2026
Active · IPO planned · KSA-only
GFH GCC 1 and 2
GFH GCC 1 & 2 Vintage 2023 to 2024
US$ 450 M
  • Industrial & logistics assets in UAE and KSA
  • 28 assets + 2 logistics developments in UAE
  • 3 LIU & cold-storage assets in KSA, plus 1 Grade-A logistics development
  • Exit planned for 2028
Active · current vintage

Sand-coloured tiles denote track record of the team at previous roles. Source: GFH Partners Track Record, March 2026.

Deal economics

Build-to-Suit and Build-to-Rent, two engines of the same platform.

Two delivery models sit at the heart of the platform's logistics development. Build-to-suit secures long-term income before construction begins. Build-to-rent leverages on-the-ground intelligence to deploy capital faster, on speculation backed by active tenant enquiries.

Build-to-Suit

Long-term income, locked before ground is broken.

10% – 12%
Yield on cost
~30 mo
Total timeline
14% – 16%
Typical IRR

Secures long-term income commitments prior to commencement of construction. Pre-development phase requires extensive revisions and negotiations, typically spanning 6 to 12 months before construction commencement.

Build-to-Rent

Faster capital deployment, intelligence-led.

13% – 15%
Yield on cost
~21 mo
Total timeline
18% – 22%
Typical IRR

Leverages on-the-ground market intelligence and builds based on active tenant enquiries. Accelerated pre-development period of 3 to 6 months, enabling faster deployment of capital.

Build-to-rent case studies, achieved versus underwritten.

Logistics warehouse with cross-dock loading bays
Chemical Warehouse GDV US$ 8.5M
Underwritten Achieved
Yield on cost 13% 15%
Rent, AED psf 40 50
Lease, years 10 5
Manrre Grade-A logistics warehouse, Jebel Ali Free Zone
Manrre, Jebel Ali GDV US$ 14.7M
Underwritten Achieved
Yield on cost 11% 13%
Rent, AED psf 52 57.5
Lease, years 10 10

Source: GFH Partners Track Record, March 2026.

Exit strategy

Four pathways to liquidity.

Liquidity is not assumed at exit; it is structured into the platform up front. GFH's GCC logistics platform is sized to qualify for institutional acquisition or REIT listing, with complementary asset-level and portfolio-level options layered behind it.

01
GFH GCC Portfolio Exit

Three-year strategy to accumulate a US$ 2.0 to 2.5 billion portfolio and exit via direct acquisition or REIT listing.

Strong institutional demand for US$ 1bn+ GCC logistics platforms, evidenced by the Blackstone / Lunate partnership at scale. Local expertise and scale required position GFH as a natural partner for global capital.

Precedent: Blackstone × Lunate, $5bn GCC logistics partnership
02
OKTA Partners Portfolio Exit

OKTA portfolio is projected to reach US$ 300 to 500 million within three years, a compelling size for direct acquisition.

Precedent set by Brookfield's 2024 acquisition of GII's 1.5 million sq ft UAE logistics platform. Growing appetite from global institutions seeking established GCC portfolios at scale.

Precedent: Brookfield / GII UAE logistics, 2024
03
Exit to income-generating fund

GFH Partners regularly launches income-generating funds, providing arms-length exit opportunities. Enables realisation of development gains while recycling capital into new projects.

Manrre REIT and GFH income-generating funds are positioned to acquire newly developed assets at market valuation.

Vehicle: Manrre REIT, GFH IGF series
04
Individual asset exit

Robust GCC market for high-quality income-generating assets, with cap rates materially below development yields.

Individual asset sales offer attractive returns as global institutions seek regional logistics exposure. Flexible exit timing to optimise returns based on market conditions and asset maturity.

Flexible · asset-by-asset

NF Group

Twenty years of industrial transactions.

NF Group sits at the deal-sourcing layer of the OCTO Industrial mandate. The named portfolio below is the operational proof of capability: more than two decades of warehouse, logistics, and commercial real estate transactions across the wider CIS region, alongside the Parus Asset Management platform.

Klin retail and warehouse complex
2020
Klin retail & warehouse
56.5k m² · Moscow region
Tver warehouse complex
2020
Tver warehouse complex
69.5k m² · sale-leaseback
PNK Tolmachevo and Valishchevo logistics
2020
PNK Tolmachevo & Valishchevo
44.6k m² · logistics park
Moscow logistics complex
2021
Moscow logistics complex
26.4k m² · logistics
Saint Petersburg retail and warehouse complex
2021
Saint Petersburg complex
107k m² · retail & warehouse
Yuzhnye Vrata Class A+ industrial park
2022
Yuzhnye Vrata, Class A+
460k m² · largest deal 2022
FM Logistic three-warehouse portfolio
2022 to 2023
FM Logistic portfolio
358.5k m² · sale-leaseback
Admiral Class A warehouse complex
2024 to 2025
Admiral Class A
~110k m² · Saint Petersburg

Selected transactions, 2020 to 2025. Source: NF Group key transactions.

Parus Asset Management

A commercial real estate platform under named management.

Founded in 2020, Parus Asset Management is the in-house investment manager affiliated with NF Group. The named portfolio under management spans offices, shopping centres, and warehouses, with warehouses accounting for the majority of square metres.

$1.4bn+
Total AUM · ~1.6M m²
Offices
$253M
100k m²
Shopping centres
$450M
410k m²
Warehouses
$887M
1,130k m²

Get in touch

For institutional capital partners, family offices, and qualified investors.

Investor Relations

Direct enquiries

For mandate information, fund documentation, and qualified investor enquiries.

investors@octofunds.com

Headquarters

DIFC, Dubai

OCTO Funds
Dubai International Financial Centre
Dubai, United Arab Emirates

By appointment only.

Correspondence

Media & partners

For press, partner platform coordination, and general correspondence.

Victor Sadygov
+971 56 788 8295

Ekaterina Chernova
+971 56 857 5527
e.chernova@octoglobal.ae

Maria Selyutina
+7 926 169-81-69
mselyutina@icloud.com

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