Real assets manager ESR has announced plans to establish a long-term logistics real estate and data centres platform across the Gulf Cooperation Council. 

The initial expansion focuses on Saudi Arabia and the United Arab Emirates, where the firm has identified a pipeline exceeding 3 million square metres of digital infrastructure and logistics assets. The target portfolio carries a potential end value of over US$10 billion.

Demand for modern digital infrastructure and logistics real estate across the GCC is being driven by economic growth, expanding trade corridors, changing supply chains and higher institutional investment. However, institutional-grade logistics facilities currently remain in short supply, making up under 20% of total stock in the UAE and less than 10% in Saudi Arabia. This shortage has led to near-full occupancy levels for Grade A properties in both regional markets.

ESR is deploying an on-the-ground team covering development, investment and asset management to support project delivery, capital deployment and regional partnerships. The expansion builds on ESR’s broader Asia-Pacific strategy and leverages its existing capital partner network and regional shareholder relationships.

Stuart Gibson, Co-founder and Co-CEO, ESR, said: “The GCC presents a compelling opportunity for ESR to bring together our development, fund management, and operating capabilities in a region characterised by economic dynamism, sustained infrastructure investment and resilient long-term fundamentals. Across our portfolio, we have helped shape logistics markets by delivering institutional-grade facilities that combine operational excellence with human-centric design. As markets evolve, we believe success is defined not only by scale, but by our ability to raise standards for customers and create environments where people and businesses can thrive. Our ambition is to bring that same approach to the GCC, providing customers with the quality, functionality and experience that they have come to expect from ESR.”

Phil Pearce, President, ESR, said: “The Middle East sits at the intersection of some of the world’s most important trade and investment corridors and is experiencing strong demand for modern logistics infrastructure. By combining local market expertise with ESR’s logistics real estate and data centre capabilities, longstanding relationships with regional stakeholders, and a global network of institutional capital partners, we are well positioned to support the next phase of the region’s logistics and industrial development. Our ambition is to build a durable regional platform that delivers long-term value for customers, investors, and communities across the GCC.”