GFH Partners, which once owned English football club Leeds United, has acquired a USD150 million logistics and industrial portfolio in the Middle East.

The portfolio acquired by GFH Partners, a subsidiary of Islamic investment bank GFH Financial Group, includes warehouses and industrial and cold storage facilities in Riyadh in the Kingdom of Saudi Arabia and Dubai.

In a statement, GFH Partners says it decided to invest in Saudi-based logistics because the country’s non-oil sector is expected to grow by 5.9% in 2023.

“The UAE’s economy anticipates a 3% growth in 2023 followed by a 4% growth the following year, driven by non-oil sectors as well,” the company says. 

“The continued strength of Dubai’s position as a logistics hub is driven by continued strong demand for container and trade volumes in the key zones of Jebel Ali, Dubai South and Dubai Investment Park.”

GFH Partners chief executive officer Nael Mustafa says: “Combining high-quality, income-generating facilities and development opportunities, the acquisition is well-positioned to capture opportunities arising from the current expansion of the GCC (Gulf Cooperation Council) logistics sector. 

“Particularly in Saudi Arabia, where the kingdom’s Vision 2030 is driving the rapid modernisation and development of the country’s transportation and logistics industry to diversify its economy and shift its dependency away from the oil industry. 

“It also leverages GFH Partners’ deep global experience in the sector that has seen us build an exceptional capability and portfolio of blue-chip assets across the GCC, US, UK and Europe.”

Mustafa also says GFH Partners aims to expand its GCC logistics real estate platform to SAR1 billion (USD250 million) over the next 12 to 18 months.

GFH Partners bought Leeds United in 2012, sold a majority stake in the club two years later and in 2016 exited the business completely.