Al-Futtaim has signed an agreement with King Abdullah Economic City (KAEC) for the purchase of a 325,400 square metre land plot in Saudi Arabia’s Industrial Valley for the development of a logistics and distribution facility.
“Our decision to invest in the Industrial Valley component of the visionary King Abdullah Economic City development was made in consideration of the valuable strategic location it occupies on the Red Sea coastline and adjacent to King Abdullah Port on one of the world’s busiest shipping routes. From King Abdullah Economic City we will be able to execute our expansion plans and meet the ever-increasing demand for our highly diverse portfolio of products,” said Omar Al Futtaim, Vice Chairman, Al-Futtaim.
The city’s strategic location allows it to serve not only the markets located around the Red Sea, but the entire world. The companies already operating in the Industrial Valley have been exporting their products through the adjacent King Abdullah Port since it became operational in January 2014. Work is in progress on the development of further industrial plots to meet the continuing demand for leased and freehold industrial lands. KAEC has so far attracted more than 110 leading national and international businesses, of which 20 are currently in operation and 30 are under construction.
“King Abdullah Economic City has been extremely successful in attracting the capital investment of more than 110 leading national and international companies because they know that King Abdullah Economic City is the ideal place to invest in across the region. The city has become the destination of choice for investors seeking to expand into Saudi Arabia and the wider GCC and Red Sea regions,” said Fahd Al-Rasheed, Group CEO and Managing Director, King Abdullah Economic City.
Rayan Qutub, Chief Executive Officer, Industrial Valley, highlighted the importance of the strategic partnership: “Al-Futtaim, a company that enjoys a solid reputation in regional and international markets, will add value to the logistics industry, one of the fastest growing clusters in the Industrial Valley,” he said. “The Industrial Valley has become the new manufacturing and logistics hub, thanks to its highly efficient, comprehensive logistics services supported by direct access to King Abdullah Port and the national rail and road network. It offers an access point to over 250 million consumers in the Middle East and East Africa, and Al-Futtaim’s investment reconfirms the trust that King Abdullah Economic City has gained among leading businesses.”