Media Centre

Al-Futtaim, the Dubai-based diversified conglomerate, has signed an agreement with King Abdullah Economic City (KAEC) for the purchase of a 325,400 square meter plot of land in the Industrial Valley (IV) for the development of a logistics and distribution facility.

“Our decision to invest in the Industrial Valley component of the visionary KAEC 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,” said Omar Al Futtaim, Vice Chairman of Al-Futtaim.

“From KAEC we will be able to execute our expansion plans and meet the ever-increasing demand for our highly diverse portfolio of products,” he added.

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 IV have been exporting their products through the adjacent King Abdullah Port since the port became operational in January 2014.

“This partnership is yet another indicator that KAEC is moving forward with its strategic goals and future vision,” said Fahd Al-Rasheed, Managing Director and CEO of KAEC. “KAEC has been extremely successful in attracting the capital investment of local, regional and international companies that know that KAEC is the ideal place to invest in across the region, thanks to a superior quality of life and world-class public services.  The city has become the destination of choice for investors seeking to expand into Saudi Arabia and the wider GCC and Red Sea regions.”

Rayan Qutub, Chief Executive Officer of the 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 IV has become the new manufacturing and logistics hub, on the Red Sea, thanks to its highly efficient, comprehensive logistics services supported by direct access to King Abdullah Port and the national rail and road network. We are currently serving an accelerated demand from leading Gulf based companies, leveraging our strategic with the capability to serve 250 million consumers in the Arab world, East & North Africa, and Al-Futtaim’s investment reconfirms the trust that KAEC has gained among leading businesses”, he concluded. Industrial Valley has so far attracted more than 110 leading national and international businesses, of which 20 are currently in operation and 32 are under construction.

About Al-Futtaim

Established in the 1930s as a trading business, Al-Futtaim is one of the most progressive regional business houses headquartered in Dubai, United Arab Emirates. Al-Futtaim employs in excess of 42,000 people and operates through more than 200 companies. The group has significantly expanded its business operations in recent years through a strategic acquisition plan and has entered a number of new territories, increasing its footprint beyond the GCC and Greater Middle East to encompass South East and North Asia, Australasia, East Africa and Europe. Structured into four operational divisions; automotive, financial services, real estate and retail. The success of Al-Futtaim is attributed to proactively managing change whilst upholding the values of integrity, service and social responsibility. The majority of businesses, built on a portfolio of world leading brands, dominate their sector.

About King Abdullah Economic City

Located on the west coast of Saudi Arabia on a total area of 181 square kilometers – about the size of U.S. capital Washington, D.C. – King Abdullah Economic City is a fully integrated environment to work, live and play, connected by a major port and national road and rail networks. The city’s strategic location and wide range of residential, business, and serviced industrial land solutions on offer create significant growth and investment opportunities. Regulatory processes are streamlined by the presence of a single regulator, the Economic Cities Authority.