King Abdullah Economic City (KAEC), the largest privately-funded new city in the world, said it has awarded two major construction contracts to develop 2.44 million sq m of land, including part of the infrastructure for Phase Three at The Industrial Valley.

Of the 2.44 million sq m, 1.44 million will be developed by Saudi Binladin Group, at a cost of SR83.5 million ($22.2 million) , while the second contract will see the development of the remainder of the project by the Salem Saleh Al Harithi Company, at a contractual cost of SR49.4 million ($13.2 million).

Both projects are scheduled for completion by the end of 2017, said a statement from KAEC.

Located on the west coast of Saudi Arabia, KAEC covers an area of 181 sq km, approximately the size of Washington DC. Besides the Industrial Valley, it comprises King Abdullah Port, the Coastal Communities residential districts and the Haramain Railway district.

It is being developed by Emaar, The Economic City, a publicly listed Saudi joint-stock company established in 2006.

On the contracts, Fahd Al Rasheed, the group chief executive and managing director of KAEC, said: "The Industrial Valley is the fastest growing manufacturing and logistics hub in the region and an investment destination of choice for leading local, regional and international companies and aspires to be the largest non-oil and logistics centre in the region."

"The Industrial Valley will pave the way for more businesses to grow with the city and contribute to the growth in job opportunities for Saudis,” stated Al Rasheed.

The Industrial Valley CEO Rayan Qutub said the development work is proceeding as scheduled in the masterplan for the city and is meeting a growing demand among investors for high calibre tracts of industrial land."

The company, he stated, has already closed the sale of 1.75 million sq m of Phase Three to major corporations including Al Futtaim, Binzagr, Abbar Group, Sunbulah Group, and Naghi Group.

The development has proven especially attractive to logistics services providers, remarked Qutub.

“The central location of Phase Three within the Industrial Valley is strategically convenient for logistics providers seeking to offer solutions not only in the Industrial Valley, but all across King Abdullah Economic City,” he added.-TradeArabia News Service