The King Abdullah Economic City (KAEC) in Saudi Arabia has signed a contract with Mikati Contracting to build a logistics park valued at SR26.6 million ($7 million) in the Industrial Valley, a report said.

The facility, which will feature prefabricated light-manufacturing and warehousing units, will be completed by the third quarter of 2016, reported Eye of Riyadh.

“The Industrial Valley at KAEC is rapidly establishing itself as the key manufacturing and logistics hub in the region,” Fahd Al-Rasheed, managing director and CEO of KAEC, was quoted as saying.

“The Logistics Park adds a new dimension to the wide range of services offered by the Industrial Valley and we are already experiencing high demand for reservations.”

Each unit in the Logistics Park will offer 1,026 sq m of open space that can be utilized for a wide range of light manufacturing activities or for warehousing, the report said.

The park is adjacent to King Abdullah Port and connected to the Industrial Valley’s advanced infrastructure including comprehensive water and power grids, sewage, telecommunications, storm runoff and road networks.

“Phase 3 of the Industrial Valley continues to attract key anchor tenants drawn by our strong value proposition, our excellent strategic location and our complete range of facilities and housing solutions,” Rayan Qutub, CEO of the Industrial Valley at KAEC, was quoted in the report.

“KAEC’s geographic location gives it a strategic reach to 250 million consumers in the Arab world and East Africa, making the city the location of choice for foreign and domestic investment.”