Abdul Latif Jameel Group, one of the oldest automotive distributors in the region, plans to invest upto SR1.2 billion ($320 million) to set up a masive complex for the import, distribution, component manufacture and assembly of cars at the King Abdullah Economic City (KAEC).

KAEC is one of the largest and most important private sector initiatives in the Middle East, encompassing a total area of 168 million sqm along the coast of the Red Sea.

The city consists of the Industrial Valley, King Abdullah Port, the Leisure and Commercial districts, the Haramain district, the Residential Coastal districts and the Resorts. Through the Industrial Valley, it has succeeded in attracting more than 60 national and international industrial companies, said a statement from KAEC.

Abdul Latif Jameel Group (ALJ) said on Thursday it had signed a contract for the purchase of 1.5 million sq m of land in KAEC-Industrial Valley.

The investment, which is the largest in terms of land area and value at KAEC IV, reflects the ALJ Group’s trust in KAEC as a strategic regional hub for industry and logistics services, remarked its vice president Dr Saad Ateyah Al-Ghamdi after signing the deal with Fahd Al Rasheed, the CEO and managing director of KAEC.

“The Kingdom is witnessing continuous economic prosperity and the automotive industry is one of the key indicators for growth. Being the oldest automotive distributer in the region adds a responsibility to develop and expand our operations to ensure business continuity and maintain the excellent quality and services standards for which ALJ is renowned," stated Dr Al-Ghamdi.  

"Our reason for choosing KAEC as import and distribution center for ALJ is because King Abdullah Port (KAP) will be one of the biggest regional ports with world class operational efficiency," he added.

Welcoming ALJ into the  Industrial Valley, Al Rasheed said: “We are delighted that the ALJ Group is joining the large number of local and global companies that have chosen to invest in KAEC as the regional hub for their manufacturing and distribution operations. The importance of this strategic deal lies in ALJ being one of the largest automotive companies in the Kingdom and the Middle East, which will have significant impact on accelerating shipments at KAP.”

"The ALJ group will benefit from the integrated infrastructure that the Industrial Valley is noted for. This includes KAP, which started partial operations a few months ago, and the multiple other transportation facilities that are currently available or will become operational in the near future," he noted.

"In addition, KAEC will host one of the Haramain Railway stations that connect with Jeddah and King Abdulaziz International Airport in less than 30 minutes and Makkah and Al Madinah within one hour," he added.-TradeArabia News Service