13 companies reserve lands in KAEC

As part of the expansion plans at King Abdullah Economic City (KAEC) and in an attempt to accelerate the pace of construction work, negotiations with 13 international and local companies for investments in the city has been launched recently. The companies have reserved lands of different dimensions in KAEC’s Industrial Valley, with the total estimated at 2 million square meters. Year 2013 will see the production launch of four factories. With two manufacturers having launched in 2010, this will bring the total number of producing factories to six in the next period.
Meanwhile, the KAEC seaport will start receiving ships by mid-2013. It has currently completed the reception procedures.
“There are 36 national and foreign companies that have signed contracts for industrial investment at KAEC Industrial Valley,” Ahmed Linjawi, president of KAEC services and industrial division, told a local newspaper. The total investment value of the contracts exceeds SR 10 billion on a total area of nearly 9 million sq. m. “In addition to that, we have reached a tentative contract agreement with 13 companies that will be translated into a final contract soon,” he said.
Linjawi declared that KAEC had succeeded in accelerating the pace of implementation and construction work, given that 11 companies obtained building permits from the Saudi Arabian General Investment Authority (SAGIA).
“SAGIA, which based its headquarters in King Abdullah Economic City, has succeeded in providing a superior investment climate and services according to the highest standards, such as a comprehensive service center that offers all services to owners and investors, he said.
The ongoing industrial projects at KAEC Industrial Valley include logistic services, the investments of which cover an area of 2,313,590 sq. m, besides projects in the field of consumer goods manufacturing on an area of 436,037 sq. m. Moreover, the steel complex project will cover an area of 4,300,006 sq. m, and multiple projects in the field of construction and building materials cover an area of 1,065,448 sq. m. Five pharmaceutical industry projects occupy an area of 696,121 sq. meters, and an oil manufacturing project in addition to another project for manufacturing of plastic packaging materials will comprise an area of 295,803 sq. m, he said.
Linjawi declared that the growing demand for investment in the Industrial Valley pushed KAEC to proceed with the design of a general outline of the Industrial Valley’s second phase, with an area extended to more than 14 million sq. m. This area has been devoted to attracting investors in the medium and light industries, with the availability of integrated infrastructure and all utilities services such as water, power, sanitation, flood drainage channels, information technology services, and fiber optics.
The first phase of the Industrial Valley, which extends over an area of 3,600,000 sq. m, begun running phase A and will complete infrastructure phase B by the end of 2013.
Alongside the Industrial Valley, the KAEC seaport has almost completed its first construction phase. It is scheduled to begin traffic and receive ships by the end of 2013.
In addition to that, the Haramain High Speed Railway inside KAEC is one of the main attractions for investors and residents. It links KAEC with King Abdulaziz International Airport in 25 minutes and takes 70 minutes from Makkah to Medina. The railway is scheduled to launch operation in 2014.