Al-Futtaim has signed an agreement with King Abdullah Economic City (KAEC) for the purchase of a 325,400 square metres land plot in Saudi Arabia's Industrial Valley (IV) to develop a logistics and distribution facility. "Our decision to invest in the Industrial Valley component of the KAEC development was made in consideration of the 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 increasing demand for our portfolio of products," he added. The city's strategic location allows it to not only serve markets located around the Red Sea, but also the entire world. Companies already operating in the IV have been exporting products through the adjacent King Abdullah Port since it became operational in January 2014. The KAEC has attracted more than 110 leading national and international businesses, of which 20 are currently in operation and 30 are under construction. "King Abdullah Economic City has been extremely successful in attracting capital investment from more than 110 leading national and international companies because they know KAEC is the ideal place to invest in across the region," said Fahd Al-Rasheed, Group CEO and Managing Director of KAEC. "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, CEO of Industrial Valley, said, "Al-Futtaim will add value to the logistics industry, one of the fastest growing clusters in the Industrial Valley. The IV has become the new manufacturing and logistics hub, thanks to its efficient, comprehensive logistics services supported by direct access to King Abdullah Port and the national rail and road network. It offers an access point to over 250 million consumers in the Middle East and East Africa."