Announced Arcapita Group Holdings LimitedKing Abdullah Economic City (KAEC), a global alternative investment management company, announced at a special ceremony in Bahrain that it has signed a Memorandum of Understanding (MoU) to develop world-class warehousing facilities that will contribute to the growth of the city's industrial valley. The project aims to improve KAEC's operational capabilities, drive innovation and attract more foreign investment to the Kingdom.
Developing areas of the industrial valley
Under the terms of the MoU, Arcapita will develop land areas in the Industrial Valley, where it will use its expertise to create high-quality facilities tailored to meet the requirements of tenants, and Arcapita will be responsible for overseeing the development of logistics centers in the Industrial Valley to meet the needs of the company and its future customers, and contribute to driving industrial and logistics growth in the region.
The MoU was signed by Eng. Majed Mitbouli, CEO of Industrial Valley and Special Economic Zone in King Abdullah Economic Cityand Issa Al Khalifa, Director of Real Estate for the Middle East and North Africa at Arcapita. The strategic partnership underscores the two parties' shared commitment to developing industrial infrastructure to the highest international standards and contributing to the sustainable development of the Kingdom of Saudi Arabia.
The agreement is a pivotal step in the economic city's journey
Eng. Majed Mitbouli, CEO of Industrial Valley and Special Economic Zone in King Abdullah Economic City, said: “This MoU is a pivotal step in KAEC's journey towards realizing its vision of developing a leading industrial and economic hub in the region. With Arcapita's expertise in global and regional asset management, we are confident that this strategic partnership will contribute to enhancing the level of services provided in the Industrial Valley, enhancing its competitiveness, and increasing its attractiveness to global investors.”.
This partnership will allow KAEC to leverage Arcapita's extensive global network of world-class tenants, attracting world-class investors and unlocking growth opportunities in the Industrial Valley, solidifying its position as Saudi Arabia's premier industrial center.
Commitment to the highest standards of environmental sustainability
The project will include the development of logistics centers that adhere to the highest standards of environmental sustainability, social responsibility and corporate governance, and will be globally certified. The partnership will also offer the opportunity to participate in a growing portfolio of strategic assets that offer attractive returns while maintaining low levels of risk.
Issa Al Khalifa, Director of Real Estate in the MENA region at Arcapita, said: “We are pleased to collaborate with KAEC on this ambitious project. Through this partnership, we seek to establish an advanced industrial ecosystem that meets the latest international standards and provides innovative and environmentally sustainable solutions that meet the aspirations of our partners and all stakeholders.”.
This partnership represents a strategic step in KAEC's journey and underscores its commitment to building an industrial ecosystem that matches the best international standards. Through its collaboration with Arcapita, KAEC will be able to enhance its ability to attract foreign investors, offer advanced warehousing solutions that adhere to ESG standards, and expand its services to tenants and businesses. This collaboration not only underscores the city's pivotal role in driving industrialization in the Saudi economy, but also establishes a new era of sustainable development, innovation, and global partnerships.
