JEDDAH: King Abdullah Economic City (KAEC) has succeeded in adding Petromin to the growing list of investors in the Industrial Valley.
Under the deal, Petromin will lease 193,917 sq. meters of land to build a logistics service center for Nissan vehicles.
“King Abdullah Economic City’s efforts are focused on boosting the competitiveness of the Industrial Valley as a regional manufacturing and logistics hub,” said Fahd Al-Rasheed, group CEO and managing director of KAEC.
“The unrivaled quality of our infrastructure will attract national and global manufacturing and logistics giants, which will give us further impetus to press on with achieving the strategic vision the government has set forth for this modern city.”
Petromin is one of the Kingdom’s leading producers of automotive lubricants and automotive service providers. The company is active in five major sectors: Mass production and retail sales of automotive and industrial lubricants; Petromin Express, the company’s quick automotive service arm; automotive maintenance and repair; retail sales of automotive fuels through the company’s gas stations; and automotive retail — the company is the official Nissan Motors dealer in Saudi Arabia.
Samir Nawar, chief executive officer of Petromin, underlined the importance of the two sides working together as a team.
“This is why we have long-term investment in King Abdullah Economic City at the very top of our priorities,” he said. “There are so many favorable aspects that make the KAEC the perfect place for us to expand our investments, including the city’s strategic location, the commencement of operations at the King Abdullah Port and the sheer ease of doing business thanks to the record time in obtaining the necessary permits and licensing from the Economic Cities Authority.”
Rayan Qutub, CEO of the Industrial Valley, said that the deal reflects the growing demand for space in the Industrial Valley.
“The automotive sector, which includes vehicle dealers, distributors, spare parts suppliers, commercial vehicle assembly corporations and lubricants manufacturers, is a runaway success in the Industrial Valley,” he said. “It is a natural outcome that the Industrial Valley is developing as the primary base of operations for this sector, thanks to its strategic location on the coast of the Red Sea, its logistical access, the upcoming re-export zone, and the opening of the roll-on/roll-off pier at King Abdullah Port.”
The Industrial Valley, he said, has become the number one choice for corporations that seek to start or expand their business in the region.
“So far, we have been able to attract 120 of the biggest corporations of which 25 have already begun production and 35 others are in the process of building their facilities.”