Kuwaiti firm Al-Shaya has signed an agreement to lease an area of 91,000 square metres in the third phase of the King Abdullah Economic City (KAEC) industrial zone.

The new lease will support Alshaya’s ongoing expansion plans in Saudi Arabia by providing a location for a new west coast logistics hub, said a statement from KAEC.

It is understood Al-Shaya will develop a logistics warehouse in the area.

KAEC is the kingdom’s largest real estate scheme. Emaar the Economic City (EEC), the local affiliate of Dubai’s Emaar Properties, is developing the project.

Launched in 2005, KAEC had a population of about 5,000 people and 120 industrial tenants at the end of last year. In January, the CEO of the city, Fahd al-Rasheed, said KAEC’s population was projected to hit 50,000 by 2020, with an ultimate target of 2 million by about 2035.

Earlier this year, MEED reported that Saudi Arabia’s Public Investment Fund (PIF) is planning to buy a stake in the project.