US-based engineering firm Mikati Contracting has signed a contract to develop a logistics park located in phase 1B of the Industrial Valley part of King Abdullah Economic City (KAEC).

The SR26.6m facility, comprising prefabricated light-manufacturing and warehousing units, will be completed by the third quarter of 2016, according to a company statement.

With direct access to King Abdullah port, the logistics park will be made up of 12 interconnected units with a total area of approximately 30,000 square metres.

KAEC will house up to 2 million people in 250,000 apartments and 25,000 villas, creating 1.3 million jobs. It will include a seaport; an industrial area; an educational zone; a central business district with commercial, mixed-use and retail outlets and a financial island; resorts and a residential area.

According to a 2012 masterplan, SR125bn ($33bn) investment will be required for infrastructure development in the new economic city in the coming years.