RIYADH, 13 January — Saudi Arabia will set up an independent agency to promote industrial cities in the country as part of a strategy to attract huge investments in the sector, according to a top official of the Ministry of Industry and Electricity.
Formation of the new body is part of several recommendations proposed for the structural reform of Kingdom’s industrial cities. Industrial cities in various parts of the country currently have various limitations including lack of space in the face of increased demand for setting up new projects, said Saleh Al-Huseini, undersecretary for industrial affairs at the ministry.
The new body will develop a mechanism to make the required infrastructure available. The recommendations have been made after studying the experience in the Kingdom as well as several other countries,.
Al-Huseini said the ministry would hold a press conference tomorrow to explain the details and the salient features of the new strategy that has been submitted to higher authorities for ratification.
The ministry has noticed a number of difficulties being faced by the industrial cities under the current strategy, Al-Huseini said. The most difficult problem among them is to keep pace with the increasing demand for investments in the industrial sector.
According to the new strategy, the ministry aims to distribute the tasks of the cities to three different bodies. While the government reserves its right to devise policies, regulations and laws, the promoters — the new term to be used in future — will be responsible to generate finances and for operation and maintenance. The third party will be the new authority.
The ministry will facilitate the private sector operations by founding new industrial cities on land owned by private groups.
The government will also play the role of a guarantor to ensure quality services. The development of the industrial cities can be achieved either by expanding the existing facilities or by building new cities. Currently there are 14 industrial cities in the Kingdom.
The ministry’s new strategy will also tackle the problem of market flooding and lay down a new concept to deal with the market flooding confronted by the Saudi exporters in the external markets.
This is particularly important for the Kingdom because over 40 percent of the Saudi products, with an investment of over SR240 billion, are meant for export, the official added. (Asharq Al-Awsat)
