Jubail chemical plant: TAQA and Halliburton sign deal

Updated 26 February 2015

Jubail chemical plant: TAQA and Halliburton sign deal

The Industrialization & Energy Services Company (TAQA) and Halliburton Multi-Chem recently signed a joint venture agreement, with the official signing ceremony in the offices of TAQA in Alkhobar.
The JV will establish an industrial complex to produce specialty chemicals related to the oil and gas and energy sectors.
The complex will be located in PlasChem Park in Jubail Industrial City II, which is a collaborative effort between Sadara Chemical Company and the Royal Commission for Jubail and Yanbu (RCJY).
With a new plant to be located in Jubail industrial city (Jubail 2), the new joint venture aims to support exploration and production operations in the Kingdom and offer chemical products needed by the local and Middle East markets.
Project construction is expected to begin in 2015 with production starting in the fourth quarter of 2016. The plant will provide specialty chemicals to serve local and international oil and gas, water, and power sectors.
Abdulrahman bin Zarah, president of TAQA, and Keith Barnard, vice president of Halliburton Multi-Chem, signed the JV agreement, in the presence of Mohammed Y. Rafie, chairman of TAQA, and Ziad S. Al-Labban, CEO of Sadara.
“By signing this agreement with Halliburton, we are increasing TAQA‘s commitment and presence in the oil and gas sector in the Kingdom by adding local manufacturing capabilities and transfer technology in the oil and gas sector in Saudi Arabia,” said Rafie
“We are pleased with this new Joint Venture with TAQA and to build this project in the Kingdom,” said Barnard.
“This agreement positions us to have a world-class cost position in the heart of the $500 million-plus specialty chemical market of the Middle East,” he said.
“It also demonstrates our commitment to serve Saudi Aramco and other valuable customers in the region. This project should provide a safe supply of raw materials and increase the sales of chemical products both locally and internationally,” he added.
“The signing of this Joint Venture Agreement forms a general framework for the construction of the plant that aims to transfer technology and provide specialized technical training and expertise to the Saudi workforce,” said Bin Zarah.
“Furthermore, the large group of chemicals that will be produced in the plant will enhance the role of the chemical industry sector and contribute to the establishment of more downstream investment projects in the Kingdom. Additionally, it will enable TAQA to achieve one of its strategic goals, through extending the foundation of the national economy and supporting the efforts to diversify the Kingdom’s economy, contributing to the creation of direct and indirect jobs created by these technical industries.”
Bin Zarah: “We expect to become a major player in the chemical segment and create value with the benefit of Halliburton’s know-how and their best-in-class technologies and expertise.”


Saudi finance minister reassures public on taxes

Updated 10 December 2019

Saudi finance minister reassures public on taxes

  • Mohammed Al-Jadaan: There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully
  • The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year

RIYADH: Saudi finance minister Mohammed Al-Jadaan pledged that there would be no more taxes or fees introduced in the Kingdom until the social and economic impact of such a move had been fully reviewed.

He was speaking at the 2020 Budget Meeting Sessions, organized by the Ministry of Finance and held in Riyadh on Tuesday, where a number of ministers and senior officials gathered following the publication of the budget on Monday evening.

“There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully, especially in terms of economic competitiveness,” said Al-Jadaan.

The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year and more than 10 percent higher than the expected budget for this year. 

Most of that increase has come from taxes on goods and services which rose substantially as a result of the improvement in economic activity over the year.

The reassurances from the minister come as the Saudi budget deficit is estimated to widen to about SR187 billion, next year, or about 6.4 percent of GDP.