JEDDAH, 3 July 2005 — Crown Prince Abdullah will open the second industrial city in Yanbu (Yanbu-II), which is designed to accommodate new industrial projects involving a total capital investment of more than SR110 billion.
The crown prince will also launch the SR5.6 billion National Petrochemicals Company (Yansab) and SR1.8 billion propylene project of the National Company for Petrochemical Industries in the new city.
Prince Saud ibn Abdullah ibn Thunayan, chairman of the Royal Commission for Jubail and Yanbu, thanked the crown prince for having agreed to visit Yanbu and open the new industrial city. “This again reflects the crown prince’s continuous support for the industrial sector, which has been playing a big role in boosting national economy and creating new job opportunities for young Saudis,” the RC chief said.
Muhammad Al-Juwaisser, director general of the Royal Commission for Yanbu, said all arrangements have been completed for the royal visit to the industrial city.
Yansab, a project of petrochemical giant Saudi Basic Industries Corp. will supply four million tons of petrochemicals including ethylene, propylene, polyethylene and ethylene glycol. SABIC is now in the process of establishing the company, with a fully paid-up capital of SR5.625 billion.
SABIC has allowed its partners in the affiliates Ibn Rushd and Taif to hold 10 percent of Yansab shares. Other partners include Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO), Saudi Arabian Fertilizer Company (SAFCO), Arab Petroleum Investments Corporation (APICORP) and General Organization for Social Insurance (GOSI).
The propylene project, which designed to supply 350,000 tons of the product annually, will start production next year. According to Al-Madinah Arabic daily, the plant will provide jobs for 270 Saudis.
In December last year, Prince Abdullah inaugurated the second industrial city in Jubail (Jubail-11) and dedicated several mega projects worth SR224 billion in the city. “The new industrial city in Jubail will attract local and foreign investments worth SR130 billion and create some 55,000 new job opportunities,” the RC chief Prince Saud said. He said the extension is expected to provide expansion facility for the industrialization of Jubail for the next 25 to 30 years.
Jubail, the burgeoning industrial hub on the Arabian Gulf, has been named the city with the best economic potential in the Middle East by the prestigious business publication, Financial Times’ Foreign Direct Investment (fDi) magazine.
Jubail received the accolade after its detailed economic information was assessed by a panel of expert judges who selected the city over 40 other economic centers in the Middle East.
Among input considered by the panel of judges was the key fact that while overall GDP growth can vary sharply from year to year because of oil price fluctuations, the Jubail region’s private sector contribution to GDP had grown at a steady, average rate of almost 4 percent per annum for the last 10 years.
Among other factors supporting Jubail’s qualifications, was that the inflow of foreign investment in Jubail was also directed toward community-responsible and environmentally conscious projects. Apart from being home to the world’s largest petrochemical complex, Jubail is now estimated to account for as much as seven percent of the world petrochemical market.
The city has enjoyed massive foreign investments of over $46 billion. It is expected to rise even further on the map of global commerce and industry in the areas of energy and transportation. Of all foreign investment flowing into Saudi Arabia, nearly half has gone to Jubail.
In February, Prince Saud signed a contract with Abdullah ibn Abdul Mohsen Al-Khudairy & Sons to carry out a number of projects related to the second industrial city in Jubail. The new industrial city will cost SR67.4 billion to build.
There are almost 30 plants under construction in Jubail, with another two undergoing major expansions; there are 44 more on the drawing board.
The project to create the 6,200-hectare Jubail-II foresees investment totaling $56 billion.
The Royal Commission for Jubail and Yanbu was established following a royal decree issued in 1975 to develop the twin industrial cities in line with international standards. Located 350 kilometers north west of Jeddah, Yanbu is the largest port for export of the crude oil on the Red Sea. It has facilities to export more than three million barrels/day while its location near the Suez Canal makes it an excellent access to European markets and the developing markets in Africa and Middle East.
