JEDDAH, 6 July 2005 — Crown Prince Abdullah yesterday laid the cornerstone for Yanbu-2 and said the massive, hi-tech industrial cities of Jubail and Yanbu offered tremendous opportunities for both Saudi and foreign investors.
The new mega industrial city on the Red Sea is expected to attract investments worth SR115 billion. While launching the project, the crown prince also made a humanitarian gesture by distributing deeds of 458 houses to poor Saudi families.
Prince Abdullah later watched plans for the expansion of the Yanbu airport and approved SR188 million for the project that includes construction of a new passenger lounge covering an area of 8,500 square meters.
Senior princes and top officials including Prince Miteb, minister of public works and housing, and Madinah Governor Prince Muqrin attended the launching ceremony. Prince Abdullah also met with top officials of Saudi Basic Industries Corp (SABIC) and other companies.
Earlier, Prince Abdullah chaired a meeting of the board of the Royal Commission for Jubail and Yanbu. Prince Saud ibn Abdullah ibn Thunayan, chairman of the RC, said the crown prince was briefed on the commission’s achievements and future projects.
“The RC has succeeded in providing a fertile investment climate in the two industrial cities, acquiring advanced technology and providing thousands of jobs to Saudis,” the Saudi Press Agency quoted Prince Abdullah as telling the board meeting.
Prince Abdullah also said that the two industrial cities were instrumental in strengthening the economy and supporting the country’s diversification drive. “They have helped our economy to weather storms of fluctuations that hit global economy,” he said. Prince Abdullah emphasized the importance of supplying the necessary amounts of gas to the two industrial cities. He praised the RC for successfully implementing a comprehensive administrative system, relying on the principle of flexibility in management and finance. He lauded the Saudi youth working at industrial plants, saying they have proved their trustworthiness.
The crown prince then viewed a model of the Yanbu Industrial City including Yanbu-2, which covers an area of 66 square kilometers and is expected to house 34 basic and secondary industries and 224 light industries.
Addressing the ceremony, Prince Saud, the RC chief, spoke about his organization’s achievements during the last three decades. He said the RC would be spending SR12 billion on infrastructure for Yanbu-2, of which SR6 billion will be set aside for the first phase.
The crown prince also put the cornerstone for SABIC projects, which include the SR19 billion Yansab plant. He also opened three SABIC projects, which were implemented at a total cost of SR10 billion. The new SABIC projects include Yanpet-II, a joint venture with ExxonMobile with a total investment of SR9 billion and production capacity of 4 million tons annually of ethylene, polypropylene, polyethylene and ethylene glycol.
Another project is the Industrial Gases National Company factory (second phase), owned 70 percent by SABIC and 30 percent by a group of national companies with a capital investment of SR236 million. The project, which produces 900 tons daily of oxygen and nitrogen, went on stream this year.
Prince Abdullah later put the foundation stone of Marafiq water and electricity project for Jubail and Yanbu, which will cover the works of Yanbu-2. The SR9 billion project will be operational by 2009.
The crown prince also laid the cornerstone and dedicated a number of other projects established by private companies, involving a capital investment of SR90 billion.
During the ceremony, SABIC announced a donation of SR5 million to establish a public park at Yanbu Albahr. A number of private companies have agreed to donate for the establishment of a development project in the city.
Deeds of charitable houses, constructed by Prince Abdullah Foundation for Housing Development, were distributed. Representatives of 458 Saudi families in Al-Nabah, Al-Shabaan and Al-Hussa villages received the deeds of fully furnished houses. The foundation’s project cost SR100 million.
Prince Abdullah later arrived in Jeddah.
