JUBAIL: Custodian of the Two Holy Mosques King Abdullah yesterday launched massive development projects worth SR54 billion in the Eastern Province’s newest industrial zone called Jubail-II. The new city is situated about 3 km to the west of the existing industrial city.
At a grand ceremony attended by top Cabinet members, bureaucrats and businessmen, the king pushed a series of buttons to mark the formal opening of the projects that included the world’s largest desalination and power generation plant.
The king watched a number of electronic presentations highlighting the various stages of the projects he opened.
On arrival, the king was received by Eastern Province Gov. Prince Muhammad bin Fahd; President of the Royal Commission for Jubail and Yanbu (RCJY) Prince Saud bin Abdullah bin Thunayan; Deputy Gov. Prince Jalawi bin Abdul Aziz bin Mosaed; Jubail Gov. Abdul Mohsin Al-Otaishan; and SABIC CEO Mohamed Al-Mady.
The king was briefed on education and training programs being carried out by the Royal Commission. Royal Commission chief Prince Saud said the Kingdom’s determination to contain the current financial crisis was laudatory. “King Abdullah’s continuous interest in and backing for development projects across the country and particularly in Jubail has created a new sense of optimism in the business community,” he said.
“The world is going through a crisis but here we have not stopped investment ... On the contrary we have increased investment. These decisions stem from courage and determination to march ahead,” said Prince Saud.
He said huge projects valued at about SR174 billion are under construction in Jubail Industrial City. “Among them projects worth SR54 billion are launched today and this is the largest launching ceremony in RCJY’s history.”
Prince Saud also referred to the Yanbu National Petrochemical Company (Yansab), one of the largest industrial complexes in the world. “We look forward to King Abdullah opening this huge industrial edifice.” He did not say when Yansab would be ready for inauguration.
Yansab is the most recent SABIC affiliate in the Kingdom with annual capacity exceeding four million metric tons of various petrochemical products including 1.3 million metric tons of ethylene.
SABIC chief Al-Mady acknowledged the king’s special support for the corporation. “It is this support that has enabled us to expand across the world,” he said.
The massive investment in Jubail-II is aimed at capitalizing on the Kingdom’s abundant hydrocarbon resources to optimize economic and social benefits for the Kingdom and to further strengthen an already globally competitive petrochemical industry.
Maher Al-Sharhan, CEO of Marafiq, said the new water-cum-power plant in Jubail would supply 2,750 megawatt of electricity and 800,000 cubic meters of water daily to cities in the Eastern Province. He said SR16 billion has so far been spent on the project.
Al-Sharhan thanked the government for its support to Jubail Water and Electricity Company and said this support had contributed to completing the project in record time.
Jubail Industrial City was conceived by the Royal Commission more than 30 years ago. Before that it was a sleepy coastal village, which relied on fishing and pearl harvesting to drive the local economy. The industrial city laid the foundations for economic diversification when it was realized that the Kingdom needed to move away from its reliance on oil and enter the international markets with industrial products.
The city has established a range of support industries and infrastructure, encouraged investment in primary and secondary industries, attracted international joint venture companies from America, Europe and Asia, and provided jobs for Saudi nationals. In 1983 the city was cited in the Guinness Book of Records as the largest engineering and construction project ever attempted. In 2009, it is still getting bigger.
Businessmen in Eastern Province welcomed the opening of the new projects.
“This will only enhance the image of our region in the world petrochemical market. This will upgrade our ratings and add value to our economy,” said Abdullah Al-Hazza, who runs several companies with interest in real estate and petrochemicals.
“This investment will result in more job openings for young Saudis and provide a new impetus to our economy. Whenever new projects are opened they result in business for everybody, small companies and big companies,” Al-Hazza said. “It will reinforce Eastern Province’s image as the leader of the petrochemical industry.”
He said the timing of the projects was excellent. “Yes, the world is currently undergoing a crisis, but this phase will be over in 2010 by which time the projects which are being launched today will come to fruition and reap huge benefits. This is excellent timing and makes a lot of sense,” Al-Hazza added.
Another top businessman, Imad Al-Dabal, welcomed the king’s initiatives in the Eastern Province. “This will increase the people’s trust in him. This indicates he understands our economic needs.
The new projects will bolster the local economy and inject a new wave of optimism in all sections of society,” Al-Dabal said, adding: “All development is good development. It means more opportunities, more jobs and more growth. This will lead to Saudi Arabia gaining traction as it moves ahead in the world of business.”
Meanwhile, Jordan’s King Abdallah will arrive in Dhahran today for talks with the Saudi ruler. According to the Saudi Press Agency, the Saudi-Jordanian summit talks will focus on major regional and international issues.
