Jubail Industrial City: Top choice of investors

Saudi Arabia’s economic growth in past decades relied on crude oil production and exports as the only source of national income, while the natural gas associated with production operations was flared.
Recognizing that crude oil is a depletable resource and that revenues are affected by supply and demand and international, political and economic factors, the government of Saudi Arabia conducted in-depth studies upon which the concept was laid to build an integrated industrial base that utilizes local natural resources, through the construction of two industrial cities: Jubail on the Arabian Gulf in the east and Yanbu on the Red Sea in the west.
The government of Saudi Arabia provides a wide range of investment benefits and incentives for companies and individuals to participate in the expansion and diversification of the industrial development in Jubail Industrial City.
The Saudi Industrial Development Fund extends medium to long-term, interest-free loans to newly established industrial companies as well as already established companies to expand their activities or upgrade their facilities.
In addition, there are numerous investment benefits in Jubail Industrial City, including proximity to fuel sources and feedstock which are available at competitive prices to enhance the multiplicity and diversity of industrial investment opportunities.

*Developed industrial locations furnished with all necessary infrastructure for industries.
*Long-term lease agreements at very low prices.
*Modern community and commercial facilities.
*Effective technical training programs covering the need of various industries.
*Availability of all types of local and international communication facilities.

Industrialization is the choice of Saudi Arabia. The major objective of industries in Jubail Industrial City is to utilize the Kingdom’s Oil and mineral resources and feedstock.
The industrial spectrum in Jubail ranges from primary industries which include a large number of petrochemical plants including Saudi Iron and Steel Company (Hadeed) and Saudi Aramco Shell Refinery Co. (SASREF); secondary industries which utilize the primary industries products through further processes that yield petrochemical intermediates, plastic and steel products, and chemical derivatives for agricultural and other use and support and light manufacturing industries which utilize the products of primary and secondary industries to produce consumer commodities
The Eastern Province has had many economic projects in the era of Custodian of Two Holy Mosques King Abdullah.
Most of these projects have come up during his visits to the province.
Jubail Industrial City was honored on April 13, 1999 by the visit of King Abdullah when he was a crown prince then. In that visit, the king achieved the dream of the city’s residents and villages nearby by opening the College of Education for girls to complement the educational system of the city
He also inaugurated the expansion projects for SAFCO and laid the foundation stone for the expansion of Sharq Company and Kemya Company.
He opened Al-Razi Company plants number 3 and 4.
On Oct. 14, 2002, King Abdullah inaugurated and laid the foundation stone of 13 new developmental and industrial projects at a cost of more than SR30 billion.
Also, on Dec. 25, 2004, he laid the foundation stone of Jubail II grand project and a number of industrial projects at cost of SR64 billion.
During his visit on June 12, 2006, King Abdullah laid the foundation stone and launched a number of projects for the RCJY, including Saudi Basic Industries Corporation (SABIC) and private sector companies valued at more than SR82 billion.
On April 28, 2009, King Abdullah laid the foundation stone and launched 29 developmental and industrial projects executed by the Royal Commission, including for SABIC and private sector companies totally valued more than SR68 billion.
The commission is a major contributor to the GDP of the Kingdom by 12 percent while it contributes 65 percent or two-thirds of the domestic industrial output.
The exports of the cities of the RCJY constitute more than 71 percent of the total of Saudi exports while the nonoil exports of the Royal Commission cities make 85 percent of the total of the Kingdom’s nonoil exports.
As an extension of this success, Saudi Arabia was ranked the 10th country at the level of oil derivatives producing countries globally and the 7th country at the level of petrochemical producing countries in the world. The Kingdom produces eight percent of the global total.
There is no doubt that the advanced infrastructure of Jubail is the cornerstone which has allowed the various industrial, commercial and social sectors to establish themselves through integrated action.
Jubail infrastructure has the capability to operate continuously without failure of power or supplies in any of its existing facilities while meeting community requirements at modern and high living standards where all the necessities of life and tourist and recreational facilities are available, which are the most important characteristics of any city looking to enter the bright future.
The Royal Commission is working to upgrade and increase the capacity of such infrastructure while paving the way before the private sector to take part in the development and growth of the two cities into the horizons of the 21st century
King Fahd Industrial Port in Jubail is one of the Kingdom’s key outlets.
It extends over 12 km along the Arabian Gulf. The port has been designed to accommodate super tankers and prefabricated modules.
It provides extensive storage facilities for petroleum products and petrochemicals.
The piping system was installed in Jubail to transport petrochemical liquids produced in the industrial area to King Fahd Industrial Port where they are stored before being shipped to global markets on time.
Iron ore imported from out of Kingdom is delivered to the Hadeed plant directly from ships by a 13-km long conveyor belt, without the need for any shipping, unloading or traditional transportation methods.
A railroad line has been built to transport goods from and to the Port, and it is connected to the proposed Jubail-Dammam railroad line.
Located south of King Fahd Industrial Port, Jubail Commercial Port comprises many berths furnished with equipment for handling general cargo, containers and storage warehouses.