Business News Details

The industrial energy city adds 22.5 billion riyals to GDP annually
16/07/2017

             The decision to establish a new industrial city for energy is in line with the vision of the Kingdom of Saudi Arabia 2030," said Eng. Khaled Al Falih, Minister of Energy, Industry and Mineral Resources, Chairman of Saudi Aramco, Chairman of the Board of Directors of the Saudi Industrial Cities and Technology Estates. "The national economic impact of this major project will be the provision of thousands of direct and indirect jobs, as well as the addition of 22.5 billion Saudi riyals to GDP annually, and the establishment of new industrial and service facilities that will help innovation, development and competition internationally," he added.
    He thanked King Salman bin Abdulaziz, for his generous guidance to establish the Industrial Energy City, which will be developed in the Eastern Province.
    He stressed that this project aims to localize industries supporting the energy sector related to oil exploration, production and refining, petrochemicals, traditional electric power and water production and treatment.
    The new industrial energy city in the Eastern Province will be a strategic project and a milestone in the efforts of localization of energy-related industries and services, and will be an ideal and integrated environment for attracting investments from international companies and establishing and developing a large number of small companies, Medium and motivate innovation and business pioneering.
    "This invites us to encourage our partners across the supply chain in the Kingdom and around the world to take advantage of the localized training opportunities and employment that will be available there."
    Eng. Khalid Al Salem, General Manager of Saudi Industrial Cities and Technology Estates (MODON), said that the management of the Industrial Energy City will be carried out in partnership between Saudi Aramco and Madan, which will provide the project with all the necessary requirements for the attractive investment environment He added that Madan has already started preparing plans and programs in cooperation with Saudi Aramco to develop and operate the city.
    The Council of Ministers approved the establishment of an industrial city in the eastern region called "Industrial Energy City", and the allocation of land area of 50 square kilometers for the establishment of the city referred to.
    The Council approved Saudi Aramco offer to establish a company to develop the infrastructure of the Industrial Energy City and manage its fixed assets (the developer) and to establish a company to operate, manage and maintain the city.
    With full development, the industrial energy city is expected to achieve a number of strategic objectives, the most important of which is to support and increase the security of energy supplies, reduce the cost of supporting products and services related to the energy sector, and respond quickly to the needs of Saudi Aramco.
    The Industrial Energy City will host manufacturing and service activities related to the target sectors such as drilling services, drilling rigs, liquid treatment equipment, exploration and production services, pipe manufacturing, electrical equipment, vats and tanks, valves and pumps.
    Saudi Aramco has conducted several studies and surveys with major and global suppliers of the company. These efforts have identified a number of key components to create an integrated and sustainable work environment that matches the best manufacturing centers in the world.
    These include the provision of advanced infrastructure, logistics services including an integrated dry port, incentives to attract investments, the empowerment of small and medium enterprises, the provision of specialized training institutes in the industry, a comprehensive service center, residential complexes and commercial activities. When complete, the energy city plan will cover an area of approximately 50 square kilometers. The first phase of the project, which will be completed in 2021, will cover an area of approximately 12 square kilometers.
    In order to increase the attractiveness of the investment, a strategic location for the Energy City between Dammam and Al-Ahsa was chosen to be in the energy business center and soon to be two main sources of the local workforce in the Eastern Province, as well as the highway network and the local and Gulf railways.
    The site was also selected for Energy City to be integrated with the third industrial city in Dammam (about 48 square kilometers), as well as proximity to power generation, water and logistics.
    Saudi Aramco seeks to implement its initiative to develop a national sector for energy-related industries and services that accounts for 70 per cent of domestic demand and has the capacity to export 30 per cent of its products by 2021.
    The company has played a vital role in the development of the national economy since its launch based on its approach to enabling sustainable development and creating a local sector for the energy industries that can compete internationally.

The industrial energy city adds 22.5 billion riyals to GDP annually