KSA spends $2.66 billion to develop Jubail-2 trade park

Investment is part of the kingdom’s import substitution and export promotion programme

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By  Eudore Chand Published  November 20, 2004

Saudi Arabia’s Royal Commission for Jubail and Yanbu has allocated around US $2.66 billion for the development of Jubail-2 geared to the kingdom’s import substitution and export promotion programme. The industrial zone will house a total of 20 basic industries. Design works of projects to be implemented in the zone have been completed, an official source in the Royal Commission said. The industrial zone will be expanded gradually in four phases, starting with the passageway of Al Khorsaniya-Ras Tanura road. Design works for infrastructure facilities, including roads, passageways, water pipelines and roads to King Fahd Industrial Port have also been completed. The total number of projects in Jubail and Yanbu stands at 2280, of which 228 were in the industrial sector, 1347 in the service sector and five in the agricultural sector. The total investments for the projects were SR57.61 billion. The top investing countries were the US, Japan, France, the United Kingdom, Canada, Syria, India, Germany, Jordan and Palestine, according to Andrea Pampanini, author of two books on industrial development in the Middle East (‘Cities from the Arabian desert, the building of Jubail and Yanbu in Saudi Arabia’ and “The Royal Commission for Jubail and Yanbu, 25 years of accomplishments’). The new industrial township of Jubail-2 will also be the site of a $1 billion polyethylene National Chemical Company plant to be set up by the National Industrialisation Company (NIC) next year. It is one of the subsidiaries of NIC, which has other ventures in Jubail industrial city. Furthermore, Saudi Hollandi Bank has announced the signing of a $47 million financing agreement with Gulf Advanced Chemical Industries Company (Gacic). The SHB-arranged facility will finance a portion of the cost of Gacic’s Butanediol (BDO) project, which is being constructed in Jubail Industrial City. The plant is expected to be commissioned by the fourth quarter of 2005.

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