Industrial investments in Yanbu cross SR50b mark

JEDDAH — Industrial investments in Yanbu have crossed the SR50 billion mark and would reach SR71 billion by next year, according to an economic report issued by the Royal Commission for Jubail and Yanbu.

By Our Correspondent

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Published: Mon 10 Sep 2007, 9:01 AM

Last updated: Sat 4 Apr 2015, 11:35 PM

Auto Mall

"Investments in the private commercial and housing projects reached SR5.2 billion mainly because of the favourable economic atmosphere in the kingdom, the report said. Majed bin Abdullah Hady, the commission's deputy director-general for investments and development, said that the commission was also trying to develop a market for the sale of cars and accessories. It would be known as 'Yanbu Auto Mall'. The commission has signed several memoranda of understanding with car distributors to open show rooms. The new SR190-million Yanbu Airport, being built in an area opposite to the present one, is expected to boost development of the industrial city. Economic analysts believe that the new airport will be a shot in the arm for the city in the promotion of its industrial and economic development. The new airport will have two levels, each with an area of 10,000 sq.m. and will have jetways to facilitate boarding of passengers. It will also have an advanced control tower and a weather forecast centre. Other facilities at the airport include a royal lounge, a separate building for air cargo, a power station and a desalination plant. The airport will have long wide runways to enable it to receive large aircraft. The new airport will receive Haj flights during the Haj season.

The new mega-industrial city on the Red Sea is expected to attract investments worth SR115 billion. Yanbu-2, which covers an area of 66 sq. km., is expected to house 34 basic and secondary industries and 224 light industries.

Yanbu-2

The Royal Commission will spend SR12 billion on infrastructure for Yanbu-2, of which SR6 billion will be set aside for the first phase.A SR19 billion Yanbu National Petrochemical Company (Yansab) plant of Saudi Basic Industries Corp will be established in the new industrial city.Yansab, a Sabic affiliate has already signed a Letter of Intent (LoI) with Shaw Stone and Webster for the design, supply and construction of a butane plant with a designed capacity of 135K metric tonnes per annum (mtpa) of butane and 250K mtpa of benzene, toluene and xylene mixtures at the Yansab complex, in Yanbu.

Yansab plants

"This LoI completes the contractual process for all of the Yansab plants, which are expected to go on stream by 2008, with an annual capacity exceeding 4mtpa," said

Mohammed Al-Mady, Sabic Vice-Chairman and CEO.

This includes 1.3 mtpa of ethylene; 400,000 mtpa of propylene; 900,000 mtpa of polyethylene, 770,000 mtpa of ethylene glycol; 500,000 mtpa and 400,000 mtpa of polypropylene alongside butane, benzene, xylene and toluene mixtures.



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