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National Industrial Strategy to See Investment of SR40b in Saudi Cities
JEDDAH - The National Industrial Strategy, which is to be submitted for Royal approval soon, will see an investment of SR40 billion in industrial cities over a period of five years, according to Khaled Al Sulaiman, undersecretary of the Ministry of Trade and Industry for Industrial Affairs.
- PUBLISHED: Tue 5 Jan 2010, 10:55 PM UPDATED: Mon 6 Apr 2015, 10:23 AM
He added that the amount could also increase. “The industrial sector currently does not meet requirements as its contribution is weak and estimated at only 10 per cent,” Al Sulaiman said. “We lack creativity and innovation, and this is, an important strategic goal we need to believe in to achieve sustainable industry,” he added.
According to Al Sulaiman, most Saudi youths prefer work in the public and private sectors. “Hence the importance of expansion and setting up new factories to create thousands of new jobs,” he said, and added that local industry should compete internationally. “We must move to resources that depend on creativity and innovation. This cannot happen unless we develop the employment capacity in petroleum, gas and petrochemicals to attract young Saudis,” he stressed.
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Al Sulaiman said that projects were ongoing in the new industrial cities such as Sudair Industrial City on an area of 250 million square meters, Al Kharj Industrial City on an area of 100 million square metres, and Jeddah Industrial City on area of eight million square metres, as well as in Taif, Jizan, Rabigh and the Eastern Province.
“Work is also continuing in improving the Second Industrial Estate in Dammam,” he said, and added that SR1 billion had been given to improve its services.
Al Sulaiman said that discussions “in their final stages” were being held on an extensive new location to add to the industrial lands required in the Eastern Province. He said there are 320 investors on the waiting list to obtain industrial land in the Eastern Province The ministry of trade and industry plans to reassess the setting up of new industrial cities and estates with investment in them projected to reach SR15 billion. It may be recalled that according to the Saudi Industrial Property Authority (MODON) annual report for 2008, Saudi Arabia has spent an amount of SR1,505 million for the development and rehabilitation of the industrial cities in the kingdom.
The report addressed achievements and projects launched by MODON related to many aspects, including: improvement in the working environment within MODON, provision of new services in the existing industrial cities, development of new industrial cities in various regions of the kingdom. The report also includes planning projects for roads linking with the industrial cities, electricity projects and privatisation projects for water services, industrial security and landscaping services.
The report provided strong indications of the importance of MODON's role in achieving the national industry strategy.
Last year, 407 plots of land were allocated for the establishment of industrial projects on an area totalling 15 million square metres with an industrial capital estimated at more than SR24 billion. The report also mentioned that the cost of development, rehabilitation and planning projects of industrial cities was more than SR1,505 million, of which SR580m was for infrastructure projects for water services, SR510m for rehabilitation projects in the existing cities to include industrial security and landscaping projects, maintenance of roads and sidewalks, lightning and transference of services to these cities and some new cities.
An amount of SR415m was allocated for the designing and development projects of the new industrial cities.
The report contained details of developmental projects, including initiating the development of new industrial cities such as Jeddah 2nd industrial city, Al Kharj, Jizan and Arar industrial cities.
Moreover, expansion contracts of existing industrial cities in Dammam 2nd industrial city and Madinah industrial city have been signed.