Jubail Industrial City, Saudi Arabia’s industrial powerhouse and hub for petrochemical industries, housed 195 industries in 2007 with a total capital investment of SR108.52 billion ($28.9 billion), according to the Jubail directorate of the Royal Commission for Jubail and Yanbu.

These included 20 industries in the primary sector, 21 in the secondary sector and 154 in the support and light manufacturing sector.
Primary industries accounted for SR101.24 billion in capital investment, secondary industries SR5.33 billion and support and light manufacturing industries SR1.95 billion.
In 2006, the number of companies operating in Jubail Industrial City was 189 including 20 each in the primary and secondary sectors and 149 in the light and support category.
One of the companies that began operations in 2007 was Saudi Aerated Autoclave Concrete Company which produces aerated blocks and aerated panels. The capital investment was SR49 million.
According to the Jubail directorate, there are a total of 345 industries under construction or in the planning and design stages. The figure for 2006 was 292.
Projects planned for Jubail include the following:
Saudi Kayan Petrochemical Co’s complex for cracker and petrochemical derivatives; production capacity about 6 million tonnes per year (tpy); capital investment SR37.5 billion.
Advanced Polypropylene Company’s facilities for propylene and polypropylene; 455,000 tpy and 450,000 tpy respectively; SR2.9 billion.
Sahara Petrochemical Company’s (Al Waha) facilities for producing propylene, polypropylene, acrylonitrile and acrylic acid; total 930,000 tpy; SR3.8 billion.
There are nine primary industries and five secondary industries under expansion. Some of the primary industries under expansion are Hadeed, Ibn Zar, Tasnee, Sipchem, Sharq, Ar Razi and Sasref.
Infrastructure projects entailing an investment of SR16 billion are in progress. These include projects related to land development, roads, power generation, water and sewage and the port.
Jubail Port’s Petrochemical Quay-2, which covers 80 hectares, is completed. Petrochemical Quay-3 is being developed with 17 berths to be built and will occupy an area of 160 hectares.

Jubail-2
No industries are as yet operating in Jubail-2, but there are five that have received approval and 29 other applications have been received by the Royal Commission.
Currently a host of infrastructure projects are in various stages of construction. They include residential and commercial site development and projects related to roads, power, water, sewerage and the port.
Jubail-2 will be completed in stages with the first stage getting ready in 2009. Completion dates for the second and third stages are 2011 and 2013. The fourth stage will be completed in 2015.
A spokesman for the Jubail directorate of the Royal Commission said the strategy for Jubail-2 was to develop petrochemical industries and energy-intensive industries with an emphasis on downstream value-added products.
This emphasis would facilitate more cluster-related applications to enable greater diversification in industrial development and increase employment within the kingdom, he said.

The Royal Commission
The Royal Commission for Jubail and Yanbu was established in 1975 and entrusted with the responsibility of planning, constructing and developing infrastructure facilities for the two industrial cities.
The spokesman said Jubail and Yanbu had achieved major breakthroughs by their collaboration with Sabic, Aramco, the Saudi private sector and international companies in the fields of petrochemicals, basic energy-intensive industries and downstream industries.
He added that the development had put Saudi Arabia on a par with other major industrial cities in the petrochemical world.
Another area of focus was the development of human resources. “The Royal Commission places a high priority on the training of Saudi nationals in technical and managerial aspects of industry. It has already established two industrial colleges and two technical institutes in both Jubail and Yanbu industrial cities in order to prepare a highly qualified cadre of Saudi nationals,” the spokesman said
He described the setting up of Jubai-2 and Yanbu-2 as being among the kingdom’s mega development projects.
“This represents a significant economic leap which will double the land area for new investment. The focus will also be on creating a suitable environment for greater participation by the private sector to attract local and foreign investment for long-term growth in Saudi Arabia.”