Al-Faleh: Energy Industrial City aims at the Localization of the Supporting Industries of Energy Sector

2017-08-29

Eng. Khalid bin Abdulaziz Al-Faleh, Minister of Energy, Industry and Mineral Resources, Chairman of Saudi Aramco, and Chairman of BOD of the Saudi Industrial Property Authority (Modon), expressed his gratitude to the Custodian of the Two Holy Mosques, King Salman bin AbdulAziz, for his kind directives to establish the Energy Industrial City in the Eastern Region.

Al-Faleh also stated that the project is aiming at the localization of supporting industries of Energy Sector. Such industries are related to exploration, oil production and refining, petrochemicals, traditional electric energy, and water production and processing.

He indicated that the decree to establish a new industrial city for energy is aligned with Saudi Vision 2030, and supports the vital infrastructure of the KSA supply chain.

Moreover, Al-Faleh explained that this mega project will have an economic impact as it provides thousands of job opportunity directly and indirectly. Also, the project will increase the GDP, by SR 22.5 billion per year, and localize new industrial and service establishments to help enhance innovation, development and international competiveness.

On his part, Amin Hassan Nasser, President and Senior CEO of Saudi Aramco, said: “The new Energy Industrial City in the Eastern Region will be a leading project and a milestone among the efforts exerted to localize industries and energy-related services. The city will create an ideal and integrated environment to attract investments of international companies, establish many small and medium-sized companies, and encourage innovation and entrepreneurship. Therefore, we are required to encourage our partners through the supply chain in the KSA and all over the world, to benefit from the opportunities and trained local workforce that will be available in the City”.

On his part, Eng. Khalid Al Salem, the designated Director General of the Saudi Industrial Property Authority (Modon), stated that the Energy Industrial City will be managed by Saudi Aramco in partnership with Modon. This will provide the Project with all due requirements for a business environment that attracts investments. He also stated that Modon has already started developing the plans and programs, in cooperation with Saudi Aramco, for the development and operation of the Energy Industrial City.

It is worth mentioning that the Saudi Council of Ministers agreed to establish an industrial city in the Eastern Region, under the name “Energy Industrial City”, and allocated 50 km2 plot of land to build this city. The Council also agreed on the proposal of Saudi Aramco stating that Aramco will establish a company to develop the City’s infrastructure, and manage its fixed assets “the developer” along with establishing another company for the operation, management, and maintenance of the City (the Operator).

It is expected that after the complete development of the Energy Industrial City, this project will achieve a number of the strategic goals, most importantly is to (support and improve the security of energy supplies, reduce the costs of products and operational services that support and relate to the Energy Sector, and the rapid response of local supporting industries and services to the operational and developmental urgent needs of Saudi Aramco).

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