Name: Haitham Nedal F Abduljabbar

ID: NCB004

Table of Content

Table of Content.....................................................................................1
Introduction...........................................................................................2
Saudi Arabia economic ranking...................................................................2
Economic cities......................................................................................3
The cities specializations and its intents............................................3
Jubail Industrial city................................................................................4
Yanbu Industrial City...............................................................................5
King Abdullah Economic City (Kaec)..................................................6
References.............................................................................................7

Subject: Saudi Economy

Section: 1

Name: Haitham Nedal F Abduljabbar

ID: NCB004

Introduction
Saudi Arabia has led the way in developing pristine new cities devoted to
specialized industries through a proposed public/private endeavor. The intent is
to have the government serve as regulator, facilitator and promoter while
private industry would provide capital, land ownership and development.
Under the patronage of His Majesty King Abdullah, the Saudi government
undertook the 10 x 10 program in 2006 to enact reforms and promote targeted
investments in order to position Saudi Arabia among the worlds ten most
favored investment destinations (Driver, 2013). The projects are intended to
bring in modern technology, management skills, corporate governance and new
industries so that the Kingdom is no longer dependent on oil and gas. This
report will introduce the need of the economic cities in Saudi Arabia and will
discuss some of the economic cities that have led to increase the economy of
Saudi Arabia.

Saudi Arabia economic ranking

Saudi Arabias economic freedom score is 62.2, making its economy the 77th
freest in the 2014 Index. Its score is 1.6 points better than last year, reflecting
improvements in the control of government spending, labor freedom, and
monetary freedom that outweigh combined score declines in trade freedom and
business freedom. Saudi Arabia is ranked 8th out of 15 countries in the Middle
East/North Africa region, and its overall score remains above the world average
(Heritage, 2014).

Subject: Saudi Economy

Section: 1

Name: Haitham Nedal F Abduljabbar

ID: NCB004

Economic cities
Saudi Arabia has already established numerous economic cities, with industrial
output comprising more than 90 per cent of the kingdoms non-oil exports.
Sectors include petrochemicals, plastics, metal, construction materials and
electrical appliance manufacturing (Meed, 2013). These economic cities are:
Jubail Industrial City
Yanbu Industrial City
Ras al-Khair Minerals City
Jizan Economic City
King Abdullah Economic City
King Abdullah City for Atomic and Renewable Energy

The cities specializations and its intents

Except for King Abdullah Economic City, each of the cities has its own area of
specialization being developed around at least one globally competitive cluster
or industry. They are also being developed according to environmental
guidelines using state-of-the-art greenfield solutions. The aim is to create
opportunities for the private sector by way of jobs and attractive lifestyles and
to provide a business-friendly atmosphere. The original intent was to have each
city developed by the private sector, promoting private investment
opportunities in developing infrastructure, real estate and industry. Core jobs
are expected to be created, which in turn will spur supporting ancillary jobs
(Driver, 2013).

Subject: Saudi Economy

Section: 1

Name: Haitham Nedal F Abduljabbar

ID: NCB004

Jubail Industrial city

Jubail is the largest industrial city in Saudi Arabia, and the
biggest industrial center of its kind in the world. Located in the oilrich Eastern Province on the Gulf coast, it is primarily aimed at
energy-intensive industries. Jubail produces about 7 per cent of
the worlds petrochemicals. The Royal Commission for Jubail &
Yanbu (RCJ&Y) runs the city, which accounts for 70 per cent of the
kingdoms non-petroleum exports. Large companies, such as Saudi
Basic Industries Corporation (Sabic) and Saudi Aramco, dominate
the city.
An extension, Jubail 2, is set to double the citys industrial footprint
to 110 square kilometres. There are currently 70,000 residents in
Jubail, and the RCJ&Y is courting investment in conversion industries
that can take feedstock from the larger plants to turn into saleable
products.

Facilities
There are full port facilities at Jubail. The Power and Water Utility Company
for Jubail and Yanbu provides utilities.

Industries

Hydrocarbons
Power and water
Petrochemicals
Fertilizers
Oil refining
Steel

Subject: Saudi Economy

Section: 1

Name: Haitham Nedal F Abduljabbar

ID: NCB004

Plastic

Subject: Saudi Economy

Section: 1

Name: Haitham Nedal F Abduljabbar

ID: NCB004

Yanbu Industrial City

Yanbu is located 350km north of Jeddah and more than 1,000km from Saudi
Arabias oil fields, but within reach of key export markets in Europe and North
America. It has a population of almost 200,000 and is home to large-scale oil
refining and petrochemicals production plants, as well as a developing base of
conversion industries.
Aramco has extensive refining operations at Yanbu, while Sabic operates
several petrochemicals units. The RCJ&Y hopes to attract smaller conversion
industries, including from the plastics, metals and oil refining sectors, to create
jobs around the heavy industrial plants. It also plans to develop a strong non-oil
sector based on the output of nearby phosphates, copper, iron ore and gypsum
mines.
Facilities
Feedstock is transported by pipeline from the Eastern Province and the
kingdoms second-largest port can handle up to 3 million barrels a day (b/d) of
hydrocarbon products.

Industries
Oil refining
Petrochemicals
Plastics
Metals

Subject: Saudi Economy

Section: 1

Name: Haitham Nedal F Abduljabbar

ID: NCB004

King Abdullah Economic City (Kaec)

The $27m Kaec was launched in 2005 as the first of six economic cities
planned for the kingdom. It is being developed by Emaar, The Economic City
(a subsidiary of Dubai-based Emaar properties) at Rabigh, 100km north of
Jeddah, and is intended to house 4.5 million people and create 1.3 million jobs.
The $11.5bn Haramain High-Speed Railway will connect Kaec to Jeddah,
Mecca and Medina. The city will cover 168 million square metres with six
zones: seaport, industrial, central business district, waterfront resort, education
and residential.
Facilities
When completed, the Kaec seaport will be the regions largest, with a container
capacity of more than 10 million 20-foot equivalent units. Work on the port is
under way, and basic infrastructure and utility works are completed. Land is
now available for manufacturers to begin construction on the second and third
phases of the industrial valley. The minimum size of available plots is
20,000 sq m.
Kaecs residential sector is planned to contain 250,000 apartments, 24,000
villas, 120 hotels and more than 50,000 retail outlets. In 2012, Saudi Binladin
Group completed the first two residential towers.

Industries
Logistics
Light industry
Services
Lubricants
Pharmaceuticals
Food

Subject: Saudi Economy

Section: 1

Name: Haitham Nedal F Abduljabbar

ID: NCB004

Subject: Saudi Economy

Section: 1

Name: Haitham Nedal F Abduljabbar

ID: NCB004

References
Driver.M, 2013, Saudi Arabias Four New Economic Cities, [ON-LINE]:
http://www.metrocorpcounsel.com/articles/22205/saudi-arabias-four-neweconomic-cities.
Meed, 2014, Saudi Arabia Economic zones, [ON-LINE]:
http://www.meed.com/supplements/2013/meed-guide-to-economiczones/saudi-arabia-economic-zones/3183419.article#X-201308211340016.
Heritage, 2014, 2014 Index of Economic Freedom, [ON-LINE]:
http://www.heritage.org/index/country/saudiarabia.
Green Destination, 2011, Economic cities of Saudi Arabia, OSEC.

Subject: Saudi Economy

Section: 1