In the heart of Saudi Arabia's industrial landscape stands the Royal Commission for Jubail and Yanbu (RCJY), a visionary organisation that has played a pivotal role in transforming the kingdom into a global industrial powerhouse. Established in 1975, the RCJY was entrusted with the daunting task of developing two coastal cities, Jubail and Yanbu, as industrial hubs capable of propelling Saudi Arabia's economic diversification and growth.
Over the past four decades, the RCJY has spearheaded the creation of world-class industrial cities that have become synonymous with innovation, sustainability, and economic prosperity. Jubail Industrial City, nestled on the Arabian Gulf coast, has emerged as a global petrochemical hub, attracting leading international investors and fostering a thriving industrial ecosystem. Yanbu Industrial City, strategically located on the Red Sea coast, has become a beacon for energy-intensive industries, driving the Kingdom's energy sector forward.
In recent years, the RCJY has continued to break new ground, expanding its reach beyond Jubail and Yanbu to establish Ras Al Khair City for Mining Industries and Jazan City for Primary and Downstream Industries. These new industrial cities are further diversifying Saudi Arabia's industrial base and creating new opportunities for economic growth.
The RCJY's commitment to sustainability has been unwavering, implementing stringent environmental regulations and investing in eco-friendly technologies to minimise the environmental impact of its industrial activities. The organisation has also embraced digital transformation, leveraging technology to enhance efficiency, optimize operations, and foster a culture of innovation.
The RCJY's vision for the future is firmly rooted in the principles of sustainability, innovation, and global collaboration. The organisation is committed to developing its industrial cities into centers of excellence for sustainable manufacturing, utilising cutting-edge technologies to reduce carbon emissions and advance the circular economy.
The RCJY is also actively fostering partnerships with international investors and industry leaders to attract new investments, transfer advanced technologies, and promote knowledge sharing. The organisation's goal is to position its industrial cities as global hubs for innovation and technology, attracting the world's brightest minds to contribute to Saudi Arabia's industrial transformation.
Ras Al-Khair Industrial City
Meanwhile, Ras Al-Khair Industrial City is on way to become a major mining industry hub. The city includes one of the most modern industrial ports in the kingdom. It is also home to several Shareek projects, which aim to enhance public and private sector partnerships. The city is set to become one of the largest cities for mining industries in the world.
Minister of Industry and Mineral Resources and Chairman of the Board of Directors of the Royal Commission for Jubail and Yanbu, Bandar bin Ibrahim Al-Khorayef, in March, reviewed the development of infrastructure in a number of mineral projects in the city. The size of these projects is estimated at SR82 billion. It is expected to contribute more than 100 billion riyals to the GDP, creating over 41,000 direct and indirect job opportunities.
The minister stopped at several projects during the inspection tour, including the casting and forging complex, part of the Shareek program, the Maaden Phosphate project, and the steel plate project, which have a total investment value of SR38 billion. The minister also assessed the progress of three projects under development, namely: flat steel complex, copper and zinc smelter and the iron ore pellets, with a total investment of SR44.5 billion.
New project deals
In January this year, RCJY signed five agreements worth more than SR43 billion ($11.4 billion) for the establishment of key industrial projects in Ras Al Khair and Yanbu.
These include one with the Red Sea Aluminum Industrial Company in connection with leasing of industrial land in Yanbu Industrial City to establish a factory project for smelting and rolling aluminum and its alloys, drawing, purifying and casting, in addition to casting non-ferrous metals.
The second agreement was with EV Metals company (EVM) that involves the leasing of industrial land to establish a complex for the production of high-purity chemicals required for active materials in the cathode that can be recharged for lithium-ion batteries for electric vehicles and renewable energy storage. The project will come up on a 1.27 million sq m area with nearly SR3.375 billion beiong spent on it.
Meanwhile, the Royal Commission in Ras Al Khair Industrial City signed three investment agreements covering: Saudi Holding Company for Conversion Industries, which includes the allocation of 157,000 sq m to establish and operate a factory for the production of aluminum foil and rolls in Ras Al Khair Industrial City, which will be an added value for its use of raw materials from Ma’aden. To be set up at an investment of SR1.3 billion, the project aims to serve the local and global markets and is expected to create more than 350 job opportunities.
The Royal Commission also signed an agreement with Tamouh Development and Investment Company, for setting up a new aluminium plant on a 130,000 sq m at a total investment of SR474 million. The new industrial project will see major production of high-density aluminum fluoride, and will provide more than 127 job opportunities.
The third agreement was signed with the Petroleum Protection Services and Construction Company for allocation of 10,000 sq m area to establish and operate a ready-mixed concrete factory for marine uses. The new project will support the ports and marine industries sector with an investment of SR5 million and also provide 75 job opportunities.
Jubail projects
In November, Prince Saud bin Naif bin Abdulaziz, Governor of the Eastern Region, launched yesterday several strategic projects at Jubail Commercial and Industrial Ports today which aim at boosting throughput capacity and upgrading the infrastructure.
"By launching world-class projects at Jubail's ports, we are not only boosting the Kingdom's foreign trade but also strengthening our global competitive edge," he said.
Omar Hariri, the President of the Saudi Ports Authority (Mawani), said the project aims to bolster the Kingdom's position as a global logistics centre and a junction for three continents. Moreover, these projects are meticulously designed to meet the goals of the National Initiative for Global Supply Chains, through enhancing the Kingdom's role as an indispensable hub and vital link in international supply chains.
The strategic projects that have been launched include a railway project that connects the northern and eastern railway networks and also connect the internal railway network with Jubail Industrial City and its industrial and commercial ports.
These initiatives would help to reduce congestion, minimise the ports' carbon footprint, and expand shipping operations, providing new and advanced options and solutions that focus on reliability and efficiency, in addition to enhancing infrastructure and increasing port capacity.
These projects aim to establish a modern petrochemical hub containing ten berths and a storage area, contribute to the Saudi Green Initiative, and preserve the environment by planting more than 5,000 saplings inside King Fahad Industrial Port in Jubail.
King Fahad Industrial Port in Jubail is the largest industrial port in the world, handling a diverse range of petrochemical products, as it boasts 34 berths and handles more than a hundred petrochemical products annually, along with agricultural fertilizers, sulfur, and petroleum coke.
The port also serves as the receiving point for factories and giant machinery, with a capacity to handle up to 70 million tons.
Furthermore, Jubail Commercial Port, one of the most important commercial ports globally, is equipped with 16 berths fitted with the latest equipment and machinery.
It has an operational capability to handle more than 1,500,000 containers annually, with a capacity of up to 36 million tons, in addition to providing logistical services to oil fields.
Blue Ammonia plant
Saudi Arabia-based Sahara International Petrochemical Company (Sipchem) is planning to set up a blue ammonia plant in Jubail Industrial City with a capacity of 1.2 million tonnes per year.
Blue Ammonia is type of low-carbon ammonia produced from natural gas feedstock with carbon dioxide emitted during the production captured and stored.
$11bn Amiral Complex
In June, Aramco and TotalEnergies awarded engineering, procurement and construction (EPC) contracts for the $11 billion "Amiral" complex, a future world-scale petrochemicals facility expansion at the Satorp refinery. The award of EPC contracts for main process units and associated utilities marks the start of construction work on the joint petrochemical expansion, following the final investment decision in December 2022.
Integrated with the existing Satorp refinery in Jubail, the new complex aims to house one of the largest mixed-load steam crackers in the Gulf, with a capacity to produce 1,650 kilotons per annum of ethylene and other industrial gases.
This expansion is expected to attract more than $4 billion in additional investment in a variety of industrial sectors, including carbon fibers, lubes, drilling fluids, detergents, food additives, automotive parts and tires. It is also expected to create around 7,000 local direct and indirect jobs.
Rubber plant
Arlanxeo has announced plans to build a rubber production plant in Jubail, Saudi Arabia. The 140,000 t/y plant, which will be part of the Amiral complex. It will produce two elastomers: ultra-high cis polybutadiene (NdBR) and lithium butadiene rubber (LiBR).
The project announcement follows a final investment decision last December by Aramco and Total Energies on the Amiral complex.
Arlanxeo expects to award engineering, procurement and construction contracts in the second half of 2023, with construction scheduled to start in 2024 and commercial operation due in 2027.
King Fahad Industrial Port
King Fahad Industrial Port shipped 5,500 tons of bitumen to South Africa onboard bulk carrier Ianthe in September, making it the first ever shipment of the oil byproduct from the Yanbu based hub. The South Africa bound cargo also marks the resumption of bitumen exports by Saudi Aramco Base Oil Company (Luberef) after a gap of twenty years.
The latest milestone reflects the steps undertaken by the Saudi Ports Authority (Mawani) to position the national ports sector as a key vehicle to fulfil Vision 2030’s ambition of transforming the Kingdom into a leading industrial powerhouse and logistics hub.
As the kingdom’s largest trade facility for petroleum and petrochemicals on the Red Sea, King Fahad Industrial Port is ideally-located and well-equipped to provide a range of competitive and cost-efficient solutions to industrial complexes situated in Yanbu.