When the Saudi Polyolefins Company (SPC) was commercially registered recently, the British Offset Office (BOO) was able to add a twelfth successful joint venture project to those already implemented under the Al Yamamah Economic Offset Programme (AYEOP).

Saudi Polyolefins, which is based in Jubail, is a joint venture between the Saudi partner National Petrochemical Industries Company (NPIC) and Europe's Basell. The plant is configured to produce 450,000 tonnes per annum of polypropylene and has a total investment cost of $530 million (SR 1,990 million). Basic engineering work for the plant has been completed and construction work has already begun. Polypropylene is used in many industries including packaging, carpets, textiles and increasingly in the automobile and truck sectors.

"With the addition of this latest project to the programme, the British Offset Office has reached its target of providing £1 billion of inward investment into the Saudi Arabia," a BOO spokesman said.

"The programme, which developed as a consequence of the UK Government's sale of military equipment to the Saudi Armed Forces, has sought to assist in diversifying the kingdom's economy through the creation of commercially viable and profitable projects. These projects have delivered new technology into the kingdom, have helped to mobilise private capital, have created employment opportunities for Saudi nationals and have reduced imports," the spokesman added.

Earlier joint venture projects, which have been set up, include a world-scale sugar refinery in Jeddah and a vocational training institute in Riyadh. Further projects are currently being developed in the agricultural and manufacturing sectors and a number of downstream petrochemical projects are also under examination.

The BOO has also tried to assist and encourage co-operation between Saudi Arabia and the UK, through means other than joint venture projects. It has been responsible for the provision of a UK investment consultant to advise and to assist the development of the Saudi Arabian General Investment Authority (Sagia) and has also funded a promotional video on its behalf. Work has also been recently completed on a promotional video for the Saudi Arabian Ministry of Agriculture promoting the advantages of the Jizan region for overseas investors.

Most recently, sponsorship has been made available to the Global Network Company from the UK, which has organised a programme of training courses for the Al Nahda Philanthropic Society. Future Middle East Association trade missions and a variety of business conferences and seminars will all benefit from planned sponsorship arrangements.

"Although the original investment target of £1 billion has been met, the British Offset Office remains committed to searching for ways to assist the kingdom in stimulating and encouraging inward investment," the BOO spokesman stressed.

"Whether this takes the form of further petrochemical facilities, manufacturing ventures, training or social programmes or continued support to organisations such as Sagia, BOO will continue to strive to support the development of the economy of Saudi Arabia."