Oil Fields Processing Company, a joint venture between an investment firm owned by the Dubai government and a Saudi Arabia company, has signed an agreement to develop an industrial city in the kingdom that specialises in energy services.

Under the deal, the company will plan, develop, construct and manage Energy Service City, the first phase of which involves the building of 120 factories expected to attract more than SR5 billion ($1.3 billion) in investment, Saudi Industrial Property Authority (Modon), which is overseeing the development, announced.
Spanning an area of 1.5 million sq m within Dammam’s Second Industrial City, the development will support the energy services industry sector in the kingdom, particularly in oil and gas.
As well as an industrial area, the city will include residential, educational, commercial and public services areas.
Construction costs for Phase One are estimated at SR400 million, with targeted industries including covers for drilling, links for pipes, mechanical products and chemical products.
All industrial land has been allocated, said Tawfig F Alrabiah, Modon’s director general.
Modon signed an expansion agreement to expand the city in early 2008 at a cost of SR200 million.
Modon is overseeing 14 existing industrial cities in various regions of the kingdom. Total investment in these cities exceeds SR200 billion, with more than 300,000 workers employed, Alrabiah said.
Development contracts were signed at the end of 2008 to establish more industrial cities in other regions of the kingdom.
Oil Fields Processing Company is jointly owned by Dubai’s Oil Fields Processing Centre Company and Al Khobar Projects Development Company, a Saudi firm.