Expanding horizons ... new infrastructure fundamental to promote investment in Jubail

Dr Jasem M Al Ansari, Director General of the Royal Commission for Jubail, is in an expansive mood in his office in the Industrial City as he discusses how the Royal Commission is gearing up to meet unprecedented demand for its services over the next several years to meet the ambitious plans of the Saudi government for the industrialisation of the country.

Already, Jubail Industrial City is busily transforming itself with a range of new infrastructure projects such as the sea water cooling, pipeline corridors and the new 12km expressway cutting through the industrial area to connect with the Dammam highway, which is due for completion next summer - to be extended later to the new Industrial City expansion: Park West.

The former Dean of Faculty and Professor of Mechanical Engineering at the King Fahd University of Petroleum and Minerals (KFUPM) in Dhahran, Al Ansari has been at the helm of the Royal Commission in Jubail for nine years. A noted academic and writer, he also has the personal distinction of being the first mechanical engineering student to graduate from the original College of Petroleum and Minerals that later became KFUPM.

As an engineer, Al Ansari is fully aware of the engineering standards of excellence that have been implicit in the two industrial cities of Jubail and Yanbu from the beginning, which resulted in attracting international and local investments in the two cities.

''Jubail is constructed to extremely high engineering and construction standards, not only in terms of reliability but also in the ability of the infrastructure to be upgraded and expanded to provide uninterrupted industrial production. Under the Royal Decree which established the Royal Commission for Jubail and Yanbu, the construction work was fast tracked, with engineering excellence implicit as the two cities were built to rigorous international standards. This was thanks to generous government support, especially that of the Ministry of Finance and National Economy.

''The significance of this new wave of industrial development is of unprecedented importance to the Kingdom. For example, a quarter of all Saudis in the Kingdom's industrial sector are now employed in Jubail Industrial City, and the national importance of this new wave of industrial development cannot be underestimated. We are now experiencing a significant increase in industrial demand, almost similar to the boom period of the early 1990s.

''Already, industrial production and associated infrastructure growth and expansion in Jubail Industrial City have exceeded by more than 80 per cent all the forecasts and expectations set forth in the Jubail Industrial City Master Plan developed in 1984. A far-reaching review of Jubail's master planning and long-term industrial strategy has been developed by the Royal Commission and presented to various Ministries and appropriate bodies over the last few years to help facilitate and meet the future development requirements of the Kingdom's petrochemical sector.

''In Jubail now, the total amount of investments reached more than $47 billion both by the private and public sectors. An anticipated $4 billion is expected to be allocated for the new infrastructure required in Jubail to house nine world-scale plants with investment totalling $20 billion due for completion by 2010. Over the next decade, Jubail's daytime population is also set to increase to 186,000 from the current 108,000.

''In addition, there will be increasing investment in preparing Saudis for the workforce with training and education taking place in an expanding Jubail Industrial College, possibly the best institute of its kind in the Middle East. There is an increasing demand for qualified technicians. In addition to the college, a vocational training centre is already under construction to meet the demand for highly skilled technicians in needed areas such as welding, autocad systems and machine maintenance, etc.

''With assets already approaching $34 billion in the primary industry sector, by 2011 primary industries are estimated to have an asset value of more than $50 billion. Thus, providing the needed infrastructure is fundamental to position Jubail for further investment opportunities.

''When the Royal Commission started 25 years ago, many were sceptical at the scale of the undertaking. Looking back now, it certainly was a courageous and wise decision by the Saudi government,'' says Al Ansari.

All aspects of preparing and managing Jubail Industrial City and the residential areas are under the Royal Commission's responsibility, ranging from providing potable water and seawater cooling, the treatment of industrial and sanitary waste, promoting investment opportunities, to allocation and leasing of land for industrial, commercial and residential developments.

The Royal Commission is also responsible for urban services including road construction and maintenance, telecommunications, recreational facilities, education, health care, and strict enforcement of environmental regulations complying with rigorous international standards.

Currently, six major expansions are taking place in the existing 17 world-scale plants in operation. Three new industrial complexes are under construction valued at $5 billion and nine new plants are in the active planning stage.

''Jubail Industrial City has proven to be a success, not only in terms of the creation of a cadre of skilled Saudis but as a strategic industrial base in the Kingdom involving significant foreign investment. Half of all foreign investment in the Kingdom is staked in Jubail,'' said Al Ansari.

For Al Ansari, Park West is a natural extension of Jubail's existing facilities. Jubail Industrial City is fortunate to have ready access to the feedstock of the Master Gas system, which made this expansion possible.

''The petrochemical industry, like the petroleum industry, is cyclical but we, in the Royal Commission, believe we have what it takes to build the additional infrastructure, for the land, roads, ports and additional feedstock as well as the proven engineering and procurement expertise," he said.

A total of 5,400 hectares has been allocated for Park West consisting of four phases of development. The first phase includes 1,600 hectares due for completion and ready for investors by 2007. The present Jubail Industrial City already covers approximately 1,000 sq km including, in addition to the Industrial Park, its permanent urban community of housing, hospitals, schools, colleges and recreational facilities.

Al Ansari added that ''the policy of a one-stop-shop was important in achieving the excellent development in Jubail, a policy that His Highness The Chairman of the Royal Commission and the rest of the management believe necessary to attract investments in all sectors.''

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