First phase of new city focused on oil and gas services will include 120 factories, attracting £1bn of investment
The construction of a giant industrial city in Saudi Arabia has been given the go-ahead. A deal has been agreed for Oil Fields Processing Company, a joint venture between a Dubai investment company and a Saudi firm, to develop a city specialising in energy services.
Phase one is expected to attract at least 5bn riyadhs (£1bn) in investment and will involve building 120 factories.
The total development will span 1.5 million m2 and will support all energy services, but particularly oil and gas. Besides industry, the city will feature educational, commercial and public services.
The project is being overseen by the Saudi Industrial Property Authority (MODON), which runs 14 existing industrial cities throughout the kingdom. Total investment in these cities exceeds 200bn riyadhs.
Oil Fields Processing Co is a joint venture between Dubai's Oil Fields Processing Centre Company and Saudi Arabia's Al Khobar Projects Development Company. The JV will develop, construct and then run the city.
MODON was set up in 2001 as an independent public agency to regulate and promote industrial estates and technology zones in Saudi Arabia on both public and private industrial lands. It aims to encourage the private sector to develop, operate and maintain industrial estates and technology zones.