Close to Abqaiq in eastern Saudi Arabia, the city will develop energy-related industries.
Speaking at a conference in Bahrain, Abdulaziz al-Abdulkarim, vice president for procurement and supply chain management, also said investment in the huge ship repair and shipbuilding complex Ras al-Khair would be 21.8 billion riyals.
Both projects will help create thousands of jobs, a key part of Saudi Arabia's Vision 2030, an economic reform programme aimed at diversifying the economy beyond reliance on oil.
As part of these efforts, U.S.-listed Rowan Companies and Nabors Industries are among companies that announced plans to boost manufacturing in Saudi Arabia in joint ventures with Saudi Aramco.
(Reporting by Reem Shamseddine, editing by David Evans) ((Reem.Shamseddine@thomsonreuters.com; +966503335202; Reuters Messaging: email@example.com))
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