JEDDAH, 6 November 2006 -- Custodian of the Two Holy Mosques King Abdullah laid the foundation for Jizan Economic City (JEC) on Saturday night after announcing plans to establish a city designed to attract more than SR100 billion in investment.

Malaysian company MMC and Saudi Binladin Group are leading partners in the Kingdom's fourth economic city project which is set to usher in a new era in Jizan's development. The city will have a port, an industrial zone, a logistic service center, an energy/desalination plant and a residential zone. Many international companies have already shown their interest in investing in the city.

According to informed sources at Saudi Arabian General Investment Authority (SAGIA), the main facilitator of the project, three giant factories will be established at a cost of SR15 billion by Chinese firms.

King Abdullah, who is on his first visit to Jizan since ascending the throne in August 2005, announced plans to establish the city while attending a popular reception held in his honor by the people of the region.

The king said JEC would attract more than SR100 billion in investment and create some 500,000 new jobs. He also said that SR375 million worth of free shares in the SR15 billion JEC company would be allocated to the region's limited income people. He also disclosed plans to establish an oil refinery in Jizan. The Ministry of Petroleum and Minerals has been instructed to conduct a feasibility study on the refinery project.

The new economic city will be located about 50 km north of Jizan city and will spread over an area of 100 million square meters. About 12 km of this land is situated close to Jizan coast while eight kilometers are inland.

"JEC will focus on heavy industries that require intense use of energy, which is readily available in the Kingdom," SAGIA said in a statement. Jizan is located in a strategic position close to international maritime routes in the Red Sea as well as the Indian Ocean. "This will facilitate marketing of JEC products in Asia, Africa and Europe," the statement said.

The city will also have secondary industries related to agriculture and fisheries and a full-fledged research center to support them. A regional center for the distribution of iron ore will also be established. The developers will bear all the cost for building the city's required infrastructure.

MMC is one of the largest companies in Malaysia specializing in engineering, construction, mining, transportation, logistic services, energy and power generation. It owns and manages the main ports in Malaysia. Saudi Binladin Group has built several industrial and residential cities around the world. It employs more than 55,000 people.

SAGIA chief Amr Dabbagh said the king's announcement concerning JEC and his support for the project were in line with the government's strategy to achieve balanced development in all regions. He said JEC would focus on industries that needed more manpower. There will be advanced centers to train the people of the region.

King Abdullah, who is on the last leg of his tour of the south, yesterday received prominent Islamic scholars and senior civilian and military officers in Jizan. He later distributed deeds and keys for 372 low-cost houses built in Daheema village to deserving people.

The King Abdullah Charitable Housing Foundation carried out the project at a cost of SR100 million which includes mosques, schools, health, social and cultural centers and public utility facilities.

Later in the day, King Abdullah launched a number of welfare projects in Jizan including the first phase of Jizan University campus. An exhibition of the models of projects to be implemented in JEC is being held at King Faisal Sports City. The king has instructed officials to continue the exhibition for two weeks in order for the people of Jizan to become familiar with the projects and plans for the city.

By P.K. Abdul Ghafour

Arab News 2006