JEDDAH -- Jubail, the burgeoning industrial hub on the Arabian Gulf, has been named the city with the best economic potential in the Middle East by the prestigious business publication, Financial Times' Foreign Direct Investment (fDi) magazine.
Jubail received the accolade after its detailed economic information was assessed by a panel of expert judges who selected the city over 40 other economic centers in the Middle East.
Among input considered by the panel of judges was the key fact that while overall GDP growth can vary sharply from year to year because of oil price fluctuations, the Jubail region's private sector contribution to GDP had grown at a steady, average rate of almost 4 percent per annum for the last 10 years.
Amr Abdullah Al-Dabbagh, the governor of Saudi Arabian General Investment Authority (SAGIA), noted, "This indicates an underlying stability in the economy with heavy anticipated growth because of the private sector's continued expansion."
Among other factors supporting Jubail's qualifications, was that the inflow of foreign investment in Jubail was also directed toward community-responsible and environmentally conscious projects.
The panel of judges considered crucial alterations to Saudi Arabia's legislation, moves that enhance the country's investment attractiveness. Examples include allowing 100 percent direct foreign project ownership, expatriate ownership of real estate and unrestricted repatriation of capital and profits.
Apart from being home to the world's largest petrochemical complex, Jubail is now estimated to account for as much as 7 percent of the world petrochemical market.
Crown Prince Abdullah recently inaugurated and laid the foundation of several mega projects worth SR224 billion in the industrial city.
Jubail City now stands as a glowing symbol of the Saudi government's vision for industrial development. The city has enjoyed massive foreign investments of over $46 billion. It is expected to rise even further on the map of global commerce and industry in the areas of energy and transportation. The Royal Commission for Jubail and Yanbu (RCJY) has skillfully guided Jubail I toward sustainable economic development and has recently inaugurated Jubail II with the same in-depth planning and incentives for investors that made Jubail I such a remarkable success.
Of all foreign investment flowing into Saudi Arabia, nearly half has gone to Jubail.
Prince Saud ibn Abdullah ibn Thunayan, chairman of the Royal Commission, in February signed a contract with Abdullah ibn Abdul Mohsen Al-Khudairy & Sons to carry out a number of projects related to the second industrial city in Jubail. The new industrial city will cost SR67.4 billion to build.
There are almost 30 plants under construction in Jubail, with another two undergoing major expansions; there are 44 more on the drawing board. The project to create the 6,200-hectare Jubail Industrial City II foresees investment totaling $56 billion and the creation of 55,000 jobs.
Meanwhile, the construction of a new 1,065 km railway line to link Jubail with Jeddah via Dammam and Riyadh to form an east-west land bridge, combined with a longer line to link Jubail with the mineral-rich north, will elevate Jubail's strategic importance even more.
In 1982, Time magazine wrote: "The search for historical comparisons with Jubail is daunting. In all the expansive sweep of civil engineering, from the pyramids of the Nile to the construction of the Panama Canal, nothing so huge, or costly, as Jubail has ever before been attempted by anyone." Time's assessment is as applicable today as it was then -- especially as the RCJY and SAGIA work together to ensure Jubail's continued growth.
Khalil Hanware
© Arab News 2005
