Financial Times Business' Foreign Direct Investment Magazine Awards Jubail "City of the Future - Best Economic Potential in the Middle East"
Riyadh, KSA: 3 April 2005 - Jubail, Saudi Arabia has been named the city with the best economic potential in the Middle East by the leading business publication, Financial Times Business' Foreign Direct Investment (fDi) Magazine.
Once famous for pearling, Jubail City now stands as a glowing symbol of the Saudi Government's vision for the country's future development. The city has enjoyed massive foreign investments totaling to date US $46 billion, as well as rapid GDP growth. 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 towards 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 success.
Apart from being home to the world's largest petrochemical complex, Jubail is now estimated to account for as much as 7% of the world petrochemical market.
Jubail received the award after its detailed economic information was assessed by a panel of expert judges who selected the city over 40 other economic centres in the Middle East.
Among information 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 sector price fluctuations, the Jubail region's private sector contribution to GDP had grown at a steady, average rate of almost 4% per annum for the last 10 years.
H.E. 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 towards 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% direct foreign project ownership, expatriate ownership of real estate and unrestricted repatriation of capital and profits.
SAGIA had a dedicated team submit the full application for Jubail's entry. Its investment strategy focuses on the key economic sectors that capitalize on Jubail's strengths and investment competency in energy and transportation.
Jubail's rapid rise to world fame is continuing with numerous joint ventures being established in the city, joining existing major capital investment projects by, among others, Sina Petrochemical Co, Bassel International Petroleum Corp, and the joint venture between the Canadian company Acetex and Saudi Arabia's state-owned Tasnee Petrochemical Corporation. Of all foreign investment flowing into Saudi Arabia, nearly half has gone to Jubail.
There are almost 30 plants under construction in Jubail, with another two undergoing major expansions; there are another 44 on the drawing boards.
A project to create the 6,200-hectare Jubail Industrial City II foresees industrial 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 back then - especially as the RCJY and SAGIA work together to make Jubail's continued growth as productive as possible.
The Royal Commission for Jubail and Yanbu was founded 30 years ago with the installation of huge its industrial infrastructure and is now one of the world's most important industrial centers.
-Ends-
About SAGIA
Saudi Arabian General Investment Authority (SAGIA) is a service entity aiming to provide services and facilities to promote investment and economic development in the Kingdom of Saudi Arabia (KSA). SAGIA was constituted in April 2000 under the directives of the Supreme Economic Council (SEC) as a catalyst to promote inward investments, facilitate exchange of best practice between the public and private sectors, act as an intermediary between the global community and the Saudi Government and its ministries and agencies. It also aims to contribute to economic policy-making substantiated by research and strategic criteria.
SAGIA's role is complementary and supportive to the bodies directly concerned with the various investment sectors and working to finalize the investors' procedures. SAGIA's mission is to create a pro-business environment, providing comprehensive services to investors and foster investment opportunities in energy, transportation and knowledge-based industries. For more information on SAGIA please visit www.sagia.gov.sa.
The SAGIA logo, name, and any other marks contained herein that reference the Saudi Arabian General Investment Authority are the property of the Saudi Arabian General Investment Authority. All rights reserved.
Contact:
Khaled Al-Ferayan
Media Relations Officer
SAGIA
kferayan@sagia.gov.sa
Ray Romestant
Int'l Media Relations Officer
SAGIA
rromestant@sagia.gov.sa
Kareim M. Abbouda
Director
Promoseven Weber Shandwick
kareim.abbouda@promoseven.com
© Press Release 2005
