Sabic signs three-way deal for industrialisation program

Sabic_industrialization_program

Saudi Basic Industries Corporation (SABIC) and the Saudi Industrial Property Authority (Modon) signed a three-way deal recently with Boston Consulting Group (BCG) to conduct a study to develop six cities in the Kingdom.

SABIC Vice Chairman and CEO Mohamed Al-Mady, Modon Director- General Tawfig Al-Rabiah, and Boston Consulting Group Managing Director Thomas Bradtke signed the agreement at the SABIC headquarters in Riyadh.

The cities earmarked for the industrialisation program are Al-Jouf, Tabuk, Hail, Jazan, Najran and Arar.

"The study will provide for around 300 industrial ventures involving value added and exportable downstream industries that can provide substantial job opportunities for nationals," Al-Rabiah told journalists after the signing ceremony.

The first phase of the study is expected to be completed within 12 weeks, he added.

"It will incorporate the findings of previous studies, develop clear understanding of the market potential and examine the attributes of each of the subject cities," Al-Rabiah said.

He pointed out that the study would also identify the most appropriate industries (or combinations of industries), to examine the key enablers and develop value propositions for each of the cities for investment attraction.

Prospective investors in these cities will receive loans on attractive terms, Al-Rabiah added.

Modon is a government agency, created by the council of ministers, to set up, develop and operate industrial cities and technology zones in partnership with the private sector.

SABIC is supporting this study to contribute to the development of Saudi Arabia's industrial sector, Al-Mady said.

The two industrial cities of Jubail and Yanbu have seen phenomenal growth over the years and stand as role models for Saudi Arabia's industrial success, he pointed out.

The aim now is to focus on developing the less-developed cities and create a lot of job opportunities, he pointed out.

Al-Mady said BCG, a global management consulting firm and the world's leading adviser on business strategy, would carry out the study.

"With Modon's cooperation, the study will identify highest value opportunities, potentials of the cities and resource personnel in the earmarked areas," he said, adding that the initiative would offer career prospects for local youths in their respective hometowns.

In its latest effort to provide more jobs to citizens, Al-Mady said SABIC was coordinating with the Human Resource Development Fund (HRDF) and the Royal Commission for Jubail and Yanbu to nationalize the staff at contracting and maintenance firms that are affiliated to SABIC.

This move will provide jobs for some 5,000 nationals, he said. The findings of the study would be implemented through private sector participation, Al-Mady said.

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