Saudi Arabia’s cabinet has approved the creation of a new company to invest in manufacturing and developing downstream industries, according to sources in the Council of Ministers
The Saudi Arabian Company for Industrial Investment will have capital of US$533mn.
“It will focus on conversion industries that rely on petrochemicals, plastics, fertilisers, steel, aluminium and basic industries,” sources added.
The decision fits in with government efforts to develop a broad downstream industrial base, alongside the creation of industrial zones that take advantage of the kingdom’s low energy costs and readily available raw materials, Reuters reported.
The new company is a joint venture between the Finance Ministry’s Public Investment Fund, state oil firm Saudi Aramco and Saudi Basic Industries Corp (SABIC).
SABIC, Saudi Aramco and other state-owned companies currently produce large quantities of base chemicals, metals and other minerals.
