Saudi Arabia signs five industrial sector investment deals worth $11.5bn

The kingdom aims to increase the value of its industrial exports to $149bn by the end of this decade

Developing industrial and mining sectors of the kingdom is among the key planks of Saudi Arabia's Vision 2030 economic reform agenda. Reuters
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Saudi Arabia has signed five agreements with private sector companies, worth more than 43 billion riyals ($11.5 billion), to set up projects in the industrial cities of Ras Al Khair and Yanbu as the Arab world’s largest economy looks to further expand its industrial base.

The agreements were signed on the sidelines of a mining conference, which brought top executives from international industrial and mining companies to Riyadh, Saudi Press Agency said.

The Royal Commission for Jubail and Yanbu signed two agreements including an investment deal with the Red Sea Aluminum Industrial Company to open a factory for smelting and rolling aluminium and its alloys.

That plant will also cast non-ferrous metals to help meet local, regional and global demand.

To be built on almost 704 hectares, with an investment of 38.17 billion riyals, the project is expected to provide 5,517 jobs and help strengthen the kingdom’s mining and industrial sector.

“The factory will also stimulate the [growth] of manufacturing industries and provide future localisation opportunities and achieve the [kingdom’s] Mining Strategy 2030,” SPA said.

The second agreement was signed with EV Metals to lease land for building a “high-purity chemicals” unit required for materials in cathodes to recharge lithium-ion batteries for electric vehicles and renewable energy storage.

The project area is 127 hectares with an investment value of 3.38 billion riyals, the SPA report said.

Saudi Arabia, the world's biggest exporter of oil, is diversifying its economy away from hydrocarbons and has introduced several initiatives under its Vision 2030 scheme, to develop its industrial and mining base.

The kingdom aims to more than triple the mining sector’s contribution to economic output by 2030.

In October, the government unveiled a National Industry Strategy, aimed at increasing the value of the kingdom's industrial exports to about $149 billion by 2030.

It is designed to attract investment into the industrial sector, boost economic diversification and increase non-oil exports.

The programme has identified 800 investment opportunities worth $266.2 billion to provide sustainable economic returns for the kingdom by 2030, authorities have said.

The Royal Commission in Ras Al Khair Industrial City also signed three investment agreements including a deal with Saudi Holding Company for Conversion Industries to set up a factory for the production of aluminium foil and rolls.

The new complex will require investment of 1.28 billion riyals and is expected to create more than 350 jobs, according to SPA.

The royal commission also signed an agreement with Tamouh Development and Investment Company for the allotment of 130,000 square metres of land for a factory of high-density aluminium fluoride, with an investment value of 474 million riyals.

The third agreement was signed with the Petroleum Protection Services to establish a ready-mixed concrete factory for marine uses, SPA said.

Updated: January 13, 2023, 11:06 AM
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