SABIC (or Saudi Basic Industries Corp) and Modon (otherwise known as the Saudi Industrial Property Authority) have recently signed a deal with BCG (or Boston Consulting Group) that commissions a study focusing on the development of six industrial cities with Saudi Arabia.
Mohamed Al-Mady, CEO and Vice Chairman of SABIC, Tawfig Al-Rabiah, director-general of Modon and Thomas Bradtke, managing director of BCG, put their signatures on the agreement in Riyadh at SABIC headquarters.
There are six cities marked for the industrial development, including Hail, Arar, Narjan, Al-Jouf, Jazan and Tabuk.
Al-Rabiah spoke to media afterward and noted that the study will propose 300 ventures within the industrial sector that involve value-added exports moving downstream to provide a substantial amount of jobs for Saudi nationals.
Completion for the study’s initial phase is set for 12 weeks from now, Al-Rabiah stated.
Previous findings will be incorporated with the aim of developing a clearer understanding of the potential within the markets, as well as examining the benefits and attributes of each of the city centres, according to Al-Rabiah.
Al-Rabiah added that the study aims to identify which industries (or combination of them) will be most appropriate, examining the vital enablers and developments that will add value and draw investments into each of the locations.
He stated that those who invest in the city centres would be offered loans with attractive terms.
Ministers within the government brought together Modon with the aim to drive the set up, development and operation of industrial cities and zones of technology along with partners within the private sector.
Al-Mady stated that SABIC is offering their support in order to further development of industry within Saudi Arabia.
Al-Mady added that Yanbu and Jubail have experienced massive amounts of growth in the past few years and are the current role models for industrial success in the Kingdom.
He stated that the current target is the development of cities that are further behind and ripe for the creation of employment opportunities.
Al-Mady also noted that BCG, an international management consultant firm and global leader is business strategy and advisement, will carry out the study.
With Modon cooperating in the study, the opportunities with the highest values will be identified as well as the potential and human resources in each city. Al-Mady added that these developments would open up opportunities for the local youth.
Al-Mady stated that SABIC is working together with the HRDF, as well as the Royal Commission for Yanbu and Jubail, to create more jobs for nationals within the maintenance and contracting companies that have an affiliation with SABIC.
He noted that around 5,000 jobs for Saudis should be created. Also, Al-Mady added that the results of the study would see implementation through the private sector.Andrew Reid, Staff Writer, Gulf Jobs Market News