The newly established Saudi Arabian Industrial Development Company will carry out 20 projects in the next five years involving a capital investment of SR7.45 billion, said Finance Minister Ibrahim Al-Assaf.
“This company will have a tremendous impact on the Kingdom’s industrial sector, making it more competitive in world markets,” he added.
“The government will invest about SR5.6 billion on infrastructure required by these projects, including wharfs at ports.”
Al-Assaf, who is chairman of the board of director of Public Investment Fund, thanked the Council of Ministers for its decision to license the new company with a capital of SR2 billion. PIF will contribute 50 percent of the capital while Saudi Aramco and SABIC will give 25 percent each.
He said the new company would exploit its basic products as well as the products of strategic industries in the Kingdom to use them for downstream and support industries. “It will invest in petrochemicals, plastics, iron and steel, aluminum and fertilizers as well as other basic industries,” he explained.
Al-Assaf expressed his hope that the new company would attract more industrial investment in the Kingdom. He praised PIF officials for their efforts to establish the new company and study its investment projects.
Abdul Rahman Al-Mufdhi, secretary-general of PIF, said the company would implement a number of downstream industries without competing with the private sector. “The new company’s projects will cover strategic sectors.”
He said the company would also focus on shipping, equipment required for energy, water and electricity, oil and gas industry and automobile industry.
Khalid Al-Falih, president and CEO of Saudi Aramco said: “The new company comes in line with Saudi Aramco’s strategic initiatives to establish service and energy industries that are capable to compete at international level.”
Al-Falih said the new company would help export a substantial portion of Saudi Aramco’s products and services to world markets.
“This will benefit the national economy through the establishment of energy-related downstream industries, creating more jobs for Saudis and strengthening the Kingdom’s global competitive position in the sector,” he explained.
Mohamed Al-Mady, vice president and CEO of SABIC, was also happy over the Cabinet decision to license the new investment company, saying it would play a strategic role in optimum utilization of basic industries. “The new company will also strengthen the Kingdom’s downstream industries.”