http://eservices.rcyanbu.gov.sa. Tel. ..... Ministry of Economy and Planning
website www.mwp.gov.sa. 2. .... Ministry of Labor and Social Affairs (MOL). 5.
Kingdom of Saudi Arabia Royal Commission for Jubail and Yanbu Royal Commission at Yanbu Strategic Planning & Investment Development Division Investor Relations Department P.O.Box 30031 Yanbu Industrial City Saudi Arabia www.rcjy.gov.sa http://eservices.rcyanbu.gov.sa Tel. : + 966(4) 3216041 / (4) 3216363 Fax : + 966(4) 3216799 / (4) 3963000 2011 - 2012
Table of Content:-
Page
1. SAUDI ARABIA............................................................................................................... 4 1. Introduction................................................................................................................... 4 2. 2.1 2.2 2.3 2.4 2.5
GENERALITIES ABOUT SAUDI ARABIA............................................................... 5 Economy and Population . ....................................................................................... 5 Why Choose Saudi Arabia For Business? .......................................................... 6 Who Can Establish A business? ............................................................................ 6 Investment Procedure Flowchart . ......................................................................... 7 Business Environment & Its Advantages ..........................................................10 • 2.5.1 Regularity Incentives ...........................................................................10 • 2.5.2 Financial Incentives . ............................................................................10 • 2.5.3 Foreign Trade .........................................................................................11 • 2.5.4 Custom Duties ........................................................................................11 2.6 Relevant Government Agencies............................................................................12 • Saudi Arabian Monetary Agencies (SAMA)................................................12 • Saudi Industrial Development Fund (SIDF) ...............................................12 • Ministry Of Economy and Planning (MEP) . ...............................................13 • Ministry Of Commerce and Industry (MCI) ................................................13 • Ministry Of Labor and Social Affairs (MOL) ..............................................13 • General Directorate Of Passports (GDP) .................................................. 14 • Department Of Zakat and Income Tax (DZIT) . ....................................... 14 • General Organization Of Social Insurance (GOSI) ................................14
3.
INVESTMENT SECTOR GUIDE . ..........................................................................15
4. 4.1 4.2 4.3 4.4 4.5 4.6
ROYAL COMMISSION FOR JUBAIL AND YANBU .........................................17 Introduction................................................................................................................ 17 Strategic Vision - Master Plan ............................................................................ 18 New Growth - New Challenges .......................................................................... 18 Yanbu Industrial City (MYAS) .............................................................................. 19 Yanbu 2 . .................................................................................................................... 20 MYAS Population .................................................................................................... 21 • 4.6.1 MYAS Supported Population .............................................................. 21 • 4.6.2 MYAS Primary Students ...................................................................... 21 • 4.6.3 MYAS Intermediate Students ............................................................. 21
• • • •
4.6.4 4.6.5 4.6.6 4.6.7
MYAS Secondary Students ................................................................ 22 Yanbu Industrial College (YIC) .......................................................... 22 MYAS Manpower ................................................................................... 22 Freight In MYAS ..................................................................................... 23
5. 5.1 5.2 5.3 5.4 5.5
MYAS TRANSPORTATION SYSTEM . ................................................................. 24 Roadways .................................................................................................................. 24 Public Transportation ............................................................................................. 27 Railroads .................................................................................................................... 27 Air Transportation .................................................................................................... 28 Sea Transportation . ................................................................................................ 30
6. 6.1 6.2 6.3 6.4
MYAS INFRASTRUCTURE...................................................................................... 38 Power . ........................................................................................................................ 38 Seawater Cooling System . .................................................................................. 39 Portable & Process Water System . ................................................................... 40 Water Waste Treatment Plant ............................................................................ 41
7. TARIFFS AND RATES............................................................................................. 42 7.1 Utility Tariff ............................................................................................................. 42 7.2 Waste Treatment And Disposal ....................................................................... 43 7.3 Industrial Waste Water ....................................................................................... 43 7.4 Sanitary Wastewater . ......................................................................................... 47 7.5 Solid Wast .............................................................................................................. 48 7.5 Preservation of the Enviroment ........................................................................ 48 8. 8.1 8.2 8.3 8.4
HOW TO APPLY FOR AN INDUSTRIAL SITE AT MYAS ............................... 50 General ...................................................................................................................... 50 Key Steps In Overall Process ............................................................................. 51 Registration Procedure Main Points ................................................................. 51 Application Procedures ......................................................................................... 52
References .......................................................................................................................... 55
1 - INTRODUCTION
SAUDI ARABIA
Saudi Arabia’s 27.1 millions increasingly prosperous consumers are at the heart of the Middle East/North Africa (MENA) region’s 400 million-strong population. One of the world’s 25 largest economies (24th) and No. 1 in the MENA region, Saudi Arabia ranks 11th out of 181 countries for the overall «Ease of Doing Business», according to the International Finance Corporation/World Bank’s «Doing Business» report in 2010. The Kingdom is one of the fastest growing countries worldwide, with per capita income forecast to rise from $20,700 in 2007 to $33,500 by 2020. In addition, Saudi Arabia is also the top foreign investment destination in the Arab world and among the top 20 globally. Saudi Arabia is an exciting and rewarding place to invest and do business. The surpluses consistently in excess of 25% of gross domestic product, Saudi Arabia has ample capital to move the Kingdom forward by making large investments in targeted areas of growth. The Saudi economy is supported by one of the world’s most stable currencies (the Saudi Riyal) and by low inflation. The government of Saudi Arabia also offers the 6th most rewarding tax system in the world and is also the 7th «freest labor market» according to the World Economic Forum.
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2. GENARALITIES ABOUT SAUDI ARABIA This section provides general information about Saudi Arabia that includes its competitive, stable and growing economy and population.
2.1 – Economy and Population Saudi Arabia has a rapidly growing economy and lies at the heart of a developing region of the Middle East and North Africa strategically located between Asia and Europe. Saudi Arabia lies logistically at the centre of a developing market of 400 million people with growing demands for goods and services. Saudi Arabia is the largest free-market economy in the region which provides easy access to export markets in Europe, Asia and Africa,while a continuously expanding domestic market population growth with of 2.21%, increasse in the young and consuming population with strong purchasing power. Saudi Arabia has an impressive record of political and economic stability and has a modern and expanding, world-class infrastructure. The investment environment reflects traditions of open market, led by private enterprise and with investment laws that allow 100% foreign ownership of industrial firms and properties. There are no restrictions on foreign exchange and repatriation of capital and profits. Saudi Arabia Corporate Tax Law is among the few countries to allow companies to carry forward losses indefinitely – effectively relieving businesses of their tax burden until they become profitable. Saudi Arabia does not impose personal income tax; and labor costs in almost all areas are competitive. Saudi Arabia has the world’s largest oil reserves (25%) and has other natural resources, including minerals such as bauxite, limestone, gypsum, and phosphate. Population for 2010 as provided by the Central Department of Statistics and Information (CDSI) of the Saudi Ministry of Economy and Planning (MOEP) put the Kingdom’s total population at 27.1 million, recording an annual increase of 2.21 percent (2004-2010). Saudis accounted for 70.4 percent of the population. More information about the Saudi statistics can be found at the Ministry of Economy and Planning website www.mwp.gov.sa
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2.2. Why Choose Saudi Arabia For Business? 1. A country that has redefined itself and opened its doors to investors. 2. A city with more than 45 billion dollars in first-class industrial infrastructure. 3. Vast natural resources at competitive prices. 4. Geocentric location to Europe, Asia, Africa and the Middle East. 5. 21st century, multi-industry business opportunities. 6. A forum that fosters the creation of new business networking and relationship building. 7. A forum that tells you how business is done. 8. A forum that puts all of these elements in one location, around one table, at one time.
2.3. Who Can Establish A Business? Foreign Investors and Saudi Nationals can establish business in Saudi Arabia.Both will have to follow the same Licensing procedures outlined in this guide. • Foreign Investment Act defines the Foreign Investor as “a natural person of non-Saudi nationality or otherwise the body corporate, where all partners are non-Saudi nationals” • Foreign investments licensed under the provisions of The Act and The Rules may be in one either of the following forms:i. Entities jointly owned by a national and a foreign investor ii. Entities wholly owned by a foreign investor The Foreign Investor should not have been:• Convicted in the past of substantial violations of the provisions of The Foreign Investment Act. • Convicted in the past of financial or commercial violations whether in the Kingdom or in other countries. Investors and foreign partners of a Company are required to submit a declaration stating nonavailability of a residency permit in Saudi Arabia over the last two years. In cases where the Investor has held a residency permit in the Kingdom, a letter approved by the last investor’s sponsor must be submitted stating the sponsor’s non-objection to the return of the investor to the Kingdom for the purpose of investment The Saudi Arabian General Investment Authority (SAGIA) is a Saudi government organization dedicated to improving the country’s investment environment and providing comprehensive services to investors seeking to pursue business opportunities in the Kingdom. SAGIA is committed to enhancing the experience of investing and operating in the Kingdom by serving as an information clearing-house, while providing comprehensive licensing and support services. These are just few examples of how SAGIA is working to streamline and add value to its interface with investors and businesses.
For More Information about SAGIA kindly log in to www.sagia.gov.sa
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2.4. Investment Procedure Flowchart
Overview 1 Preparation
Start an Investment in Saudi Arabia Investment License Application
2 Investment Licensing 3 Residency
Apply with SAGIA Investment License Open «700 file» at Labor Office 700 file Residencv Card ( Iqama ) for
4 Commercial Registration
Apply with MoCI Commercial Reaistration Register With DZIT Register with GOSI
Register with Labour
Commence Business in Saudi Arabia Decision
Process
Input/Output
Investment Registration Procedure For A Foreign Investor In Saudi Arabia
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Start an Investment in Saudi Arabia What Business Structure Will you Use?
Is your activity on the Negative List?
Business Structure
Legal Activity
Register Name With MOCI
Are you using a commercial name?
Company name?
Bank Account
Minimum Capital
Copy of passport Personal Photos Foreign CR Foreign AOA Balance Sheet
Investment License Application Form
POA Letter of No Objection
Decision
Apply with Sagia
Process
Input/Output
Step By Step Preparation Procedure For An Investor In Saudi Arabia
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Investment License Application Form Submit application to Customer Relationship Manager (CRM) at OSS
Make Corrections
Is application complete? Submit application to License Evaluator Is application approved? Temporary Investment License
Sagia issues Letter of Rejection Sagia archives original application Sagia returns copies of documents
Investment Licensing Procedure For A Foreign Business Investor
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2.5. Business Environment And Its Advantages Advantages And Incentives Saudi Arabia is more than ready to meet your investment needs through its progressive regulatory and generous financial incentives. 2.5.1. Regulatory Incentives The government is also committed to reducing bureaucracy at all levels and transforming government departments in an effort to support foreign investment. H.M. King Abdullah chairs the Saudi Supreme Economic Council, which is in charge of overseeing privatization and encouraging foreign investment. In 2000, the Saudi government announced a new Foreign Investment Law, introducing major regulatory incentives including, but not limited to the following:• The establishment of the Saudi Arabian General Investment Authority (SAGIA), to assist foreign investors in the application and approval process for operating in the Kingdom. • Accelerated investment application, business registration and set-up process, with a guaranteed decision for foreign investment applications within thirty (30) days after submission to SAGIA. • Equal benefits, incentives and guarantees for foreign investors and domestic companies. • 100% foreign ownership of companies and property. • 100% property ownership for foreign investors. • No minimum capital requirement (Query: But there is a table of minimum capital. • Requirements in the document. • No restrictions on repatriation of capital. • The ability for foreign investors to sponsor foreign employees. 2.5.2 Financial Incentives: • No personal income taxes and only a 20% corporate tax. • Ability to carry forward losses on balance sheets indefinitely. • Foreign investors have access to generous regional and international financial programs, including: »» Arab Fund for Economic and Social Development (AFESD): Participates in financing economic and social development projects in Arab countries. »» Arab Monetary Fund: Promotes the development of Arab financial markets and trade among member states; advises member states on investment of resources.
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»» Arab Trade Financing Program: Provides medium and long term loans to individuals and organizations for private and commercial trade. »» Inter-Arab Investment Guarantee Corporation: Provides insurance coverage for Inter-Arab investments and export credits against commercial and non-commercial risks. »» Islamic Development Bank: Participates in equity capital and grants loans for productive projects and enterprises. It accepts deposits to mobilize financial resources through Shariah compatible avenues.
• Other financial incentives to realize the full potential of your investments in the Kingdom include, but are not limited to the following: »» The Human Resources Development Fund: to support activities related to qualifying, training and recruitment of Saudi labor. »» Preferential allocations of natural gas. »» Competitive industrial utility rates for water, power and land. »» Large research and development endowments at King Abdullah University for Science and Technology (KAUST) and King Abdulaziz City of Science and Technology (KACST).
2.5.3 - Foreign Trade There are a number of potential sources of low cost financing in Saudi Arabia. In addition there are the typical range of commercial banks and private equity firms 2.5.4 - Custom Duties • Most basic consumer products are duty-free, e.g. sugar, rice, tea, unroasted coffee, cardamom, barley, corn, livestock and meat (fresh or frozen). • Customs duties of 20% are imposed on some imported commodities for the protection of infant industries within the Kingdom. • Import duty on other items is 12% ad valorem on the cost, insurance and freight (CIF) value. • A limited number of items are subject to customs duties calculated on the basis of metric weight or capacity rather than ad valorem; the rates for these items are fairly low.. • Special concession is granted to members of the Arab League who are signatories to the Agreement to Facilitate Trade and Exchange and to organize transit.
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2.6. Relevant Government Agencies • Supreme Economic Council: This council was formed in 1999 under the leadership of H.M. King Abdullah. The Supreme Economic Council is the coordinator between the Kingdom’s many economic agencies, integrating their activities and facilitating effective decision-making on economic issues. 1. Saudi Arabian Monetary Agency (SAMA) SAMA is the central bank of the Kingdom of Saudi Arabia, which is responsible for the following: • • • • •
Issues the national currency, the Saudi Riyal. Acts as a banker to the government. Supervises commercial banks. Manages the Kingdom’s foreign exchange reserves. Conducts monetary policy for promoting price and exchange-rate stability. • Promotes the growth and ensures the soundness of the financial system. Contact Information Web: www.sama.gov.sa Telephone: +966-1-463-3000 Fax: +966-1-466-2936 / 466-296 2. Saudi Industrial Development Fund (SIDF) • The Saudi Industrial Development Fund (SIDF) participates in the financing of development projects in developing countries. SIDF makes its contributions through direct soft loans to the governments of these developing countries, with no geographical exclusion or pre-conditions. SIDF assigns priorities to the least developed, lowest-income countries. • 2.5% service charge from 5 to 10 years starting after two years of production. Contact Information: Web: www.sidf.gov.sa Telephone: +966-1-279-4444 Fax: +966-1-464-0246
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3. Ministry of Economy and Planning • The Ministry of Economy and Planning works to ensures that all government agencies work in a well coordinated and well-informed manner to achieve the Kingdom’s economic priorities. • The Ministry of Economy and Planning is responsible for the following functions: »» Preparation of a periodic economic report on the Kingdom, featuring analysis of the economy, progress made and likely developments. »» Preparation of the five-year development plan. »» Estimates the magnitude of financial resources required for the implementation of the development plans approved by the Council of Ministers. »» Conducts economic studies as required, submits the findings and collects, analyzes and publishes statistical data in economic, social and demographic fields.
Contact Information: Web: www.mep.gov.sa Telephone: +966-1-404-9212 Fax: +966-1-405-2051 4. Ministry of Commerce and Industry (MOCI) • Established in 2003, the Ministry of Commerce and Industry is responsible for all aspects of commercial and industrial activity in the Kingdom. Contact Information:Web: www.commerce.gov.sa Address: Ministry of Commerce and Industry P.O. Box 1774, Airport Road, Riyadh 11162 Telephone: +966-1-401-2220 / 401-4708 Fax: +966-1-403-8421 5. Ministry of Labor and Social Affairs (MOL) • The Ministry of Labor and Social Affairs is responsible for the development and use of the Kingdom’s human resources, including manpower planning, labor relations and the general monitoring of all matters relating to employment, such as labor visas. • Leadership: Eng. Adel Faqeeh, Minister of Labor Contact Information: Web: www.mol.gov.sa Address: Omar Bin Al-Khatab Street, , Riyadh 11157 Telephone: +966-1-477-1480 / 478-7166 Fax: +966-1-477-7336
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6. General Directorate of Passports (GDP) • The General Directorate of Passports is responsible for implementing and monitoring policies and programs related to residency and human trafficking within Saudi Arabia, such as: »» The Iqama (Residence Permit) System organizing expatriate arrivals in the Kingdom and related visa, registration and renewal issues. »» Monitoring and regulation of arrivals and departures of individuals into and out of the Kingdom. »» The regulation and monitoring of companies and establishments that employ non-Saudis and aliens.
Contact Information: Web: www.gdp.gov.sa Address: Alffersdq Street, Riyadh 11184 Telephone: +966-1-477-1100 Fax: +966-1-477-8835 7. Department of Zakat and Income Tax (DZIT) • As part of the Ministry of Finance and National Economy, the Department of Zakat and Income is responsible for tax policy and tax collection in the Kingdom. Contact Information: Web: www.dzit.gov.sa Address: Department of Zakat and Income Tax, Riyadh 11187 Telephone: +966-1-401-0182 / 404-1537 Fax: +966-1-404-1495 8. General Organization of Social Insurance (GOSI) • The General Organization for Social Insurance (GOSI) administers the Kingdom’s national insurance program by paying allowances and other compensations to individuals and families in the Kingdom. Contact Information: Web: www.gosi.gov.sa Address: General Organization of Social Insurance, P.O. Box 11421 Riyadh Telephone: +966-1-477-7735 Fax: +966-1-477-9958
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3. INVESTMENT SECTOR GUIDE
Good places to put your money around the Kingdom, an increasingly diverse range of industrial sectors are taking root. And in strategic locations. When you think about Saudi industries, you probably think of Oil – which remains the Kingdom’s most prominent sector. But there’s also a much bigger picture. While the Energy sector itself is growing, diversification into some areas has which has created huge investment potential in everything from Transport and Information Technology to Health, Life Sciences and Education. Crude Oil Refining With the world’s largest proven oil reserves and global demand expected to remain strong, Saudi Armco’s foreign partnership projects aim to develop three new export orientated refineries, offering very substantial investment opportunities to investors, in the progressively deregulated Saudi markets. Petrochemicals Saudi Arabia is the world’s 11th largest petrochemical supplier and has become a member of the WTO, which provides free access to new global export markets. The Kingdom has also opened up its rapidly developing petrochemical industries to private-sector investments creating significant business opportunities for Investors. Fertilizers With a natural abundance of world-class phosphate deposits, natural gas, sulfur and potash, Saudi Arabia not only has competitive advantage through its Geographical Location between markets in Asia, Europe and North America, but also is well-placed to Fertilizers to Asia’s booming markets supply and secure low-cost. Power and Water A sharp population growth and huge investments in social and industrial develop-ments has lead to an extremely high demand for power stations and desalination plants in many key regions in the Kingdom. Operators in the Kingdom enjoy some of the highest annual growth rates in the world and, with strong profit margins, have created excellent investment opportunities for long-term assets. Mining and Metal Processing Well-documented rich deposits of bauxite, phosphate, zinc, copper and gold and a multi-billiondollar initiative to develop the Kingdom’s aluminum sector demonstate Saudi Arabia’s commitment to the industry. The Kingdom’s new mining code, tax reductions, low-cost energy and gas, provide excellent investment and exploration opportunities in the vast unexplored landmass. Transport and Logistics Saudi Arabia has begun large-scale investments in sophisticated transport networks and infrastructure projects that will be supported massive capital spending of $100 Billion over the next 10 years, with strong domestic growth and cheap energy supplies. With a highly stable, competitive and increasingly liberal business environment, the Kingdom has the potential to become a global transport and logistics hub.
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Information and Communication Technology (ICT) With the largest ICT market in the Middle East, Saudi Arabia has embarked on a 20 year ICT plan that will be supported by massive public investment. With clear signs of rapid growth, increased government usage of web-based services. Health Saudi Arabia’s expanding healthcare system offers attractive investment opportune ties. Aided by large budget surpluses,the public sector is set to make unprecedented investments the healthcare system to provide care for the rapidly expanding popullation of the Kingdom. The imminent need for a comprehensive information management system will also provide extensive private-sector opportunities to contribute to the emerging healthcare market. Life Sciences One of the Saudi Government’s top economic priorities is to develop a Life Sciences industry. The Government offers significant financial grants for R&D opportunities in pharmaceuticals, medical devices and agrochemicals.Domestic and regional end-markets also present an attractive investment profile in the Kingdom and its neighboring economies. Saudi Arabia also provides an excellent export platform to the vast healthcare and agrochemical markets of Europe and Asia. Education Saudi Arabia has initiated a complete overhaul of its education system at a cost of $3.1 billion. With a growing population demand for high-quality education, the Government has an ambitious public investment campaign to bring knowledge intensive industries to the Kingdom providing the private sector and foreign organizations with an opportunity to enter the theEducation sector.
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4. ROYAL COMMISSION FOR JUBAIL AND YANBU
4.1. Introduction Jubail and Yanbu, two cities in the Kingdom of Saudi Arabia, constitute a unique experiment in development which has proved outstandingly successful. These two cities, conceived on the drawing board, were planned to provide a purpose-built and highly efficient environment for modern industrial production. These industrial complexes, built at Jubail on the Arabian Gulf and Yanbu on the Red Sea by the Royal Commission for Jubail and Yanbu (RCJY), are the key to the Kingdom’s national industrialization plans. They provide the basis for the Kingdom’s program to develop industries which are hydrocarbon-based and energy intensive. The major objective of the massive investment in these industrial cities is to reduce the Kingdom’s dependence on oil revenues by gaining access to the world’s petrochemical markets. This route to industrialization exploits the Kingdom’s natural resources, in terms of advantaged energy and raw materials for petrochemical manufacture. On 21 September 1975, the Royal Commission for Jubail and Yanbu was established as an autonomous organization of the Saudi Government. The Commission is governed by a Board of Directors and its Chairman reports to the Council of Ministers. The Chairman’s office in Riyadh formulates the policies and oversees them besides implementing the same through the two CEOs, one each for the cities of Jubail and Yanbu.
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This decision made by the Kingdom of Saudi Arabia in 1975 to develop Jubail and Yanbu into a world class integrated petrochemical hub changed the course of history for these obscure coastal towns forever. Together they represent one of the planet earth’s largest civil engineering and construction projects ever undertaken. Rising out of the salt flats and sand dunes of Jubail & Yanbu, have emerged some of the world’s most technologically advanced petrochemical plants, supported by an infrastructural backbone that is second to none anywhere in the world. To ensure these plants comply with the concept of sustainable development, a comprehensive environmental protection program was purposefully designed by RCJY in Jubail and Yanbu from the very beginning. Its commitment to environmental protection has been duly recognized with its winning numerous international awards. With such an astute and visionary management approach, RCJY has successfully developed the twin cities of Jubail and Yanbu into the ultimate Global Petrochemical Hub of the twenty first century, attracting the finest and foremost global players in the industry.
4.2. Strategic Vision – Master Plan How did this vision come about? Who are the architects behind this amazing foresight? How has this been made possible? These are some of the compelling questions that have often been asked. The answer must lie with the two key factors that ensured its success – leadership and teamwork. Right from the beginning, RCJY, together with its partnership with Bechtel & Parsons, was led by a dynamic leadership marked not only by its outstanding long range vision, but the commitment, energy, discipline and single mined sense of purpose of bringing this grand vision to full realization. Backing the leadership was a team of highly skilled and dedicated professionals brought in from around the world, representing a talent pool of the best engineering, construction and project management personnel. It was this team that had worked tirelessly over the years to see to the successful implementation of the different phases of building this Global Petrochemicals Hub. Besides the element of manpower, there was the abundance of natural resources. As associated gas was readily available, producing petrochemicals, fuels and other feedstock became the natural downstream industry. The output of this industry not only increased value-added exports but also provided critical raw material feedstock for the development of secondary industries, including agricultural fertilizers, cement, steel and various consumer products for the domestic and export markets. The other key component of the strategy was the substantial investment of over $25 billion sunk in for the building of a world class infrastructure to support these industries. Substantial investments were also made for promoting the welfare and betterment of the Saudis and residents in the areas of health care, education, housing, religious and community life. To support the significant national manpower demands driven by these massive industrial development projects, a comprehensive human resources master plan for the country was put in place. These included the establishment of industrial colleges and technical institutes to provide advanced technical and vocational training whose curriculum has been tailored to match the needs of the industry.
4.3. New Growth – New Challenges Total investment in Jubail and Yanbu have grown to more than $130 billion (SR 500 billion). Evidence of the Royal Commission’s success in building the integrated Global Petrochemicals Hub can be seen in the presence of about 300 petrochemicals and related companies in the region, creating precious jobs. In fact Jubail alone is estimated to account for approximately 70% of Saudi Arabia’s non-petroleum exports, 11.5 per cent of the country’s Gross Domestic Product and 7 per cent of the world’s petrochemicals. This success prompted the Royal Commission to launch Jubail 2 and Yanbu 2 in 2006 to meet projected demands in the coming decade.
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4.4. Yanbu Industrial City (MYAS) Yanbu Industrial City is located on the Red Sea coast some 350 kilometers northwest of Jeddah. It is approximately 30 years old. This modern industrial center plays a major role in the Saudi Arabian dynamic economy. Yanbu has become a hub of the kingdom` s major hydrocarbon - based and energy -intensive industries Yanbu is the western terminal of the pipeline that transport natural gas and crude oil some 1,200 kilometers across the Kingdom from the Eastern Province. Most of the oil is exported to world markets. Some of the crude oil, plus the sales gas (natual gas rich in methane), and Natural Gas Liquid (NGL) serve as feedstocks for Yanbu’s Petrochemical Industry. About two-thirds of the city’s 187 square kilometers consist of industrial sites. Yanbu industrial City is being expanded by adding another 420 Km (Yanbu 2). Yanbu is currently host to 32 hydrocarbon, petrochemical, and mineral industries, as well as 49 light manufacturing and support industries. More than 63 new industrial plants are in various stages of planning and construction With this solid economic base, Yanbu is a focal point for investors. To date, industrial developers alone have invested over SR 78 billion at Yanbu, while the Royal Commission (RC) has committed nearly as much to infrastructure for this state-of-the-art city. Now the total private sector in investment in Yanbu has reached approximately SR 106 billion. Commercial and residential developers have followed the lead of the industrialists, supplying a wide range of goods, services, and housing for the community’s increasing population, which amounts to currently 136,000 and growing by an average 6% annually. Another 49,900 people, employees working in MYAS plus their dependents are supported by the MYAS economy. Yanbu’s growth is easy to explain. Good job prospects, beautifully landscaped residential areas, a choice at coastal location, and numerous outstanding social infrastructures, services, and recreational possibilities offer people an exceptional quality of life.
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4.5. Yanbu 2 The expansion program of Yanbu 2 has been planned on a 2-phases approach. Phase 1 comprises expansion in the light industrial parks, primary and secondary industries, the port expansions and community expansion. Government investment of $3.2 billion is expected to attract about $30 billion by way of private investment. The $5.3 billion (SR20 billion) Yanbu National Petrochemicals Co. (Yansab) with an annual production capacity of 4 million tons of petrochemicals is already in operation. Several infrastructure projects such as distribution of power, to improve infrastructure for light industries, to build infrastructure for neighborhood, etc. are already in place. There are also many educational projects being undertaken concurrently – the building of 2 universities for boys and girls, the Yanbu Technical Institute and an enlarged Yanbu Industrial College. Yanbu Industrial City is additionally being transformed into a tourist destination. Efforts are being made to implement various projects including developing a marina area to attract tourists. The RCJY is currently implementing new projects worth $400 million (SR1.4 billion) in Yanbu, including a seafront project, college buildings for girls, and infrastructure projects including main and subsidiary roads. Covering an area of 11 kilometers, the seafront project will boost tourism in Yanbu and create more jobs for Saudis. The seafront project will attract at least 500,000 tourists every year. The project includes recreational centers, resorts, marine games and cultural projects. Prince Saud Bin Abdullah Bin Thunayan, Chairman of the RCJY, personally inspected the projects recently, including the home ownership program for RCJY employees in Jabriah District, where 693 housing units have been completed at a cost of $190 million (SR727 million). The buffer zone project, officially opened by Prince Saud, is spread over an area of 9 kilometers along King Abdul Aziz Road. As many as 22,000 trees and 200,000 flowering plants have been planted in the area, which has greenery covering 70,000 square meters. In addition to pathways for joggers, the area has resting places, recreational facilities for children, a large prayer area and parking for 600 vehicles.
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4.6. MYAS POPULATION In 2009, the estimated Saudi resident population of Yanbu Industrial City (MYAS) was 53,600 and non-Saudi residents 17,000 giving the total of 70,500. For the year 2010, the estimated Saudi resident population is 68,300 and is projected to increase to 140,132 in 2015 (or 105.15%). Moreover, for the year 2010, the estimated non-Saudi resident population is 18,629 and is projected to increase to 23,848 by 2015 (or 28.02%). Overall MYAS resident population is projected to increase by 60% from 2010 to 2015, i.e. from 87,000 to 164,000. 4.6.1. MYAS Supported Population In 2009, the estimated Saudi supported population of Yanbu Industrial City was 77,000 and non-Saudi supported population 34,300 giving the total of 111,300. For the year 2010, the estimated Saudi supported population is 95,300 and is projected to increase to 194,500 by 2015 (or 104.11%). Moreover, for the year 2010, the estimated non-Saudi supported population is 41,500 and is projected to increase to 57,200 by 2015 (or 37.74%). Overall MYAS supported population is projected to increase by 84% from 2010 to 2015, i.e. from 136,797 to 251,681. MYAS supported population is defined as those living inside MYAS and those employees working inside MYAS but living outside of MYAS plus their families. In short, those people directly benefitting from the economic activities of MYAS. 4.6.2. MYAS Primary Students In 2009, the number of Primary Boy students at Yanbu Industrial City was 4,580 and the number of Primary Girl students was 4,460 giving a total of 9,040 MYAS primary students. For the year 2010, the estimated number of Primary Boy students of MYAS is 5,705 and is projected to increase to 10,705 by 2015 (or 87.64%). Moreover, for the year 2010, the estimated number of Primary Girl students is 5,515 and is projected to increase to 10,272 by 2015 (or 86.26%). Overall MYAS Primary students over the same time period will increase by 87%,i.e. growth from 11,200 to 21,000 students. 4.6.3. MYAS Intermediate Students In 2009, the number of Intermediate Boy students of Yanbu Industrial City was 2,058 and the number of Intermediate Girl students was 1,811 giving a total of 3,869 intermediate students. For the year 2010, the estimated number of Intermediate Boy students is 2,231 and is projected to increase to 3,923 by 2015 (or 76%). Moreover, for the year 2010, the estimated number of Intermediate Girl students is 2,053 and is projected to increase to 3,937 by 2015 (or 92%). Overall MYAS intermediate students over the same time period will increase by 83.5%,i.e. growth from 4,284 to 7,860 students.
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4.6.4. MYAS Secondary Students In 2009, the number of Secondary Boy students of Yanbu Industrial City (MYAS) has reached 1,711 and the number of Secondary Girl students was 1,703 giving a total of 3,414 MYAS secondary students. For the year 2010, the estimated number of Secondary Boy students of MYAS is 1,912 and is projected to increase to 2,986 by 2015 (or 56.17%). Moreover, for the year 2010, the estimated number of Secondary Girl students is 1,857 and is projected to increase to 2,898 by 2015 (or 56% growth). Overall MYAS secondary students over the same time period will increase by 56%,i.e. growth from 3,769 to 5,884 students. 4.6.5. Yanbu Industrial College (YIC) Yanbu Industrial College (YIC) is a pioneer industrial college established in 1989 under the umbrella of The Royal Commission for Jubail & Yanbu. The main objective of the college is to provide quality education and training in the fields of Electrical & Electronics Engineering Technology (EEET), Mechanical Engineering Technology (MET), Chemical Engineering Technology (CHET), Industrial Management Technology (IMT), and Geomatics Engineering Technology (GMET). YIC is committed to providing high standard professionally trained graduates needed for the industries in the area. The mission of YIC is to prepare young Saudis for middle and high level career positions in Industry, Commerce and Government by providing appropriate knowledge and skills in all programs offered. The college is devoted to generating, spreading and preserving competency needed to work with others to bring it to bear on the world’s great challenges. The curricula are designed keeping in view the industrial requirement and national objectives covering practical aspects and theory. The major focus of the courses is to ensure that students gain sound knowledge, right skills, appropriate attitude in technical areas and work environments. The process of designing training programs is initiated first through an analysis of the employment market, so as to determine what competencies, skills and occupational requirements the industry needs. To direct the Saudi youths into productive channels and foster a culture of self-reliance, YIC offers special courses in the development of entrepreneurial skills. Company-specific programs address training needs within individual companies or industrial sectors. External partnerships with customers, suppliers, local and international education organizations. Strategic partnerships or alliance are increasingly important kinds of external partnerships. Such partnerships might offer YIC graduates entry into industrial markets or a basis for the services. Also, partnerships might permit the blending of YIC organization’s core competencies or leadership capabilities with the complementary strengths and capabilities of partners to address common issues. International accreditation is an objective to align the college direction with international community, so the college achieved the accreditation from ACBSB and ABET for some of its programs and YIC will cover all programs and all degrees in the near future . 4.6.6. MYAS Manpower In 2009, the estimated number of Saudi employees of Yanbu Industrial City (MYAS) was 22,299 and 28,375. The total number of Non-Saudi employees was 50,674. For the year 2010, the estimated number of Saudi manpower is 24,371 and is projected to increase to 47,067 by 2015 (or 93%). Moreover, for the year 2010, the estimated number of Non-Saudi manpower is 35,164 and is projected to increase to 48,100 by 2015 (or 36.79% growth). Overall MYAS manpower over the same time period will increase by 60%,i.e. growth from 59,500 to 95,200 workers.
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4.6.7. Freight In MYAS Freight movement in Yanbu Industrial City (MYAS) was the subject of a comprehensive study carried out by the Royal Commission (RC) in 2006. The major findings are as follows: • Petrochemicals are the leading type of goods produced at present in MYAS. These products are characterized as medium to high value, export oriented, transported from medium to long haul, with Jeddah as primary destination or Gateway. • In 2005, over 5.15 Million tons (Mt) of freight moved out of MYAS, excluding crude oil, petroleum products and NGL which are shipped by sea. Out of the 5.15 Mt, approximately 2.03 Mt of petrochemicals, mostly in solid state, moved to Jeddah by trucks. • In 2006, Yanbu region generated over 40,000 tons per day of freight moving out by trucks in the direction of Jeddah. This corresponds to 14.6 Mt of freight per year. • 45% of this tonnage has Jeddah as destination or as primary gateway. • 50% of this tonnage originated in MYAS. • Petrochemicals represented 16% of total outbound tonnage. • Refined petroleum products represented 38%. • The Yanbu-Jeddah Expressway is evolving as a major corridor for bulk freight. • Jeddah is a leading gateway to outbound freight from MYAS and from the Yanbu Region.
FREIGHT ACTIVITIES IN MYAS
TRANSPORTATION MODE
TOTAL FREIGHT
IN
OUT
COMMENTS
PIPELINE
4.5 Mbpd Crude Oil (Capacity) + 0.27 Mbpd NGL
4.5 Mbpd Crude Oil (Capacity) + 0.27 Mbpd NGL
0
Crude Oil and Gas
TRUCK
5.85 Mtpa
0.7 Mtpa
5.15 Mtpa
Mainly Chemical Products & Gasoline
SEA
83.0 Mtpa
0.3 Mtpa
82.7 Mtpa
Mainly Crude Oil
Mpbd:-Million barrels per day Mtpa:- Million tons per annum
23
5. MYAS TRANSPORTATION SYSTEM
5.1. Roadways Tareeq Al-Malik Abdulaziz (TAMA) is a primary regional road linking YIC to the surrounding;it
provides generally a six-lane divided highway within Yanbu Al-Sinaiyah. Crossroads along TAMA are controlled by traffic signals. At present, TAMA provides the major roadway access between Yanbu AlSianiyah and the Region.
Jeddah – Rabigh - Madinah Expressway links Yanbu Region to Jeddah and Al-Madinah and beyond.
It provides 2 x 3 lanes with median. It connects with at Al-Muajiz (Km 50). The 2006 Average Daily Traffic (ADT) along TAMA at the northern end between Yanbu Al-Bahr and Yanbu Al-Sinaiyah has reached 27,000 vehicles, of which 5.5 % are Heavy Vehicles. The ADT at the southern end, near Km 50, has reached 15,000 vehicles, of which 34% are Heavy Vehicles. Intercity traffic volumes between Yanbu Al-Sinaiyah and Yanbu Al-Bahr are significant and reflect the strong interaction between the two communities.
Bypass Highway. This is an extension of the Jeddah – Madinah Expressway in Yanbu Region. It consists
of approximately 64 kilometers of six-lane divided roadway with full control of access. It runs along the eastern Royal Commission boundary, and bypasses Yanbu Al-Bahr urbanized areas and the airport. The segment of this Bypass Highway within Yanbu Al-Sinaiyah is under construction.
Corniche. This is a divided roadway providing access to the seafront and intended primarily for
recreational use. It provides 4 or 6 lanes with raised median.
Truck Traffic. Yanbu Al-Sinaiyah has more industrial activities than would normally be found in a city
of its size. At present, the major generators of truck traffic are: ARAMCO Yanbu Refinery, CRISTAL, LUBEREF, National Gas Company, YANPET, IBN RUSHD, YANSAB and others. A significant amount of truck traffic is generated by construction activities, the Yanbu Commercial Port, the Yanbu Cement Company plant, solid waste, and other sources. Figure 1 & 2 shows the long term roadway system of YIC as the basis development of the road and trapsortaion system for the city
24
YANBU TRANSPORTATION SYSTEM
25
The Long Term Roadway System Of MYAS
26
5.2. PUBLIC TRANSPORTATION Intercity Bus Service. The Saudi Arabian Public Transportation Company (SAPTCO) has provided intercity and intracity public transport within the Kingdom since 1979. SAPTCO has one terminal in Yanbu Al-Bahr and one station in Hai Al Nawah in MYAS where direct travel is available to Madinah, Jeddah and Makkah. Also, direct travel is available from Yanbu terminal to Cairo, Amman, and Damascus.
Taxi and Rental Car Services. Taxi and rent-a-car services operate
in MYAS and Yanbu Al-Bahr. These services accommodate short trips within MYAS as well as long distance intercity travel, mainly to Madinah, Jeddah, Tabuk and others.
Privately Operated Transportation Services. Some Contractors in Yanbu Al-Sinaiyah operate their own transportation services, primarily to move workers between camps and the workplace.
5.3. RAILROADS At present, there is no rail service in the Yanbu Region. In the past, the Hijaz Railway provided rail service between Madinah and Istanbul via Amman and Damascus. At present, the western railway section within the Kingdom is abandoned and out of service. There is a project for rehabilitating this railway. A rail link Riyadh - Jeddah - Makkah (Land Bridge) is in the bidding stage for construction. This line is expected to serve freight and passengers. Another high speed rail link between Makkah and Madinah for passengers is in the bidding stage. In 2007,RCY carried out a feasibility study for a rail link between Yanbu and Jeddah port. This study has led to a Royal Decree making rail between Yanbu and Jeddah a top priority. The idea is to link Yanbu to the Land Bridge in Jeddah. The main function of such link is to serve solid petrochemicals produced in MYAS and destined overseas via Jeddah port. Passengers will also be served via such rail link
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5.4. AIR TRANSPORTS Jeddah Airport is the closest international airport directly accessible to Yanbu Region by air. Madinah’s airport is closer than Jeddah’s, but it provides international service to few destinations. In turn, Yanbu Airport which is known as Prince Abdul Mohsin BinAbdulaziz Airport located 32 kilometers from the Royal Commission Headquarter MYAS, provides scheduled flights to Jeddah and Riyadh. Yanbu Airport has all the basic facilities for all weather operations with jet airliners and a modern terminal building for passengers and air cargo. It provides a 3.8 kilometers runway with visual glide slope (VASI) lights, an instrument landing system (ILS) and navigation aids (VOR/DME) and taxiway. This runway can accommodate large commercial aircraft such as the Boeing 747 and the largest Airbus planes. The apron area is approximately, (340m x 90m) is capable of parking at least six medium and large size aircraft. The airport has been operated by Saudi Arabian Airlines under the Presidency of Civil Aviation (PCA) since 1981. The Bypass Highway under construction provides the possibility of a direct link between MYAS and Yanbu Airport. Data on air passengers at Yanbu Airport show that Yanbu Airport handled some 210,000 air passengers in 2009. There were 2,674 aircraft movements in 2009 which corresponds to an average of 8 aircraft movements (landing or takeoff) per day. Domestic air cargo and airmail combined amounted to 1,782 tons in 2009.Figure 1 shows the table for figures for the passengers and cargo that is handled annually at Yanbu Airport For More Information you can go to: Contact Information:
Web: www.gaca.gov.sa Location: Located to north east of Yanbu Al Sinaiyah and
at a distance of 32 Km from the Royal Commission
Lounges & Runways: Arrival Lounge : Area 2,700 M, No. of Seats 24 Travel Lounge : Area 2,507.54 M, No. of Seats 24, Departure Lounge : Ground Floor area: 2,609 M, No. of Seats 75
One of the longest Runways with length of 3250 M and parallel Taxiway Length 3200 M
Aircraft Stands:
Aircraft Stand Length 85.50 M and Width 337.5 M
28
ANNUAL AIR PASSENGERS AND CARGO AT YANBU AIRPORT 2008-2010
YEAR
(2008)
(2009)
(2010)
Domestic Aircraft Operations Landing
2190
3250
3932
Take-Off
1920
3007
3812
Total
4110
6257
7744
Domestic Scheduled Passengers Arrivals
80154
120231
200308
Departures
79522
119283
179884
Total
159676
239514
380192
Air Cargo (Tons) Arrival
288
300
371
Departure
9
10
18
Total (Tons)
297
310
389
Source: Yanbu Airport 2010
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5.5. SEA TRANSPORTS King Fahd Industrial Port (KFIP) at MYAS was completed by the Royal Commission in 1984 and turned over to the Sea Port Authority (SEAPA). The Port resulted from the decision to locate hydrocarbon industrial complexes at MYAS site and to create a terminus for crude oil and Natural Gas Liquids (NGL) pipelines from the eastern part of the Kingdom.YIC is strategically located on the Red Sea, with excellent sea access to Europe via the Suez Canal, and to adequate access destinations in the Pacific Rim via the Indian Ocean.
The Port is able to cope with a total tonnage of 130 million tons per annum as compared to approximately 80 million handled in 2009.
Existing Facilities The King Fahd Industrial Port at Yanbu is the largest oil-shipping complex on the Red Sea. It has the largest approach channels in the Kingdom, extending over 54 kilometers north and south, all fitted with up-to-date navigational aids, radar and channel markers. The control tower has a new radar installation.
The Port extends along 19 kilometers of coastline and provides port facilities for the industrial area and the community. The location offers deep-water conditions and natural shelter, together with sufficient onshore area and a sufficient size and flexibility in the harbor facilities, to accommodate the Ultra Large Crude Carriers (ULCC) and Very Large Crude Carriers (VLCC) for the hydrocarbon and petrochemical industries. This includes the NGL plant, oil and mineral users and general cargo and container users. There are a total of seven separate terminals with 24 berths, a service
30
harbor, bulk cargo and handling equipment, and marine support facilities, all incorporating modern port operation technology. A comprehensive system of approach channels permits a full range of vessels to safely navigate from the open sea into the King Fahd Port. These channels provide access to berths in the general cargo area as well as to those at the petrochemical terminals. At present, the port does not handle passenger traffic. General Cargo and Container Terminal. This facility has seven berths (1 — 7), along a 1,420- meter wharf including one container and one roll-on/roll-off (Ro/Ro) berth. The access channel has been dredged to 14 meters below the lowest astronomical tide (LAT). Three 40-ton gantry cranes are available to handle containers. This terminal handles cargo related to the industrial complex and mainly solid bulk exports like polyethylene.
Bulk Terminal. The Bulk Terminal consists of a wharf 500 meters in length with two dry-bulk berths (21, 22). The wharf is 33 meters wide and can accommodate bulk carriers of up to 70,000 dead weight tons (dwt). The channel off the wharf is dredged to 16 meters below LAT. Sulfur and petroleum products are exported through this terminal. A bunker station is also running under Bakri International Co.. Saudi Aramco Exxon Mobil Export Refinery (SAMREF) Terminal. The Export Refinery Terminal has two separate loading areas and a ballast water facility. Two chemical and one refined products berth , No. 40, 41 and 42, in the inner basin are 13.5 meter deep, and can accommodate tankers from 5,000 to 50,000 dwt. SAMREF, YANPET, SAFRA, IBN RUSHID, YANSAB use berth no. 40 and 41 for export of petrochemical and refined products such as Glycol, Benzene, Aromatic, Pygas and berth 42 is used for petroleum products. Two other berths No. 54 and 55 are used by SAMREF, dredged to 18.5 meter in depth, with a loading capacity of 150,000 dwt, and are in the outer basin and are used by SAMREF for the export of bulk petroleum liquids (gasoline, diesel, jet fuel and fuel oil).The terminal’s ballast water facility — with three 50,000 m3 storage tanks and a separator system — is capable of processing ballast water from vessels loading at all four berths. All ballast water handled at the facility
31
must comply with the current environmental standards.
Saudi Aramco Crude Oil Terminal. This facility, which has been operated by Saudi Aramco since
1981, serves as a tanker-loading terminal for dual pipelines conveying crude oil from the Eastern Province to Yanbu. Dredged to a maximum depth of 32 meters, the terminal consists of a jetty trestle with four loading berths, No. 61, 62, 63 and 64, which are connected to the shore by a freestanding trestle and a causeway. Two of these berths can be used at the same time, providing a maximum simultaneous loading rate of 300,000 barrels per hour. This terminal can handle the largest tanker ever built (500,000 tons).
Saudi Aramco Natural Gas Liquids (NGL) Terminal. The NGL Terminal has been operated by
Saudi Aramco since 1982. This facility has two berths (71 & 72), 18.3 meters below LAT, and is designed to load refrigerated Liquid Petroleum Gas (mainly propane and butane) and naphta products for export, and can accommodate vessels ranging from 20,000 to 230,000 dwt. A 1.85-kilometer-long causeway and a 1.15-kilometer pile-supported trestle connect the shore plant to a two-berth, L-shaped offshore loading facility. The trestle carries a pipeway for the product, bunker and utility lines, and a 1.5 meter-wide pedestrian walkway. This terminal does not have a shore based ballast handling facility.
Saudi Aramco Yanbu Domestic Refinery Terminal. This terminal has been operated by Saudi Aramco since 1983. It includes two outer berths (91 & 92) for vessels with 20,000 to 60,000 dwt capacity dredged to 16 meters below LAT, and two inner berths (93 & 94) for tankers up to 20,000 dwt. The channels are dredged to 13.5 and 15.5 meters. This terminal has no ballast water reception facility. This terminal is used for domestic export of refined oil products.
Construction Support Terminal. This was the first terminal constructed at MYAS, and was designed
especially for the discharge of materials needed in the initial construction of the Industrial City and port complex. It is no longer in regular use. In 1986, the terminal was given over to the Coast Guard, who maintain security forces to protect the port and terminals. The terminal consists of a trestle pier and a beachhead heavy lift facility. Vessels may berth on either side of the pier, which has a width of 30 meters and is 5 meters below LAT. The length of the pier is approximately 260 meters. The water depth at the inner and outer berths is 18 meters below LAT. The water depth off the beachhead is 6 meters below LAT. The beachhead is a heavy lift docking facility located south of the Construction Support Terminal, It is capable of accommodating vessels of up to 5 meters draft.
Service Harbor. A protected harbor capable of repair and service is an integral part of the port. It is
also the headquarters of the harbormaster, who, from a 36-meter-high tower, controls the movements of all vessels within the port and in the approach channels. Service vessels include three pilot launches, eight mooring launches, 11 tugboats, a fire tender, and an environmental survey launch. A ship-lift is available to service the small craft and tugs. The service harbor also has equipment to handle any environmental and physical damage that might occur during port operations.
Cargo Handled The total tonnage handled at various terminals at King Fahd Industrial Port for the period 2000 to 2009 is approximately 60% of total tonnage was associated with the export of crude oil. Some 23% was associated with the Export Refinery Terminal. In 2009, 1,608 vessels were handled at the port, representing on average of 4.4 vessels per day at all terminals.
32
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
YEAR
1658
1766
1833
1800
1800
1731
1819
1774
45,661,197
41,020,748
52,416,541
50,245,530
69,177,615
63,368,699
58,755,384
54,785,372
56,242,161
3,294,967
SAUDI ARAMCO NGL TERMINAL THROUGHPUT Berths 71&72
2,629,092 2,644,806 2,695,924 2,857,240 2,989,357 2,606,171 2,308,561 2,660,444 (3.33%)
7,025,788 (8.80%)
6,841,913
71,134,873
8,298,179
8,357,306
7,762,497
6,907,059
5,953,363
5,384,553
6,069,789
SAUDI ARAMCO YANBU DOMESTIC REFINERY THROUGHPUT Berths 91-92-93-94
17,365,933
19,385,314
19,672,811
18,593,216
14,595,018
17,116,532
1,377,228
1,445,420
1,263,574
1,367,217
1,262,395
1,089,059
1,058,501
771,061
19,349,178
1,450,017
16,842,000
19,037,961
.
1,771,076 (2.22%)
SABTANK THROUGHPUT Berth 4041
18,494,649 (23.16%)
SAUDI ARAMCO MOBIL YANBU REFINERY THROUGHPUT Berths 22- 42-54-55
555,629 (0.70%)
231,573
142,735
60,981
25,881
23,756
91,123
153,901
261,716
210,788
GENERAL CARGO & CONTINER TERMINAL THROUGHPUT Berths 12-3-4-5-6-7
TABLE 2 TRAFFIC AT KING FAHD INDUSTRIAL PORT Metric Tons (2000 – 2009)
1685
47,956,687 (60.06%)
SAUDI ARAMCO CRUDE OIL TERMINAL THROUGHPUT Berths 61-62-63-64
3,408,516
1608
NO. OF VESSEL HANDLED
1,208,477
850,792
1,096,725
565,675
469,024
383,860
440,459
208,342
52,498
79,851,022
76,739,699
72,481,725
83,673,136
82,700,520
101,168,844
93,251,158
83,616,276
82,223,532
83,483,264
TOTAL TONNAGE HANDLED
1,386,749 (1.74%)
OTHER TERMINALS THROUGHPUT Berths 21-22
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Table 2 provides a breakdown of cargo type and tonnage handled at the port for three years. General cargo and bulk solids amounted to only 0.65 million tons in 2009, which represented was, 0.81% of total cargo. TABLE 2 CARGO DISTRIBUTION BY TYPE, KING FAHD INDUSTRIAL PORT, YANBU (Million Metric Tons)
YEAR
2007
2008
2009
Bulk Solids
0.18
0.27
0.40
Bulk Liquids
31.16
35.51
32.34
General Cargo/Containers
0.09
0.10
0.25
Crude Oil
41.05
40.86
46.86
Total 72.48 76.74 Table 2 shows the type of cargo distribution between 2007 to 2009 handled at KFIP
79.85
TABLE 3 CARGO HANDLED, IMPORTS & EXPORTS (2009) (Excluding Crude Oil) Metric Tons
Cargo Type
Imports
Exports
Total
Bulk Solids
249,708
153,338
403,046
Bulk Liquids
3,976,961
28,358,680
32,335,641
1,834
247,383
249,217
4,228,503
28,759,401
32,987,904
General Cargo/Containers Total
Container (Numbers TEUS) 7 14,781 Table 3 shows that exports in 2009 constituted 98.5% of total cargo handled at KFIP
14,788
For More Information You Can Go visit: Contact Information:Web: www.ports.gov.sa Address: King Fahd Industrial Port, Saudi Arabia Telephone: +966-4-3967037 Fax: +966-4-3967000
34
P.O.Box 30325 Yanbu,
KING FAHD INDUSTRIAL PORT
35
FACILITIES AT KING FAHD INDUSTIAL PORT(KFIP)
36
TABLE 4 KING FAHD INDUSTRIAL PORT PORT CAPACITY (OPERATIONAL) BY TERMINAL AND USE (2009)
User
Tonnage (millions tons per year)
1. General Cargo & Containers/ Berths 1-7
Red Sea Marine
0.56
5.38
10.33%
2. Bulk Terminal/ Berths 21 & 22
Bakri SAMREF ARABTANK
1.54
1.47
104.8%
3. Chemical Terminal/ Berths 40 & 41
SABTANK
1.77
2.17
81.6%
4. Export Refinery Terminal/ Berths 42, 54, 55
SAMREF
18.34
22.0
83.4%
5. Crude Oil Terminal/ Berths 61, 62, 63, 64
ARAMCO
47.96
83.0
57.8%
6. NGL Terminal/ Berths 71 & 72
ARAMCO
2.66
7.0
38.0%
7. Yanbu Domestic Refinery Terminal/ Berths 91,92,93,94
ARAMCO
7.03
9.0
78.1%
79.85
130.02
61.4%
Terminals & Berths
Total
Capacity Capacity used (millions tons per 2009 year)
Yanbu Commercial Port Existing Facilities. The Existing facilities consist of 9 berths of which 6 berths are for general cargo, 2 berths for bulk cargo and 1 berth for Ro/Ro.
The 9 berths total approximately 2,000 meters, with a water depth of 9 meters for unloading ships at anchor in the harbor. Major equipment include floating cranes, mobile cranes of 30 to 50 tons carrying capacity, forklifts and a mobile repair unit. Marine equipment includes motorized lighters, pontoons, tugboats and pilot boats. Backup space includes a 9,900 square meter transit shed, a 5,600 square meter customs hall for Hajjis and administrative offices, and an additional 56,000 square meters of open storage area. The Ministry of Commerce has a bulk grain storage facility. There is also a bulk cement terminal for unloading ships, bagging cement, and loading trucks. This facility is designed to handle 700,000 tons of cement a year per one berth. With the construction of the cement plant at Ras Baridi north of Yanbu, this terminal is no longer active.
Cargo Handled.It appears that the port activities have been limited to general cargo (mainly building
materials) and foodstuff. In recent year, with the erection of the cement plant north of Yanbu, the amount of cement handled at the port has become insignificant. At the present time, there is no passenger traffic through the port. In the past, Yanbu was a port of entry for Hajj pilgrims arriving by sea, mainly from neighboring Arab countries.
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6. MYAS INFRASTRUCTURE:-
6.1. Power:The power plant consists of four 127MW Steam Turbine Generators (STG), and nine Gas Turbine Generators (GTG). One new STG unit with rating 137 MW STG is in service since November 2007. Total installed generation capacity is 1039 MW. MARAFIQ Power Grid connected to Saudi Electric Company (SEC) through four 250 MW, and 115/380 KV (Synchronizing Transformers) 380 KV – intertie overhead transmission lines (Tie Line 8 & Tie Line 9). The transmission and distribution (T&D) system within the city is through underground feeder cables. Large industrial users are supplied at 115 KV and other industrial users are supplied at 34.5 KV and 13.8KV depending on power requirements. The distribution in the community is at 13.8 KV. The T&D system includes the following major components.
• Intertie Station with Saudi Electric Company (SEC) Grid (380 KV) • 115 KV Switchyard • Three 115/34.5/13.8 KV Substations (1A, 2B, 3C) • Two 115/13.8 KV Substation (5E, 6F) • One Substation (4D) 115/34 KV • 34.5/13.8 KV Substations for Light Industries at LIP. There are two 380/115/34.5/13.8 KV substations in commissioning stage SSPP 3 X 500 MVA transformer rating and 9ISIS which will be in service by June 2010, and Substation 10J, Red Sea Refining Company. This project will be in service in June 2012.
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6.2. Seawater Cooling System The Seawater Cooling System in Yanbu Al Sinaiyah serves the power station and various primary and secondary industries with bulk non-contact cooling water and the desalination plant with feed water through a dynamic closed pressurized system. This is a vital utility for continuous operation of these heavy industries and the power and water production facilities. Water is drawn from and discharges into the Red Sea via separate channels. The system has the following principal elements: 1. Dredged intake channel: Pumping station including screens, pumps and chlorination plant. 2. Distribution pipelines: Supply and Return pipelines, outfall and dredged discharge channel, support and ancillary facilities. Currently the average demand for SWC is some 6.1 M m3 per day (250,000 m3/hr), although this peaks slightly during the summer months. The industry manifold presently delivers about 135,000 m3/hr and the uility manifold 115,000 m3/hr. 3. Intake and Discharge channels: Seawater is drawn from the dredged intake channel with rock berms which is approximately 2.2 km long, 100-120 m wide and up to 12m deep equipped with breakwaters, oil booms, oil sensors and oil skimming equipment (although oil pollution in the Red Sea is limited risk). The supply canal draws water from the north and discharge to the south thus drawing cooler water from the deeper waters of the Red Sea and avoiding any short-circuiting. The cooling water is then pumped by industries after use into the return pipelines directly to the head works on the discharge channel. The discharge head works is provided with a weir to ensure the return pipelines remain primed with seawater. 4. The Seawater Cooling Pump Station consists of an intake pumping structures feeding into two (2) manifolds. One manifold feeds the industries and the other feeds the Power and Desalination plants (PD). The feed to the industries and plants is through large diameter fiberglass reinforced pipes (FRP). The capacities of pumps in each manifold are as follows: Industrial Manifold a) 2 pumps each 25,000 m3/hr b) 3 pumps each 50,000 m3/hr c) 2 pumps each 60,000 m3/hr Utility Manifold a) 2 pumps each 25,000 m3/hr b) 3 pumps each 50,000 m3/hr c) 1 pump each 60,000 m3/hr
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6.3. Potable and Process Water System Potable and process water in Yanbu Al Sinaiyah is produced by six (6) 380 m3/hr and three (3) 570 m3/hr multi-stage flash (MSF) distillation seawater desalination units. The steam requirement for these units is supplied by heat recovery steam generators (HRSG) utilizing the waste heat from the gas turbines with 4 HRSGs of a design capacity of 159 ton/hr each and one HRSG with a design capacity of 171 ton/hr. Emergency steam supply for the MSF units can be supplied from the Steams Turbine Generators (STG). The desalinated water is converted to potable water by adding lime and carbon dioxide with the injection of chlorine and aeration. The process water for industrial use is obtained by adjusting the pH with caustic soda. Reverse Osmosis (RO) seawater desalination units with a design capacity of six (6) 350 m3/hr have been in operation since 2006. The water distribution network includes the following: Potable Water a) 527 Km of Transmission and Distribution piping b) 3 main pumping stations c) 280,000 m3 bulk storage capacity Process Water a) 34 Km of distribution piping b) One main pump station in PD&SC c) 120,000 m3 bulk storage capacity.
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6.4. Water waste Treatment Plant There are two separate wastewater collection systems at Yanbu: an Industrial Wastewater System which collects flows from primary and secondary industries and a Sanitary Wastewater System which collects all sanitary flows from industries and community areas within the industrial city. Industrial water waste treatment requirements are different than those for sanitary wastewater, therefore the two waste streams are conveyed to separate industrial and sanitary water waste treatment plants. The principal characteristics of the systems is as follows:
Length Pipelines:
Industrial 52 KM
Sanitary:
477 KM
Pumping Stations:
Industrial 16
Sanitary 36 Wastewater from Yanbu Industrial City is treated at two central wastewater treatment plants. Industrial wastewater treatment plants (IWTP) and Sanitary Wastewater Treatment Plant (SWTP). Both plants are located in a single complex immediately to the south of the power desalination and seawater cooling (PD&SC) plant. The Sanitary Wastewater Treatment Plant has a design capacity of 27,000 M3/day and the Industrial Wastewater Treatment Plant has a design capacity of 24000 m3/day. The treated effluent from SWTP is used for irrigation purposes through the irrigation water system.
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7. YIC INFRASTRUCTURE AND UTILITIY TARIFF: Primary, Secondary and Light Industrial Land Rents: Inside Industrial Areas: SR 4.5 (US $ 1.27) per square meter.
7.1. Utility Tariff • Diesel: SR 0.36 (US $ 0.096) per liter. • Industrial Fuel Oil: SR 0.125 (US $ 0.033) per liter. • Sakes Gas and Ethane: SR 2.81 (US $ 0.75)/MMBTU. Electricity: Electricity & Co-Generation Regulatory Authority (ECRA) http://www.ecra.gov.sa/home.aspx is a financially and administratively independent Saudi organization , which regulates the electricity and water desalination industry in Saudi Arabia • SR 0.12 (US$ 0.032) per kwH industrial use • SR 0.05 (US$ 0.013) per kwH for a minimum up to 2,000 kwH for residential use, rising over eight bands in accordance with consumption.
Water:
Services (Unit of Measurement per m3) Potable Water
6.60
Truck Fill-Potable Water
5.50
Active Construction
5.50
Process Water
6.60
Sea Water Cooling
56.78/100
Sanitary Wastewater
5.37
Industrial Wastewater
3.93
Reclaimed/Irrigation Water
1.65
Truck Fill -Irrigation
1.65
Source : Marafig
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Rates(SAR)/m3
7.2. Waste Treatment and Disposal: An integrated waste disposal system ensures that all Yanbu Industrial City wastes are collected, treated, and disposed of efficiently and economically, with minimum risk to public health, pollution of the environment, or nuisance to the community. Separate systems collect and treat industrial and sanitary wastewaters while solid industrial wastes are disposed in the waste management facility and sanitary solid waste in a sanitary landfill. YIC manages a 440-hectare landfill located in the southeast cornner of the Royal Commission boundaries. When pending improvements are completed, this landfill will accommodate all classes of waste (domestic, construction materials, industrial hazardous and non-hazardous). The depletion of this landfill amounts to 2 hectares per year. In addition, there is a compost plant in Yanbu Al- Sinaiyah capable of producing high quality compost from pre-sorted solid waste and aerobically digested sludge. The compost plant capacity (assuming 16 hours operation per day) is 400 tons of compostable waste plus 100 tons of sewage sludge (obtained from the sanitary wastewater treatment plant). At present, the plant operates far below capacity.
7.3. Industrial Wastewater: To dispose of industrial wastewater a special collection and treatment system has been installed as part of the infrastructure in the city’s industrial parks. Sixteen pumping stations forward acceptable industrial wastewater to a treatment plant, located in the industrial park near the port, where it undergoes three different levels of treatment. After treatment the effluent can be pumped via an underground reclaimed water network, back through the industrial park for reuse. Dewatered sludge is disposed of in the waste management facility in the city. The industrial wastewater collection system is generally accessible through a manhole located at the boundary line of each industrial site. In the absence of an existing manhole the developer may be required to construct one, along with the necessary valve and metering equipment. Flow through the manhole interconnection will be by gravity, and its velocity should not exceed 2.5 meters per second. To safeguard the collection and treatment system, industrial wastewater must meet the established direct discharge criteria. These are specified in the Royal Commission Environmental Regulation (RCER 2004, Vol. 1) that the Royal Commission issues to all new developers. These regulations are upgraded periodically and RCER 2009 will be implemented soon. Generally the effluent standards prohibit the discharge of acids, cyanide, volatile components and other substances likely to produce toxic reaction either directly or indirectly. To ensure compliance, the Royal Commission carries out routine quality control testing for industrial wastewater. All the facilities must have 72 hours storage capacity for emergency purposes. Industrial wastewater at Yanbu Al-Sinaiyah is adequately handled as part of the industry development plans. At present, the industrial wastewater treatment plant handles the pretreated wastewater from industries. Figure 1 show the sanitary Wastewater treatment system available at MYAS. Figure 2 shows the reserve adequate land for future expansion of Wastewater Treatment Facilities at MYAS. Figure 3 shows the storm drainage system within the planning area that is illustrated within the MYAS boundaries administrated by the Royal Commission
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Existing Reserve Adequate Land For Wastewater Treatment at MYAS
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Industrial Wastewater System at MYAS
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7.4. Sanitary Wastewater: Also serving the industries is a separate sewerage system, which collects and transports sanitary wastewater to a treatment facility adjoining the industrial wastewater treatment plant. The system is designed to receive wastewater from offices, cafeterias, restaurants, toilets, showers, etc. To ensure that wastewater is free from any traces of industrial wastewater or process wastewater, the developers system must include oil and grease interceptors/traps. The sanitary wastewater collection system is generally accessible through a manhole located at the boundary line of each industrial site. In the absence of an existing the manhole developer may be required to construct one, along with the necessary valve and metering equipment. Treated sanitary waste water is distributed to the irrigation network and used for landscaping in the city.
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7.5. Solid Wast: The Royal Commission operates a 440 hectare sanitary landfill, located at the north eastern corner of the industrial area for the disposal of municipal waste. There is a separate well equipped waste management facility for the disposal of industrial waste. Waste generated in the Industrial City shall be classified into one of the following categories: 1. Hazardous Waste: These wastes are defined as any solid, semi-solid, liquid, or contained gaseous
waste, or combination of such wastes, which may because of its quantity, concentration, physical or chemical characteristics pose a hazard or potential hazard to human health or the environment when improperly treated, stored, transported, disposed of or otherwise managed. These wastes shall also include:
2. Non-hazardous Industrial Waste: These wastes include solid, liquid, semi-liquid or contained
gaseous materials or wastes resulting from industrial, mining, and agricultural operations and sludge from industrial, agricultural or mining, water supply treatment, wastewater treatment or air pollution control facilities, provided that they are not hazardous, municipal or inert wastes as otherwise defined in these Regulations.
3. Municipal Waste: Municipal wastes include garbage, refuse, food waste, office waste, waste vegetation
and other decomposable material resulting from operation of residential, commercial, municipal, industrial or institutional establishments and from community activities.
4. Inert Waste: Inert wastes are those wastes which are not biologically or chemically active in the natural environment, such as glass, concrete and brick materials, broken clay and manufactured rubber products. Waste generators shall, through testing of the waste or knowledge of the process by which the waste is generated, classify their wastes according to above criteria. Before transportation of hazardous and non-hazardous industrial waste away from a generator’s facility, either for recycle, reuse, treatment, storage or disposal the generator shall complete a waste manifest (RCER Vol. 1). All industrial and hazardous wastes generated within the Industrial City and not intended for recycle or reuse shall be treated and / or disposed of at the Royal Commission approved waste treatment/ disposal facilities.
7.6. Preservation of the Environment In order to ensure that the industrial development of the industrial cities of Jubail and Yanbu were not achieved at the expense of the natural ecosystem, the Royal Commission established the Environment Control Department to develop them into world models of environmental planning and sub stainable development. In the planning and design of the infrastructure, the design criteria enforce conformity to the highest international environmental standards. These included extensive environmental impact assessment studies related to construction as well as longer term operation of the industrial cities; in the development and enforcement of strict guidelines and regulation relating to domestic and industrial waste water treatment and discharge and abatement of air borne pollutants; recycling and reuse of wastewater; waste composting programs; in environmentally conscious zoning and building code regulations; and in the development of extensive environmental monitoring programs. As a result of its uncompromising commitment to the preservation of the environment, the RCJY has won international recognition and several awards:
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1968 United Nations’ Sasakawa Award 1988 Kuwait-based Regional Organization for the Protection of Marine Environmental Award 1995 Arab Cities Award for Environmental Protection 1998 Arab League Award in the field of Environmental Awareness 2002 Arab-European Cooperation Centre at Berlin-Environmental Protection Award 2003 Arab Cities Organization for Environmental Protection Award 2007 Organization of Arabic Cities – Environmental Awareness Award
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8. HOW TO APPLY FOR AN INDUSTRIAL SITE AT MYAS
8.1 GENERAL:The following are guidelines for filing a request for an industrial site in the Primary, Secondary, or Light Manufacturing/Support Industries Parks in Yanbu Industrial City. The Royal Commission leases industrial sites to: 1. Firms meeting the Yanbu setting criteria, which include : • use of indigenous fuels and feedstocks. • synergy with existing and future industries • efficient use of utilities and infrastructure • value added to the Kingdom’s gross domestic product by serving domestic and export markets • import substitution • safety of operations within environmental impact regulations • enhancement of the employment opportunities. 2. Firms which are licensed by the Ministry of Commerce and Industry (MCI),which is the sole authority for granting licenses to establish and operate industrial facilities in the Kingdom. 3. In the case of Light Manufacturing/Support Industries, firms providing services or goods which are necessary for the ongoing support of the Primary and Secondary Industries, as well as the community
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8.2 Key Steps In The Overall Process Step One: Tell us what you want to do and what you will need.
Show us that you have completed the basic needs for your project including MCI license, technology agreements and feedstock agreements.
Step Two: We will evaluate your requirements and after discussions
with you, determine whether your project could fit into our industrial complex. If so, we will recommend that you be considered for a site.
Step Three: When approved, we will select a specific site and ask you to enter a contract called a Conditional Site Allocation (CSA), that will reserve the parcel while you prepare additional information.
Step Four: When you have completed an Environmental Impact
Review and obtained approval for your design, you will be qualified to enter a land lease agreement with the Royal Commission and start your construction and operation.
8.3 Registration Procedure Main Points: Submit the completed application accompanied by the following documents 1. A copy of the Indusial License for construction of the project in Yanbu Industrial City (MYAS) 2. A copy of company foundation documents 3. A copy of the feasibility study prepared by a consultant office 4. A copy of the documents showing the financial sources of the project 5. A copy of the commitment of the feedstock supplier 6. A copy of the commitment of the technology licenses 7. Milestone Schedule of the project including the developing stages 8. The project layout showing the optimum use of the land 9. Plant Process Flow Diagram with description 10. Detailed descriptions for the cooling system of the plant 11. Single Line Diagram showing the Power distribution for the plant units 12. Break Down Diagram showing the power capacity distribution to the plant units 13. A copy of the acceptance from the Ministry of Petroleum and Minerals Resources or Aramco Co. for providing Natural Gas Liquid (NGL)
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8.4 Application Procedures: Site Allocation Request (SAR): Candidates who wish to locate their project at Yanbu Industrial City should obtain the application forms titled Site Allocation Request from the Investor Relations Department (I.R.D.), P.O. Box 10001, Yanbu Industrial City 31961, Saudi Arabia, Tel. No. (04) 321-6363, Fax (04) 321-6799. The completed forms and a project plot plan should be transmitted to I.R.D. at the above address. The SAR summarizes the main features of your project, identifies your infrastructure and utility needs and outlines the project’s safety and environmental impact factors. Concurrently, you should contact the Ministry of Commerve and Industry MOCI in Riyadh 11127, Saudi Arabia, Tel. (01)- 477-6666, Telex 400681 MINELC SJ, Fax (01) 477-5488 to file a business license application. Once the final MCI approval is obtained, you should forward copies of the license along with your SAR. The SAR must confirm to the basic information approved in your MOC license. 1. Saudi Aramco – Fuel & Feedstock (If Needed) You will be required to contact Saudi Arabian Oil Company (Saudi Aramco) Distribution Technical Support Dept. at Room 435, 4th Floor, Dammam Office Bldg., Saudi Arabia, Tel. No. (03) 862-2123, Fax No. (03) 862-2289 to arrange for a commitment for natural gas or other natural gas based feedstocks, such as ethane or propane. This formal request should indicate the type of fuels or feedstock required, demand quantities, and the expected onstream timing, if fuels or feedstock are available. You may choose to make contact earlier with Saudi Aramco to obtain an initial assessment of availability of your requirements and to give notice to Saudi Aramco of your potential needs. Evidence of Saudi Aramco’s commitment should be provided with your SAR. For More Information Go To: www.saudiaramco.com 2. Feedstock Agreements If you wish to procure feedstock, you should contact any feed stock supplier to obtain an agreement for each feedstock. You are required to forward evidence of each of these to the Royal Commission at Yanbu. 3. Technology Supplier Agreements At an early stage you are required to assure the Royal Commission that you have or will develop an agreement with each provider of technology relevant to your project. Copies of your agreements or Letters of Intent must also be submitted. When we have received your completed SAR with the attachments noted above, the Royal Commission would evaluate your land and utility requirements, environmental impacts and overall project structure. When the basic criteria have been met, including minimizing land and utilities requirements, you will be recommended for a General Site Approval in the Primary, Secondary or Light and Support Park. Following the General Site Approval by H.H. The RC Chairman, the Site Selection Committee will meet in Yanbu to identify and recommend a specific site. Following approval by the Committee and the Executive President for the Royal Commission at Yanbu, you will be asked to enter a contract called the Conditional Site Allocation (CSA).
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4. Conditional Site Approval The “Conditional Site Allocation” (CSA) provides the Royal Commission’s assurance to the applicant that a particular site will be held in reserve for the project for a specified duration, subject to his developing the project specifications according to a mutually agreed schedule. Granting a CSA will also provide you with the evidence, if needed for application to the Saudi Industrial Development Fund (SIDF), or others that your project has a site reserved. 5. In order to secure a lease, you will need to fulfill the following requirements.
Meeting International Design Standards
The Royal Commission does not wish to participate in or review the detailed design of projects. Instead, we require you to use the services of qualified design firms capable of conforming with international codes and standards. • 5a. If you are locating in the Primary or Secondary Industries Park,you will be required to demonstrate to the Royal Commission that you will be using internationally-recognized consultants for design, construction, operational training and technical support, you will be exempted from submitting onplot detailed engineering drawings for approval to the Royal Commission. After demonstrating use of such consultants, and fulfilling the other requirements in the Conditional Site Allocation certificate, a land lease agreement can be executed, engineering can be completed and construction can begin. • 5b. In the case of industries locating in the Secondary Industries Park which cannot satisfy 5a above, or in the case of industries locating in the Support and Light Manufacturing Industries Park, the Royal Commission or its authorized representatives may chose to review completed engineering drawings and specifications submitted by you. After obtaining a satisfactory review of your submittals, the Royal Commission will issue a Building Permit or equivalent. At that time, a lease agreement can be executed and construction can begin. 6. Safety and Environmental Impact At various stages of your application from SAR through CSA to execution of land lease agreement the Royal Commission will require increasing amounts of information regarding your safety management and environmental impacts. You will find that the level of detail of information corresponds to the quality of engineering data you would normally generate during project development. After receiving your CSA, you will be required to prepare a detailed Environmental Impact Report, which will be reviewed thoroughly by the Royal Commission Environment Control Department. You must receive environmental approval for your project before you can obtain a lease. 7. MARAFIQ and Saudi Telecom Company (STC) Finally, you will be required to contact MARAFIQ to discuss the most appropriate tie-in point and the scope and schedule of installing cables, transformers and substation modifications. Providing evidence of an approved power supply agreement with MARAFIQ is the last major requirement for securing a lease. STC is the leading national provider of telecommunication services in the Kingdom of Saudi Arabia. The company is working continuously to fulfill and satisfy the market requirements, keeping pace with the emerging technologies in the telecommunications sector and satisfying its customer’s needs. STC has put in its consideration that, this is the way to reinforce its position and identity in view of a changing world where the role and usage of telecommunications became more significant For More Information Go To: www.marafiq.com.sa www.stc.com.sa
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8. The Lease After the firm meets all Royal Commission requirements and after signing the Conditional Site Allocation, the RC will prepare a lease agreement. There are 3 kinds of industrial lease with different duration:
Primary Industry - Secondary Industry - Support Industry -
30 years 25 years 10 years
The lease is renewable upon agreement by both parties.
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References:-
Saudi Arabian Monetary Agency (SAMA)
www.sama.gov.sa
Saudi Industrial Development Fund (SIDF)
www.sidf.gov.sa
Ministry of Economy and Planning (MOEP)
www.mep.gov.sa
Ministry Of Commerce & Industry(MCI)
www.commerce.gov.sa
General Directorate OF Passports (GDIP)
www.gdp.gov.sa
General Organization Of Social Insurance (GOSI) www.gosi.gov.sa Department of Zakat and Income Tax (DZIT)
www.dzit.gov.sa
Royal Commission Yanbu(RCY)
www.rcjy.gov.sa
Saudi Aramco
www.saudiaramco.com.sa
Sabic Marfiq
www.sabic.com
www.marafic.com.sa
Saudi Telecommunication Company
www.stc.com.sa
General Authority Of Civil Aviation
www.gaca.gov.sa
Yanbu Industrial College
www.yic.edu.sa
Yanbu University College
ucy.edu.sa
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