Saudi Arabia Planning to Double Number of Industrial Cities through 2015-16

---

Researched by Industrial Info Resources (Sugar Land, Texas)--According to the Saudi Industrial Property Authority (MODON) (Riyadh, Saudi Arabia), the nation is set to undertake the largest of any industrial city expansion through the construction of new cities and the expansion of existing ones.

The director-general of MODON, Dr. Tawfiq Bin Fawzan Alrabiah, said that the area covered by industrial cities in Saudi Arabia would be increased from the existing 74 square kilometers to a total of 150 square kilometers during the next five years,

Industrial cities are designed to accommodate industrial projects, and in the 40 years since 1970, when the first such area was established, the area covered by industrial cities has reached 74 square kilometers, mainly in the less developed regions such as the northern region.

During 2010, public tenders were issued for plans and detailed designs for Phase I of the general expansion plan. More than 28 applications were received from both local and international consultancy firms.

As a result, 11 new industrial cities are planned: Riyadh's third, Dammam's third, Jeddah's third, Jeddah's fourth (Aasafan), Sudair City, Al-Kharj, Al-Oyayna Pharmaceutical City, Taif, Al-Baha, Zulfi and Shaqraa. Five of these will be developed in the beginning of 2011, and the remaining six will be developed during the next five years.

Saudi Arabia is planning a massive $400 billion investment on infrastructure upgrades, including road, rail, power plants, universities and utilities through 2013, as demand continues to escalate for power and water, and the existing transport infrastructure struggles to meet the requirements of an increasing population, which is estimated at more than 27 million in 2010 with a per capita income of about $23,700.

The upgrades are planned to improve the efficiency and quality of life in the major cities of Saudi Arabia, and to allow easier access from the surrounding areas. A major focus is on the cities of Jeddah, Medina and Mecca; in the latter, an ambitious, 20-year transportation development plan has been outlined.

The ambitious plans for expansion in the industrial cities, together with the infrastructure development plans, will certainly place a great demand on the supply chain within the Kingdom, and in particular on professionals to work on the projects.

Saudi Arabia has an expatriate population estimated at about 9 million, with the numbers for Indians, Egyptians, Pakistanis and Filipinos each exceeding 1 million. Many of the expatriates in the nation are skilled professionals who will help to fill the many challenging jobs resulting from the expansion plans; in addition, the Saudi Arabian universities will contribute through engineering graduates.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.