RCJY President says every riyal invested matched by SAR 8.9 from private sector

Khalid Al-Salem, The president of the Royal Commission for Jubail and Yanbu (RCJY)

President of the Royal Commission for Jubail and Yanbu (RCJY), Khalid Al-Salem, stated that every riyal invested by the government through the commission was matched by SAR 8.9 from the private sector, with the RCJY aiming to increase this figure to 9 by 2024.

The value of investments in the RCJY amounted to SAR 225 billion over the past 50 years, with SAR 90 billion being operational investments for operating cities and the remaining amount being capital. RCJY’s returns amounted to SAR 1.2 trillion, Al-Salem told Abdallah Al-Mudefeir’s Al-Liwan on Rotana Khalijia.

Al-Salem said that the RCJY owns 541 of Saudi Arabia's more than 11,000 factories, all of which are factories with billion-dollar investments that have a significant impact. He went on to say that 150 of RCJY’s factories are major facilities, while the remaining are medium-sized.

These facilities include the factories of Ar-Razi Saudi Methanol Co., Yanbu National Petrochemical Co. (Yansab), National Titanium Dioxide Company (Cristal), a subsidiary of National Industrialization Co. (Tasnee), Sahara International Petrochemical Co. (SIPCHEM), and Saudi Chevron Phillips Co. (SCP).

RCJY’s factories produce 500 million tons per year, of which 181 million are exported and the remainder is used internally in other industries, according to Al-Salem. He added that these factories account for 40% to 50% of non-oil exports, totaling about SAR 190 billion.

The RCJY, Al-Salem explained, did not seek to attract manufacturing industries but instead focused on basic industries. However, after its strategic transformation, the commission moved towards manufacturing industries and supporting small industries and entrepreneurs. Manufacturing industries increased by 11% during 2023, while light industries rose by 77%.

The RCJY currently manages four industrial zones: Yanbu, Jubail, Jazan, and Ras Al-Khair, with no plans to add a fifth zone. It also owns four affiliated ports.

There have been talks about transferring ownership to the Public Investment Fund (PIF) or the commission. A preliminary agreement has been reached to transfer these ports to the RCJY, provided that it only serves industries, according to Al-Salem.

Meanwhile, Jazan region includes 11 factories, and RCJY plans to make it a model for Jubail and Yanbu. It encompasses an Aramco refinery that is considered the core of the region. There is also an iron and titanium factory as well as a sugar factory under construction.

The RCJY also developed a port in Jazan, which contributed to attracting Chinese industries due to the proximity of raw materials from Africa as well as export regions.

Al-Salem said that there is a special economic zone in Jazan that focuses on food and mining industries and quality logistics services, in addition to another zone in Ras Al-Khair specializing in shipbuilding.

The industrial strategy identified 12 sectors to focus on, several of which are already present in the commission. Al-Salem aspires to expand and increase production capacity to enable other industries such as the automotive industry.

The RCJY’s 2040 strategy, Al-Salem added, aims to double investment from SAR 1.4 trillion to SAR 2.8 trillion, expecting to achieve this before 2040 in light of the current investments.

The RCJY is currently studying investments worth SAR 300 billion, of which SAR 100 billion are almost complete, Al-Salem said, adding that these diverse investments are from various countries such as China and America, including an aluminum factory worth SAR 38 billion in Yanbu, and a plastics factory worth SAR 27 billion in Jubail among others.