Jubail Industrial City

Kingdom of Saudi
Project
Arabia

CREATING ECONOMIC
DEVELOPMENT FROM THE
GROUND UP
By: Dr. Jasem M. Al-Ansari, Jubail Royal Commission
1
Jubail History
Slide
(1)
The town of Al-Jubail on the Arabian Gulf
Coast of the Kingdom of Saudi Arabia has ancient
roots. As long as 7,000 years ago, the people of
Dilmun, whose civilization radiated up and down
the Gulf, had established a settlement there.

The first arrivals might have been encouraged

to stay by the sites fine natural harbor and the
abundance of fish and pearl oysters just offshore.
More importantly, the presence of potable water 2
Jubail History
Slide
(2)
In September 1933, Jubail gained a measure
of fame as the landing site for the first team of
geologists to explore for oil in The Kingdom of
Saudi Arabia.

In 1983, Jubail staked an even greater claim

to fame. Jubail industrial city project was cited in
the Guinness Book of Records as the largest
engineering and construction project ever
attempted.

Today, the former stretch of sand dunes and

salt flats north of old Jubail is now called Jubail
Industrial City, Saudi Arabias biggest industrial 3
The Birth OF Jubail And Yanbu
Industrial Citis Five-Year
When the Second
Slide
(1)
Plan was
published in late 1974, the concept of building
industrial cities at Jubail and Yanbu was given
official recognition.

4
The Birth OF Jubail And Yanbu
Industrial Citis (2)
Slide

To carry out its plans for the new industrial

cities, the government also provided for:
An independent commission with a chairman
reporting
directly to the King to oversee the
construction and
operations of Jubail and Yanbu.
A new entity, to be called the Saudi Basic
Industries Corporation (SABIC), to build and
operate hydrocarbon-based plants at Jubail,
Yanbu, and elsewhere.
A SR45-billion ($12-billion) system to collect
and distribute associated gases then being
flared in the oil fields.
Cross-country pipelines to transport natural 5
 The following slides show
pictures and statistics from
Jubail Industrial City

6
Capital Investment in US$
Jubail Infrastructure
Billions

11 Land Development
Roads
Utilities
Industrial and Commercial Ports

Industrial
32.6
17 Primary Industries
20 Secondary Industries
109 Light and Support Industries

Residential and Commercial

4 15,800 residential lots
563 commercial units

$ 47.6
Billion
7
Jubail Industrial City
A $ 47.6 Billion
Super Project

8
Jubail Master Plan
Slide
(1)

Jubail Industrial City is located on

the Arabian Gulf 10 kilometers north of
historic Al-Jubail and about 100
kilometers northwest of the Dammam
metropolitan area. Over 1,000 square
kilometers have been set aside for the
As a site for an industrial
citys development.
complex, Jubail enjoys two major
advantages: accessibility to
international sea-lanes through the
Gulf and proximity to sources of
energy and raw materials for refining
and petrochemical production.
9
Jubail Master Plan
Slide
(2) The initial master plan for Jubail
Industrial City was drawn up in 1975 by
Bechtel Corporation, the San Francisco-
based engineering and construction
company. It was revised in 1986 and is
most recently in 2000.

The Jubail Master Plan divides the

development area into five parts:

To the south are the industrial park

and port, which occupy more than
130 square kilometers. The
industrial area is divided into three
sections for primary, secondary, 10
Jubail Master Plan
To the north, upwind of the
Slide
industrial
(3) park and covering
approximately 170 square
kilometers, is the permanent
community. The eight residential
districts planned for this area are
being developed incrementally,
starting with those
In the buffer closest to the
zone between
coast and industrial
community complex..
and residential areas
stands the five-story Royal
Commission Building, headquarters
for the citys administration.
Across the street is the sprawling
campus of Jubail Industrial College,
a training institute for 3,000
students. 11
Jubail Master Plan
Slide
(4)Construction support communities are
concentrated along the shoreline east of
the industrial area. These are gradually
being replaced by private residential and
commercial facilities.

Finally, approximately 450 square

kilometers have been set aside in
the western portion of the Jubail
site for the citys airport and a
large regional park.
When fully developed, Jubail is
expected to support a population of
over 250,000 people.
12
Jubail Industrial City Total
Area Approximately 1000 Km2

Reserved Area
250 Km2 Residential

Arabian
Area

Gulf
170 Km2
Future Industrial
Industrial Area
Area 200 Km2 130 Km2

13
Progress
1980: Milestones
In 1980, construction had
Slide been under way at Jubail for four
(1) years. The industrial park, and
much of the community area had
been built up through the use of
fill dredged from the Gulf.
Permanent power and water
systems, roads and
telecommunications facilities, and
other industrial and residential
infrastructure had been designed
and were being installed. A few
support industries had been
established, but as yet no primary
industries.

14
Progress
1985: Milestones
Eleven primary industries were
Slide in operation, as well as 42 light
(2) manufacturing and support
enterprises. The East Corridor
residential area had been built out,
and the first two districts in the
permanent community were
undergoing intense development. A
full range of community
infrastructure was also available.
Power and water distribution
systems, a road network and
industrial port, telecommunications
facilities, and other essential
infrastructure were in place
throughout the entire city. Jubails
population was over 30,000. 15
Progress
1990: Milestones
Four more primary
Slide industries were in
(3) operation, bringing the total
to 15, and several
established during the first
phase were undergoing
expansions. The first two
secondary industries had
started up, while 18 more
light and support industries
were installed in new
facilities. The permanent
community continued to
grow.

16
Progress Milestones
1995: One new primary industry, a
Slide fertilizer plant, was added to
(4) the list. Several primary
industry expansions were
completed, and new ones were
initiated. Secondary industry
development had begun to pick
up, with six plants coming on
stream during the period.
Twenty more light industries
began operations. The number
of new housing starts continued
to increase, and Jubails
permanent population rose to
over 60,000.

17
Progress Milestones
Slide
(5)
2001: At the turn of the century,
Jubail Industrial City is home to
17 primary industries. The
number of secondary operations
has grown by 11 to a total of
19, and light manufacturing and
support enterprises total almost
130. With increased residential
construction, the citys
permanent population is now
nearing 70,000.

18
The Jubail Strategy

DOMESTIC CUSTOMERS
Local Feedstock

Natural gas PRIMARY SECONDARY

Natural gas liquids
Crude oil INDUSTRIES INDUSTRIES

EXPORT TO GLOBAL
MARKETS

19
Jubail 2001

PRIMARY SECONDARY
INDUSTRY INDUSTRY
Feedstock
1.287 MMSCFD 21.4 Million TPY 400,000 TPY
Methane Petrochemicals Petrochemicals
277 MM SCFD 5 Million TPY 430,000 TPY Steel
Ethane Steel Products
90 KBbls/day 14.8 Million TPY
of NGLs Refined Products
81 KBbls /day
Crude Oil

20
Industrial Seawater Cooling
System
Slide
(1)
Heavy industries use
enormous amounts of
cooling water in their
operations. In The
Kingdom of Saudi
Arabia, which lacks a
single year-round
running stream, the only
recourse is to locate
large industrial
complexes on the
seacoast.

Because so many
industries were planned21
Industrial Seawater Cooling
System
Slide
(2)
Instead, they are
concentrated a few
kilometers inland in a
large industrial park an
arrangement that
permits better
utilization of land,
utilities, and feedstock.
A network of canals,
pipes, and pumps brings
seawater to the
individual industries,
leaving an unspoiled
shoreline for the citys
residents. 22
Industrial Seawater Cooling
System
Slide
(3)
From an engineering standpoint, the Jubail
seawater cooling system is gigantic. The intake
pumping stations for example, houses 28 pumps
with a combined rating of 50,000 horsepower. The
pump houses can move almost 24 million cubic
meters of water per day. The amount it can pump in
a year is more than the combined flow of the Tigris
and Euphrates Rivers.

23
Potable Water

24
Power Supply

25
Industrial and
Commercial Port

26
Roads

27
Industry Categories
PRIMARY INDUSTRIES - Refining,
basic petrochemicals and fertilizers,
and steel plants.

SECONDARY INDUSTRIES - Mainly

speciality petrochemicals and
plastics. Feedstocks mainly from the
primary industries

SUPPORT AND LIGHT INDUSTRIES -

Fabrication and light manufacturing
to support primary and secondary
industries

28
Primary Industries

29
 Typical
Primary Industrial
refinery product slate
for export
Products
Ammonia, fertilizers, urea
Methanol
Olefins: ethylene,
propylene, butanes
Aromatics:-benzene,
xylenes, styrene
Polymers: polyethylene
(LDPE,LLDPE, HDPE),
polypropylene, polystyrene,
PVC
Ethylene oxide
Chlorine, oxygen, nitrogen
and rare gases
Billets and Flat Product Steel
Total 48 Products 30
Secondary Industries

20
31
Light and Support
Industries

32
Residential

33
Commercial

34
 Commercial Centers
Self-Sustaining
20
Community
Hospitals 2
Clinics 5
Colleges 2
Schools and
Kindergartens 50
20,000Students
Daytime Population
100,000
Residential Units 15,800
35
Industrial Area
Master Rapid 6% growth in the
Plan 5 Year Forecast
industrial sector production
from existing and new plants
Demand for developed land
and utilities will increase by
nearly 30%
- 16Km2 of industrial park
land
- 45% increase in potable
water
- 25% increase in electric
power

36
Projects of the 21st
Century
Continued
petrochemical
development
Railroad system for
industrial feedstock
and products
Desalination
Power generation
Expansion of port
facilities 37
New Industrial Expansion
Area - Park West
Planning and technical studies
for Park West beginning now.
First Phase available in about
three years.
Additional expansion, as
needed to meet demand.
Will accommodate additional
petrochemicals, metals and
fertilizers.

38
Industrial Park Areas

Secondary
Industry Park
Primary
Industry Park

Park
39
West
The Incentives
The availability of developed
land at nominal prices
Local availability of feedstock
Trained and educated workforce
Long-term loans at competitive
rates
New advantageous investment
laws

40
Jubails Success Today
The Kingdoms leading
industrial area.
Sustained production
growth of 4%since 1982.
as 6-7% market share of
world petrochemicals.
Accounts for almost 60
percent of the Kingdoms
non-oil exports.
41
The Royal Commissions
Role
Provide developed land and
utilities to accommodate world
scale industrial development
Manage the growth and
development of the City
Promote industrial, residential
and commercial development,
using a highly coordinated one-
stop-shop approach.

42
Kingdom of Saudi Arabia

Abundant oil and associated

gas reserves.
Low feedstock costs.
World-scale infrastructure
for production and delivery of
petrochemicals to global
markets.
Growing skilled manpower.
Demand for goods and
services.
REVISED INVESTMENT LAWS
TO ENCOURAGE NEW
INVESTMENT 43
trategic Location to Supply
Petrochemicals to the
Global Market Place

Kingdom of Saudi
Arabia

44
For More Information

Please Visit Royal

Commission Web
Site:
www.RCJubail.go
v.sa
45