SAGIA announces over US$ 2 Billion in new Petrochemical Investments.
Over 80 representatives from more than 13 governmental and private sector entities from the Kingdom and across the globe have arranged to sign more than US $2 Billion in new petrochemical investments.
An agreement between the authority and the German Chemical company, BASF at a Memorandums of Understanding (MoU) has been made that aims on evaluating and assessing opportunities in Saudi Arabia.
Also, a global reader of Polyacrylamides manufacturing agreed with SAGIA to investigate establishing a capacity of 50,000 tons/annum of polyacrylamide plant in the Eastern Region City of Jubail, offering the possibility of creating 80 new jobs.
Another MoU was created between SAGIA & Mitsui Co. a Japanese company aiming to set up an ammonia commercial production in Jubail with an estimated capacity of 1 Million tons/ annum using a highly efficient and environmentally friendly manufacturing process. As well as, they agreed to work together to develop a specialty chemicals downstream opportunity.
A 4th MoU was signed between SAGIA and Shell, a global energy and petrochemicals group to appraise the building of a state-of-art residue upgrading mechanism manufacturing facility in Jubail Industrial City, that is subject to supervisory approvals.
His excellency, Ibrahim Al- Omar, Governor of SAGIA Commented:
“Our country is undergoing a significant economic transformation. The petrochemicals sector provides exciting opportunities for international investors as we look to draw on the expertise and experience of the private sector in transforming the industry. This meeting – and the MoUs that have been exchanged today – reflect our increasing focus on promoting opportunities and facilitating international partnerships to drive the growth of this strategic sector. We are very pleased to welcome these industry giants to Saudi Arabia as we build the future of the petrochemicals sector in the Kingdom.”
These investments build on the force that Saudi Arabia has seen this year in terms of inward investment. According to Invest Saudi’s Fall 2019 Investment highlights, there are over 250 overseas organizations that were granted investor licenses which marks up an increase of 30% compared to the previous year.
Also, 809 new foreign companies have launched businesses in Saudi Arabia, 67% of which are fully foreign ownership investments. This is considered the highest number of foreign investor licenses released by SAGIA since 2010.
Finally, there is a broad series of economic reforms which come alongside the investments made. These series enable a rapid growth in foreign investments in Saudi Arabia. According to the 2019 Global Competitiveness Report that has been published by the World Economic Forum, Saudi Arabia has shifted up 3 positions to become the 36th place globally, through its efforts to expand the Kingdom’s economy.