(EnergyAsia, March 24 2011, Thursday) — Petrochemical giant Saudi Arabian Basic Industries Corporation (SABIC) said it has signed a three-way agreement with the Saudi Industrial Property Authority (MODON) and the Boston Consulting Group (BCG) to develop industrialisation strategies for the Saudi cities of Al-Jouf, Tabuk, Hail, Jizan, Najran and Arar.
SABIC was represented by vice chairman and CEO Mohamed Al-Mady, while MODON was represented by director general Tawfig Alrabiah, and Thomas Bradtke, BCG partner and managing director, signed on behalf of the US management consulting firm.
Mr Al-Mady said SABIC is supporting the study to contribute to the development of the industrial sector in Saudi Arabia.
He said: “We have already experienced the establishment of the two industrial cities of Jubail and Yanbu. These cities have seen phenomenal growth over the years, and stand as role models for industrial success in Saudi Arabia. The intention now is to focus on developing the less-developed cities and regions of Saudi Arabia and pave the road to the launching of additional industrial cities.”
Mr Alrabiah noted that the study will provide up to 300 industrial opportunities involving value-adding and exportable downstream industries that can provide job opportunities for national employment.
SABIC said the first phase of the study, to be completed within 12 weeks, will incorporate the findings of previous studies that will help the partners develop a clear understanding of the market potential and attributes of each city, identify the most appropriate industries, and develop value propositions for investment attraction.
Riyadh-based SABIC is among the world’s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilisers.
The company has significant research resources with 18 dedicated technology and innovation facilities in Saudi Arabia, the US, the Netherlands, Spain, India and China. SABIC operates in more than 40 countries across the world with 33,000 employees worldwide.
MODON is a government agency created in 2001 to establish, develop and operate industrial cities and technology zones in partnership with the private sector.
Massachusetts, US-based BCG is a global management consulting firm and leading advisor on business strategy.