myas industrial investors guide 2011

8/6/2019 MYAS Industrial Investors Guide 2011

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Kingdom of Saudi Arabia

Royal Commission for Jubail and Yanbu

Royal Commission at Yanbu

Strategic Planning & Investment Development DivisionInvestor Relations Department

P.O.Box 30031

Yanbu Industrial City

Saudi Arabia

www.rcjy.gov.sa

http://eservices.rcyanbu.gov.sa

Tel. : + 966(4) 3216041 / (4) 3216363Fax : + 966(4) 3216799 / (4) 3963000

2011 - 2012


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able o Content:- Page

1. SAUDI ARABIA............................................................................................................... 4

1. Introduction .................................................................................................................. 4

2. GENERALITIES ABOUT SAUDI ARABIA............................................................... 5

2.1 Economy and Population ........................................................................................ 5

2.2 Why Choose Saudi Arabia For Business? ......................................................... 6

2.3 Who Can Establish A business? ........................................................................... 6

2.4 Investment Procedure Flowchart .......................................................................... 7

2.5 Business Environment & Its Advantages ..........................................................10

2.5.1 Regularity Incentives ...........................................................................10

2.5.2 Financial Incentives .............................................................................10

2.5.3 Foreign Trade .........................................................................................11

2.5.4 Custom Duties ........................................................................................11

2.6 Relevant Government Agencies ...........................................................................12

Saudi Arabian Monetary Agencies (SAMA)...............................................12

Saudi Industrial Development Fund (SIDF) ...............................................12

Ministry Of Economy and Planning (MEP) ................................................13

Ministry Of Commerce and Industry (MCI) ................................................13

Ministry Of Labor and Social Affairs (MOL) ..............................................13

General Directorate Of Passports (GDP) .................................................. 14

Department Of Zakat and Income Tax (DZIT) ........................................ 14

General Organization Of Social Insurance (GOSI) ................................14

3. INVESTMENT SECTOR GUIDE ...........................................................................15

4. ROYAL COMMISSION FOR JUBAIL AND YANBU .........................................174.1 Introduction ............................................................................................................... 17

4.2 Strategic Vision - Master Plan ........................................................................... 18

4.3 New Growth - New Challenges .......................................................................... 18

4.4 Yanbu Industrial City (MYAS) ............................................................................. 19

4.5 Yanbu 2 ..................................................................................................................... 20

4.6 MYAS Population ................................................................................................... 21

4.6.1 MYAS Supported Population ............................................................. 21

4.6.2 MYAS Primary Students ...................................................................... 21

4.6.3 MYAS Intermediate Students ............................................................ 21


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4.6.4 MYAS Secondary Students ................................................................ 22

4.6.5 Yanbu Industrial College (YIC) ......................................................... 22

4.6.6 MYAS Manpower .................................................................................. 224.6.7 Freight In MYAS ..................................................................................... 23

5. MYAS TRANSPORTATION SYSTEM .................................................................. 24

5.1 Roadways .................................................................................................................. 24

5.2 Public Transportation ............................................................................................. 27

5.3 Railroads .................................................................................................................... 27

5.4 Air Transportation ................................................................................................... 28

5.5 Sea Transportation ................................................................................................. 30

6. MYAS INFRASTRUCTURE..................................................................................... 38

6.1 Power ......................................................................................................................... 38

6.2 Seawater Cooling System ................................................................................... 39

6.3 Portable & Process Water System .................................................................... 40

6.4 Water Waste Treatment Plant ............................................................................ 41

7. TARIFFS AND RATES ............................................................................................ 42

7.1 Utility Tariff ............................................................................................................ 42

7.2 Waste Treatment And Disposal ....................................................................... 43

7.3 Industrial Waste Water ...................................................................................... 43

7.4 Sanitary Wastewater .......................................................................................... 47

7.5 Solid Wast .............................................................................................................. 48

7.5 Preservation of the Enviroment ....................................................................... 48

8. HOW TO APPLY FOR AN INDUSTRIAL SITE AT MYAS .............................. 50

8.1 General ...................................................................................................................... 50

8.2 Key Steps In Overall Process ............................................................................. 51

8.3 Registration Procedure Main Points ................................................................. 51

8.4 Application Procedures ........................................................................................ 52

References ......................................................................................................................... 55


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1 - INRODUCION

Saudi Arabias 27.1 millions increasingly prosperous consumers areat the heart o the Middle East/North Arica (MENA) regions 400

million-strong population. One o the worlds 25 largest economies

(24th

) and No. 1 in the MENA region, Saudi Arabia ranks 11th

outo 181 countries or the overall Ease o Doing Business, according

to the International Finance Corporation/World Banks Doing

Business report in 2010. Te Kingdom is one o the astest growingcountries worldwide, with per capita income orecast to rise rom

$20,700 in 2007 to $33,500 by 2020. In addition, Saudi Arabia is

also the top oreign investment destination in the Arab world andamong the top 20 globally. Saudi Arabia is an exciting and rewarding

place to invest and do business.

Te surpluses consistently in excess o 25% o gross domestic

product, Saudi Arabia has ample capital to move the Kingdomorward by making large investments in targeted areas o

growth. Te Saudi economy is supported by one o theworlds most stable currencies (the Saudi Riyal) and by low

ination. Te government o Saudi Arabia also oers the

6th most rewarding tax system in the world and is alsothe 7th reest labor market according to the World

Economic Forum.

SAUDIARABIA


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2.1 Economy and Population

Saudi Arabia has a rapidly growing economy and lies at the heart o

a developing region o the Middle East and North Arica strategically

located between Asia and Europe. Saudi Arabia lies logistically at thecentre o a developing market o 400 million people with growing

demands or goods and services.

Saudi Arabia is the largest ree-market economy in the region which

provides easy access to export markets in Europe, Asia and Arica,whilea continuously expanding domestic market population growth with o

2.21%, increasse in the young and consuming population with strong

purchasing power. Saudi Arabia has an impressive record o politicaland economic stability and has a modern and expanding, world-class

inrastructure. Te investment environment reects traditions o open

market, led by private enterprise and with investment laws that allow100% oreign ownership o industrial rms and properties. Tere are

no restrictions on oreign exchange and repatriation o capital and

prots. Saudi Arabia Corporate ax Law is among the ew countries

to allow companies to carry orward losses indenitely eectivelyrelieving businesses o their tax burden until they become protable.

Saudi Arabia does not impose personal income tax; and labor costs inalmost all areas are competitive.

Saudi Arabia has the worlds largest oil reserves (25%) and has

other natural resources, including minerals such as bauxite, limestone,

gypsum, and phosphate.

Population or 2010 as provided by the Central Department oStatistics and Inormation (CDSI) o the Saudi Ministry o Economy

and Planning (MOEP) put the Kingdoms total population at 27.1million, recording an annual increase o 2.21 percent (2004-2010).Saudis accounted or 70.4 percent o the population.

More inormation about the Saudi statistics can be ound at the

Ministry o Economy and Planning website www.mwp.gov.sa

2. GENARALIIES ABOU SAUDI ARABIA

Tis section provides general inormation about Saudi Arabia that includes its competitive, stable and

growing economy and population.


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2.2. Why Choose Saudi Arabia For Business?

A country that has redened itsel and opened its doors to investors.1.

A city with more than 45 billion dollars in rst-class industrial inrastructure.2.

Vast natural resources at competitive prices.3.Geocentric location to Europe, Asia, Arica and the Middle East.4.

21st century, multi-industry business opportunities.5.

A orum that osters the creation o new business networking and relationship building.6.

A orum that tells you how business is done.7.

A orum that puts all o these elements in one location, around one table, at one time.8.

2.3. Who Can Establish A Business?

Foreign Investors and Saudi Nationals can establish business in Saudi Arabia.Both will have to

ollow the same Licensing procedures outlined in this guide.

Foreign Investment Act denes the Foreign Investor as a natural person o non-Saudi nationalityor otherwise the body corporate, where all partners are non-Saudi nationals

Foreign investments licensed under the provisions o Te Act and Te Rules may be in one eithero the ollowing orms:-

Entities jointly owned by a national and a oreign investori.

Entities wholly owned by a oreign investorii.

Te Foreign Investor should not have been:-

Convicted in the past o substantial violations o the provisions o Te Foreign Investment Act.

Convicted in the past o nancial or commercial violations whether in the Kingdom or inother countries.

Investors and oreign partners o a Company are required to submit a declaration stating non-

availability o a residency permit in Saudi Arabia over the last two years. In cases where the Investor has

held a residency permit in the Kingdom, a letter approved by the last investors sponsor must be submittedstating the sponsors non-objection to the return o the investor to the Kingdom or the purpose o

investment

Te Saudi Arabian General Investment Authority (SAGIA) is a Saudi government organization

dedicated to improving the countrys investment environment and providing comprehensive services toinvestors seeking to pursue business opportunities in the Kingdom. SAGIA is committed to enhancing

the experience o investing and operating in the Kingdom by serving as an inormation clearing-house,

while providing comprehensive licensing and support services. Tese are just ew examples o how SAGIAis working to streamline and add value to its interace with investors and businesses.

For More Inormation about SAGIA kindly log in towww.sagia.gov.sa


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2.4. Investment Procedure Flowchart

Investment Registration Procedure For A Foreign Investor In Saudi Arabia

Start an Investment in Saudi Arabia

Commence Business in Saudi Arabia

Investment License Application

Investment License

700 file

Residencv Card ( Iqama ) for

Commercial Reaistration

Apply with SAGIA

Open 700 file at Labor Office

Apply with MoCI

Register With DZIT

Register with LabourRegister with GOSI

Overview

1 Preparation

2 Investment

Licensing

3 Residency

Decision Process Input/Output

4 Commercial

Registration


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Step By Step Preparation Procedure For An Investor In Saudi Arabia

Start an Investment in Saudi Arabia

Decision Process Input/Output

What

Business

Structure

Will you

Use?

Business

Structure

Copy of passport

Personal Photos

Foreign CR

Foreign AOA

Balance Sheet

POA

Letter of No

Objection

Company

name?

Bank

Account

Legal

Activity

Minimum

Capital

Investment License

Application Form

Is your

activity

on the

Negative

List?

Are you

using a

commercial

name?

Register

Name

With

MOCI

Apply with Sagia


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Investment Licensing Procedure For A Foreign Business Investor

Investment License Application Form

Is application complete?

Is application

approved?

Temporary InvestmentLicense

Submit application to CustomerRelationship Manager (CRM) at OSS

Sagia returns copies ofdocuments

Sagia issues Letter of Rejection

Sagia archives originalapplication

Submit application to License Evaluator

MakeCorrections


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2.5. Business Environment And Its Advantages

Advantages And Incentives

Saudi Arabia is more than ready to meet your investment

needs through its progressive regulatory and generous nancialincentives.

2.5.1. Regulatory Incentives

Te government is also committed to reducing bureaucracy at

all levels and transorming government departments in an eort

to support oreign investment. H.M. King Abdullah chairs theSaudi Supreme Economic Council, which is in charge o overseeing

privatization and encouraging oreign investment. In 2000, theSaudi government announced a new Foreign Investment Law,

introducing major regulatory incentives including, but not limitedto the ollowing:-

Te establishment o the Saudi Arabian General InvestmentAuthority (SAGIA), to assist oreign investors in the application

and approval process or operating in the Kingdom.

Accelerated investment application, business registrationand set-up process, with a guaranteed decision or oreign

investment applications within thirty (30) days atersubmission to SAGIA.

Equal benets, incentives and guarantees or oreign investorsand domestic companies.

100% oreign ownership o companies and property.

100% property ownership or oreign investors.

No minimum capital requirement (Query: But there is a tableo minimum capital.

Requirements in the document.

No restrictions on repatriation o capital.

Te ability or oreign investors to sponsor oreign employees.

2.5.2 Financial Incentives:

No personal income taxes and only a 20% corporate tax.

Ability to carry orward losses on balance sheets indenitely.

Foreign investors have access to generous regional andinternational nancial programs, including:

Arab Fund or Economic and Social Development (AFESD):

Participates in nancing economic and social development

projects in Arab countries.

Arab Monetary Fund: Promotes the development o Arab

nancial markets and trade among member states; advises

member states on investment o resources.


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Arab rade Financing Program: Provides medium and long term loans to individuals and organizations

or private and commercial trade.

Inter-Arab Investment Guarantee Corporation: Provides insurance coverage or Inter-Arab investments

and export credits against commercial and non-commercial risks.

Islamic Development Bank: Participates in equity capital and grants loans or productive projects and

enterprises. It accepts deposits to mobilize nancial resources through Shariah compatible avenues.

Other nancial incentives to realize the ull potential o your investments in the Kingdom include,but are not limited to the ollowing:

Te Human Resources Development Fund: to support activities related to qualiying, training and

recruitment o Saudi labor.

Preerential allocations o natural gas.

Competitive industrial utility rates or water, power and land.

Large research and development endowments at King Abdullah University or Science and echnology

(KAUS) and King Abdulaziz City o Science and echnology (KACS).

2.5.3 - Foreign rade

Tere are a number o potential sources o low cost nancing in Saudi Arabia. In addition there are thetypical range o commercial banks and private equity rms

2.5.4 - Custom Duties

Most basic consumer products are duty-ree, e.g. sugar, rice, tea, unroasted coee, cardamom,barley, corn, livestock and meat (resh or rozen).

Customs duties o 20% are imposed on some imported commodities or the protection o inantindustries within the Kingdom.

Import duty on other items is 12% ad valorem on the cost, insurance and reight (CIF) value.

A limited number o items are subject to customs duties calculated on the basis o metric weight orcapacity rather than ad valorem; the rates or these items are airly low..

Special concession is granted to members o the Arab League who are signatories to the Agreementto Facilitate rade and Exchange and to organize transit.


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2.6. Relevant Government Agencies

Supreme Economic Council: Tis council was ormed in 1999under the leadership o H.M. King Abdullah. Te Supreme

Economic Council is the coordinator between the Kingdomsmany economic agencies, integrating their activities and acilitating

eective decision-making on economic issues.

Saudi Arabian Monetary Agency (SAMA)1.

SAMA is the central bank o the Kingdom o Saudi Arabia, which is

responsible or the ollowing:

Issues the national currency, the Saudi Riyal.

Acts as a banker to the government.

Supervises commercial banks.

Manages the Kingdoms oreign exchange reserves.

Conducts monetary policy or promoting price and exchange-ratestability.

Promotes the growth and ensures the soundness o the nancialsystem.

Contact Inormation

Web:www.sama.gov.sa

elephone: +966-1-463-3000Fax: +966-1-466-2936 / 466-296

Saudi Industrial Development Fund (SIDF)2.

Te Saudi Industrial Development Fund (SIDF) participates in thenancing o development projects in developing countries. SIDF

makes its contributions through direct sot loans to the governments

o these developing countries, with no geographical exclusion orpre-conditions. SIDF assigns priorities to the least developed,

lowest-income countries.

2.5% service charge rom 5 to 10 years starting ater two years oproduction.

Contact Inormation:

Web:www.sid.gov.saelephone: +966-1-279-4444

Fax: +966-1-464-0246


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Ministry o Economy and Planning3.

Te Ministry o Economy and Planning works to ensures that allgovernment agencies work in a well coordinated and well-inormed

manner to achieve the Kingdoms economic priorities.

Te Ministry o Economy and Planning is responsible or theollowing unctions:

Preparation o a periodic economic report on the Kingdom, eaturing

analysis o the economy, progress made and likely developments.

Preparation o the ve-year development plan.

Estimates the magnitude o nancial resources required or the

implementation o the development plans approved by the Council

o Ministers.

Conducts economic studies as required, submits the ndings and

collects, analyzes and publishes statistical data in economic, social anddemographic elds.

Contact Inormation:

Web:www.mep.gov.saelephone: +966-1-404-9212

Fax: +966-1-405-2051

Ministry o Commerce and Industry (MOCI)4.

Established in 2003, the Ministry o Commerce and Industry isresponsible or all aspects o commercial and industrial activity in

the Kingdom.

Contact Inormation:-

Web:www.commerce.gov.saAddress: Ministry o Commerce and Industry

P.O. Box 1774, Airport Road, Riyadh 11162

elephone: +966-1-401-2220 / 401-4708Fax: +966-1-403-8421

Ministry o Labor and Social Aairs (MOL)5.

Te Ministry o Labor and Social Aairs is responsible or the

development and use o the Kingdoms human resources, includingmanpower planning, labor relations and the general monitoring oall matters relating to employment, such as labor visas.

Leadership: Eng. Adel Faqeeh, Minister o Labor

Contact Inormation:

Web:www.mol.gov.saAddress: Omar Bin Al-Khatab Street, , Riyadh 11157

elephone: +966-1-477-1480 / 478-7166

Fax: +966-1-477-7336


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General Directorate o Passports (GDP)6.

Te General Directorate o Passports is responsible or implementing

and monitoring policies and programs related to residency and

human tracking within Saudi Arabia, such as:

Te Iqama (Residence Permit) System organizing expatriate arrivals in

the Kingdom and related visa, registration and renewal issues.

Monitoring and regulation o arrivals and departures o individuals

into and out o the Kingdom.

Te regulation and monitoring o companies and establishments that

employ non-Saudis and aliens.

Contact Inormation:

Web:www.gdp.gov.sa

Address: Alersdq Street, Riyadh 11184

elephone: +966-1-477-1100Fax: +966-1-477-8835

Department o Zakat and Income ax (DZI)7.

As part o the Ministry o Finance and National Economy, theDepartment o Zakat and Income is responsible or tax policy andtax collection in the Kingdom.

Contact Inormation:

Web:www.dzit.gov.saAddress: Department o Zakat and Income ax, Riyadh 11187

elephone: +966-1-401-0182 / 404-1537

Fax: +966-1-404-1495

General Organization o Social Insurance (GOSI)8.

Te General Organization or Social Insurance (GOSI) administersthe Kingdoms national insurance program by paying allowances and

other compensations to individuals and amilies in the Kingdom.

Contact Inormation:

Web:www.gosi.gov.sa

Address: General Organization o Social Insurance, P.O. Box 11421Riyadh

elephone: +966-1-477-7735

Fax: +966-1-477-9958


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3. INVESMEN SECOR GUIDEGood places to put your money around the Kingdom, an increasingly diverse range o industrial

sectors are taking root. And in strategic locations.

When you think about Saudi industries, you probably think o Oil which remains the Kingdomsmost prominent sector. But theres also a much bigger picture. While the Energy sector itsel is growing,diversication into some areas has which has created huge investment potential in everything rom

ransport and Inormation echnology to Health, Lie Sciences and Education.

Crude Oil Rening

With the worlds largest proven oil reserves and global demand expected to remain strong, Saudi

Armcos oreign partnership projects aim to develop three new export orientated reneries, oering very

substantial investment opportunities to investors, in the progressively deregulated Saudi markets.

Petrochemicals

Saudi Arabia is the worlds 11th largest petrochemical supplier and has become a member o theWO, which provides ree access to new global export markets. Te Kingdom has also opened up its

rapidly developing petrochemical industries to private-sector investments creating signicant business

opportunities or Investors.

Fertilizers

With a natural abundance o world-class phosphate deposits, natural gas, sulur and potash, SaudiArabia not only has competitive advantage through its Geographical Location between markets in Asia,

Europe and North America, but also is well-placed to Fertilizers to Asias booming markets supply and

secure low-cost.

Power and Water

A sharp population growth and huge investments in social and industrial develop-ments has lead to an

extremely high demand or power stations and desalination plants in many key regions in the Kingdom.Operators in the Kingdom enjoy some o the highest annual growth rates in the world and, with strong

prot margins, have created excellent investment opportunities or long-term assets.

Mining and Metal Processing

Well-documented rich deposits o bauxite, phosphate, zinc, copper and gold and a multi-billion-

dollar initiative to develop the Kingdoms aluminum sector demonstate Saudi Arabias commitment tothe industry. Te Kingdoms new mining code, tax reductions, low-cost energy and gas, provide excellent

investment and exploration opportunities in the vast unexplored landmass.

ransport and Logistics

Saudi Arabia has begun large-scale investments in sophisticated transport networks and inrastructure

projects that will be supported massive capital spending o $100 Billion over the next 10 years, with

strong domestic growth and cheap energy supplies. With a highly stable, competitive and increasinglyliberal business environment, the Kingdom has the potential to become a global transport and logistics

hub.


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Inormation and Communication echnology (IC)

With the largest IC market in the Middle East, Saudi Arabia has embarked on a 20 year ICplan that will be supported by massive public investment. With clear signs o rapid growth, increased

government usage o web-based services.

Health

Saudi Arabias expanding healthcare system oers attractive investment opportune ties. Aided by large

budget surpluses,the public sector is set to make unprecedented investments the healthcare system to providecare or the rapidly expanding popullation o the Kingdom. Te imminent need or a comprehensive

inormation management system will also provide extensive private-sector opportunities to contribute to

the emerging healthcare market.

Lie Sciences

One o the Saudi Governments top economic priorities is to develop a Lie Sciences industry. Te

Government oers signicant nancial grants or R&D opportunities in pharmaceuticals, medical devicesand agrochemicals.Domestic and regional end-markets also present an attractive investment prole in

the Kingdom and its neighboring economies. Saudi Arabia also provides an excellent export platorm tothe vast healthcare and agrochemical markets o Europe and Asia.

Education

Saudi Arabia has initiated a complete overhaul o its education system at a cost o $3.1 billion. Witha growing population demand or high-quality education, the Government has an ambitious public

investment campaign to bring knowledge intensive industries to the Kingdom providing the privatesector and oreign organizations with an opportunity to enter the theEducation sector.


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4.1. Introduction

Jubail and Yanbu, two cities in the Kingdom o Saudi Arabia,

constitute a unique experiment in development which has provedoutstandingly successul.

Tese two cities, conceived on the drawing board, were planned to

provide a purpose-built and highly ecient environment or modern

industrial production. Tese industrial complexes, built at Jubail on

the Arabian Gul and Yanbu on the Red Sea by the Royal Commission

or Jubail and Yanbu (RCJY), are the key to the Kingdoms national

industrialization plans. Tey provide the basis or the Kingdoms program

to develop industries which are hydrocarbon-based and energy intensive.

Te major objective o the massive investment in these industrial cities isto reduce the Kingdoms dependence on oil revenues by gaining access

to the worlds petrochemical markets. Tis route to industrialization

exploits the Kingdoms natural resources, in terms o advantaged energy

and raw materials or petrochemical manuacture.

On 21 September 1975, the Royal Commission or Jubail and Yanbu

was established as an autonomous organization o the Saudi Government.

Te Commission is governed by a Board o Directors and its Chairman

reports to the Council o Ministers. Te Chairmans oce in Riyadh

ormulates the policies and oversees them besides implementing the same

through the two CEOs, one each or the cities o Jubail and Yanbu.

4. ROYAL COMMISSION FOR JUBAIL AND YANBU


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Tis decision made by the Kingdom o Saudi Arabia in 1975 to develop Jubail and Yanbu into a world

class integrated petrochemical hub changed the course o history or these obscure coastal towns orever.

ogether they represent one o the planet earths largest civil engineering and construction projects ever

undertaken. Rising out o the salt ats and sand dunes o Jubail & Yanbu, have emerged some o the worlds

most technologically advanced petrochemical plants, supported by an inrastructural backbone that is secondto none anywhere in the world. o ensure these plants comply with the concept o sustainable development,

a comprehensive environmental protection program was purposeully designed by RCJY in Jubail and Yanbu

rom the very beginning. Its commitment to environmental protection has been duly recognized with its

winning numerous international awards. With such an astute and visionary management approach, RCJY has

successully developed the twin cities o Jubail and Yanbu into the ultimate Global Petrochemical Hub o the

twenty rst century, attracting the nest and oremost global players in the industry.

4.2. Strategic Vision Master Plan

How did this vision come about? Who are the architects behind this amazing oresight? How has this been

made possible? Tese are some o the compelling questions that have oten been asked. Te answer must liewith the two key actors that ensured its success leadership and teamwork.

Right rom the beginning, RCJY, together with its partnership with Bechtel & Parsons, was led by a dynamic

leadership marked not only by its outstanding long range vision, but the commitment, energy, discipline and

single mined sense o purpose o bringing this grand vision to ull realization. Backing the leadership was a

team o highly skilled and dedicated proessionals brought in rom around the world, representing a talent pool

o the best engineering, construction and project management personnel. It was this team that had worked

tirelessly over the years to see to the successul implementation o the dierent phases o building this Global

Petrochemicals Hub.

Besides the element o manpower, there was the abundance o natural resources. As associated gas was

readily available, producing petrochemicals, uels and other eedstock became the natural downstream

industry. Te output o this industry not only increased value-added exports but also provided critical raw

material eedstock or the development o secondary industries, including agricultural ertilizers, cement, steel

and various consumer products or the domestic and export markets.

Te other key component o the strategy was the substantial investment o over $25 billion sunk in or the

building o a world class inrastructure to support these industries. Substantial investments were also made

or promoting the welare and betterment o the Saudis and residents in the areas o health care, education,

housing, religious and community lie. o support the signicant national manpower demands driven by

these massive industrial development projects, a comprehensive human resources master plan or the countrywas put in place. Tese included the establishment o industrial colleges and technical institutes to provide

advanced technical and vocational training whose curriculum has been tailored to match the needs o the

industry.

4.3. New Growth New Challenges

otal investment in Jubail and Yanbu have grown to more than $130 billion (SR 500 billion). Evidence

o the Royal Commissions success in building the integrated Global Petrochemicals Hub can be seen in the

presence o about 300 petrochemicals and related companies in the region, creating precious jobs. In act Jubail

alone is estimated to account or approximately 70% o Saudi Arabias non-petroleum exports, 11.5 per cent

o the countrys Gross Domestic Product and 7 per cent o the worlds petrochemicals. Tis success promptedthe Royal Commission to launch Jubail 2 and Yanbu 2 in 2006 to meet projected demands in the coming

decade.


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4.4. Yanbu Industrial City (MYAS)

Yanbu Industrial City is located on the Red Sea coast some 350kilometers northwest o Jeddah. It is approximately 30 years old.

Tis modern industrial center plays a major role in the Saudi Arabiandynamic economy. Yanbu has become a hub o the kingdom` s majorhydrocarbon - based and energy -intensive industries

Yanbu is the western terminal o the pipeline that transportnatural gas and crude oil some 1,200 kilometers across the Kingdom

rom the Eastern Province. Most o the oil is exported to worldmarkets. Some o the crude oil, plus the sales gas (natual gas rich

in methane), and Natural Gas Liquid (NGL) serve as eedstocks or

Yanbus Petrochemical Industry.

About two-thirds o the citys 187 square kilometers consisto industrial sites. Yanbu industrial City is being expanded by

adding another 420 Km (Yanbu 2). Yanbu is currently host to 32

hydrocarbon, petrochemical, and mineral industries, as well as 49light manuacturing and support industries. More than 63 new

industrial plants are in various stages o planning and construction

With this solid economic base, Yanbu is a ocal point or investors.

o date, industrial developers alone have invested over SR 78 billionat Yanbu, while the Royal Commission (RC) has committed nearly

as much to inrastructure or this state-o-the-art city. Now the total

private sector in investment in Yanbu has reached approximatelySR 106 billion.

Commercial and residential developers have ollowed the lead

o the industrialists, supplying a wide range o goods, services, and

housing or the communitys increasing population, which amountsto currently 136,000 and growing by an average 6% annually.

Another 49,900 people, employees working in MYAS plus their

dependents are supported by the MYAS economy.

Yanbus growth is easy to explain. Good job prospects, beautiullylandscaped residential areas, a choice at coastal location, and

numerous outstanding social inrastructures, services, and

recreational possibilities oer people an exceptional quality o lie.


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4.5. Yanbu 2

Te expansion program o Yanbu 2 has been planned on a 2-phases

approach. Phase 1 comprises expansion in the light industrial

parks, primary and secondary industries, the port expansions andcommunity expansion. Government investment o $3.2 billion is

expected to attract about $30 billion by way o private investment.

Te $5.3 billion (SR20 billion) Yanbu National Petrochemicals

Co. (Yansab) with an annual production capacity o 4 million tonso petrochemicals is already in operation. Several inrastructure

projects such as distribution o power, to improve inrastructure or

light industries, to build inrastructure or neighborhood, etc. arealready in place. Tere are also many educational projects being

undertaken concurrently the building o 2 universities or boys and

girls, the Yanbu echnical Institute and an enlarged Yanbu IndustrialCollege.

Yanbu Industrial City is additionally being transormed into a

tourist destination. Eorts are being made to implement various

projects including developing a marina area to attract tourists. TeRCJY is currently implementing new projects worth $400 million

(SR1.4 billion) in Yanbu, including a searont project, college

buildings or girls, and inrastructure projects including main andsubsidiary roads. Covering an area o 11 kilometers, the searont

project will boost tourism in Yanbu and create more jobs or Saudis.Te searont project will attract at least 500,000 tourists every year.

Te project includes recreational centers, resorts, marine games and

cultural projects.

Prince Saud Bin Abdullah Bin Tunayan, Chairman o theRCJY, personally inspected the projects recently, including the home

ownership program or RCJY employees in Jabriah District, where

693 housing units have been completed at a cost o $190 million(SR727 million).

Te buer zone project, ocially opened by Prince Saud, isspread over an area o 9 kilometers along King Abdul Aziz Road.

As many as 22,000 trees and 200,000 owering plants have beenplanted in the area, which has greenery covering 70,000 square

meters. In addition to pathways or joggers, the area has resting

places, recreational acilities or children, a large prayer area andparking or 600 vehicles.


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4.6. MYAS POPULAION

In 2009, the estimated Saudi resident population o Yanbu

Industrial City (MYAS) was 53,600 and non-Saudi residents 17,000

giving the total o 70,500. For the year 2010, the estimated Saudiresident population is 68,300 and is projected to increase to 140,132

in 2015 (or 105.15%). Moreover, or the year 2010, the estimatednon-Saudi resident population is 18,629 and is projected to increase

to 23,848 by 2015 (or 28.02%). Overall MYAS resident population

is projected to increase by 60% rom 2010 to 2015, i.e. rom 87,000to 164,000.

4.6.1. MYAS Supported Population

In 2009, the estimated Saudi supported population o Yanbu

Industrial City was 77,000 and non-Saudi supported population

34,300 giving the total o 111,300. For the year 2010, the estimatedSaudi supported population is 95,300 and is projected to increase to

194,500 by 2015 (or 104.11%). Moreover, or the year 2010, theestimated non-Saudi supported population is 41,500 and is projected

to increase to 57,200 by 2015 (or 37.74%). Overall MYAS supported

population is projected to increase by 84% rom 2010 to 2015, i.e.rom 136,797 to 251,681. MYAS supported population is dened as

those living inside MYAS and those employees working inside MYAS

but living outside o MYAS plus their amilies. In short, those peopledirectly benetting rom the economic activities o MYAS.

4.6.2. MYAS Primary Students

In 2009, the number o Primary Boy students at Yanbu IndustrialCity was 4,580 and the number o Primary Girl students was 4,460

giving a total o 9,040 MYAS primary students. For the year 2010,

the estimated number o Primary Boy students o MYAS is 5,705 andis projected to increase to 10,705 by 2015 (or 87.64%). Moreover,

or the year 2010, the estimated number o Primary Girl students is

5,515 and is projected to increase to 10,272 by 2015 (or 86.26%).Overall MYAS Primary students over the same time period will

increase by 87%,i.e. growth rom 11,200 to 21,000 students.

4.6.3. MYAS Intermediate Students

In 2009, the number o Intermediate Boy students o YanbuIndustrial City was 2,058 and the number o Intermediate Girl

students was 1,811 giving a total o 3,869 intermediate students. For

the year 2010, the estimated number o Intermediate Boy studentsis 2,231 and is projected to increase to 3,923 by 2015 (or 76%).

Moreover, or the year 2010, the estimated number o IntermediateGirl students is 2,053 and is projected to increase to 3,937 by 2015

(or 92%). Overall MYAS intermediate students over the same timeperiod will increase by 83.5%,i.e. growth rom 4,284 to 7,860students.


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4.6.4. MYAS Secondary Students

In 2009, the number o Secondary Boy students o Yanbu Industrial City (MYAS) has reached 1,711and the number o Secondary Girl students was 1,703 giving a total o 3,414 MYAS secondary students.

For the year 2010, the estimated number o Secondary Boy students o MYAS is 1,912 and is projected to

increase to 2,986 by 2015 (or 56.17%). Moreover, or the year 2010, the estimated number o SecondaryGirl students is 1,857 and is projected to increase to 2,898 by 2015 (or 56% growth). Overall MYAS

secondary students over the same time period will increase by 56%,i.e. growth rom 3,769 to 5,884

students.

4.6.5. Yanbu Industrial College (YIC)

Yanbu Industrial College (YIC) is a pioneer industrial college established in 1989 under the umbrellao Te Royal Commission or Jubail & Yanbu. Te main objective o the college is to provide quality

education and training in the elds o Electrical & Electronics Engineering echnology (EEE),

Mechanical Engineering echnology (ME), Chemical Engineering echnology (CHE), IndustrialManagement echnology (IM), and Geomatics Engineering echnology (GME). YIC is committed to

providing high standard proessionally trained graduates needed or the industries in the area. Te mission

o YIC is to prepare young Saudis or middle and high level career positions in Industry, Commerce andGovernment by providing appropriate knowledge and skills in all programs oered. Te college is devoted

to generating, spreading and preserving competency needed to work with others to bring it to bear on the

worlds great challenges.

Te curricula are designed keeping in view the industrial requirement and national objectives coveringpractical aspects and theory. Te major ocus o the courses is to ensure that students gain sound knowledge,

right skills, appropriate attitude in technical areas and work environments. Te process o designing

training programs is initiated rst through an analysis o the employment market, so as to determine whatcompetencies, skills and occupational requirements the industry needs. o direct the Saudi youths into

productive channels and oster a culture o sel-reliance, YIC oers special courses in the development o

entrepreneurial skills. Company-specic programs address training needs within individual companies orindustrial sectors.

External partnerships with customers, suppliers, local and international education organizations. Strategic

partnerships or alliance are increasingly important kinds o external partnerships. Such partnerships might

oer YIC graduates entry into industrial markets or a basis or the services. Also, partnerships might permitthe blending o YIC organizations core competencies or leadership capabilities with the complementary

strengths and capabilities o partners to address common issues.

International accreditation is an objective to align the college direction with international community,

so the college achieved the accreditation rom ACBSB and ABE or some o its programs and YIC willcover all programs and all degrees in the near uture .

4.6.6. MYAS Manpower

In 2009, the estimated number o Saudi employees o Yanbu Industrial City (MYAS) was 22,299 and

28,375. Te total number o Non-Saudi employees was 50,674. For the year 2010, the estimated number

o Saudi manpower is 24,371 and is projected to increase to 47,067 by 2015 (or 93%). Moreover, or

the year 2010, the estimated number o Non-Saudi manpower is 35,164 and is projected to increase to48,100 by 2015 (or 36.79% growth). Overall MYAS manpower over the same time period will increase

by 60%,i.e. growth rom 59,500 to 95,200 workers.


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FREIGH ACIVIIES IN MYAS

TRANSPORTATIONMODE

TOTALFREIGHT

IN OUT COMMENTS

PIPELINE

4.5 Mbpd Crude Oil

(Capacity)

+ 0.27 Mbpd NGL

4.5 Mbpd Crude Oil

(Capacity)

+ 0.27 Mbpd NGL

0 Crude Oil and Gas

TRUCK 5.85 Mtpa 0.7 Mtpa 5.15 MtpaMainly Chemical Products

& Gasoline

SEA 83.0 Mtpa 0.3 Mtpa 82.7 Mtpa Mainly Crude Oil

Mpbd:-Million barrels per day

Mtpa:- Million tons per annum

4.6.7. Freight In MYAS

Freight movement in Yanbu Industrial City (MYAS) was the subject o a comprehensive study carriedout by the Royal Commission (RC) in 2006. Te major ndings are as ollows:

Petrochemicals are the leading type o goods produced at present in MYAS. Tese products are

characterized as medium to high value, export oriented, transported rom medium to long haul,

with Jeddah as primary destination or Gateway.

In 2005, over 5.15 Million tons (Mt) o reight moved out o MYAS, excluding crude oil, petroleumproducts and NGL which are shipped by sea. Out o the 5.15 Mt, approximately 2.03 Mt opetrochemicals, mostly in solid state, moved to Jeddah by trucks.

In 2006, Yanbu region generated over 40,000 tons per day o reight moving out by trucks in thedirection o Jeddah. Tis corresponds to 14.6 Mt o reight per year.

45% o this tonnage has Jeddah as destination or as primary gateway.

50% o this tonnage originated in MYAS.

Petrochemicals represented 16% o total outbound tonnage.

Rened petroleum products represented 38%.

Te Yanbu-Jeddah Expressway is evolving as a major corridor or bulk reight.

Jeddah is a leading gateway to outbound reight rom MYAS and rom the Yanbu Region.


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5. MYAS RANSPORAION SYSEM

5.1. Roadways

areeq Al-Malik Abdulaziz (AMA) is a primary regional road linking YIC to the surrounding;itprovides generally a six-lane divided highway within Yanbu Al-Sinaiyah. Crossroads along AMA are

controlled by trac signals. At present, AMA provides the major roadway access between Yanbu Al-Sianiyah and the Region.

Jeddah Rabigh - Madinah Expresswaylinks Yanbu Region to Jeddah and Al-Madinah and beyond.It provides 2 x 3 lanes with median. It connects with at Al-Muajiz (Km 50).Te 2006 Average Daily rac (AD) along AMA at the northern end between Yanbu Al-Bahr and

Yanbu Al-Sinaiyah has reached 27,000 vehicles, o which 5.5 % are Heavy Vehicles. Te AD at the

southern end, near Km 50, has reached 15,000 vehicles, o which 34% are Heavy Vehicles.Intercity trac volumes between Yanbu Al-Sinaiyah and Yanbu Al-Bahr are signicant and reect the

strong interaction between the two communities.

Bypass Highway. Tis is an extension o the Jeddah Madinah Expressway in Yanbu Region. It consistso approximately 64 kilometers o six-lane divided roadway with ull control o access. It runs along theeastern Royal Commission boundary, and bypasses Yanbu Al-Bahr urbanized areas and the airport. Tesegment o this Bypass Highway within Yanbu Al-Sinaiyah is under construction.

Corniche. Tis is a divided roadway providing access to the searont and intended primarily orrecreational use. It provides 4 or 6 lanes with raised median.

ruck rafc. Yanbu Al-Sinaiyah has more industrial activities than would normally be ound in a cityo its size. At present, the major generators o truck trac are: ARAMCO Yanbu Renery, CRISAL,

LUBEREF, National Gas Company, YANPE, IBN RUSHD, YANSAB and others.A signicant amount o truck trac is generated by construction activities, the Yanbu Commercial

Port, the Yanbu Cement Company plant, solid waste, and other sources. Figure 1 & 2 shows the long

term roadway system o YIC as the basis development o the road and trapsortaion system or the city


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YANBU RANSPORAION SYSEM


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TeLongermRoadwaySystemOfMYAS


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5.2. PUBLIC RANSPORAION

Intercity Bus Service. Te Saudi Arabian Public ransportation

Company (SAPCO) has provided intercity and intracity public

transport within the Kingdom since 1979. SAPCO has one terminalin Yanbu Al-Bahr and one station in Hai Al Nawah in MYAS where

direct travel is available to Madinah, Jeddah and Makkah. Also,direct travel is available rom Yanbu terminal to Cairo, Amman, and

Damascus.

axi and Rental Car Services. axi and rent-a-car services operatein MYAS and Yanbu Al-Bahr. Tese services accommodate shorttrips within MYAS as well as long distance intercity travel, mainly

to Madinah, Jeddah, abuk and others.

Privately Operated ransportation Services. Some Contractorsin Yanbu Al-Sinaiyah operate their own transportation services,primarily to move workers between camps and the workplace.

5.3. RAILROADS

At present, there is no rail service in the Yanbu Region. In thepast, the Hijaz Railway provided rail service between Madinah and

Istanbul via Amman and Damascus. At present, the western railway

section within the Kingdom is abandoned and out o service. Tereis a project or rehabilitating this railway. A rail link Riyadh - Jeddah

- Makkah (Land Bridge) is in the bidding stage or construction.Tis line is expected to serve reight and passengers. Another high

speed rail link between Makkah and Madinah or passengers is in

the bidding stage.

In 2007,RCY carried out a easibility study or a rail link betweenYanbu and Jeddah port. Tis study has led to a Royal Decree making

rail between Yanbu and Jeddah a top priority. Te idea is to link

Yanbu to the Land Bridge in Jeddah. Te main unction o suchlink is to serve solid petrochemicals produced in MYAS and destined

overseas via Jeddah port. Passengers will also be served via such raillink


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5.4. AIR RANSPORS

Jeddah Airport is the closest international airport directlyaccessible to Yanbu Region by air. Madinahs airport is closer than

Jeddahs, but it provides international service to ew destinations. Inturn, Yanbu Airport which is known as Prince Abdul Mohsin Bin-Abdulaziz Airport located 32 kilometers rom the Royal Commission

Headquarter MYAS, provides scheduled ights to Jeddah and

Riyadh.

Yanbu Airport has all the basic acilities or all weather operationswith jet airliners and a modern terminal building or passengers and

air cargo. It provides a 3.8 kilometers runway with visual glide slope

(VASI) lights, an instrument landing system (ILS) and navigationaids (VOR/DME) and taxiway. Tis runway can accommodate large

commercial aircrat such as the Boeing 747 and the largest Airbusplanes. Te apron area is approximately, (340m x 90m) is capable o

parking at least six medium and large size aircrat.

Te airport has been operated by Saudi Arabian Airlines under

the Presidency o Civil Aviation (PCA) since 1981.

Te Bypass Highway under construction provides the possibility

o a direct link between MYAS and Yanbu Airport.

Data on air passengers at Yanbu Airport show that Yanbu Airport

handled some 210,000 air passengers in 2009. Tere were 2,674aircrat movements in 2009 which corresponds to an average o 8

aircrat movements (landing or takeo) per day. Domestic air cargoand airmail combined amounted to 1,782 tons in 2009.Figure 1

shows the table or gures or the passengers and cargo that is handled

annually at Yanbu Airport

For More Inormation you can go to:

Contact Inormation:

Web: www.gaca.gov.saLocation: Located to north east o Yanbu Al Sinaiyah and

at a distance o 32 Km rom the Royal Commission

Lounges & Runways:Arrival Lounge : Area 2,700 M, No. o Seats 24ravel Lounge : Area 2,507.54 M, No. o Seats 24,Departure Lounge : Ground Floor area: 2,609 M, No. o Seats 75One o the longest Runways with length o 3250 M and parallelaxiway Length 3200 M

Aircrat Stands:

Aircrat Stand Length 85.50 M and Width 337.5 M


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ANNUAL AIR PASSENGERS AND CARGO A YANBU AIRPOR 2008-2010

YEAR (2008) (2009) (2010)

Domestic Aircraft Operations

Landing 2190 3250 3932

Take-Off 1920 3007 3812

Total 4110 6257 7744

Domestic Scheduled Passengers

Arrivals 80154 120231 200308

Departures 79522 119283 179884

Total 159676 239514 380192

Air Cargo (Tons)

Arrival 288 300 371

Departure 9 10 18

Total (Tons) 297 310 389

Source: Yanbu Airport 2010


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5.5. SEA RANSPORS

King Fahd Industrial Port (KFIP) at MYAS was completedby the Royal Commission in 1984 and turned over to the Sea Port

Authority (SEAPA).

Te Port resulted rom the decision to locate hydrocarbon industrialcomplexes at MYAS site and to create a terminus or crude oil andNatural Gas Liquids (NGL) pipelines rom the eastern part o theKingdom.YIC is strategically located on the Red Sea, with excellentsea access to Europe via the Suez Canal, and to adequate accessdestinations in the Pacic Rim via the Indian Ocean.

Te Port is able to cope with a total tonnage o 130 million tonsper annum as compared to approximately 80 million handled in2009.

Existing Facilities Te King Fahd Industrial Port at Yanbu is thelargest oil-shipping complex on the Red Sea. It has the largest approachchannels in the Kingdom, extending over 54 kilometers north andsouth, all tted with up-to-date navigational aids, radar and channelmarkers. Te control tower has a new radar installation.

Te Port extends along 19 kilometers o coastline and providesport acilities or the industrial area and the community. Telocation oers deep-water conditions and natural shelter, together

with sucient onshore area and a sucient size and exibilityin the harbor acilities, to accommodate the Ultra Large CrudeCarriers (ULCC) and Very Large Crude Carriers (VLCC) or thehydrocarbon and petrochemical industries. Tis includes the NGLplant, oil and mineral users and general cargo and container users.Tere are a total o seven separate terminals with 24 berths, a service


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harbor, bulk cargo and handling equipment, and marine support acilities, all incorporating modern portoperation technology.

A comprehensive system o approach channels permits a ull range o vessels to saely navigate rom

the open sea into the King Fahd Port. Tese channels provide access to berths in the general cargo area aswell as to those at the petrochemical terminals.

At present, the port does not handle passenger trac.

General Cargo and Container erminal. Tis acility has seven berths (1 7), along a 1,420- meterwhar including one container and one roll-on/roll-o (Ro/Ro) berth. Te access channel has been dredgedto 14 meters below the lowest astronomical tide (LA). Tree 40-ton gantry cranes are available to handlecontainers. Tis terminal handles cargo related to the industrial complex and mainly solid bulk exportslike polyethylene.

Bulk erminal. Te Bulk erminal consists o a whar 500 meters in length with two dry-bulk berths(21, 22). Te whar is 33 meters wide and can accommodate bulk carriers o up to 70,000 dead weighttons (dwt). Te channel o the whar is dredged to 16 meters below LA. Sulur and petroleum productsare exported through this terminal. A bunker station is also running under Bakri International Co..

Saudi Aramco Exxon Mobil Export Renery (SAMREF) erminal. Te Export Reneryerminal has two separate loading areas and a ballast water acility. wo chemical and one renedproducts berth , No. 40, 41 and 42, in the inner basin are 13.5 meter deep, and can accommodate tankersrom 5,000 to 50,000 dwt. SAMREF, YANPE, SAFRA, IBN RUSHID, YANSAB use berth no. 40and 41 or export o petrochemical and rened products such as Glycol, Benzene, Aromatic, Pygas andberth 42 is used or petroleum products. wo other berths No. 54 and 55 are used by SAMREF, dredged

to 18.5 meter in depth, with a loading capacity o 150,000 dwt, and are in the outer basin and are usedby SAMREF or the export o bulk petroleum liquids (gasoline, diesel, jet uel and uel oil).Te terminalsballast water acility with three 50,000 m3 storage tanks and a separator system is capable oprocessing ballast water rom vessels loading at all our berths. All ballast water handled at the acility


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must comply with the current environmental standards.

Saudi Aramco Crude Oil erminal. Tis acility, which has been operated by Saudi Aramco since1981, serves as a tanker-loading terminal or dual pipelines conveying crude oil rom the Eastern Province

to Yanbu. Dredged to a maximum depth o 32 meters, the terminal consists o a jetty trestle with ourloading berths, No. 61, 62, 63 and 64, which are connected to the shore by a reestanding trestle and acauseway. wo o these berths can be used at the same time, providing a maximum simultaneous loadingrate o 300,000 barrels per hour. Tis terminal can handle the largest tanker ever built (500,000 tons).

Saudi Aramco Natural Gas Liquids (NGL) erminal. Te NGL erminal has been operated bySaudi Aramco since 1982. Tis acility has two berths (71 & 72), 18.3 meters below LA, and is designedto load rerigerated Liquid Petroleum Gas (mainly propane and butane) and naphta products or export,and can accommodate vessels ranging rom 20,000 to 230,000 dwt. A 1.85-kilometer-long causeway anda 1.15-kilometer pile-supported trestle connect the shore plant to a two-berth, L-shaped oshore loadingacility. Te trestle carries a pipeway or the product, bunker and utility lines, and a 1.5 meter-wide

pedestrian walkway. Tis terminal does not have a shore based ballast handling acility.

Saudi Aramco Yanbu Domestic Renery erminal. Tis terminal has been operated by Saudi Aramcosince 1983. It includes two outer berths (91 & 92) or vessels with 20,000 to 60,000 dwt capacity dredgedto 16 meters below LA, and two inner berths (93 & 94) or tankers up to 20,000 dwt. Te channels aredredged to 13.5 and 15.5 meters. Tis terminal has no ballast water reception acility. Tis terminal isused or domestic export o rened oil products.

Construction Support erminal. Tis was the rst terminal constructed at MYAS, and was designedespecially or the discharge o materials needed in the initial construction o the Industrial City and portcomplex. It is no longer in regular use. In 1986, the terminal was given over to the Coast Guard, who

maintain security orces to protect the port and terminals.Te terminal consists o a trestle pier and a beachhead heavy lit acility. Vessels may berth on either

side o the pier, which has a width o 30 meters and is 5 meters below LA. Te length o the pier isapproximately 260 meters. Te water depth at the inner and outer berths is 18 meters below LA. Te

water depth o the beachhead is 6 meters below LA. Te beachhead is a heavy lit docking acilitylocated south o the Construction Support erminal, It is capable o accommodating vessels o up to 5meters drat.

Service Harbor.A protected harbor capable o repair and service is an integral part o the port. It isalso the headquarters o the harbormaster, who, rom a 36-meter-high tower, controls the movements oall vessels within the port and in the approach channels. Service vessels include three pilot launches, eightmooring launches, 11 tugboats, a re tender, and an environmental survey launch. A ship-lit is availableto service the small crat and tugs. Te service harbor also has equipment to handle any environmentaland physical damage that might occur during port operations.

Cargo Handled

Te total tonnage handled at various terminals at King Fahd Industrial Port or the period 2000 to2009 is approximately 60% o total tonnage was associated with the export o crude oil. Some 23% was

associated with the Export Renery erminal.

In 2009, 1,608 vessels were handled at the port, representing on average o 4.4 vessels per day at allterminals.


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TRAFFIC

ATKING

FAHD

INDUSTRIALPORT

MetricTo

ns(20002009)

YEAR

NO. OF VESSEL

HANDLED

SAUDI ARAMCO CRUDE

OIL TERMINAL

THROUGHPUT Berths

61-62-63-64

SAUDI ARAMCO NGL

TERMINAL

THROUGHPUT Berths

71&72

SAUDI ARAMCO YANBU

DOMESTIC REFINERY

THROUGHPUT Berths

91-92-93-94

SAUDI ARAMCO MOBIL

YANBU REFINERY

THROUGHPUT Berths

22- 42-54-55

SABTANK

THROUGHPUT Berth 40-

41

GENERAL CARGO &

CONTINER TERMINAL

THROUGHPUT Berths 1-

2-3-4-5-6-7

OTHER TERMINALS

THROUGHPUT Berths

21-22

TOTAL TONNAGE

HANDLED

2000

1774

56,242,161

3,294,967

6,069,789

16,842,000

771,061

210,788

52,498

83,483,264

2001

1819

54,785,372

3,408,516

5,384,553

17,116,532

1,058,501

261,716

208,342

82,223,532

2002

1731

58,755,384

2,629,092

5,953,363

14,595,018

1,089,059

153,901

440,459

83,616,276

2003

1800

63,368,699

2,644,806

6,907,059

18,593,216

1,262,395

91,123

383,860

93,251,158

2004

1800

69,177,615

2,695,924

7,762,497

19,672,811

1,367,217

23,756

469,024

101,168,844

2005

1833

50,245,530

2,857,240

8,357,306

19,385,314

1,263,574

25,881

565,675

82,700,520

2006

1766

52,416,541

2,989,357

8,298,179

17,365,933

1,445,420

60,981

1,096,725

83,673,136

2007

1658

41,020,748

2,606,171

71,134,873

19,349,178

1,377,228

142,735

850,792

72,481,725

2008

1685

45,661,197

2,308,561

6,841,913

19,037,961

1,450,017

231,573

1,208,477

76,739,699

2009

1608

47,956,687

(60.06%)

2,660,444

(3.33%)

7,025,788

(8.80%)

18,494,649

(23.16%)

1,771,076

(2.22%)

555,629

(0.70%)

1,386,749

(1.74%)

79,851,022


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able 2 provides a breakdown o cargo type and tonnage handled at the port or three years. Generalcargo and bulk solids amounted to only 0.65 million tons in 2009, which represented was, 0.81% o total

cargo.

ABLE 2CARGO DISRIBUION BY YPE, KING FAHD INDUSRIAL POR, YANBU

(Million Metric ons)

YEAR 2007 2008 2009

Bulk Solids 0.18 0.27 0.40

Bulk Liquids 31.16 35.51 32.34

General Cargo/Containers 0.09 0.10 0.25

Crude Oil 41.05 40.86 46.86

Total 72.48 76.74 79.85

Table 2 shows the type of cargo distribution between 2007 to 2009 handled at KFIP

ABLE 3

CARGO HANDLED, IMPORS & EXPORS (2009) (Excluding Crude Oil)

Metric ons

Cargo Type Imports Exports Total

Bulk Solids 249,708 153,338 403,046

Bulk Liquids 3,976,961 28,358,680 32,335,641

General Cargo/Containers 1,834 247,383 249,217

Total 4,228,503 28,759,401 32,987,904

Container (Numbers TEUS) 7 14,781 14,788

Table 3 shows that exports in 2009 constituted 98.5% of total cargo handled at KFIP

For More Inormation You Can Go visit:Contact Inormation:-

Web: www.ports.gov.saAddress: King Fahd Industrial Port, P.O.Box 30325 Yanbu,

Saudi Arabia

elephone: +966-4-3967037Fax: +966-4-3967000


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KING FAHD INDUSRIAL POR


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FACILIIES A KING FAHD INDUSIAL POR(KFIP)


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ABLE 4

KING FAHD INDUSRIAL POR

POR CAPACIY (OPERAIONAL) BY ERMINAL AND USE (2009)

Terminals & Berths User

Tonnage

(millions tons per

year)

Capacity

(millions tons per

year)

Capacity used

2009

1. General Cargo & Containers/

Berths 1-7Red Sea Marine 0.56 5.38 10.33%

2. Bulk Terminal/ Berths 21 & 22

Bakri

SAMREF

ARABTANK

1.54 1.47 104.8%

3. Chemical Terminal/ Berths 40

& 41

SABTANK 1.77 2.17 81.6%

4. Export Refinery Terminal/

Berths 42, 54, 55SAMREF 18.34 22.0 83.4%

5. Crude Oil Terminal/ Berths 61,

62, 63, 64ARAMCO 47.96 83.0 57.8%

6. NGL Terminal/ Berths 71 & 72 ARAMCO 2.66 7.0 38.0%

7. Yanbu Domestic Refinery

Terminal/ Berths 91,92,93,94ARAMCO 7.03 9.0 78.1%

Total 79.85 130.02 61.4%

Yanbu Commercial Port

Existing Facilities. Te Existing acilities consist o 9 berths o which 6 berths are or general cargo, 2berths or bulk cargo and 1 berth or Ro/Ro.

Te 9 berths total approximately 2,000 meters, with a water depth o 9 meters or unloading ships atanchor in the harbor. Major equipment include oating cranes, mobile cranes o 30 to 50 tons carrying

capacity, orklits and a mobile repair unit. Marine equipment includes motorized lighters, pontoons,

tugboats and pilot boats. Backup space includes a 9,900 square meter transit shed, a 5,600 square metercustoms hall or Hajjis and administrative oces, and an additional 56,000 square meters o open storage

area.

Te Ministry o Commerce has a bulk grain storage acility. Tere is also a bulk cement terminal or

unloading ships, bagging cement, and loading trucks. Tis acility is designed to handle 700,000 tons ocement a year per one berth. With the construction o the cement plant at Ras Baridi north o Yanbu,

this terminal is no longer active.

Cargo Handled.It appears that the port activities have been limited to general cargo (mainly buildingmaterials) and oodstu. In recent year, with the erection o the cement plant north o Yanbu, the amount

o cement handled at the port has become insignicant. At the present time, there is no passenger trac

through the port. In the past, Yanbu was a port o entry or Hajj pilgrims arriving by sea, mainly romneighboring Arab countries.


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6.1. Power:-

Te power plant consists o our 127MW Steam urbineGenerators(SG), and nine Gas urbine Generators (GG). One new SG

unit with rating 137 MW SG is in service since November 2007.otal installed generation capacity is 1039 MW. MARAFIQ Power

Grid connected to Saudi Electric Company (SEC) through our

250 MW, and 115/380 KV (Synchronizing ransormers) 380 KV intertie overhead transmission lines (ie Line 8 & ie Line 9).

Te transmission and distribution (&D) system within the city is

through underground eeder cables. Large industrial users are suppliedat 115 KV and other industrial users are supplied at 34.5 KV and

13.8KV depending on power requirements. Te distribution in the

community is at 13.8 KV. Te &D system includes the ollowing

major components.

Intertie Station with Saudi Electric Company (SEC) Grid(380 KV)

115 KV SwitchyardTree 115/34.5/13.8 KV Substations (1A, 2B, 3C)wo 115/13.8 KV Substation (5E, 6F)One Substation (4D) 115/34 KV34.5/13.8 KV Substations or Light Industries at LIP.

Tere are two 380/115/34.5/13.8 KV substations in commissioning

stage SSPP 3 X 500 MVA transormer rating and 9ISIS which will

be in service by June 2010, and Substation 10J, Red Sea ReningCompany. Tis project will be in service in June 2012.

6. MYAS INFRASRUCURE:-


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6.2. Seawater Cooling System

Te Seawater Cooling System in Yanbu Al Sinaiyah serves the

power station and various primary and secondary industries with

bulk non-contact cooling water and the desalination plant with eedwater through a dynamic closed pressurized system. Tis is a vital

utility or continuous operation o these heavy industries and thepower and water production acilities. Water is drawn rom and

discharges into the Red Sea via separate channels. Te system has the

ollowing principal elements:

Dredged intake channel: Pumping station including screens,1.pumps and chlorination plant.

Distribution pipelines: Supply and Return pipelines, outall2.

and dredged discharge channel, support and ancillary acilities.Currently the average demand or SWC is some 6.1 M m3per day (250,000 m3/hr), although this peaks slightly duringthe summer months. Te industry maniold presently deliversabout 135,000 m3/hr and the uility maniold 115,000 m3/hr.

Intake and Discharge channels: Seawater is drawn rom the3.dredged intake channel with rock berms which is approxi-mately 2.2 km long, 100-120 m wide and up to 12m deepequipped with breakwaters, oil booms, oil sensors and oilskimming equipment (although oil pollution in the Red Sea

is limited risk). Te supply canal draws water rom the northand discharge to the south thus drawing cooler water rom thedeeper waters o the Red Sea and avoiding any short-circuiting.Te cooling water is then pumped by industries ater use intothe return pipelines directly to the head works on the dischargechannel. Te discharge head works is provided with a weir toensure the return pipelines remain primed with seawater.

Te Seawater Cooling Pump Station consists o an intake4.pumping structures eeding into two (2) maniolds. One man-iold eeds the industries and the other eeds the Power and

Desalination plants (PD). Te eed to the industries and plantsis through large diameter berglass reinorced pipes (FRP). Tecapacities o pumps in each maniold are as ollows:

Industrial Maniold

a) 2 pumps each 25,000 m3/hr

b) 3 pumps each 50,000 m3/hr

c) 2 pumps each 60,000 m3/hr

Utility Maniold

a) 2 pumps each 25,000 m3/hrb) 3 pumps each 50,000 m3/hr

c) 1 pump each 60,000 m3/hr


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6.3. Potable and Process Water System

Potable and process water in Yanbu Al Sinaiyah is produced by

six (6) 380 m3/hr and three (3) 570 m3/hr multi-stage ash (MSF)

distillation seawater desalination units. Te steam requirement orthese units is supplied by heat recovery steam generators (HRSG)

utilizing the waste heat rom the gas turbines with 4 HRSGs o adesign capacity o 159 ton/hr each and one HRSG with a design

capacity o 171 ton/hr. Emergency steam supply or the MSF units

can be supplied rom the Steams urbine Generators (SG). Tedesalinated water is converted to potable water by adding lime and

carbon dioxide with the injection o chlorine and aeration. Te

process water or industrial use is obtained by adjusting the pH withcaustic soda.

Reverse Osmosis (RO) seawater desalination units with a designcapacity o six (6) 350 m3/hr have been in operation since 2006. Te

water distribution network includes the ollowing:

Potable Water

a) 527 Km o ransmission and Distribution pipingb) 3 main pumping stations

c) 280,000 m3 bulk storage capacity

Process Water

a) 34 Km o distribution pipingb) One main pump station in PD&SC

c) 120,000 m3 bulk storage capacity.


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6.4. Water waste reatment Plant

Tere are two separate wastewater collection systems at Yanbu:

an Industrial Wastewater System which collects ows rom primary

and secondary industries and a Sanitary Wastewater System whichcollects all sanitary ows rom industries and community areas within

the industrial city. Industrial water waste treatment requirements aredierent than those or sanitary wastewater, thereore the two waste

streams are conveyed to separate industrial and sanitary water waste

treatment plants. Te principal characteristics o the systems is asollows:

Length Pipelines: Industrial 52 KM

Sanitary: 477 KM

Pumping Stations: Industrial 16

Sanitary 36

Wastewater rom Yanbu Industrial City is treated at two central

wastewater treatment plants. Industrial wastewater treatment plants(IWP) and Sanitary Wastewater reatment Plant (SWP). Both

plants are located in a single complex immediately to the south o

the power desalination and seawater cooling (PD&SC) plant.

Te Sanitary Wastewater reatment Plant has a design capacity o

27,000 M3/day and the Industrial Wastewater reatment Plant hasa design capacity o 24000 m3/day. Te treated efuent rom SWP

is used or irrigation purposes through the irrigation water system.


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7.1. Utility ari

Diesel: SR 0.36 (US $ 0.096) per liter.

Industrial Fuel Oil: SR 0.125 (US $ 0.033) per liter.

Sakes Gas and Ethane: SR 2.81 (US $ 0.75)/MMBU.

Electricity:

Electricity & Co-Generation Regulatory Authority (ECRA)

http://www.ecra.gov.sa/home.aspx is a nancially and administrativelyindependent Saudi organization , which regulates the electricity and

water desalination industry in Saudi Arabia

SR 0.12 (US$ 0.032) per kwH industrial use

SR 0.05 (US$ 0.013) per kwH or a minimum up to 2,000kwH or residential use, rising over eight bands in accordance

with consumption.

Water:

Services (Unit of Measurement per m3) Rates(SAR)/m3

Potable Water 6.60

Truck Fill-Potable Water 5.50

Active Construction 5.50

Process Water 6.60

Sea Water Cooling 56.78/100

Sanitary Wastewater 5.37

Industrial Wastewater 3.93

Reclaimed/Irrigation Water 1.65

Truck Fill -Irrigation 1.65

7. YIC INFRASRUCURE AND UILIIY ARIFF:

Primary, Secondary and Light Industrial Land Rents:

Inside Industrial Areas: SR 4.5 (US $ 1.27) per square meter.

Source : Marag


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7.2. Waste reatment and Disposal:

An integrated waste disposal system ensures that all Yanbu Industrial City wastes are collected, treated,

and disposed o eciently and economically, with minimum risk to public health, pollution o the

environment, or nuisance to the community. Separate systems collect and treat industrial and sanitarywastewaters while solid industrial wastes are disposed in the waste management acility and sanitary solid

waste in a sanitary landll.

YIC manages a 440-hectare landll located in the southeast cornner o the Royal Commission

boundaries. When pending improvements are completed, this landll will accommodate all classes owaste (domestic, construction materials, industrial hazardous and non-hazardous). Te depletion o this

landll amounts to 2 hectares per year. In addition, there is a compost plant in Yanbu Al- Sinaiyah

capable o producing high quality compost rom pre-sorted solid waste and aerobically digested sludge.Te compost plant capacity (assuming 16 hours operation per day) is 400 tons o compostable waste plus

100 tons o sewage sludge (obtained rom the sanitary wastewater treatment plant). At present, the plant

operates ar below capacity.

7.3. Industrial Wastewater:

o dispose o industrial wastewater a special collection and treatment system has been installed as part

o the inrastructure in the citys industrial parks. Sixteen pumping stations orward acceptable industrial

wastewater to a treatment plant, located in the industrial park near the port, where it undergoes threedierent levels o treatment. Ater treatment the efuent can be pumped via an underground reclaimed

water network, back through the industrial park or reuse. Dewatered sludge is disposed o in the waste

management acility in the city.

Te industrial wastewater collection system is generally accessible through a manhole located at theboundary line o each industrial site. In the absence o an existing manhole the developer may be required

to construct one, along with the necessary valve and metering equipment. Flow through the manhole

interconnection will be by gravity, and its velocity should not exceed 2.5 meters per second.

o saeguard the collection and treatment system, industrial wastewater must meet the establisheddirect discharge criteria. Tese are specied in the Royal Commission Environmental Regulation (RCER

2004, Vol. 1) that the Royal Commission issues to all new developers. Tese regulations are upgraded

periodically and RCER 2009 will be implemented soon. Generally the efuent standards prohibit thedischarge o acids, cyanide, volatile components and other substances likely to produce toxic reaction either

directly or indirectly. o ensure compliance, the Royal Commission carries out routine quality control

testing or industrial wastewater. All the acilities must have 72 hours storage capacity or emergencypurposes.

Industrial wastewater at Yanbu Al-Sinaiyah is adequately handled as part o the industry development

plans. At present, the industrial wastewater treatment plant handles the pretreated wastewater rom

industries. Figure 1 show the sanitary Wastewater treatment system available at MYAS. Figure 2 showsthe reserve adequate land or uture expansion o Wastewater reatment Facilities at MYAS. Figure 3

shows the storm drainage system within the planning area that is illustrated within the MYAS boundaries

administrated by the Royal Commission


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Existing Reserve Adequate Land For Wastewater reatment at MYAS


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IndustrialWastewaterSystematMYAS


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7.4. Sanitary Wastewater:

Also serving the industries is a separate sewerage system, which collects and transports sanitary

wastewater to a treatment acility adjoining the industrial wastewater treatment plant. Te system isdesigned to receive wastewater rom oces, caeterias, restaurants, toilets, showers, etc. o ensure that

wastewater is ree rom any traces o industrial wastewater or process wastewater, the developers system

must include oil and grease interceptors/traps.

Te sanitary wastewater collection system is generally accessible through a manhole located at theboundary line o each industrial site. In the absence o an existing the manhole developer may be required

to construct one, along with the necessary valve and metering equipment.

reated sanitary waste water is distributed to the irrigation network and used or landscaping

in the city.


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7.5. Solid Wast:

Te Royal Commission operates a 440 hectare sanitary landll, located at the north eastern cornero the industrial area or the disposal o municipal waste. Tere is a separate well equipped waste

management acility or the disposal o industrial waste.Waste generated in the Industrial City shall be classied into one o the ollowing categories:

Hazardous Waste:1. Tese wastes are dened as any solid, semi-solid, liquid, or contained gaseouswaste, or combination o such wastes, which may because o its quantity, concentration, physical orchemical characteristics pose a hazard or potential hazard to human health or the environment when

improperly treated, stored, transported, disposed o or otherwise managed. Tese wastes shall also include:

Non-hazardous Industrial Waste:2. Tese wastes include solid, liquid, semi-liquid or containedgaseous materials or wastes resulting rom industrial, mining, and agricultural operations and sludge romindustrial, agricultural or mining, water supply treatment, wastewater treatment or air pollution controlacilities, provided that they are not hazardous, municipal or inert wastes as otherwise dened in these

Regulations.Municipal Waste:3. Municipal wastes include garbage, reuse, ood waste, oce waste, waste vegetationand other decomposable material resulting rom operation o residential, commercial, municipal, industrial

or institutional establishments and rom community activities.

Inert Waste:4. Inert wastes are those wastes which are not biologically or chemically active in the naturalenvironment, such as glass, concrete and brick materials, broken clay and manuactured rubber products.

Waste generators shall, through testing o the waste or knowledge o the process by which the waste is generated,

classiy their wastes according to above criteria. Beore transportation o hazardous and non-hazardous industrial

waste away rom a generators acility, either or recycle, reuse, treatment, storage or disposal the generator shall

complete a waste maniest (RCER Vol. 1). All industrial and hazardous wastes generated within the IndustrialCity and not intended or recycle or reuse shall be treated and / or disposed o at the Royal Commission approved

waste treatment/ disposal acilities.

7.6. Preservation o the Environment

In order to ensure that the industrial development o the industrial cities o Jubail and Yanbu were not achieved

at the expense o the natural ecosystem, the Royal Commission established the Environment Control Department

to develop them into world models o environmental planning and sub stainable development. In the planning

and design o the inrastructure, the design criteria enorce conormity to the highest international environmental

standards. Tese included extensive environmental impact assessment studies related to construction as well

as longer term operation o the industrial cities; in the development and enorcement o strict guidelines andregulation relating to domestic and industrial waste water treatment and discharge and abatement o air borne

pollutants; recycling and reuse o wastewater; waste composting programs; in environmentally conscious zoning

and building code regulations; and in the development o extensive environmental monitoring programs. As a

result o its uncompromising commitment to the preservation o the environment, the RCJY has won international

recognition and several awards:

1968 United Nations Sasakawa Award

1988 Kuwait-based Regional Organization or the Protection o Marine Environmental Award

1995 Arab Cities Award or Environmental Protection

1998 Arab League Award in the eld o Environmental Awareness

2002 Arab-European Cooperation Centre at Berlin-Environmental Protection Award

2003 Arab Cities Organization or Environmental Protection Award

2007 Organization o Arabic Cities Environmental Awareness Award


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8. HOW O APPLY FOR AN INDUSRIAL SIE A MYAS

8.1 GENERAL:-

Te ollowing are guidelines or ling a request or an industrial

site in the Primary, Secondary, or Light Manuacturing/Support

Industries Parks in Yanbu Industrial City.

Te Royal Commission leases industrial sites to:

Firms meeting the Yanbu setting criteria, which include :1.

use o indigenous uels and eedstocks.synergy with existing and uture industriesecient use o utilities and inrastructurevalue added to the Kingdoms gross domestic product byserving domestic and export marketsimport substitutionsaety o operations within environmental impact regulationsenhancement o the employment opportunities.

Firms which are licensed by the Ministry o Commerce and2.Industry (MCI),which is the sole authority or grantinglicenses to establish and operate industrial acilities in theKingdom.

In the case o Light Manuacturing/Support Industries,3.rms providing services or goods which are necessary or theongoing support o the Primary and Secondary Industries, as

well as the community


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8.2 Key Steps In Te Overall Process

Step One: ell us what you want to do and what you will need.Show us that you have completed the basic needs or your project

including MCI license, technology agreements and eedstockagreements.

Step wo: We will evaluate your requirements and ater discussionswith you, determine whether your project could t into our industrialcomplex. I so, we will recommend that you be considered or a

site.

Step Tree: When

myas industrial investors guide 2011

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