Kingdom of Saudi Arabia

Royal Commission for Jubail and Yanbu

Royal Commission at Yanbu
Strategic Planning & Investment Development Division
Investor 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) 3216363
Fax : + 966(4) 3216799 / (4) 3963000
2011 - 2012
Table of 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 .........................................17

4.1 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
 4.6.4 MYAS Secondary Students ................................................................ 22
4.6.5 Yanbu Industrial College (YIC) .......................................................... 22
4.6.6 MYAS Manpower ................................................................................... 22
4.6.7 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
 1 - INTRODUCTION
Saudi Arabias 27.1 millions increasingly prosperous consumers are

SAUDI
at the heart of the Middle East/North Africa (MENA) regions 400
million-strong population. One of the worlds 25 largest economies
(24th) and No. 1 in the MENA region, Saudi Arabia ranks 11th out

ARABIA
of 181 countries for the overall Ease of Doing Business, according
to the International Finance Corporation/World Banks Doing
Business report in 2010. The Kingdom is one of the fastest growing
countries worldwide, with per capita income forecast to rise from
$20,700 in 2007 to $33,500 by 2020. In addition, Saudi Arabia is
also the top foreign investment destination in the Arab world and
among the top 20 globally. Saudi Arabia is an exciting and rewarding
place to invest and do business.
The surpluses consistently in excess of 25% of gross domestic
product, Saudi Arabia has ample capital to move the Kingdom
forward by making large investments in targeted areas of
growth. The Saudi economy is supported by one of the
worlds most stable currencies (the Saudi Riyal) and by low
inflation. The government of Saudi Arabia also offers the
6th most rewarding tax system in the world and is also
the 7th freest labor market according to the World
Economic Forum.

4
2. GENARALITIES ABOUT SAUDI ARABIA
This section provides general information about Saudi Arabia that includes its competitive, stable and
growing economy and population.

2.1 Economy and Population

Saudi Arabia has a rapidly growing economy and lies at the heart of
a developing region of the Middle East and North Africa strategically
located between Asia and Europe. Saudi Arabia lies logistically at the
centre of a developing market of 400 million people with growing
demands for goods and services.
Saudi Arabia is the largest free-market economy in the region which
provides easy access to export markets in Europe, Asia and Africa,while
a continuously expanding domestic market population growth with of
2.21%, increasse in the young and consuming population with strong
purchasing power. Saudi Arabia has an impressive record of political
and economic stability and has a modern and expanding, world-class
infrastructure. The investment environment reflects traditions of open
market, led by private enterprise and with investment laws that allow
100% foreign ownership of industrial firms and properties. There are
no restrictions on foreign exchange and repatriation of capital and
profits. Saudi Arabia Corporate Tax Law is among the few countries
to allow companies to carry forward losses indefinitely effectively
relieving businesses of their tax burden until they become profitable.
Saudi Arabia does not impose personal income tax; and labor costs in
almost 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 for 2010 as provided by the Central Department of
Statistics and Information (CDSI) of the Saudi Ministry of Economy
and Planning (MOEP) put the Kingdoms total population at 27.1
million, recording an annual increase of 2.21 percent (2004-2010).
Saudis accounted for 70.4 percent of the population.
More information about the Saudi statistics can be found at the
Ministry of Economy and Planning website www.mwp.gov.sa

5
2.2. Why Choose Saudi Arabia For Business?
1. A country that has redefined itself and opened its doors to investors.
2. A city with more than 45 billion dollars in first-class industrial infrastructure.
3. Vast natural resources at competitive prices.
4. Geocentric location to Europe, Asia, Africa and the Middle East.
5. 21st century, multi-industry business opportunities.
6. A forum that fosters the creation of new business networking and relationship building.
7. A forum that tells you how business is done.
8. A forum that puts all of these elements in one location, around one table, at one time.

2.3. Who Can Establish A Business?

Foreign Investors and Saudi Nationals can establish business in Saudi Arabia.Both will have to
follow the same Licensing procedures outlined in this guide.
Foreign Investment Act defines the Foreign Investor as a natural person of non-Saudi nationality
or otherwise the body corporate, where all partners are non-Saudi nationals
Foreign investments licensed under the provisions of The Act and The Rules may be in one either
of the following forms:-
i. Entities jointly owned by a national and a foreign investor
ii. Entities wholly owned by a foreign investor
The Foreign Investor should not have been:-
Convicted in the past of substantial violations of the provisions of The Foreign Investment Act.
Convicted in the past of financial or commercial violations whether in the Kingdom or in
other countries.
Investors and foreign partners of a Company are required to submit a declaration stating non-
availability of 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 submitted
stating the sponsors non-objection to the return of the investor to the Kingdom for the purpose of
investment
The Saudi Arabian General Investment Authority (SAGIA) is a Saudi government organization
dedicated to improving the countrys investment environment and providing comprehensive services to
investors seeking to pursue business opportunities in the Kingdom. SAGIA is committed to enhancing
the experience of investing and operating in the Kingdom by serving as an information clearing-house,
while providing comprehensive licensing and support services. These are just few examples of how SAGIA
is working to streamline and add value to its interface with investors and businesses.

For More Information about SAGIA kindly log in to www.sagia.gov.sa

6
2.4. Investment Procedure Flowchart

Overview
1 Preparation
Start an Investment in Saudi Arabia

Investment License Application

2 Investment Apply with SAGIA

Licensing
Investment License

3 Residency Open 700 file at Labor Office

700 file

Residencv Card ( Iqama ) for

4 Commercial Apply with MoCI

Registration
Commercial Reaistration

Register With DZIT

Register with GOSI Register with Labour

Commence Business in Saudi Arabia

Decision Process Input/Output

Investment Registration Procedure For A Foreign Investor In Saudi Arabia

7
 Start an Investment in Saudi Arabia
What Is your Are you Register
Business activity using a Name
Structure on the commercial With
Will you Negative name? MOCI
Use? List?

Business Legal Company Bank Minimum

Structure Activity name? Account Capital

Copy of passport
Personal Photos
Foreign CR
Foreign AOA Investment License
Application Form
Balance Sheet

POA
Letter of No Apply with Sagia
Objection

Decision Process Input/Output

Step By Step Preparation Procedure For An Investor In Saudi Arabia

8
 Investment License Application Form

Submit application to Customer Make

Relationship Manager (CRM) at OSS Corrections

Is application complete?

Submit application to License Evaluator

Is application
approved?

Temporary Investment Sagia issues Letter of Rejection

License

Sagia archives original

application

Sagia returns copies of

documents

Investment Licensing Procedure For A Foreign Business Investor

9
 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 financial
incentives.

2.5.1. Regulatory Incentives

The government is also committed to reducing bureaucracy at
all levels and transforming government departments in an effort
to support foreign investment. H.M. King Abdullah chairs the
Saudi Supreme Economic Council, which is in charge of overseeing
privatization and encouraging foreign investment. In 2000, the
Saudi government announced a new Foreign Investment Law,
introducing major regulatory incentives including, but not limited
to the following:-
The establishment of the Saudi Arabian General Investment
Authority (SAGIA), to assist foreign investors in the application
and approval process for operating in the Kingdom.
Accelerated investment application, business registration
and set-up process, with a guaranteed decision for foreign
investment applications within thirty (30) days after
submission to SAGIA.
Equal benefits, incentives and guarantees for foreign investors
and domestic companies.
100% foreign ownership of companies and property.
100% property ownership for foreign investors.
No minimum capital requirement (Query: But there is a table
of minimum capital.
Requirements in the document.
No restrictions on repatriation of capital.
The ability for foreign investors to sponsor foreign employees.

2.5.2 Financial Incentives:
No personal income taxes and only a 20% corporate tax.
Ability to carry forward losses on balance sheets indefinitely.
Foreign investors have access to generous regional and
international financial programs, including:
Arab Fund for Economic and Social Development (AFESD):
Participates in financing economic and social development
projects in Arab countries.
Arab Monetary Fund: Promotes the development of Arab
financial markets and trade among member states; advises
member states on investment of resources.

10
 Arab Trade Financing Program: Provides medium and long term loans to individuals and organizations
for private and commercial trade.
Inter-Arab Investment Guarantee Corporation: Provides insurance coverage for Inter-Arab investments
and export credits against commercial and non-commercial risks.
Islamic Development Bank: Participates in equity capital and grants loans for productive projects and
enterprises. It accepts deposits to mobilize financial resources through Shariah compatible avenues.
Other financial incentives to realize the full potential of your investments in the Kingdom include,
but are not limited to the following:
The Human Resources Development Fund: to support activities related to qualifying, training and
recruitment of Saudi labor.
Preferential allocations of natural gas.
Competitive industrial utility rates for water, power and land.
Large research and development endowments at King Abdullah University for Science and Technology
(KAUST) and King Abdulaziz City of Science and Technology (KACST).

2.5.3 - Foreign Trade

There are a number of potential sources of low cost financing in Saudi Arabia. In addition there are the
typical range of commercial banks and private equity firms

2.5.4 - Custom Duties

Most basic consumer products are duty-free, e.g. sugar, rice, tea, unroasted coffee, cardamom,
barley, corn, livestock and meat (fresh or frozen).
Customs duties of 20% are imposed on some imported commodities for the protection of infant
industries within the Kingdom.
Import duty on other items is 12% ad valorem on the cost, insurance and freight (CIF) value.
A limited number of items are subject to customs duties calculated on the basis of metric weight or
capacity rather than ad valorem; the rates for these items are fairly low..
Special concession is granted to members of the Arab League who are signatories to the Agreement
to Facilitate Trade and Exchange and to organize transit.

11
 2.6. Relevant Government Agencies
Supreme Economic Council: This council was formed in 1999
under the leadership of H.M. King Abdullah. The Supreme
Economic Council is the coordinator between the Kingdoms
many economic agencies, integrating their activities and facilitating
effective decision-making on economic issues.

1. Saudi Arabian Monetary Agency (SAMA)

SAMA is the central bank of the Kingdom of Saudi Arabia, which is
responsible for the following:
Issues the national currency, the Saudi Riyal.
Acts as a banker to the government.
Supervises commercial banks.
Manages the Kingdoms foreign exchange reserves.
Conducts monetary policy for promoting price and exchange-rate
stability.
Promotes the growth and ensures the soundness of the financial
system.
Contact Information
Web: www.sama.gov.sa
Telephone: +966-1-463-3000
Fax: +966-1-466-2936 / 466-296
2. Saudi Industrial Development Fund (SIDF)
The Saudi Industrial Development Fund (SIDF) participates in the
financing of development projects in developing countries. SIDF
makes its contributions through direct soft loans to the governments
of these developing countries, with no geographical exclusion or
pre-conditions. SIDF assigns priorities to the least developed,
lowest-income countries.
2.5% service charge from 5 to 10 years starting after two years of
production.
Contact Information:
Web: www.sidf.gov.sa
Telephone: +966-1-279-4444
Fax: +966-1-464-0246

12
3. Ministry of Economy and Planning
The Ministry of Economy and Planning works to ensures that all
government agencies work in a well coordinated and well-informed
manner to achieve the Kingdoms economic priorities.
The Ministry of Economy and Planning is responsible for the
following functions:
Preparation of a periodic economic report on the Kingdom, featuring
analysis of the economy, progress made and likely developments.
Preparation of the five-year development plan.
Estimates the magnitude of financial resources required for the
implementation of the development plans approved by the Council
of Ministers.
Conducts economic studies as required, submits the findings and
collects, analyzes and publishes statistical data in economic, social and
demographic fields.
Contact Information:
Web: www.mep.gov.sa
Telephone: +966-1-404-9212
Fax: +966-1-405-2051
4. Ministry of Commerce and Industry (MOCI)
Established in 2003, the Ministry of Commerce and Industry is
responsible for all aspects of commercial and industrial activity in
the Kingdom.
Contact Information:-
Web: www.commerce.gov.sa
Address: Ministry of Commerce and Industry
P.O. Box 1774, Airport Road, Riyadh 11162
Telephone: +966-1-401-2220 / 401-4708
Fax: +966-1-403-8421
5. Ministry of Labor and Social Affairs (MOL)
The Ministry of Labor and Social Affairs is responsible for the
development and use of the Kingdoms human resources, including
manpower planning, labor relations and the general monitoring of
all matters relating to employment, such as labor visas.
Leadership: Eng. Adel Faqeeh, Minister of Labor
Contact Information:
Web: www.mol.gov.sa
Address: Omar Bin Al-Khatab Street, , Riyadh 11157
Telephone: +966-1-477-1480 / 478-7166
Fax: +966-1-477-7336

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 6. General Directorate of Passports (GDP)
The General Directorate of Passports is responsible for implementing
and monitoring policies and programs related to residency and
human trafficking within Saudi Arabia, such as:
The Iqama (Residence Permit) System organizing expatriate arrivals in
the Kingdom and related visa, registration and renewal issues.
Monitoring and regulation of arrivals and departures of individuals
into and out of the Kingdom.
The regulation and monitoring of companies and establishments that
employ non-Saudis and aliens.
Contact Information:
Web: www.gdp.gov.sa
Address: Alffersdq Street, Riyadh 11184
Telephone: +966-1-477-1100
Fax: +966-1-477-8835
7. Department of Zakat and Income Tax (DZIT)
As part of the Ministry of Finance and National Economy, the
Department of Zakat and Income is responsible for tax policy and
tax collection in the Kingdom.
Contact Information:
Web: www.dzit.gov.sa
Address: Department of Zakat and Income Tax, Riyadh 11187
Telephone: +966-1-401-0182 / 404-1537
Fax: +966-1-404-1495
8. General Organization of Social Insurance (GOSI)
The General Organization for Social Insurance (GOSI) administers
the Kingdoms national insurance program by paying allowances and
other compensations to individuals and families in the Kingdom.
Contact Information:
Web: www.gosi.gov.sa
Address: General Organization of Social Insurance, P.O. Box 11421
Riyadh
Telephone: +966-1-477-7735
Fax: +966-1-477-9958

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3. INVESTMENT SECTOR GUIDE
Good places to put your money around the Kingdom, an increasingly diverse range of industrial
sectors are taking root. And in strategic locations.
When you think about Saudi industries, you probably think of Oil which remains the Kingdoms
most prominent sector. But theres also a much bigger picture. While the Energy sector itself is growing,
diversification into some areas has which has created huge investment potential in everything from
Transport and Information Technology to Health, Life Sciences and Education.

Crude Oil Refining

With the worlds largest proven oil reserves and global demand expected to remain strong, Saudi
Armcos foreign partnership projects aim to develop three new export orientated refineries, offering 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 of the
WTO, which provides free access to new global export markets. The Kingdom has also opened up its
rapidly developing petrochemical industries to private-sector investments creating significant business
opportunities for Investors.
Fertilizers
With a natural abundance of world-class phosphate deposits, natural gas, sulfur and potash, Saudi
Arabia 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 for power stations and desalination plants in many key regions in the Kingdom.
Operators in the Kingdom enjoy some of the highest annual growth rates in the world and, with strong
profit margins, have created excellent investment opportunities for long-term assets.
Mining and Metal Processing
Well-documented rich deposits of bauxite, phosphate, zinc, copper and gold and a multi-billion-
dollar initiative to develop the Kingdoms aluminum sector demonstate Saudi Arabias commitment to
the industry. The Kingdoms new mining code, tax reductions, low-cost energy and gas, provide excellent
investment and exploration opportunities in the vast unexplored landmass.
Transport and Logistics
Saudi Arabia has begun large-scale investments in sophisticated transport networks and infrastructure
projects that will be supported massive capital spending of $100 Billion over the next 10 years, with
strong domestic growth and cheap energy supplies. With a highly stable, competitive and increasingly
liberal business environment, the Kingdom has the potential to become a global transport and logistics
hub.

15
Information and Communication Technology (ICT)
With the largest ICT market in the Middle East, Saudi Arabia has embarked on a 20 year ICT
plan that will be supported by massive public investment. With clear signs of rapid growth, increased
government usage of web-based services.

Health
Saudi Arabias expanding healthcare system offers attractive investment opportune ties. Aided by large
budget surpluses,the public sector is set to make unprecedented investments the healthcare system to provide
care for the rapidly expanding popullation of the Kingdom. The imminent need for a comprehensive
information management system will also provide extensive private-sector opportunities to contribute to
the emerging healthcare market.

Life Sciences
One of the Saudi Governments top economic priorities is to develop a Life Sciences industry. The
Government offers significant financial grants for R&D opportunities in pharmaceuticals, medical devices
and agrochemicals.Domestic and regional end-markets also present an attractive investment profile in
the Kingdom and its neighboring economies. Saudi Arabia also provides an excellent export platform to
the vast healthcare and agrochemical markets of Europe and Asia.

Education
Saudi Arabia has initiated a complete overhaul of its education system at a cost of $3.1 billion. With
a growing population demand for high-quality education, the Government has an ambitious public
investment campaign to bring knowledge intensive industries to the Kingdom providing the private
sector and foreign organizations with an opportunity to enter the theEducation sector.

16
4. ROYAL COMMISSION FOR JUBAIL AND YANBU

4.1. Introduction
Jubail and Yanbu, two cities in the Kingdom of Saudi Arabia,
constitute a unique experiment in development which has proved
outstandingly successful.

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

provide a purpose-built and highly efficient environment for modern
industrial production. These industrial complexes, built at Jubail on
the Arabian Gulf and Yanbu on the Red Sea by the Royal Commission
for Jubail and Yanbu (RCJY), are the key to the Kingdoms national
industrialization plans. They provide the basis for the Kingdoms program
to develop industries which are hydrocarbon-based and energy intensive.
The major objective of the massive investment in these industrial cities is
to reduce the Kingdoms dependence on oil revenues by gaining access
to the worlds petrochemical markets. This route to industrialization
exploits the Kingdoms natural resources, in terms of advantaged energy
and raw materials for petrochemical manufacture.

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

was established as an autonomous organization of the Saudi Government.
The Commission is governed by a Board of Directors and its Chairman
reports to the Council of Ministers. The Chairmans office in Riyadh
formulates the policies and oversees them besides implementing the same
through the two CEOs, one each for the cities of Jubail and Yanbu.

17
 This decision made by the Kingdom of Saudi Arabia in 1975 to develop Jubail and Yanbu into a world
class integrated petrochemical hub changed the course of history for these obscure coastal towns forever.
Together they represent one of the planet earths largest civil engineering and construction projects ever
undertaken. Rising out of the salt flats and sand dunes of Jubail & Yanbu, have emerged some of the worlds
most technologically advanced petrochemical plants, supported by an infrastructural backbone that is second
to none anywhere in the world. To ensure these plants comply with the concept of sustainable development,
a comprehensive environmental protection program was purposefully designed by RCJY in Jubail and Yanbu
from 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
successfully developed the twin cities of Jubail and Yanbu into the ultimate Global Petrochemical Hub of the
twenty first century, attracting the finest and foremost global players in the industry.

4.2. Strategic Vision Master Plan

How did this vision come about? Who are the architects behind this amazing foresight? How has this been
made possible? These are some of the compelling questions that have often been asked. The answer must lie
with the two key factors that ensured its success leadership and teamwork.

Right from 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 of purpose of bringing this grand vision to full realization. Backing the leadership was a
team of highly skilled and dedicated professionals brought in from around the world, representing a talent pool
of the best engineering, construction and project management personnel. It was this team that had worked
tirelessly over the years to see to the successful implementation of the different phases of building this Global
Petrochemicals Hub.

Besides the element of manpower, there was the abundance of natural resources. As associated gas was
readily available, producing petrochemicals, fuels and other feedstock became the natural downstream
industry. The output of this industry not only increased value-added exports but also provided critical raw
material feedstock for the development of secondary industries, including agricultural fertilizers, cement, steel
and various consumer products for the domestic and export markets.

The other key component of the strategy was the substantial investment of over $25 billion sunk in for the
building of a world class infrastructure to support these industries. Substantial investments were also made
for promoting the welfare and betterment of the Saudis and residents in the areas of health care, education,
housing, religious and community life. To support the significant national manpower demands driven by
these massive industrial development projects, a comprehensive human resources master plan for the country
was put in place. These included the establishment of industrial colleges and technical institutes to provide
advanced technical and vocational training whose curriculum has been tailored to match the needs of the
industry.

4.3. New Growth New Challenges

Total investment in Jubail and Yanbu have grown to more than $130 billion (SR 500 billion). Evidence
of the Royal Commissions success in building the integrated Global Petrochemicals Hub can be seen in the
presence of about 300 petrochemicals and related companies in the region, creating precious jobs. In fact Jubail
alone is estimated to account for approximately 70% of Saudi Arabias non-petroleum exports, 11.5 per cent
of the countrys Gross Domestic Product and 7 per cent of the worlds petrochemicals. This success prompted
the Royal Commission to launch Jubail 2 and Yanbu 2 in 2006 to meet projected demands in the coming
decade.

18
4.4. Yanbu Industrial City (MYAS)
Yanbu Industrial City is located on the Red Sea coast some 350
kilometers northwest of Jeddah. It is approximately 30 years old.
This modern industrial center plays a major role in the Saudi Arabian
dynamic economy. Yanbu has become a hub of the kingdom` s major
hydrocarbon - based and energy -intensive industries
Yanbu is the western terminal of the pipeline that transport
natural gas and crude oil some 1,200 kilometers across the Kingdom
from the Eastern Province. Most of the oil is exported to world
markets. Some of the crude oil, plus the sales gas (natual gas rich
in methane), and Natural Gas Liquid (NGL) serve as feedstocks for
Yanbus Petrochemical Industry.
About two-thirds of the citys 187 square kilometers consist
of 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 49
light manufacturing and support industries. More than 63 new
industrial plants are in various stages of planning and construction
With this solid economic base, Yanbu is a focal point for investors.
To date, industrial developers alone have invested over SR 78 billion
at Yanbu, while the Royal Commission (RC) has committed nearly
as much to infrastructure for this state-of-the-art city. Now the total
private sector in investment in Yanbu has reached approximately
SR 106 billion.
Commercial and residential developers have followed the lead
of the industrialists, supplying a wide range of goods, services, and
housing for the communitys increasing population, which amounts
to 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, beautifully
landscaped residential areas, a choice at coastal location, and
numerous outstanding social infrastructures, services, and
recreational possibilities offer people an exceptional quality of life.

19
 4.5. Yanbu 2
The expansion program of 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 and
community expansion. Government investment of $3.2 billion is
expected to attract about $30 billion by way of private investment.
The $5.3 billion (SR20 billion) Yanbu National Petrochemicals
Co. (Yansab) with an annual production capacity of 4 million tons
of petrochemicals is already in operation. Several infrastructure
projects such as distribution of power, to improve infrastructure for
light industries, to build infrastructure for neighborhood, etc. are
already in place. There are also many educational projects being
undertaken concurrently the building of 2 universities for boys and
girls, the Yanbu Technical Institute and an enlarged Yanbu Industrial
College.
Yanbu Industrial City is additionally being transformed into a
tourist destination. Efforts are being made to implement various
projects including developing a marina area to attract tourists. The
RCJY is currently implementing new projects worth $400 million
(SR1.4 billion) in Yanbu, including a seafront project, college
buildings for girls, and infrastructure projects including main and
subsidiary roads. Covering an area of 11 kilometers, the seafront
project will boost tourism in Yanbu and create more jobs for Saudis.
The seafront project will attract at least 500,000 tourists every year.
The project includes recreational centers, resorts, marine games and
cultural projects.
Prince Saud Bin Abdullah Bin Thunayan, Chairman of the
RCJY, personally inspected the projects recently, including the home
ownership program for RCJY employees in Jabriah District, where
693 housing units have been completed at a cost of $190 million
(SR727 million).
The buffer zone project, officially opened by Prince Saud, is
spread over an area of 9 kilometers along King Abdul Aziz Road.
As many as 22,000 trees and 200,000 flowering plants have been
planted in the area, which has greenery covering 70,000 square
meters. In addition to pathways for joggers, the area has resting
places, recreational facilities for children, a large prayer area and
parking for 600 vehicles.

20
4.6. MYAS POPULATION
In 2009, the estimated Saudi resident population of Yanbu
Industrial City (MYAS) was 53,600 and non-Saudi residents 17,000
giving the total of 70,500. For the year 2010, the estimated Saudi
resident population is 68,300 and is projected to increase to 140,132
in 2015 (or 105.15%). Moreover, for the year 2010, the estimated
non-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% from 2010 to 2015, i.e. from 87,000
to 164,000.
4.6.1. MYAS Supported Population
In 2009, the estimated Saudi supported population of Yanbu
Industrial City was 77,000 and non-Saudi supported population
34,300 giving the total of 111,300. For the year 2010, the estimated
Saudi supported population is 95,300 and is projected to increase to
194,500 by 2015 (or 104.11%). Moreover, for the year 2010, the
estimated 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% from 2010 to 2015, i.e.
from 136,797 to 251,681. MYAS supported population is defined as
those living inside MYAS and those employees working inside MYAS
but living outside of MYAS plus their families. In short, those people
directly benefitting from the economic activities of MYAS.
4.6.2. MYAS Primary Students
In 2009, the number of Primary Boy students at Yanbu Industrial
City was 4,580 and the number of Primary Girl students was 4,460
giving a total of 9,040 MYAS primary students. For the year 2010,
the estimated number of Primary Boy students of MYAS is 5,705 and
is projected to increase to 10,705 by 2015 (or 87.64%). Moreover,
for the year 2010, the estimated number of 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 from 11,200 to 21,000 students.
4.6.3. MYAS Intermediate Students
In 2009, the number of Intermediate Boy students of Yanbu
Industrial City was 2,058 and the number of Intermediate Girl
students was 1,811 giving a total of 3,869 intermediate students. For
the year 2010, the estimated number of Intermediate Boy students
is 2,231 and is projected to increase to 3,923 by 2015 (or 76%).
Moreover, for the year 2010, the estimated number of Intermediate
Girl students is 2,053 and is projected to increase to 3,937 by 2015
(or 92%). Overall MYAS intermediate students over the same time
period will increase by 83.5%,i.e. growth from 4,284 to 7,860
students.

21
4.6.4. MYAS Secondary Students
In 2009, the number of Secondary Boy students of Yanbu Industrial City (MYAS) has reached 1,711
and the number of Secondary Girl students was 1,703 giving a total of 3,414 MYAS secondary students.
For the year 2010, the estimated number of Secondary Boy students of MYAS is 1,912 and is projected to
increase to 2,986 by 2015 (or 56.17%). Moreover, for the year 2010, the estimated number of Secondary
Girl 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 from 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 umbrella
of The Royal Commission for Jubail & Yanbu. The main objective of the college is to provide quality
education and training in the fields of Electrical & Electronics Engineering Technology (EEET),
Mechanical Engineering Technology (MET), Chemical Engineering Technology (CHET), Industrial
Management Technology (IMT), and Geomatics Engineering Technology (GMET). YIC is committed to
providing high standard professionally trained graduates needed for the industries in the area. The mission
of YIC is to prepare young Saudis for middle and high level career positions in Industry, Commerce and
Government by providing appropriate knowledge and skills in all programs offered. The college is devoted
to generating, spreading and preserving competency needed to work with others to bring it to bear on the
worlds great challenges.
The curricula are designed keeping in view the industrial requirement and national objectives covering
practical aspects and theory. The major focus of the courses is to ensure that students gain sound knowledge,
right skills, appropriate attitude in technical areas and work environments. The process of designing
training programs is initiated first through an analysis of the employment market, so as to determine what
competencies, skills and occupational requirements the industry needs. To direct the Saudi youths into
productive channels and foster a culture of self-reliance, YIC offers special courses in the development of
entrepreneurial skills. Company-specific programs address training needs within individual companies or
industrial sectors.
External partnerships with customers, suppliers, local and international education organizations. Strategic
partnerships or alliance are increasingly important kinds of external partnerships. Such partnerships might
offer YIC graduates entry into industrial markets or a basis for the services. Also, partnerships might permit
the blending of YIC organizations core competencies or leadership capabilities with the complementary
strengths and capabilities of partners to address common issues.
International accreditation is an objective to align the college direction with international community,
so the college achieved the accreditation from ACBSB and ABET for some of its programs and YIC will
cover all programs and all degrees in the near future .

4.6.6. MYAS Manpower

In 2009, the estimated number of Saudi employees of Yanbu Industrial City (MYAS) was 22,299 and
28,375. The total number of Non-Saudi employees was 50,674. For the year 2010, the estimated number
of Saudi manpower is 24,371 and is projected to increase to 47,067 by 2015 (or 93%). Moreover, for
the year 2010, the estimated number of Non-Saudi manpower is 35,164 and is projected to increase to
48,100 by 2015 (or 36.79% growth). Overall MYAS manpower over the same time period will increase
by 60%,i.e. growth from 59,500 to 95,200 workers.

22
4.6.7. Freight In MYAS
Freight movement in Yanbu Industrial City (MYAS) was the subject of a comprehensive study carried
out by the Royal Commission (RC) in 2006. The major findings are as follows:
Petrochemicals are the leading type of goods produced at present in MYAS. These products are
characterized as medium to high value, export oriented, transported from medium to long haul,
with Jeddah as primary destination or Gateway.
In 2005, over 5.15 Million tons (Mt) of freight moved out of MYAS, excluding crude oil, petroleum
products and NGL which are shipped by sea. Out of the 5.15 Mt, approximately 2.03 Mt of
petrochemicals, mostly in solid state, moved to Jeddah by trucks.
In 2006, Yanbu region generated over 40,000 tons per day of freight moving out by trucks in the
direction of Jeddah. This corresponds to 14.6 Mt of freight per year.
45% of this tonnage has Jeddah as destination or as primary gateway.
50% of this tonnage originated in MYAS.
Petrochemicals represented 16% of total outbound tonnage.
Refined petroleum products represented 38%.
The Yanbu-Jeddah Expressway is evolving as a major corridor for bulk freight.
Jeddah is a leading gateway to outbound freight from MYAS and from the Yanbu Region.

FREIGHT ACTIVITIES IN MYAS

TRANSPORTATION TOTAL
IN OUT COMMENTS
MODE FREIGHT

4.5 Mbpd Crude Oil 4.5 Mbpd Crude Oil

PIPELINE (Capacity) (Capacity) 0 Crude Oil and Gas
+ 0.27 Mbpd NGL + 0.27 Mbpd NGL
Mainly Chemical Products
TRUCK 5.85 Mtpa 0.7 Mtpa 5.15 Mtpa
& Gasoline
SEA 83.0 Mtpa 0.3 Mtpa 82.7 Mtpa Mainly Crude Oil

Mpbd:-Million barrels per day

Mtpa:- Million tons per annum

23
5. MYAS TRANSPORTATION SYSTEM

5.1. Roadways
Tareeq Al-Malik Abdulaziz (TAMA) is a primary regional road linking YIC to the surrounding;it
provides generally a six-lane divided highway within Yanbu Al-Sinaiyah. Crossroads along TAMA are
controlled by traffic signals. At present, TAMA provides the major roadway access between Yanbu Al-
Sianiyah and the Region.
Jeddah Rabigh - Madinah Expressway links 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).
The 2006 Average Daily Traffic (ADT) along TAMA at the northern end between Yanbu Al-Bahr and
Yanbu Al-Sinaiyah has reached 27,000 vehicles, of which 5.5 % are Heavy Vehicles. The ADT at the
southern end, near Km 50, has reached 15,000 vehicles, of which 34% are Heavy Vehicles.
Intercity traffic volumes between Yanbu Al-Sinaiyah and Yanbu Al-Bahr are significant and reflect the
strong interaction between the two communities.
Bypass Highway. This is an extension of the Jeddah Madinah Expressway in Yanbu Region. It consists
of approximately 64 kilometers of six-lane divided roadway with full control of access. It runs along the
eastern Royal Commission boundary, and bypasses Yanbu Al-Bahr urbanized areas and the airport. The
segment of this Bypass Highway within Yanbu Al-Sinaiyah is under construction.
Corniche. This is a divided roadway providing access to the seafront and intended primarily for
recreational use. It provides 4 or 6 lanes with raised median.
Truck Traffic. Yanbu Al-Sinaiyah has more industrial activities than would normally be found in a city
of its size. At present, the major generators of truck traffic are: ARAMCO Yanbu Refinery, CRISTAL,
LUBEREF, National Gas Company, YANPET, IBN RUSHD, YANSAB and others.
A significant amount of truck traffic 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 of YIC as the basis development of the road and trapsortaion system for the city

24
YANBU TRANSPORTATION SYSTEM

25
The Long Term Roadway System Of MYAS

26
5.2. PUBLIC TRANSPORTATION
Intercity Bus Service. The Saudi Arabian Public Transportation
Company (SAPTCO) has provided intercity and intracity public
transport within the Kingdom since 1979. SAPTCO has one terminal
in 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 from Yanbu terminal to Cairo, Amman, and
Damascus.
Taxi and Rental Car Services. Taxi and rent-a-car services operate
in MYAS and Yanbu Al-Bahr. These services accommodate short
trips within MYAS as well as long distance intercity travel, mainly
to Madinah, Jeddah, Tabuk and others.
Privately Operated Transportation Services. Some Contractors
in 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 the
past, 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 of service. There
is a project for rehabilitating this railway. A rail link Riyadh - Jeddah
- Makkah (Land Bridge) is in the bidding stage for construction.
This line is expected to serve freight and passengers. Another high
speed rail link between Makkah and Madinah for passengers is in
the bidding stage.
In 2007,RCY carried out a feasibility study for a rail link between
Yanbu and Jeddah port. This study has led to a Royal Decree making
rail between Yanbu and Jeddah a top priority. The idea is to link
Yanbu to the Land Bridge in Jeddah. The main function of such
link is to serve solid petrochemicals produced in MYAS and destined
overseas via Jeddah port. Passengers will also be served via such rail
link

27
 5.4. AIR TRANSPORTS
Jeddah Airport is the closest international airport directly
accessible to Yanbu Region by air. Madinahs airport is closer than
Jeddahs, but it provides international service to few destinations. In
turn, Yanbu Airport which is known as Prince Abdul Mohsin Bin-
Abdulaziz Airport located 32 kilometers from the Royal Commission
Headquarter MYAS, provides scheduled flights to Jeddah and
Riyadh.
Yanbu Airport has all the basic facilities for all weather operations
with jet airliners and a modern terminal building for passengers and
air cargo. It provides a 3.8 kilometers runway with visual glide slope
(VASI) lights, an instrument landing system (ILS) and navigation
aids (VOR/DME) and taxiway. This runway can accommodate large
commercial aircraft such as the Boeing 747 and the largest Airbus
planes. The apron area is approximately, (340m x 90m) is capable of
parking at least six medium and large size aircraft.
The airport has been operated by Saudi Arabian Airlines under
the Presidency of Civil Aviation (PCA) since 1981.
The Bypass Highway under construction provides the possibility
of 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. There were 2,674
aircraft movements in 2009 which corresponds to an average of 8
aircraft movements (landing or takeoff) per day. Domestic air cargo
and airmail combined amounted to 1,782 tons in 2009.Figure 1
shows the table for figures for the passengers and cargo that is handled
annually at Yanbu Airport

For More Information you can go to:

Contact Information:
Web: www.gaca.gov.sa
Location: Located to north east of Yanbu Al Sinaiyah and
at a distance of 32 Km from the Royal Commission
Lounges & Runways:
Arrival Lounge : Area 2,700 M, No. of Seats 24
Travel Lounge : Area 2,507.54 M, No. of Seats 24,
Departure Lounge : Ground Floor area: 2,609 M, No. of Seats 75
One of the longest Runways with length of 3250 M and parallel
Taxiway Length 3200 M
Aircraft Stands:
Aircraft Stand Length 85.50 M and Width 337.5 M

28
 ANNUAL AIR PASSENGERS AND CARGO AT YANBU AIRPORT 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

29
 5.5. SEA TRANSPORTS
King Fahd Industrial Port (KFIP) at MYAS was completed
by the Royal Commission in 1984 and turned over to the Sea Port
Authority (SEAPA).
The Port resulted from the decision to locate hydrocarbon industrial
complexes at MYAS site and to create a terminus for crude oil and
Natural Gas Liquids (NGL) pipelines from the eastern part of the
Kingdom.YIC is strategically located on the Red Sea, with excellent
sea access to Europe via the Suez Canal, and to adequate access
destinations in the Pacific Rim via the Indian Ocean.
The Port is able to cope with a total tonnage of 130 million tons
per annum as compared to approximately 80 million handled in
2009.

Existing Facilities The King Fahd Industrial Port at Yanbu is the

largest oil-shipping complex on the Red Sea. It has the largest approach
channels in the Kingdom, extending over 54 kilometers north and
south, all fitted with up-to-date navigational aids, radar and channel
markers. The control tower has a new radar installation.
The Port extends along 19 kilometers of coastline and provides
port facilities for the industrial area and the community. The
location offers deep-water conditions and natural shelter, together
with sufficient onshore area and a sufficient size and flexibility
in the harbor facilities, to accommodate the Ultra Large Crude
Carriers (ULCC) and Very Large Crude Carriers (VLCC) for the
hydrocarbon and petrochemical industries. This includes the NGL
plant, oil and mineral users and general cargo and container users.
There are a total of seven separate terminals with 24 berths, a service

30
harbor, bulk cargo and handling equipment, and marine support facilities, all incorporating modern port
operation technology.
A comprehensive system of approach channels permits a full range of vessels to safely navigate from
the open sea into the King Fahd Port. These channels provide access to berths in the general cargo area as
well as to those at the petrochemical terminals.
At present, the port does not handle passenger traffic.

General Cargo and Container Terminal. This facility has seven berths (1 7), along a 1,420- meter
wharf including one container and one roll-on/roll-off (Ro/Ro) berth. The access channel has been dredged
to 14 meters below the lowest astronomical tide (LAT). Three 40-ton gantry cranes are available to handle
containers. This terminal handles cargo related to the industrial complex and mainly solid bulk exports
like polyethylene.

Bulk Terminal. The Bulk Terminal consists of a wharf 500 meters in length with two dry-bulk berths
(21, 22). The wharf is 33 meters wide and can accommodate bulk carriers of up to 70,000 dead weight
tons (dwt). The channel off the wharf is dredged to 16 meters below LAT. Sulfur and petroleum products
are exported through this terminal. A bunker station is also running under Bakri International Co..

Saudi Aramco Exxon Mobil Export Refinery (SAMREF) Terminal. The Export Refinery
Terminal has two separate loading areas and a ballast water facility. Two chemical and one refined
products berth , No. 40, 41 and 42, in the inner basin are 13.5 meter deep, and can accommodate tankers
from 5,000 to 50,000 dwt. SAMREF, YANPET, SAFRA, IBN RUSHID, YANSAB use berth no. 40
and 41 for export of petrochemical and refined products such as Glycol, Benzene, Aromatic, Pygas and
berth 42 is used for petroleum products. Two other berths No. 54 and 55 are used by SAMREF, dredged
to 18.5 meter in depth, with a loading capacity of 150,000 dwt, and are in the outer basin and are used
by SAMREF for the export of bulk petroleum liquids (gasoline, diesel, jet fuel and fuel oil).The terminals
ballast water facility with three 50,000 m3 storage tanks and a separator system is capable of
processing ballast water from vessels loading at all four berths. All ballast water handled at the facility

31
must comply with the current environmental standards.

Saudi Aramco Crude Oil Terminal. This facility, which has been operated by Saudi Aramco since
1981, serves as a tanker-loading terminal for dual pipelines conveying crude oil from the Eastern Province
to Yanbu. Dredged to a maximum depth of 32 meters, the terminal consists of a jetty trestle with four
loading berths, No. 61, 62, 63 and 64, which are connected to the shore by a freestanding trestle and a
causeway. Two of these berths can be used at the same time, providing a maximum simultaneous loading
rate of 300,000 barrels per hour. This terminal can handle the largest tanker ever built (500,000 tons).

Saudi Aramco Natural Gas Liquids (NGL) Terminal. The NGL Terminal has been operated by
Saudi Aramco since 1982. This facility has two berths (71 & 72), 18.3 meters below LAT, and is designed
to load refrigerated Liquid Petroleum Gas (mainly propane and butane) and naphta products for export,
and can accommodate vessels ranging from 20,000 to 230,000 dwt. A 1.85-kilometer-long causeway and
a 1.15-kilometer pile-supported trestle connect the shore plant to a two-berth, L-shaped offshore loading
facility. The trestle carries a pipeway for the product, bunker and utility lines, and a 1.5 meter-wide
pedestrian walkway. This terminal does not have a shore based ballast handling facility.

Saudi Aramco Yanbu Domestic Refinery Terminal. This terminal has been operated by Saudi Aramco
since 1983. It includes two outer berths (91 & 92) for vessels with 20,000 to 60,000 dwt capacity dredged
to 16 meters below LAT, and two inner berths (93 & 94) for tankers up to 20,000 dwt. The channels are
dredged to 13.5 and 15.5 meters. This terminal has no ballast water reception facility. This terminal is
used for domestic export of refined oil products.

Construction Support Terminal. This was the first terminal constructed at MYAS, and was designed
especially for the discharge of materials needed in the initial construction of the Industrial City and port
complex. It is no longer in regular use. In 1986, the terminal was given over to the Coast Guard, who
maintain security forces to protect the port and terminals.
The terminal consists of a trestle pier and a beachhead heavy lift facility. Vessels may berth on either
side of the pier, which has a width of 30 meters and is 5 meters below LAT. The length of the pier is
approximately 260 meters. The water depth at the inner and outer berths is 18 meters below LAT. The
water depth off the beachhead is 6 meters below LAT. The beachhead is a heavy lift docking facility
located south of the Construction Support Terminal, It is capable of accommodating vessels of up to 5
meters draft.

Service Harbor. A protected harbor capable of repair and service is an integral part of the port. It is
also the headquarters of the harbormaster, who, from a 36-meter-high tower, controls the movements of
all vessels within the port and in the approach channels. Service vessels include three pilot launches, eight
mooring launches, 11 tugboats, a fire tender, and an environmental survey launch. A ship-lift is available
to service the small craft and tugs. The service harbor also has equipment to handle any environmental
and physical damage that might occur during port operations.

Cargo Handled
The total tonnage handled at various terminals at King Fahd Industrial Port for the period 2000 to
2009 is approximately 60% of total tonnage was associated with the export of crude oil. Some 23% was
associated with the Export Refinery Terminal.
In 2009, 1,608 vessels were handled at the port, representing on average of 4.4 vessels per day at all
terminals.

32
 TABLE 2

33
TRAFFIC AT KING FAHD INDUSTRIAL PORT
Metric Tons (2000 2009)
SAUDI ARAMCO CRUDE

THROUGHPUT Berth 40-

SAUDI ARAMCO YANBU

THROUGHPUT Berths 1-
SAUDI ARAMCO MOBIL
DOMESTIC REFINERY

CONTINER TERMINAL
THROUGHPUT Berths

THROUGHPUT Berths
THROUGHPUT Berths

THROUGHPUT Berths

THROUGHPUT Berths
SAUDI ARAMCO NGL

GENERAL CARGO &

OTHER TERMINALS
YANBU REFINERY

TOTAL TONNAGE
NO. OF VESSEL

OIL TERMINAL

22- 42-54-55
61-62-63-64

91-92-93-94
TERMINAL

2-3-4-5-6-7
HANDLED

HANDLED
SABTANK
71&72
YEAR

21-22
41
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
47,956,687 2,660,444 7,025,788 18,494,649 1,771,076 555,629 1,386,749
2009 1608 79,851,022
(60.06%) (3.33%) (8.80%) (23.16%) (2.22%) (0.70%) (1.74%)
.
 Table 2 provides a breakdown of cargo type and tonnage handled at the port for three years. General
cargo and bulk solids amounted to only 0.65 million tons in 2009, which represented was, 0.81% of total
cargo.
TABLE 2
CARGO DISTRIBUTION BY TYPE, KING FAHD INDUSTRIAL PORT, YANBU
(Million Metric Tons)

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

TABLE 3
CARGO HANDLED, IMPORTS & EXPORTS (2009) (Excluding Crude Oil)
Metric Tons

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 Information You Can Go visit:

Contact Information:-
Web: www.ports.gov.sa
Address: King Fahd Industrial Port, P.O.Box 30325 Yanbu,
Saudi Arabia
Telephone: +966-4-3967037
Fax: +966-4-3967000

34
KING FAHD INDUSTRIAL PORT

35
 FACILITIES AT KING FAHD INDUSTIAL PORT(KFIP)

36
 TABLE 4
KING FAHD INDUSTRIAL PORT
PORT CAPACITY (OPERATIONAL) BY TERMINAL AND USE (2009)
Tonnage Capacity
Capacity used
Terminals & Berths User (millions tons per (millions tons per
2009
year) year)
1. General Cargo & Containers/
Red Sea Marine 0.56 5.38 10.33%
Berths 1-7
Bakri
2. Bulk Terminal/ Berths 21 & 22 SAMREF 1.54 1.47 104.8%
ARABTANK
3. Chemical Terminal/ Berths 40
SABTANK 1.77 2.17 81.6%
& 41
4. Export Refinery Terminal/
SAMREF 18.34 22.0 83.4%
Berths 42, 54, 55
5. Crude Oil Terminal/ Berths 61,
ARAMCO 47.96 83.0 57.8%
62, 63, 64
6. NGL Terminal/ Berths 71 & 72 ARAMCO 2.66 7.0 38.0%
7. Yanbu Domestic Refinery
ARAMCO 7.03 9.0 78.1%
Terminal/ Berths 91,92,93,94
Total 79.85 130.02 61.4%

Yanbu Commercial Port

Existing Facilities. The Existing facilities consist of 9 berths of which 6 berths are for general cargo, 2
berths for bulk cargo and 1 berth for Ro/Ro.
The 9 berths total approximately 2,000 meters, with a water depth of 9 meters for unloading ships at
anchor in the harbor. Major equipment include floating cranes, mobile cranes of 30 to 50 tons carrying
capacity, forklifts 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 meter
customs hall for Hajjis and administrative offices, and an additional 56,000 square meters of open storage
area.
The Ministry of Commerce has a bulk grain storage facility. There is also a bulk cement terminal for
unloading ships, bagging cement, and loading trucks. This facility is designed to handle 700,000 tons of
cement a year per one berth. With the construction of the cement plant at Ras Baridi north of Yanbu,
this terminal is no longer active.

Cargo Handled.It appears that the port activities have been limited to general cargo (mainly building
materials) and foodstuff. In recent year, with the erection of the cement plant north of Yanbu, the amount
of cement handled at the port has become insignificant. At the present time, there is no passenger traffic
through the port. In the past, Yanbu was a port of entry for Hajj pilgrims arriving by sea, mainly from
neighboring Arab countries.

37
6. MYAS INFRASTRUCTURE:-

6.1. Power:-
The power plant consists of four 127MW Steam Turbine Generators
(STG), and nine Gas Turbine Generators (GTG). One new STG
unit with rating 137 MW STG is in service since November 2007.
Total installed generation capacity is 1039 MW. MARAFIQ Power
Grid connected to Saudi Electric Company (SEC) through four
250 MW, and 115/380 KV (Synchronizing Transformers) 380 KV
intertie overhead transmission lines (Tie Line 8 & Tie Line 9).
The transmission and distribution (T&D) system within the city is
through underground feeder cables. Large industrial users are supplied
at 115 KV and other industrial users are supplied at 34.5 KV and
13.8KV depending on power requirements. The distribution in the
community is at 13.8 KV. The T&D system includes the following
major components.
Intertie Station with Saudi Electric Company (SEC) Grid
(380 KV)
115 KV Switchyard
Three 115/34.5/13.8 KV Substations (1A, 2B, 3C)
Two 115/13.8 KV Substation (5E, 6F)
One Substation (4D) 115/34 KV
34.5/13.8 KV Substations for Light Industries at LIP.
There are two 380/115/34.5/13.8 KV substations in commissioning
stage SSPP 3 X 500 MVA transformer rating and 9ISIS which will
be in service by June 2010, and Substation 10J, Red Sea Refining
Company. This project will be in service in June 2012.

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6.2. Seawater Cooling System
The 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 feed
water through a dynamic closed pressurized system. This is a vital
utility for continuous operation of these heavy industries and the
power and water production facilities. Water is drawn from and
discharges into the Red Sea via separate channels. The system has the
following principal elements:
1. Dredged intake channel: Pumping station including screens,
pumps and chlorination plant.
2. Distribution pipelines: Supply and Return pipelines, outfall
and dredged discharge channel, support and ancillary facilities.
Currently the average demand for SWC is some 6.1 M m3
per day (250,000 m3/hr), although this peaks slightly during
the summer months. The industry manifold presently delivers
about 135,000 m3/hr and the uility manifold 115,000 m3/hr.
3. Intake and Discharge channels: Seawater is drawn from the
dredged intake channel with rock berms which is approxi-
mately 2.2 km long, 100-120 m wide and up to 12m deep
equipped with breakwaters, oil booms, oil sensors and oil
skimming equipment (although oil pollution in the Red Sea
is limited risk). The supply canal draws water from the north
and discharge to the south thus drawing cooler water from the
deeper waters of the Red Sea and avoiding any short-circuiting.
The cooling water is then pumped by industries after use into
the return pipelines directly to the head works on the discharge
channel. The discharge head works is provided with a weir to
ensure the return pipelines remain primed with seawater.
4. The Seawater Cooling Pump Station consists of an intake
pumping structures feeding into two (2) manifolds. One man-
ifold feeds the industries and the other feeds the Power and
Desalination plants (PD). The feed to the industries and plants
is through large diameter fiberglass reinforced pipes (FRP). The
capacities of pumps in each manifold are as follows:

Industrial Manifold
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 Manifold
a) 2 pumps each 25,000 m3/hr
b) 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 flash (MSF)
distillation seawater desalination units. The steam requirement for
these units is supplied by heat recovery steam generators (HRSG)
utilizing the waste heat from the gas turbines with 4 HRSGs of a
design capacity of 159 ton/hr each and one HRSG with a design
capacity of 171 ton/hr. Emergency steam supply for the MSF units
can be supplied from the Steams Turbine Generators (STG). The
desalinated water is converted to potable water by adding lime and
carbon dioxide with the injection of chlorine and aeration. The
process water for industrial use is obtained by adjusting the pH with
caustic soda.
Reverse Osmosis (RO) seawater desalination units with a design
capacity of six (6) 350 m3/hr have been in operation since 2006. The
water distribution network includes the following:

Potable Water
a) 527 Km of Transmission and Distribution piping
b) 3 main pumping stations
c) 280,000 m3 bulk storage capacity
Process Water
a) 34 Km of distribution piping
b) One main pump station in PD&SC
c) 120,000 m3 bulk storage capacity.

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6.4. Water waste Treatment Plant
There are two separate wastewater collection systems at Yanbu:
an Industrial Wastewater System which collects flows from primary
and secondary industries and a Sanitary Wastewater System which
collects all sanitary flows from industries and community areas within
the industrial city. Industrial water waste treatment requirements are
different than those for sanitary wastewater, therefore the two waste
streams are conveyed to separate industrial and sanitary water waste
treatment plants. The principal characteristics of the systems is as
follows:

Length Pipelines: Industrial 52 KM

Sanitary: 477 KM
Pumping Stations: Industrial 16
Sanitary 36
Wastewater from Yanbu Industrial City is treated at two central
wastewater treatment plants. Industrial wastewater treatment plants
(IWTP) and Sanitary Wastewater Treatment Plant (SWTP). Both
plants are located in a single complex immediately to the south of
the power desalination and seawater cooling (PD&SC) plant.
The Sanitary Wastewater Treatment Plant has a design capacity of
27,000 M3/day and the Industrial Wastewater Treatment Plant has
a design capacity of 24000 m3/day. The treated effluent from SWTP
is used for irrigation purposes through the irrigation water system.

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7. YIC INFRASTRUCTURE AND UTILITIY TARIFF:
Primary, Secondary and Light Industrial Land Rents:
Inside Industrial Areas: SR 4.5 (US $ 1.27) per square meter.

7.1. Utility Tariff

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)/MMBTU.
Electricity:
Electricity & Co-Generation Regulatory Authority (ECRA)
http://www.ecra.gov.sa/home.aspx is a financially and administratively
independent 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 for a minimum up to 2,000
kwH for 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

Source : Marafig

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7.2. Waste Treatment and Disposal:
An integrated waste disposal system ensures that all Yanbu Industrial City wastes are collected, treated,
and disposed of efficiently and economically, with minimum risk to public health, pollution of the
environment, or nuisance to the community. Separate systems collect and treat industrial and sanitary
wastewaters while solid industrial wastes are disposed in the waste management facility and sanitary solid
waste in a sanitary landfill.
YIC manages a 440-hectare landfill located in the southeast cornner of the Royal Commission
boundaries. When pending improvements are completed, this landfill will accommodate all classes of
waste (domestic, construction materials, industrial hazardous and non-hazardous). The depletion of this
landfill amounts to 2 hectares per year. In addition, there is a compost plant in Yanbu Al- Sinaiyah
capable of producing high quality compost from pre-sorted solid waste and aerobically digested sludge.
The compost plant capacity (assuming 16 hours operation per day) is 400 tons of compostable waste plus
100 tons of sewage sludge (obtained from the sanitary wastewater treatment plant). At present, the plant
operates far below capacity.

7.3. Industrial Wastewater:

To dispose of industrial wastewater a special collection and treatment system has been installed as part
of the infrastructure in the citys industrial parks. Sixteen pumping stations forward acceptable industrial
wastewater to a treatment plant, located in the industrial park near the port, where it undergoes three
different levels of treatment. After treatment the effluent can be pumped via an underground reclaimed
water network, back through the industrial park for reuse. Dewatered sludge is disposed of in the waste
management facility in the city.
The industrial wastewater collection system is generally accessible through a manhole located at the
boundary line of each industrial site. In the absence of 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.
To safeguard the collection and treatment system, industrial wastewater must meet the established
direct discharge criteria. These are specified in the Royal Commission Environmental Regulation (RCER
2004, Vol. 1) that the Royal Commission issues to all new developers. These regulations are upgraded
periodically and RCER 2009 will be implemented soon. Generally the effluent standards prohibit the
discharge of acids, cyanide, volatile components and other substances likely to produce toxic reaction either
directly or indirectly. To ensure compliance, the Royal Commission carries out routine quality control
testing for industrial wastewater. All the facilities must have 72 hours storage capacity for emergency
purposes.
Industrial wastewater at Yanbu Al-Sinaiyah is adequately handled as part of the industry development
plans. At present, the industrial wastewater treatment plant handles the pretreated wastewater from
industries. Figure 1 show the sanitary Wastewater treatment system available at MYAS. Figure 2 shows
the reserve adequate land for future expansion of Wastewater Treatment 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 Treatment at MYAS

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 45
Industrial Wastewater System at MYAS
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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 facility adjoining the industrial wastewater treatment plant. The system is
designed to receive wastewater from offices, cafeterias, restaurants, toilets, showers, etc. To ensure that
wastewater is free from any traces of industrial wastewater or process wastewater, the developers system
must include oil and grease interceptors/traps.
The sanitary wastewater collection system is generally accessible through a manhole located at the
boundary line of each industrial site. In the absence of an existing the manhole developer may be required
to construct one, along with the necessary valve and metering equipment.
Treated sanitary waste water is distributed to the irrigation network and used for landscaping
in the city.

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7.5. Solid Wast:
The Royal Commission operates a 440 hectare sanitary landfill, located at the north eastern corner
of the industrial area for the disposal of municipal waste. There is a separate well equipped waste
management facility for the disposal of industrial waste.
Waste generated in the Industrial City shall be classified into one of the following categories:
1. Hazardous Waste: These wastes are defined as any solid, semi-solid, liquid, or contained gaseous
waste, or combination of such wastes, which may because of its quantity, concentration, physical or
chemical characteristics pose a hazard or potential hazard to human health or the environment when
improperly treated, stored, transported, disposed of or otherwise managed. These wastes shall also include:
2. Non-hazardous Industrial Waste: These wastes include solid, liquid, semi-liquid or contained
gaseous materials or wastes resulting from industrial, mining, and agricultural operations and sludge from
industrial, agricultural or mining, water supply treatment, wastewater treatment or air pollution control
facilities, provided that they are not hazardous, municipal or inert wastes as otherwise defined in these
Regulations.
3. Municipal Waste: Municipal wastes include garbage, refuse, food waste, office waste, waste vegetation
and other decomposable material resulting from operation of residential, commercial, municipal, industrial
or institutional establishments and from community activities.
4. Inert Waste: Inert wastes are those wastes which are not biologically or chemically active in the natural
environment, such as glass, concrete and brick materials, broken clay and manufactured rubber products.

Waste generators shall, through testing of the waste or knowledge of the process by which the waste is generated,
classify their wastes according to above criteria. Before transportation of hazardous and non-hazardous industrial
waste away from a generators facility, either for recycle, reuse, treatment, storage or disposal the generator shall
complete a waste manifest (RCER Vol. 1). All industrial and hazardous wastes generated within the Industrial
City and not intended for recycle or reuse shall be treated and / or disposed of at the Royal Commission approved
waste treatment/ disposal facilities.

7.6. Preservation of the Environment

In order to ensure that the industrial development of the industrial cities of Jubail and Yanbu were not achieved
at the expense of the natural ecosystem, the Royal Commission established the Environment Control Department
to develop them into world models of environmental planning and sub stainable development. In the planning
and design of the infrastructure, the design criteria enforce conformity to the highest international environmental
standards. These included extensive environmental impact assessment studies related to construction as well
as longer term operation of the industrial cities; in the development and enforcement of strict guidelines and
regulation relating to domestic and industrial waste water treatment and discharge and abatement of air borne
pollutants; recycling and reuse of wastewater; waste composting programs; in environmentally conscious zoning
and building code regulations; and in the development of extensive environmental monitoring programs. As a
result of its uncompromising commitment to the preservation of the environment, the RCJY has won international
recognition and several awards:
1968 United Nations Sasakawa Award
1988 Kuwait-based Regional Organization for the Protection of Marine Environmental Award
1995 Arab Cities Award for Environmental Protection
1998 Arab League Award in the field of Environmental Awareness
2002 Arab-European Cooperation Centre at Berlin-Environmental Protection Award
2003 Arab Cities Organization for Environmental Protection Award
2007 Organization of Arabic Cities Environmental Awareness Award

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49
8. HOW TO APPLY FOR AN INDUSTRIAL SITE AT MYAS

8.1 GENERAL:-
The following are guidelines for filing a request for an industrial
site in the Primary, Secondary, or Light Manufacturing/Support
Industries Parks in Yanbu Industrial City.

The Royal Commission leases industrial sites to:

1. Firms meeting the Yanbu setting criteria, which include :
use of indigenous fuels and feedstocks.
synergy with existing and future industries
efficient use of utilities and infrastructure
value added to the Kingdoms gross domestic product by
serving domestic and export markets
import substitution
safety of operations within environmental impact regulations
enhancement of the employment opportunities.
2. Firms which are licensed by the Ministry of Commerce and
Industry (MCI),which is the sole authority for granting
licenses to establish and operate industrial facilities in the
Kingdom.
3. In the case of Light Manufacturing/Support Industries,
firms providing services or goods which are necessary for the
ongoing support of the Primary and Secondary Industries, as
well as the community

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8.2 Key Steps In The Overall Process
Step One: Tell us what you want to do and what you will need.
Show us that you have completed the basic needs for your project
including MCI license, technology agreements and feedstock
agreements.
Step Two: We will evaluate your requirements and after discussions
with you, determine whether your project could fit into our industrial
complex. If so, we will recommend that you be considered for a
site.
Step Three: When approved, we will select a specific site and ask you
to enter a contract called a Conditional Site Allocation (CSA), that
will reserve the parcel while you prepare additional information.
Step Four: When you have completed an Environmental Impact
Review and obtained approval for your design, you will be qualified
to enter a land lease agreement with the Royal Commission and start
your construction and operation.

8.3 Registration Procedure Main Points:

Submit the completed application accompanied by the
following documents
1. A copy of the Indusial License for construction of the
project in Yanbu Industrial City (MYAS)
2. A copy of company foundation documents
3. A copy of the feasibility study prepared by a consultant
office
4. A copy of the documents showing the financial sources of
the project
5. A copy of the commitment of the feedstock supplier
6. A copy of the commitment of the technology licenses
7. Milestone Schedule of the project including the developing
stages
8. The project layout showing the optimum use of the land
9. Plant Process Flow Diagram with description
10. Detailed descriptions for the cooling system of the plant
11. Single Line Diagram showing the Power distribution for
the plant units
12. Break Down Diagram showing the power capacity
distribution to the plant units
13. A copy of the acceptance from the Ministry of Petroleum
and Minerals Resources or Aramco Co. for providing
Natural Gas Liquid (NGL)

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8.4 Application Procedures:
Site Allocation Request (SAR):
Candidates who wish to locate their project at Yanbu Industrial City should obtain the application
forms titled Site Allocation Request from the Investor Relations Department (I.R.D.), P.O. Box 10001,
Yanbu Industrial City 31961, Saudi Arabia, Tel. No. (04) 321-6363, Fax (04) 321-6799. The completed
forms and a project plot plan should be transmitted to I.R.D. at the above address. The SAR summarizes
the main features of your project, identifies your infrastructure and utility needs and outlines the projects
safety and environmental impact factors.
Concurrently, you should contact the Ministry of Commerve and Industry MOCI in Riyadh 11127,
Saudi Arabia, Tel. (01)- 477-6666, Telex 400681 MINELC SJ, Fax (01) 477-5488 to file a business license
application. Once the final MCI approval is obtained, you should forward copies of the license along with
your SAR. The SAR must confirm to the basic information approved in your MOC license.

1. Saudi Aramco Fuel & Feedstock (If Needed)

You will be required to contact Saudi Arabian Oil Company (Saudi Aramco) Distribution
Technical Support Dept. at Room 435, 4th Floor, Dammam Office Bldg., Saudi Arabia, Tel. No.
(03) 862-2123, Fax No. (03) 862-2289 to arrange for a commitment for natural gas or other
natural gas based feedstocks, such as ethane or propane. This formal request should indicate the
type of fuels or feedstock required, demand quantities, and the expected onstream timing, if fuels
or feedstock are available. You may choose to make contact earlier with Saudi Aramco to obtain
an initial assessment of availability of your requirements and to give notice to Saudi Aramco of
your potential needs. Evidence of Saudi Aramcos commitment should be provided with your
SAR.
For More Information Go To: www.saudiaramco.com

2. Feedstock Agreements
If you wish to procure feedstock, you should contact any feed stock supplier to obtain an
agreement for each feedstock. You are required to forward evidence of each of these to the Royal
Commission at Yanbu.

3. Technology Supplier Agreements

At an early stage you are required to assure the Royal Commission that you have or will develop an
agreement with each provider of technology relevant to your project. Copies of your agreements
or Letters of Intent must also be submitted.
When we have received your completed SAR with the attachments noted above, the Royal
Commission would evaluate your land and utility requirements, environmental impacts and
overall project structure. When the basic criteria have been met, including minimizing land
and utilities requirements, you will be recommended for a General Site Approval in the Primary,
Secondary or Light and Support Park. Following the General Site Approval by H.H. The RC
Chairman, the Site Selection Committee will meet in Yanbu to identify and recommend a
specific site. Following approval by the Committee and the Executive President for the Royal
Commission at Yanbu, you will be asked to enter a contract called the Conditional Site Allocation
(CSA).

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4. Conditional Site Approval
The Conditional Site Allocation (CSA) provides the Royal Commissions assurance to the
applicant that a particular site will be held in reserve for the project for a specified duration,
subject to his developing the project specifications according to a mutually agreed schedule.
Granting a CSA will also provide you with the evidence, if needed for application to the Saudi
Industrial Development Fund (SIDF), or others that your project has a site reserved.
5. In order to secure a lease, you will need to fulfill the following requirements.
Meeting International Design Standards
The Royal Commission does not wish to participate in or review the detailed design of projects.
Instead, we require you to use the services of qualified design firms capable of conforming with
international codes and standards.
5a. If you are locating in the Primary or Secondary Industries Park,you will be required to demonstrate
to the Royal Commission that you will be using internationally-recognized consultants for design,
construction, operational training and technical support, you will be exempted from submitting on-
plot detailed engineering drawings for approval to the Royal Commission. After demonstrating use of
such consultants, and fulfilling the other requirements in the Conditional Site Allocation certificate, a
land lease agreement can be executed, engineering can be completed and construction can begin.
5b. In the case of industries locating in the Secondary Industries Park which cannot satisfy 5a
above, or in the case of industries locating in the Support and Light Manufacturing Industries
Park, the Royal Commission or its authorized representatives may chose to review completed
engineering drawings and specifications submitted by you. After obtaining a satisfactory review of
your submittals, the Royal Commission will issue a Building Permit or equivalent. At that time, a
lease agreement can be executed and construction can begin.

6. Safety and Environmental Impact

At various stages of your application from SAR through CSA to execution of land lease agreement
the Royal Commission will require increasing amounts of information regarding your safety
management and environmental impacts. You will find that the level of detail of information
corresponds to the quality of engineering data you would normally generate during project
development. After receiving your CSA, you will be required to prepare a detailed Environmental
Impact Report, which will be reviewed thoroughly by the Royal Commission Environment
Control Department. You must receive environmental approval for your project before you can
obtain a lease.

7. MARAFIQ and Saudi Telecom Company (STC)

Finally, you will be required to contact MARAFIQ to discuss the most appropriate tie-in point
and the scope and schedule of installing cables, transformers and substation modifications.
Providing evidence of an approved power supply agreement with MARAFIQ is the last major
requirement for securing a lease.
STC is the leading national provider of telecommunication services in the Kingdom of Saudi Arabia.
The company is working continuously to fulfill and satisfy the market requirements, keeping pace
with the emerging technologies in the telecommunications sector and satisfying its customers needs.
STC has put in its consideration that, this is the way to reinforce its position and identity in view of a
changing world where the role and usage of telecommunications became more significant
For More Information Go To:
www.marafiq.com.sa
www.stc.com.sa

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 8. The Lease
After the firm meets all Royal Commission requirements and after signing the Conditional Site
Allocation, the RC will prepare a lease agreement.
There are 3 kinds of industrial lease with different duration:
Primary Industry - 30 years
Secondary Industry - 25 years
Support Industry - 10 years
The lease is renewable upon agreement by both parties.

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References:-

Saudi Arabian Monetary Agency (SAMA) www.sama.gov.sa

Saudi Industrial Development Fund (SIDF) www.sidf.gov.sa

Ministry of Economy and Planning (MOEP) www.mep.gov.sa

Ministry Of Commerce & Industry(MCI) www.commerce.gov.sa

General Directorate OF Passports (GDIP) www.gdp.gov.sa

General Organization Of Social Insurance (GOSI) www.gosi.gov.sa

Department of Zakat and Income Tax (DZIT) www.dzit.gov.sa

Royal Commission Yanbu(RCY) www.rcjy.gov.sa

Saudi Aramco www.saudiaramco.com.sa

Sabic www.sabic.com

Marfiq www.marafic.com.sa

Saudi Telecommunication Company www.stc.com.sa

General Authority Of Civil Aviation www.gaca.gov.sa

Yanbu Industrial College www.yic.edu.sa

Yanbu University College ucy.edu.sa

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