Eastern Province, KSA
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July 2018 | By: Ameer Yousif, Jaffer Al Hamad, Adel Al Banna Eastern Province, KSA Actionable Market Intelligence Report A report that is looking into the available economic opportunities in the Eastern Province of Saudi Arabia. With the objective to support the Bahraini private sector to expand and grow in the region, Tamkeen is developing a series of actionable market intelligence reports on various areas and sectors in the Saudi Market. Eastern Province – Actionable Market Intelligence | P a g e 1 TABLE OF CONTENTS 1. INTRODUCTION .................................................................................................................. 3 2. INFRASTRUCTURE ............................................................................................................ 4 TRAIN RAILWAYS ................................................................................................................... 4 AIRPORTS ............................................................................................................................... 5 SEAPORTS .............................................................................................................................. 6 ROADS NETWORK ................................................................................................................. 7 3. INDUSTRIAL CITIES ........................................................................................................... 8 DAMMAM INDUSTRIAL CITIES .............................................................................................. 8 JUBAIL INDUSTRIAL CITIES .................................................................................................. 9 AL-AHSA CURRENT INDUSTRIAL CITIES .......................................................................... 10 UPCOMING INDUSTRIAL CITIES ......................................................................................... 11 4. STATISTICS ...................................................................................................................... 12 5. SUPPORT SCHEMES ....................................................................................................... 17 SAUDI INDUSTRIAL DEVELOPMENT FUND (SIDF) ........................................................... 17 SMALL AND MEDIUM ENTERPRISES GENERAL AUTHORITY (MONSHA’AT) ................. 17 PRIVATE SECTOR STIMULUS PLAN ................................................................................... 17 LOCAL CONTENT POLICY ................................................................................................... 18 6. UPCOMING PROJECTS ................................................................................................... 19 QATIF PROJECTS:................................................................................................................ 19 AL-AHSA PROJECTS: ........................................................................................................... 19 DHAHRAN, AL-KHOBAR & DAMMAM PROJECTS: ............................................................. 20 JUBAIL PROJECTS: .............................................................................................................. 20 7. PROJECTS TIMELINE ...................................................................................................... 21 8. OPPORTUNITIES .............................................................................................................. 23 9. RECOMMENDATIONS ...................................................................................................... 24 10. REFERENCES ................................................................................................................... 25 Eastern Province – Actionable Market Intelligence | P a g e 2 1. INTRODUCTION The largest province of Saudi Arabia by area. The province's capital is the city of Dammam, which hosts the majority of the region's population. The province hosts the headquarters of Aramco which is based in Dhahran, and it is also the home to most of Saudi Arabia's oil production. Eastern province also hosts the headquarters of SABIC and the newly constructed Ma’aden’s Phosphate Company and Aluminum Smelter. With an area of 672,522 km2, Eastern Province has an international airport, in addition to a regional and a domestic airport. Its population is around 4.1 million, which equates to 15% of the total population in the kingdom of Saudi Arabia, as per 2010 population census. Eastern Province consists of 11 governorates, in addition to cities and villages. Below is a list of all governorates by the population at the census held on 28 April 2010 and the 2018 estimates by United Nations: Largest Province in KSA. With an area of 672,522 km2 & Population is around 4.1 million FIGURE 1: THE EASTERN PROVINCE HIGHLIGHTED SN GOVERNORATES ACTUAL POPULATION (2010) 1 Al Ahsa 1,063,112 2 Al Dammam 904,597 3 Al Khobar 578,500 4 Al Qatif 524,182 5 Hafar Al Batin 389,993 6 Jubail 378,949 7 Al Khafji 76,279 8 Ras Tanurah 60,750 9 Buqayq 53,444 10 Al Nairyah 52,340 11 Qaryat al-Ulya 24,634 Eastern Province – Actionable Market Intelligence | P a g e 3 2. INFRASTRUCTURE TRAIN RAILWAYS 1- Dammam–Riyadh railway line: Opened in 1981 with 449 km length passing through two other stations, Abqaiq and Al-Hofuf, and branch lines to Dammam Port, Dhahran, Al-Judaidah, Ain Haradh and Al-Kharj. The maximum speed of the train is 180 km/h and planned to complement the projected “Landbridge” railway line to Jeddah with 958km railway line. A total of 20 trips are scheduled almost daily, 14 trips out of which travel the full route between Dammam and Riyadh with a total duration of 3 hours and 40 minutes. 2- Dammam–Jubail railway line: Planned to connect King Abdulaziz seaport in Dammam to King Fahd Industrial Port in Jubail industrial city. The expected length of the railway line is 115 km which mainly targets providing logistic services for products. It is expected to be integrated with the “North-South” projected railway line. 449 km Connecting Dammam to Riyadh through Al Ahsa. 20 Daily Trips. FIGURE 2: CURRENT AND FUTURE RAILWAY LINES Eastern Province – Actionable Market Intelligence | P a g e 4 AIRPORTS 1. King Fahad International Airport (Dammam): By handling 9.8 million passengers in the year 2017, it is considered the third busiest airport in the kingdom after Jeddah and Riyadh. King Fahad International Airport is one of five international airports operating in the kingdom. Saudi Arabia’s third-largest airport plans to more than double capacity by 2025 to handle an expected surge in passenger traffic as the kingdom invests in tourism and entertainment projects to transform its oil-reliant economy. 2. Al-Ahsa Airport (Hofuf): Serves Al-Ahsa governorate, and considered a regional airport that operates with some international destinations. 3. Al-Qaisumah Airport (Hafr Al-Batin): Serving residents of the northern area of Eastern Province with domestic flights. 3 Airports connecting the province locally, regionally & internationally. FIGURE 3: AIRPORTS IN SAUDI ARABIA Eastern Province – Actionable Market Intelligence | P a g e 5 SEAPORTS 1- King Abdul Aziz Seaport (Dammam Port): The largest port in the Arabian Gulf, and the second largest and second busiest port in the Middle East and North Africa. King Abdul Aziz Port covers an area of over 19,000 hectares with two container terminals, and is a major export center for the oil industry, and also a key distribution center for major landlocked cities in the country. The Saudi Railways Organization's cargo line of 556km begins at the King Abdul Aziz Port and passes through Al-Ahsa, Abqaiq, Al-Kharj, Haradh, and Al-Tawdhihiyah, before terminating at the dry port in Riyadh. 2- Ras Tanura Seaport: One of the oldest seaports in Saudi Arabia which was established in 1939. Its main operations are related to the oil refinery it hosts, and it exports nearly 20% of world’s oil and around 90% of kingdom’s oil production. 3- King Fahd Industrial Seaport (Jubail): Established in 1974, and mainly serves the wide range of factories inside the industrial city. 4- Jubail Commercial Seaport: Located about 14 kilometers southeast of the King Fahd Industrial Port, and covers an area of about 44 km2. It is located near production centers and a large planned industrial zone. 5- Ras Al-Khair Seaport: Established by the Saudi company Ma’aden and lies on the east coast of the Arabian Gulf approximately 90 km to the north of the Jubail Industrial City within a huge project of King Salman International Complex for Maritime Industries and Services. The area also expects to see what will be the largest shipyard in the world that is currently under construction. Major production operations of the complex are expected to commence at the end of 2018 and to be fully operational by 2022. Both Ras Al-Khair and Jubail are included in the “North-South Railway Line” to be established by the Saudi Railway Company (SAR), and to be connecting many other areas in the north, including the upcoming “Wa’ad Al-Shamal” ambitious city project. 5 Ports serving the kingdom Industrial & Commercial imports & exports needs. FIGURE 4: SEAPORTS IN SAUDI ARABIA Eastern Province – Actionable Market Intelligence | P a g e 6 ROADS NETWORK 1- Jubail–Qassim Expressway: Extending for 428 km and inaugurated in 2012, the new three- lane highway is an important strategic project that will link Jubail city on the east coast to Al- Qaseem, and then to the other cities on the west coast. 2- Saudi–Oman International