Building a diversified, knowledge economy B L A Z I N G A TRAIL IN JAZAN Over two days at the Jazan Economic Forum (JEF), By Eamonn J. government officials and the captains of Saudi Houston industry set out in detail the plans for the economic & Nagy D. Awa d transformation of the southwestern region. Massive in its scale, the Jazan Economic City (JEC) is an effort to achieve balanced economic development in the Kingdom a s p a r t o f a w i d e r p r o g r a m o f diversification. 6 Dimensions International 74579araD4R1.indd 1 5/13/15 8:52 PM Speakers included Prince Muhammad; His Royal Highness Prince Sultan Ibn Salman, President of the Saudi Commission for Tourism Above: HRH Prince and Antiquities; His Excellency Ali I. Al-Naimi, Muhammad Bin Nasser Bin Minister of Petroleum and Mineral Resources; Abdulaziz Al-Saud is joined His Excellency Adel Fakieh, Minister of Labor; by key governmental ofcials His Excellency Dr. Tawfiq Al-Rabiah, Minister and business leaders as of Commerce and Industry; His Excellency he inaugurates the Jazan Abdullatif A. Al-Othman, Governor of the Saudi Economic Forum by switching Arabian General Investment Authority (SAGIA); on a 3D rendering of the and Khalid A. Al-Falih, president and CEO of Jazan Economic City Project. Saudi Aramco. Photo by Abdulaziz Al- “Jazan’s strategic location on the Red Sea coast Moaiweed. Left: An artist’s heralds a bright future for the region,” said Prince rendering of what Jazan Muhammad as he officially inaugurated the JEF Economic City will look like. by switching on a 3D model of the JEC Project. Noting that the forum showcased investment opportunities in the region and especially at JEC and Jazan Industrial City, he noted, “I am sure that the Jazan Economic Forum will position Jazan on top of the Kingdom’s investment list.” here was a tangible feeling in the air that The Prince referred to the visit of King Abdullah to the Jazan’s time has come, that the region has region in 2005, adding that the royal visit paved the way for reached a landmark time in its history as the a new era in Jazan’s history and development. Jazan Economic Forum (JEF) gathered some “Your state has decided to end the underdevelopment 500 business leaders and government officials of Jazan, taking it to a new course of development running over two days. T against time, giving special care,” the governor quoted the Two sprawling tents housed the forum, and attendees late King as saying during his visit. heard in detail the ambitious plans for the development of “As a result of that royal gesture, we are now witnessing JEC. The Saudi Aramco organized event was hosted by the qualitative and quantitative development with new health, Governor of Jazan Province, His Royal Highness Prince tourism, agricultural, and road projects,” the governor said. Muhammad Bin Nasser Bin Abdulaziz Al-Saud. Prince Muhammad said the Saudi Industrial Property The goal of the forum was to act as a catalyst to stimulate Authority (Modon) has developed 1 million square meters the growth of the JEC project, and a range of detailed presen- in Abu Areesh to establish an industrial city, adding that tations set out what the project can offer to potential investors the government has allocated 40 million square meters from both within and outside the Kingdom of Saudi Arabia. for the city. Dimensions International 7 74579araD4R1.indd 2 5/13/15 8:52 PM Tourism development for the Farasan Islands, Prince help achieve a balanced and sustainable economy well into Muhammad said, had also been allocated more than the future, said Al-Naimi. SAR 2 billion. “Expanding the Kingdom’s industrial base, with a focus Saudi Aramco has established a partnership with the on manufacturing and enhancing added value as a strate- Technical and Vocational Training Corporation (TVTC) gic option for the future through the establishment of large, to set up manpower development centers in Al-Darb and medium and small enterprises for coming generations, and Al-Haqu, the governor said, highlighting the quality of the gradually reducing our reliance on oil in our gross national region’s human resources. The Saudi Electricity Company product and balance of payments,” was an economic prior- will establish a further training center in Bisha. ity, Al-Naimi said. He also referred to the efforts of Jazan University in sup- Second, the creation of industrial and economic projects plying the skilled that encompass manpower all the areas of demanded by the Kingdom the job market. “Jazan’s strategic location on the Red Sea coast and achieve sus- Meanwhile, the heralds a bright future for the region. I am sure tainable develop- Higher Institute that the Jazan Economic Forum will position ment would be of Tourism and Jazan on top of the Kingdom’s investment list.” crucial. Hospitality Al-Naimi Business is meet- — HRH Prince Muhammad Bin Nasser Bin Abdulaziz held up Jazan ing manpower Industrial City needs of the as an excellent tourism industry, he said. example of a project successfully spawning industry. He commended Saudi Aramco for its excellence in organ- “It provides thousands of various job opportunities to cit- izing the forum. izens and commercial industries for the private sector and helps launch small- and medium-sized enterprises in this area Al-Naimi: Jazan spurs — thereby making the city of Jazan a major commercial and industrial hub, not only at the Kingdom’s level, but also at industrial development the level of the Red Sea and the Horn of Africa region.” Al-Naimi set out “pivotal results” to be taken from Economic Al-Naimi told business leaders that the focus now for City projects across the Kingdom — chief among them a those in the oil and mining sectors “is to manufacture inter- reduction in the Kingdom’s reliance on oil. mediate and final products locally, gradually and in a well- Diversifying industry and stimulating manufacturing will considered manner.” 8 Dimensions International 74579araD4R1.indd 3 5/13/15 8:53 PM Above: While oil will remain a vital part of the development of the Jazan region, a state-of-the-art port will be included in the project. Photo by Moayed Al-Qat- tan. Right: Education is viewed by the government and Saudi Aramco as vital to providing the skilled workforce of the future to take the reins of new economic developments. Photos by Musleh J. Khathami that the government will contribute 50% of Saudi salaries. Al-Othman: Enticing For industrial projects, investors are given a 15% tax investors with incentives cut from the non-Saudis share. “SAGIA, along with other government departments, is Al-Othman told the forum that the government had been working to create a suitable atmosphere for investment to working hard to increase ease-of-business for potential inves- tap the Kingdom’s potential and realize good returns for tors and to intro- the Kingdom and duce tempting the investor,” incentives to invest Al-Othman said. “SAGIA, along with other government in the region. “We are work- “These incen- departments, is working to create a suitable ing to resolve the tives include soft atmosphere for investment to tap the Kingdom’s challenges facing loans worth 75% potential and realize good returns for the investment.” of the project cost Kingdom and the investor.” Al-Othman from the Industrial noted that the Development Fund — Abdullatif A. Al-Othman Jazan region was to those investing a strategic loca- in Jazan,” he said, tion that has the adding that such loans are given for a period of 20 years. capability of attracting domestic and foreign investment. Al-Othman revealed that foreign investors in Jazan and “There are a lot of investment opportunities in the region. similar regions targeted for development will benefit from It is good for (Jazan’s) fisheries, as they account for 40% of the a 50% cut in taxes from the cost of training Saudis and Kingdom’s fish supply,” he explained. Dimensions International 9 74579araD4R1.indd 4 5/13/15 8:53 PM Top left and right: The Jazan region is home to many large sh and shrimp farms, which account for about 40% of total production of the Kingdom. Photos by Musleh J. Khathami roads and water and sanitary drainage systems, in addi- tion to connecting electricity. “Combined, such projects will provide a solid base for investments in heavy and secondary industries, pet- rochemicals, mining industries and other conversion industries that utilize the area’s rich mineral and agricul- Jazan is one of the Kingdom’s richest agricultural regions, tural resources. remarkable for both the quality and variety of its agricul- “But before taking care of all of the above, the com- tural produce, which includes many types of fruit. Photo by pany paid attention to a basic cornerstone that is the Musleh J. Khathami most important one in my view: The development of the human component. A number of qualification and train- Al-Falih: The importance of ing initiatives were launched to create a highly capable developing human capital and qualified workforce from among the area’s youth to fill the jobs in all stages of the projects mentioned. Al-Falih addressed the forum under the banner of “Jazan: “We did not wait for the completion of the project Building the Future through Partnerships of the Present.” to bring this into reality. Rather, building this human He highlighted the importance of developing Saudi human workforce started last year when Saudi Aramco and the capital to confidently take the reins of a new and evolving Technical and Vocational Training Corporation (TVTC) diversified economy.