Saudi crown prince to inaugurate King Salman Energy Park

Saudi crown prince Mohammed bin Salman is set to launch a new energy park on Monday.

The King Salman Energy Park (Spark), which comes under wider plans to develop the industry, mining, energy, and logistic services industries, is located in the kingdom’s Eastern province between Dammam and Al-Hasa

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It will be developed, operated, managed and maintained by state oil giant Saudi Aramco and the Saudi Authority for Industrial Cities and Technology Zones (MODON) over three phases and a total area of 50 square kilometres.

Spark spans five areas in total with the first focussed on general manufacturing, electricity and equipment, liquids and chemicals, metal formation, and industrial services.

A dry port area will have a capacity of 8 million metric tonnes of cargo a year and there will also be a Saudi Aramco well-drilling and maintaining area, a training area with 10 centres to educate Saudi nationals and space dedicated to residential, commercial and recreational buildings.

The first phase will span 12sqkm and is expected to attract more than 120 investments. It is due to be finished in 2021 and later phases by 2035.

Among the goals of Spark are to create jobs, diversify exports and generate foreign exchange income and foreign direct investment.

The project is forecast to contribute more than SAR22bn ($5.865bn) to the country’s GDP and create 100,000 direct and indirect jobs opportunities, according to Saudi Press Agency.

It will also “localise more than 350 new industrial and service facilities, create an industrial base to support innovation, development and global competition, support and increase safety of energy supply at competitive prices” and reduce costs of supporting operational services related to the energy sector, SPA said.

Other gains are expected to come in the form of local supporting industries for Aramco’s operational and development needs.

The company is embarking on a local content push to double the percentage of locally produced energy-related goods and services to 70 per cent of spending by 2021.