Interview: Khalid Al Salem
To what extent are investors’ needs aligned with the Kingdom’s socio-economic objectives?
KHALID AL SALEM: The RCJY has been working to leverage its competitive capabilities and value proposition elements for each sector. For the economic areas on which the RCJY’s cities focus, prospective investors are provided with advanced infrastructure in the form of feedstock networks; pre-prepared land for the development of industrial plants and production facilities; access to utilities networks; warehouses and storage facilities; research and development facilities; and bespoke institutions for industrial academic and technical training.
Each city also provides comprehensive community services, including housing, education, health care, and social and leisure facilities. In 2021 the cities under the RCJY’s remit attracted SR1.1trn ($293bn) in investment and contributed SR179bn ($47.8bn) to the Kingdom’s GDP. The number of jobs that had been created in the cities by the end of the same year was 113,000.
How can industrial small and medium-sized enterprises (SMEs) be better supported?
AL SALEM: The SME segment is expected to play a pivotal role in carrying out the goals of Vision 2030 and the National Industrial Strategy (NIS), as such entities are a central focus for the Ministry of Industry and Mineral Resources. Because the segment also occupies an important position within the RCJY’s own strategic objectives, we have analysed the competitive landscape for each sector outlined within the NIS.
To reinforce the appeal of our cities to SMEs, the RCJY has devised various initiatives that it is currently implementing. These include the provision of shared services, including specialised business environments that are tailored specifically for SMEs; and offering customised schemes, as well as flexible payment terms, preferential agreements and fast-track processing. All of these programmes are designed to aid in the establishment and growth of SMEs within the RCJY’s cities.
Which policies and initiatives can be adopted to encourage more private sector and foreign investment in the cities of Jubail and Yanbu?
AL SALEM: The RCJY has undertaken a comprehensive evaluation of its strategic direction and re-focused its efforts to meet the requirements of global, regional and local investors. In addition, the RCJY has reviewed the competitive environment for each sector outlined under the NIS, which includes advantages for investors in specific cities. The RCJY is in the process of implementing programmes to ensure a smoother business process and help investors expand their business.
The recent designation of Ras Al Khair and Jazan as special economic zones (SEZs) for primary and downstream industries is expected to attract more foreign investment. The SEZs are set to offer an array of benefits to investors, including tax exemptions, deferred Customs duties on imported goods, and employee waivers from paying expatriate levies.
What steps are being taken to align the industrial sectors in Jubail and Yanbu with the global shift towards renewable energy and sustainability?
AL SALEM: Industrial investors bear a profound responsibility for adhering to stringent environmental standards, including monitoring and controlling their own emissions of polluting substances. The RCJY has therefore launched a series of initiatives that are aimed at devising a robust and enduring long-term sustainability plan, while simultaneously providing the foundation for the development of a circular economy.
Moreover, in alignment with Saudi Arabia’s national sustainability initiatives, the commission sees its role in the Kingdom’s efforts as a facilitator in advancing the transition towards sustainable energy solutions. In pursuit of this goal, the RCJY has been focusing on fostering the growth of renewables-related industries in Yanbu, and substantial progress has already been made in the development of such industries within the city.
Read More from OBG
