Saudi Arabia launched work on a new multi-billion riyal industrial city last month in its efforts to channel the high oil revenues generated to boost spending on infrastructure projects.

The new zone at Jubail is expected to house 20 firms including several in the petrochemical, gas and fertiliser sectors.
The government has allocated SR14 billion ($3.73 billion) to the 16 sq km industrial zone and expects it to attract a further SR210 billion of private money over the next two decades, project officials said.
“After several years of relative inactivity in major projects in the Kingdom, we are now seeing a strong pickup in projects planned and under way,” said Samba Financial Group chief economist Brad Bourland.
“Given the number and magnitude of power, water, refining, petrochemical, and oil production megaprojects coming to fruition, the timing is right for a major expansion at Jubail.
The Jubail 2 project will be divided into four phases with the first expected to be completed by 2007.