Riyadh: The new Saudi investment law introduced recently stipulates a minimum investment of SR30 million ($8 million) by foreigners in real estate, according a published report. The new law will not apply to the Holy cities of Makkah and Madinah or oil producing areas.

The law allows foreigners to buy real estate in the Kingdom and to own 100 per cent of industrial ventures.

However, a report said some Saudi real estate investors feel the minimum investment should be between SR1 million and SR2 million to attract foreign investors and expand the base of the real estate business.

[up2] Fluor Daniel to work on SIPC petrochem plant

Manama: Saudi International Petrochemical Company (SIPC) has signed a contract with Fluor Daniel for the engineering and overall programme management of the SIPC petrochemical complex at Jubail Industrial City.

The $800 million complex includes a methanol plant, maleic anhydride (MAN) and butanediol, acetic acid, vinyl acetate monomer (VAM) and common utilities plant. Fluor is expected to complete the basic and front end engineering by the third quarter of 2001. The plant start-up is scheduled for the end of 2003.

[up3] Sumitomo plans $9bn water project

Riyadh: Sumitomo Corporation is planning a large-scale water supply project in Saudi Arabia with an estimated total investment of about ´1 trillion ($9.5 billion), a company spokesman said. The Japanese trading house is seeking other Japanese and Saudi Arabia companies to join the project, with an aim to launch it by the end of this year, the official added.

The build-operate-transfer (BOT) project plan entails building four sea water desalination plants at two locations on the shores of the Kingdom, with an investment of about ´150 billion. The plants are expect to start supplying water in 2003, the spokesman noted.

In addition, the project will include the building and operation of sewage facilities, the official said.

Sumitomo and others plan to set up a new joint venture company which will sign 20- to 30-year long-term water supply contracts with Saudi Arabian state water firms.

[up4] 20 desalination plants to be set up

Riyadh: The Saline Water Conversion Corporation (SWCC) will set up some 20 desalination projects in the near future at a cost of billions of riyals with a total capacity to produce more than 2.7 million cu m of water daily.

These projects, on completion, will cater for the water and power requirements of several Saudi cities and villages. The estimated investment in the water desalination, gas and electricity sector alone will exceed $200 billion over the next 20 years, according to the Arab News. The projects are in addition to three desalination plants, which will be set up shortly to produce water and electricity.

[up5] Road maintenance contracts signed

Riyadh: Minister of Municipal and Rural Affairs Dr Mohammed bin Ibrahim Al Jarallah has signed contracts worth a total of SR161 million ($42.9 million) for the maintenance of roads and other municipal services in six urban centres throughout the country including Riyadh.