The Royal Commission for Jubail and Yanbu

The Royal Commission for Jubail and Yanbu is the entity responsible for the development and management of petrochemical and energy-intensive industrial cities in the Kingdom of Saudi Arabia. It was established by a Royal Decree on September 21, 1975. It was one of the first royal commissions created in the Kingdom. It stands out due to its unique industrial and investment entity. It operates with administrative autonomy and has its own budget. Its board of directors consists of eight members, headed by the Minister of Industry and Mineral Resources. The position of the vice-chairman of the board is held by the president of the Royal Commission for Jubail and Yanbu, who is appointed by a Royal Decree.

The main headquarters of the Royal Commission is located in the capital, Riyadh, and it has a general administration in both Jubail and Yanbu cities.

Upon its establishment, the Royal Commission was entrusted with two main tasks. The first was the comprehensive planning for the establishment of two large industrial complexes in the cities of Jubail and Yanbu and the preparation of the necessary basic facilities for this. The second was the development of the industrial cities of Jubail and Yanbu, preparing all the conditions and capabilities for the establishment of primary, secondary, and light industries, supporting services, and attracting and developing industrial investments for the Royal Commission cities.

On January 28, 1991, by a resolution of the Council of Ministers, it was assigned two primary responsibilities: the operation and maintenance of all industrial facilities, utilities, and equipment that have been built or will be built. And addressing all matters related to the two industrial cities of Jubail and Yanbu and handling their affairs.

On October 19, 2009, a resolution by the Council of Ministers was issued for the Royal Commission for Jubail and Yanbu to manage and develop the Ras al-Khair region in the style of the industrial cities of Jubail and Yanbu.

On July 25, 2015, a Supreme Order was issued assigning the Royal Commission for Jubail and Yanbu to manage and operate Jazan City for Basic and Transformational Industries. Then, a Supreme Order was issued on November 3, 2015, continuing the commissioning of the Royal Commission for Jubail and Yanbu to manage and operate Jazan City for Basic and Transformational Industries. It was also decided that the necessary legal measures should be taken to maintain the organizational flexibility that the city had acquired under the Economic Cities Authority regulation.

The commission aims to maximize its contribution to the industrial transformation in the Kingdom, through the development, empowerment, and management of sustainable industrial cities that promote innovation and provide advanced infrastructure and distinctive services. It also seeks to maximize its social and economic contribution to the Saudi economy, develop the existing industrial base, introduce new sectors, and focus on attracting and fostering small and medium-sized industrial enterprises. Another objective is to attract and develop investors in emerging technologies, offer advanced services and benefits, transform services to enable participation of the private sector, and improve financial sustainability.

The commission adopted a holistic management approach to achieve its objectives, overseeing nine sectors: comprehensive planning, basic infrastructure, operation and maintenance, investment promotion, security and safety, health and community service, education, workforce training, and environmental protection.

The commission manages four industrial cities:

- Jubail Industrial City, which spans an area of 1,016 km² and is located on the Arabian Gulf coast in the eastern part of the Kingdom. It is approximately one hundred km north of Dammam. The Gulf and international sea lanes lie across it, as well as energy sources and the raw materials used in petrochemicals and refining industries. It was established to achieve industrial and civil progress, through advanced infrastructure that operates continuously without any power or supply shortages in any of its facilities. It ensures housing needs are met at a modern living standard and attracts the national expertise required for operation and maintenance.

- Yanbu Industrial City, spanning an area of 606 km², is located about 350 km northwest of Jeddah city. It hosts the largest oil export port on the Red Sea coast and the largest handling station for petroleum and chemical liquids. It is characterized by its proximity to the Suez Canal and North African countries, serving as an outlet to European markets, and its central location between America and the Far East.

- Ras al-Khair City: It is the third industrial city managed by the Royal Commission for Jubail and Yanbu. The Council of Ministers issued a resolution on October 19, 2009, instructing the Royal Commission for Jubail and Yanbu to manage Ras al-Khair City for Mining Industries, and to provide services for mining industries and other industries in the same manner as Jubail and Yanbu industrial cities. The area of Ras al-Khair City for Mining Industries is 178.6 km². It is located about sixty km north of Jubail Industrial City on the Arabian Gulf coast. It houses several phosphate and aluminum factories and the necessary facilities for production operations and essential infrastructure. Ras al-Khair City is expected to include the largest integrated mining industrial complexes in the world.

- Jazan City for Primary and Downstream Industries has an area of 266 km² and is located about seventy km away from Jazan City. It boasts its location on the Red Sea coast and is strategically situated between several of the Kingdom's southern regions rich in natural resources. The city includes the first port that the Royal Commission directly oversees its operation among its affiliated industrial cities, which is an integrated advantage for offering comprehensive logistical services in the city. The design capacity of the port is one million containers annually with a container berth that is 540 m long. There is also a general cargo berth that is 190 m long with a capacity of 2.5 million t annually and a bulk materials berth that is 350 m long.

The industrial cities affiliated with the Royal Commission for Jubail and Yanbu are attractive for investment due to the competitive advantages they possess. These include the integrated infrastructure, proximity to raw material sources, and strategic locations on both the eastern and western coasts. Additionally, the lease prices are low compared to other industrial cities globally. These advantages help ensure an investment environment and industrial integration, attracting numerous global companies to invest in the Kingdom.

The Royal Commission for Jubail and Yanbu continually works to enhance investor privileges in line with the objectives of Saudi Vision 2030. This is achieved by streamlining investment procedures, updating electronic gateways, and automating some processes which has contributed to reducing the time frames and documents associated with permits and licenses. Additionally, they work on developing logistics centers, creating ready-made workshops and warehouses to support small and medium enterprises, and establishing the PlasChem Complex, which is a result of the collaborative efforts between the Royal Commission and Sadara. Their efforts also focus on reducing imports and boosting the value of Saudi exports. The Commission has attracted local and foreign investments to its cities, estimated at SAR1,329.98 billion up to the year 2022. Private sector investments constitute more than 83 percent, and for every riyal spent by the Kingdom in the cities of the Commission, it attracts eight riyals of private sector investments.

The Business Center of the Royal Commission in Yanbu received the Gold Award in the field of customer care from Harvard International Business Council for the year 2022. In addition, the center received the Titan Award in the gold category for excellence in customer service for the year 2022, with participants from fifty countries.

The Royal Commission for Jubail and Yanbu established the Jubail and Yanbu Industrial Cities Services Company (JABEEN) to enhance the competitiveness of its cities by improving the efficiency of services and infrastructure. This move also offers the private sector additional investment opportunities in areas of construction, housing, and logistics services, as well as in transportation, energy, and manufacturing industries.

The Royal Commission contributes to the National Industrial Development and Logistics Program (NDLIP), one of the key initiatives of Saudi Vision 2030. The commission is working on forty initiatives with costs exceeding SAR18 billion to enhance industrial transformation, develop the existing industrial base, introduce new sectors, focus on attracting small and medium industrial enterprises, attract and develop emerging technology investors, provide empowering advantages, offer advanced services, transform services to enable private sector participation and improve financial sustainability. The Commission has won three excellence awards within the NDLIP in the fields of executive performance, investment attraction, and empowering small and medium-sized enterprises. Additionally, the Commission actively participates in achieving the goals of Saudi Vision 2030 related to the transfer and localization of industries and technologies, as well as increasing job opportunities.

The Royal Commission strives to enhance the quality of life in its industrial cities by providing residents with top-notch services and facilities. In the education sector, the Commission is committed to developing its outputs, supplying qualified national cadres, and improving the living, security, and health standards in its industrial cities. Jubail Industrial City won UNESCO's Global Learning City Award for the year 2021. The employment rate for the graduates of the Royal Commission's colleges and institutes during the year 2021 reached about 83 percent. The average results of the Royal Commission's schools in the National Center for Assessment in (Academic Achievement) was 74 percent, while the average results in the (General Aptitude) tests reached 75 percent for the year 2021.

The Royal Commission is also attentive to environmental matters, ensuring harmony between them and industrial development in its affiliated industrial cities. This is done by monitoring environmental performance indicators, overseeing industrial waste, and increasing recycling rates, which currently stand at 61 percent of the targeted industrial waste. The number of companies operating in the disposal and recycling of industrial waste in the commission's cities totals seventeen companies.

The Royal Commission plans to expand in pivotal and transformative sectors, sectors aimed at improving spending efficiency, the mining sector, and demand-driven sectors. It aims to enhance growth opportunities in refining, basic and transformative chemicals, specialized chemicals, and rubber, and to deepen the integration of the value chain, mining industries, food industries, building materials, and spare parts.