Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
 | 
Last updated 42 minutes ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
HOME LOCAL MIDEAST ASIA WORLD BUSINESS SPORT OPINION WRITERS
Saudi announces $500b industrial zone project
October 25, 2017
 Print    Send to Friend

RIYADH: Saudi Arabia announced on Tuesday a $500 billion plan to build a business and industrial zone that links with Jordan and Egypt, the biggest effort yet to free the kingdom from dependence on oil exports.

The 26,500 sq km zone, known as NEOM, will focus on industries including energy and water, biotechnology, food, advanced manufacturing and entertainment, Saudi Crown Prince Mohammed Bin Salman said.

The announcement came as an international business conference got under way in Riyadh, drawing over 3,500 people from 88 countries.

Arranged by Saudi Arabia’s main sovereign wealth fund, the Public Investment Fund (PIF), the conference is labelled the Future Investment Initiative - an effort to present the world’s top oil exporter as a leading global investment destination.

The Saudi government, the PIF and local and international investors are expected to put more than half a trillion dollars into it in coming years, Prince Mohammed said.

Adjacent to the Red Sea and the Gulf of Aqaba and near maritime trade routes that use the Suez Canal, the zone will serve as a gateway to the proposed King Salman Bridge, which will link Egypt and Saudi Arabia, the PIF said.

“NEOM is situated on one of the world’s most prominent economic arteries. Its strategic location will also facilitate the zone’s rapid emergence as a global hub that connects Asia, Europe and Africa.”

Prince Mohammed appointed Klaus Kleinfeld, a former chief executive of Siemens AG and Alcoa Inc, to run the NEOM project.

The zone, which will have its own tax and labour laws and an autonomous judicial system, is to power itself solely with wind power and solar energy, PIF said - a goal which may be hard to achieve in practice.

NEOM will reduce the volume of money leaking out of Saudi Arabia by expanding limited local investment options, the PIF said.

A key source of future investment funds for the PIF, which now has about $230 billion of assets under management, is the government’s planned sale of a roughly 5 per cent stake in national oil giant Saudi Aramco, which could raise tens of billions of dollars.

Reuters

Add this page to your favorite Social Bookmarking websites
Comments
 
Post a comment
 
Name:
Country:
City:
Email:
Comment:
 
    
    
Related Stories
Saudi Arabia is firm on tackling aggression
CAIRO: Saudi Arabia and other Arab foreign ministers held an emergency meeting in Cairo on Sunday to discuss ways to confront Iran and its Lebanese Shiite ally Hizbollah,..
Saudi recalls its ambassador to Germany
RIYADH: The Kingdom of Saudi Arabia has decided to recall its ambassador in Berlin in protest against the German Foreign Minister, Sigmar Gabriel’s comments on the Lebane..
Arab League to hold meeting
CAIRO: The Arab League will hold an extraordinary meeting next Sunday at the request of Saudi Arabia to discuss “violations” committed by Iran in the region, according to..
'Raid on Riyadh heinous act'
JEDDAH: The Organisation of Islamic Cooperation (OIC) has expressed its deep concern over the repercussions of the act committed by the Houthi-Saleh militias, which launc..
Saudi announces death of prince in helicopter crash
RIYADH: The Saudi Royal Court has announced the death of Prince Mansour Bin Muqrin Al Saud, Deputy Governor of Asir Region. The funeral prayer will be performed at Imam T..
FRONTPAGE
 
GALLERY
 
PANORAMA
 
TIME OUT
 
SPORT
 
 
Advertise | Copyright