Royal Commission for Jubail and Yanbu Royal Commission at Yanbu YANBU INDUSTRIAL CITY ECONOMIC REVIEW Strategic Planning & Investment Development Division Economic Planning Department Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. 3rd. Q. 2016 Report # 25 Page 1 TABLE OF CONTENTS SECTION - I 1. Introduction Page # 3 2. Economic Review Objectives 4 3. RC Mission, Vision, and Value 5 4. City Economic Highlights 6 SECTION - II 5. City Key Economic Facts & Figures 7-12 SECTION - III 6. Investment Development 13-18 7. Industrial Development 19 8. Commercial Development 20 9. Residential Development 21 10. Market Rental Rates 22 11. City Power & Water Facilities 23 12. Transportation 24-26 SECTION-IV 13. Employment and Population 27-28 SECTION-V 14. Quality of Life 29-30 15. Smart City 16. Major Events 31-33 34 17. City Customer Service Rates 35-36 Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 2 1.0 YANBU INDUSTRIAL CITY Yanbu Industrial City is located in the Coastal area of the Red Sea about 340 kilometers North-West of Jeddah, Kingdom of Saudi Arabia. In this young city-just over 40 years became a center for modern industries. It plays a major role in the kingdom‟s gross national Income. Yanbu Industrial City represents the last station for the raw oil and liquid natural gas pipelines. These pipes stretch almost 1200 kilometer though the Kingdom starting from oil wells and gas separation factories in the eastern province to Yanbu Industrial City, where most oil is exported to international markets & the rest is used –along with natural gas as fuel and feedstock in refineries and other industries. Yanbu Industrial City has a strategic location that is close to American and European markets. Yanbu Industrial City received many awards including the best area for attracting investment in the Middle East according to Financial Times Newspaper. This is a result of the available attractive factors and investment incentives offered by the RC-Yanbu (Source: Royal Commission Yanbu City Guide ) “Yanbu Industrial City is the First Smart City in Saudi Arabia. Royal Commission Yanbu has signed a strategic partnership agreement to implement the Yanbu Smart City Project ”. Dr. Alaa Nassif, Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 3 2.0 YANBU INDUSTRIAL CITY ECONOMIC REVIEW OBJECTIVE The main objective of Yanbu Industrial City Economic Review is to gain better and current understanding of the City wide Economic Performances. The Specific Objectives • To monitor/keep track of City‟s Economic trends on a quarterly basis. • To understand the changes in the economic structure of the city over the period of time. • To Generate Economic Awareness. Approach This Economic Review is based on the data available from the Royal Commission (RC), Investors and Statistical sources as well as other related local and International sources. The Economic indicators have been used in this report to assess different sectors in the city during a particular time frame which in turn helpful in the realization of Royal Commission„s: Vision , Mission & Values and Strategic Objectives. Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 4 3.0 RC YANBU VISSION, MISSION, VALUES AND STRATEGIC OBJECTIVES RC Vision: The best choice for investors in petrochemical and energy-intensive industries and the leading contributor to the Kingdom‟s Growth. RC Mission: Plan, promote, develop & manage Petrochemicals and Energy intensive industrial cities through successful customer focus and partnerships with investors, employees, communities and other stakeholders. RC Values: * Customer Focus * Transparency * Accountability * High Performance * Team Work * Commitment * Loyalty * Fairness * Social Responsibility RC Strategic Objectives: * Growth: Expand industrial base through growth in number of cities and industrial output. * Tenant Portfolio: Optimize tenant portfolio by attracting investments of added value. * Cities of Excellence: Gain recognition as one of the top industrial cities globally. * Distinctive Staff: The best in attracting distinctive human resources in the Kingdom * Financial: Gradually develop financial sustainability and increased efficiency. Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 5 4.0 CITY ECONOMIC HIGHLIGHTS INDICATOR DESCRIPTION TOTAL UNIT RC Yanbu aggregate investment 61.638 SR Billion Private Sector Aggregate 246.677 SR Billion FDI Foreign Direct Investment in Industry 27.603 SR Billion LAND Existing & Expansion Area INVESTMENT EMPLOYMENT City total Employment 606 Sq. Km 55,030 Numbers as per survey 2015 POPULATION City Economically Supported 117,936 INDUSTRY Primary & Secondary, Light & Support 210 No. of operation, construction, design & Proposed COMMERCIAL Establishments 828 Nos. Registered OIL REFINING City Refining Capacity 1.1 Million Barrel/day 10 Percentage(%) EXPORT & IMPORTS RC Cities Share in the World Petrochemical Production Exports (81,985,239 Tons) & Imports (18,634,062 Tons) POWER Power Plants 1,631 Desalination Production 8,630 PRODUCTION 100,619,301 WATER Seawater Cooling Pumping Quantity in Tons (Total for the Year 2015) MW Current Capacity M³/hr Current Capacity 700,000 Sources: RCY Road shows, Investor Guide, QP Reports, Marafiq, KFIP, IDD Tech. REPORT Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 6 SECTION II 5.0 CITY KEY ECONOMIC FACTS AND FIGURES 5.1 RC Yanbu Global Awards American Planning Association 3rd Gulf Mathematics Olympics International Standard Organisation Global Vital Communities Guinnees Book of World Records Accreditation- Health Facilities Ministry Award for Excellence Global Certificate of Quality GPCA Awards for Excellence 2016 Customer Satisfaction Award Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 7 5.2 INVESTMENTS 5.2.1 Private Sector Compounded Investment by the end of 3rd. Q 2016: 5.2.2 RC Yanbu City Compounded Investments by 218.648 Capital Inv. (Billion SR) • 55 Primary & Secondary Industry (In operation,Under Construction Indesign & Proposed) 14.365 Capital Inv. (Billion SR) the end of 3rd Q. 2016: • 155 Light & Suppport Industry • (In Operation, Under Construction, • In design & Proposed ) SR 61.638 Billion 13.664 Capital Inv. (Billion SR) • 828 Commercial Est.(Reg. , in operation & Under Construction) 6,075 Residentials Units (Existing & Under Construction) Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 8 5.2 OIL & PETROCHEMICAL INDUSTRIES PRODUCTION CAPACITY Industry # Production Capacity Products 1 Saudi Aramco Crude Oil Terminal 4,500,000 BPD Crude Oil storage & Shipment 2 Saudi Aramco NGL Fraction Plant 580,000 BPD Ethane, Propane, Butane, Natural Gasoline 3 Saudi Aramco Yanbu Refinery 235,000 BPD LPG, gasoline, diesel, kerosene, fuel oil 4 Saudi Aramco-Exxon Mobil Yanbu Refinery (SAMREF) 400,000 BPD Propane, Motor fuel, Jet fuel, diesel, fuel oil, sulfur 5 Saudi Aramco-Mobil Lubricating Oil Refining Co. 2000,000 BPY (LUBREF) Lube oil base stocks 6 Saudi Yanbu Petrochemical Company (YANPET) 935,000 MTPY Polyethylene, Polypropylene, ethylene glycols 7 Arabian Industrial Fibers Co.(IBN RUSHD) 750,000 MTPY Xylenes, benzene, PTA,PET , acetic acid 8 National Industrial Gases Co.(GAS) 4,149,000 MTPY Oxygen, nitrogen 9 Yansab (Olefins 2) 4,100,000 MTPY Polyethylene, Ethylene, Ethylene Glycol 10 Natpet 400,000 MTPY Polyethylene, Polypropylene 11 400,000 BPD Yasref A view of Industry Gasoline, Liquefied petroleum gases, sulfur Note: : STATUS UPDATED BY THE END OF 2ND QUARTER 2016: Legend :BPD=Barrels per day, BPY =Barrels per year, MTPY = Metric Tons per year SOURCE: Investment Development Department Technical Report and update based on website information Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. “THE ECONOMIC HEART OF YANBU INDUSTRIAL CITY IS ITS PRIMARY INDUSTRIES. THEIR OUTPUT IS PRIMARILY INTENDED FOR EXPORT, AS WELL AS FURTHER DOWN STREAM MANUFACTURING, BOTH LOCALLY AND ELSEWHERE IN SAUDI ARABIA” SOURCE: OIL REFINING INDUSTRIES PROFILE BY RCY - INVESTOR RELATION DEPARTMENT. Page 9 5.3 LAND USE EXISTING COMMUNITY AREA = 7,000 HA EXISTING INDUSTRIAL AREA = 11,500 HA Expansion Area = 42,100 HA Total Area of RC Yanbu = 60,600 HA (606 Sq. KM) Source: RCY Urban Planning Department Legend 1 Community 1 2 Community 2 3 Community 3 4 Existing Industrial Area 5 Workforce Housing 6 Solar Renw. Energy Park General Industry (Reserved 7 for Expansion) 8 PlasChem Park 9 Desal Parts Manufacture 10 Landfill & Recycle 11 Automotive Parts Manu. 12 Petrochemical Zone(OTC) 13 SWCC 14 Al-Maajjiz 15 Multi-Modal Logistics Hub 16 Maritime Terminal 17 Ship Repair & Dry Dock 18 Heavy Manufacturing 19 Mineral Processing 20 Mineral Distribution Hub Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 10 5.4 HOUSING Total Housing Type Nos.(Units) RC Private Sector % Nos. (Units) Nos.(Units) Villas 7,982 33% 2,900 5,082 Townhouse 2,999 12.5% 2,744 255 Apartments 5,557 23% 4,819 738 Dorms 7,372 31% 7,372 - Grand Total ( Villas+ Townhouse + Apartments+ Dorms) 23,910 Units Housing Units Under Construction 1,506 Units Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. 100% 17,835 Units - 6,075 Units 1,341 Units 165 Units Source: Construction Department Page 11 5.5 EMPLOYMENT AND POPULATION CITY EMPLOYMENT Total City Employment 55,030 Industrial Employment 19,818 (36%) Saudi Employment 24,146 Citywide Saudiazation Rate per Survey 2015 RC at Yanbu: Saudiazation Rate 44% 85% CITY ECONOMICALLY SUPPORTED POPULATION: 117,936: Total Resident Population Non-Saudi Resident Population Saudi Resident Population Total Resident Population Non-Saudi Resident Population NonSaudi 37% Saudi 63% 76,448 24,591 (32%) 51,857 (68%) 76,448 24,591 (32%) Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 12 SECTION III DEVELOPMENTS A VIEW OF ROYAL COMMISSION YANBU HEAD QUARTE (DESIGN OVERVIEW) A VIEW OF ROYAL COMMISSION YANBU HEAD QUARTER (UNDER CONSTRUCTION) YANBU INDUSTRIAL CITY PETROCHEMICL COMPLEX Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. YANBU INDUSTRIAL CITY COMMUNITY DEVELOPMENT DESIGN OVER VIEW Page 13 6.0 INVESTMENT DEVELOPMENTS 6.1 RC Investment in Yanbu Industrial City Aggregate Investment : Inception thru 1st.Q 2016 (in SR Billion) 70 60 50 49.06 51.61 54.34 55.88 59.23 61.638 42.02 40 30 6.2 RC Investment in Yanbu Outcomes The Royal Commission Yanbu has been making all efforts in the development of infrastructure facilities to attract Investors, Industries and the private sector. The RC Yanbu investment outcomes are shown below: The Royal Commission has been currently implementing several projects to develop the infrastructure and prepare sites for pre-planned areas, this includes: - Planning of Area (605 Sq. km) - Construction of main and tertiary roads(655.07Kms) 20 10 - Service projects concerning industrial and residential area 0 2010 2011 2012 2013 2014 2015 3rd. Q 2016 AVERAGE GROWTH RATE OF INVESTMENT OF RC IN YANBU INDUSTRIAL CITY BETWEEN 2010 – 2015: 7.20% - Construction of public facilities and permanent buildings, medical and education facilities and others (Ref. Section II Facts & Figures) - The work is in progress at the government Complex in MYAS for Government Agencies they are: o o o o o General Dept. of Passport Dept. of Civil Affairs Public Notary A Branch of the General Court Real Estate Development Fund The work includes road works with all infrastructures such as Source: Quarterly Progress Reports by SP&PM Dept. The Chief Executive Officer Inspects a Number of Construction Projects in Madinat Yanbu Al-Sinaiyah including Government Compound, Two Masques and an Entertainment Center. “The Royal Commission at Yanbu continues its efforts on the implementation of several development projects in Madinat Yanbu Al-Sinaiyah, which will further enhance comfort and provide integrated services to the city’s residents and visitors”. Source: 3rd. Q. News of RCJY Website. Electricity, Telecommunication, Portable and fire water, Irrigation, sanitary wastewater, and storm draining systems, Parking area that accommodates (100) vehicles. In addition to landscaping, walkways and the external areas of the building. Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 14 6.3 Private Sector Aggregate Investments: Aggregate Investment :Inception thru 3rd. Q.2016 (SR in Billion) 300 246.68 250 232.10 200 150 135.66 145.34 148.06 149.00 2010 2011 2012 2013 164.75 100 50 0 2014 2015 3rd. Q.2016 “ EACH SR 1 INVESTED BY ROYAL COMMISSION YANBU ATTRACTED SR 4 INVESTMENT BY THE PRIVATE SECTOR”. Source: Quarterly Progress Reports by SP&PM Department 6.4 Private Sector Investment: Growth Rate:11.34% Average Growth Rate of Private Sector Investment between 2010-2015. 6.5 2015 Quarterly Progress of Private Sector Investment: Quarterly Investment Progress (SR in Billion) Investment Inception as on 2014 Yr. end (SR in Billion) 4th Q.2015 (inception thru 4th Q.2015) 3rd. Q, 2016 (inception thru 3rd. Q.2016) 164.746 244.109 246.68 Increase +79.363 (4th Q. 2014 to 4th Q. 2015 +2.164 (from 4th Q. 2015 to 3rd. Q. 2016) +41% +1% Percentage (%) Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 15 6.6 Private Sector Investment Out Comes as of 3rd. Q. 2016 The Royal Commission Yanbu has been making all efforts to attract Private Sector involvement in the development of Yanbu Industrial City. The Private Sector Investment outcomes in Yanbu are shown below: 55 Primary and Secondary Industry 155 Light and Support Industry (In operation, Under construction and proposed) 828 Commercial Establishments including Waterfront Area (In operation, Under construction and proposed) 6,075 Housing Units built and 165 units are under construction 2 Hospitals and 4 Clinics. Two Private Schools and many Kindergartens Many of the recreational facilities are managed by the Private Sector. 2 Hospitals and 4 Clinics. Two Private Schools and many Kindergartens Many of the recreational facilities are managed by the Private Sector. The RCY sings a contract for operating a New International School at MYAS( Private Investment) Dr. Alaa Nassif attended the opening ceremony of Al-Hamdi Trade Center Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. H.E the CEO receives members of Young Businessmen National Committee Page 16 6.7 Waterfront Investment Development Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 17 6.8 Yanbu Industrial City Center Yanbu Industrial City Center City Center Design Overview “The City center occupies an area of 19.5 ha with estimated total investment reaching 2 Billion SR. It also includes the buildings Civic Center(CC),RCY Head Quarter (under construction), Grand Mosque(GMCC), Cultural Center(CC),Saudi Telecommunication (STC-existing), Banks (existing)’’ SOURCE: Guide to Yanbu Al-Sinaiyah Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 18 7.0 INDUSTRIAL DEVELOPMENT 7.1 Industrial Area Status Industries Growth Trend Between 2010-2015 138 138 2010 2011 172 183 2012 2013 197 2014 212 2015 7.1.3 Industrial Development Out comes: The development of Heavy and Support industries in RC Yanbu responds to national development goals. The Heavy Industries produce a variety of potential feedstock‟s (see Facts & Figures: Oil and Petrochemical manufacturing Industries) that are capable of supporting a host of future downstream industries, particularly petrochemical manufacturers. The development of these industries has been planned to take into account the strategic, commercial, and geographic advantages of Yanbu Industrial City. The direct outcomes of Industrial Development are as follows: Source: Quarterly Progress Reports by SP & PM Dept. 7.1.1 Industrial Growth (Industry in operation, under construction, In design and proposed): 9% AVERAGE ANNUAL GROWTH between 2010 to 2015 74 No. of Industries total increase between 2010-2015 14.8 Nos. of Industries Average increase per Year Between Generation of Industrial Employment: 36% of Total Employment (55,354). Economically Supported Population: 38% of total supported Population(117,936). 81,985,239 Quantity in Tons contribution to Exports for the Year end 2015. 18,634,062 Quantity in Tons of Imports for the Year end 2015 5 Conditional site allocations and 2 Lease Agreements Signed by Royal Commission Yanbu in the 3rd. Q. 2016 City Industrial Partners with major reputation include: 2010-2015 7.1.2 Quarterly Progress: # of Industry Inception as on 2014 Yr. end 197 Changes Quarterly Progress (in Number of Industry) (in operation, construction, in design & proposed) th 4 Q. Aggregate 2015 1st Q. Aggregate 2016 nd 2 Q. Aggregate 2016 Workshop lubricant industries industrial complex in Yanbu rd 3 . Q. Aggregate 2016 212 208 211 210 - -4* +3 -1** Note*:one Industrial Proposals withdrawn and 3 Light industries not operating **One Industrial Proposal withdrawn. “RCY HAS 3 ACTIVE CONTRACTS PERFORMING IN THE CITY CENTER AND RCY-HQ AREA INFRASTRUCTURE DEVELOPMENT ”SOURCE: CONSTRUCTION DEPARTMENT Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 19 8.0 COMMERCIAL DEVELOPMENT 8.1 Commercial Development Status Commercial Est. Registrations: 2010 - 2015 650 665 667 711 747 2011 2012 2013 2014 2015 545 2010 Source: QP Reports by SP & PM Dept. 8.2 Commercial Establishment Growth bet. 2010-2015: 8% Average growth of Commercial establishment registration 246 No. of total Commercial Est. registered between 2010-2015 49 average Nos. of registration increase per Year between 20102015 7.3 Quarterly Progress: Inception as on 2014 Yr. end 711 Increase by Quarter 7.5 Commercial Development Outcomes: The steady growth of the city leads to an increase in the commercial shops that serve its residential areas. City has a variety of commercial establishments which satisfy the basic needs and services of the community. Commercial Facilities and service centers in the city fall into two major types: 1.Neighborhood Commercial Centers 2.Commercial centers in residential areas. Following are the direct commercial development out comes: Employment generation: 6% of Total Employment ( 55,354) 17% Saudiazation out of total commercial employment of 3,173 5% women employment out of commercial employment of 3,173 Economically Supported Population consists of: 4% of total supported Population (117,936) 30% Saudi population supported by Commercial sector 8 Commercial leases were signed by RCY in the 3rd. Q. 2016 and signed one Conditional site allocations. RCY Commercial Sectors main Partners Consists of: Quarterly Progress ( Numbers) 4th Q. Aggregate 2015 1st Q. Aggregate 2016 2nd Q. Aggregate 2016 3rd. Q. Aggregate 2016 747 798 806 828 - +51 +8 +22 7.4 Rental Rates: Varies from 400 SR to 2,250 SR per M²/Yr.Highest rental rate is in Hyper Panda and the Lowest is Zakri Market (RADWA-8) Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 20 9.0 RESIDENTIAL DEVELOPMENT 9.1 Residential Units Development 23,701 24,000 22,768 23,000 22,000 21,594 21,623 2012 2013 20,974 21,000 20,014 20,000 19,000 18,000 2010 2011 2014 2015 9.4 Residential Development Outcomes: Since the founding of the City in 1979, the RC Yanbu focused on the comprehensive service concept by constructing the needed housing units. Due to the increasing population in Yanbu, the RC Yanbu involved the Private Sector (Industries/companies, Investors and Individual ) in the construction of new housing units; whereas the RC Yanbu assumed development of necessary land lots by providing all required services. Types of housing units are categorized as 1) Villas, 2) Townhouses, 3) Apartments, and 4) Dormitories. RCY Residential main Private Sectors Partners contribution Consists of: Source: QP Reports by SP & PM Dept. 9.2 Residential Growth: 3.5% Average growth rate between 2010-2015 3,687 residential units completed between 2010-2015 738 average No. of units increase per Year between 2010-2015 9.3 Quarterly Progress: Inception as on 2014 Yr. end Inception as on 2015 Yr. end Inception as on 3rd. Q. 2016 22,768 Units 23,701 Units 23,910 Units Av. Increase by Quarters 233 Units (1st to 4th Q.) 70 Units (1 to 3rd. Q.) - 1,506 Units Units under Construction ARAMCO built 1,059 housing units SAMREF built 1,037 Units SABIC built 1,134 Units LUBREF built 134 Units MARAFIQ built 442 Units Individuals built 536 Units and Investors built 1,822 Units 165 housing units belongs to companies are under construction RC at Yanbu built 17,835 Units Currently Residential construction sector has created temporary employment opportunities for about 9,000 workers. Royal Commission Housing Ownership Program (HOP) is in progress. One Conditional site allocation lease signed by RCY. st “RCY’s more than 14 active contracts are performing in the Infrastructure Development of community Area”. Source: Construction Department Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. A view of sabic housing project Page 21 10.0 HOUSING RENTAL RATES IN SAUDI RIYALS (SR) PER YEAR: HOUSING TYPES 4th Quarter 2015 (BASIS FOR ANALYSIS) 1st Q.2015 2nd Q.2016 3rd. Q.2016 VILLAS 2 Bed Room 24,000-25,000 24,000-25,000 24,000-25,000 24,000-25,000 Quarterly Average Change 3 Bed Room Quarterly Average Change 4 Bed Room Quarterly Average Change 5 Bed Room Quarterly Average Change 6 Bed Room Quarterly Average Change 7 Bed Room Quarterly Average Change 8 Bed Room Quarterly Average Change No Change No Change No Change No Change 45,000-50,000 45,000-50,000 45,000-50,000 45,000-50,000 2.15% No Change No Change No Change 50,000-80,000 50,000-80,000 50,000-80,000 50,000-80,000 No Change No Change No Change No Change 62,000-85,000 65,000-86,000 65,000-86,000 65,000-86,000 1% 3% No Change No Change 55,000-90,000 55,000-90,000 55,000-90,000 55,000-90,000 No Change No Change No Change No Change 70,000-110,000 75,000-110,000 75,000-110,000 75,000-110,000 No Change No Change No Change No Change 90,000-110,000 90,000-115,000 90,000-115,000 90,000-115,000 No Change 2.5% No Change No Change TOWNHOUSE 3 Bed Room Quarterly Average Change 4 Bed Room Quarterly Average Change 40,000 –55,000 40,000 –55,000 40,000 –55,000 40,000 –55,000 No change No change No change No change 50,000-70,000 50,000-70,000 50,000-70,000 50,000-70,000 No change No change No change No change APARTMENTS 1 Bed Room Quarterly Average Change 2 Bed Room Quarterly Average Change 3 Bed Room Quarterly Average Change 4 Bed Room Quarterly Average Change 14,000-20,000 14,000-20,000 14,000-20,000 14,000-20,000 No Change No Change No Change No Change 24,000-35,000 24,000-35,000 24,000-35,000 24,000-35,000 No Change No Change No Change No Change 30,000-50,000 30,000-50,000 30,000-50,000 30,000-50,000 6.6% No Change No Change No Change 55,000-65,000 55,000-65,000 55,000-65,000 55,000-65,000 6% No Change No Change No Change Note: - Since RCY also providing accommodation facilities for its employees and its partners, changes in market rental rate exist but are not significant. - Due to recent economic recession the housing rental rates remained unchanged between 2nd and 3rd. Q. of 2016. Source: City Real Estate Offices . Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 22 11.0 POWER & WATER FACILITY 11.1 MARAFIQ Electrical Power Overview: 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 10,000 M³/HRr 8,000 6,000 4,000 2,000 0 4th.Q. 2014 1st. Q. 2015 2nd Q. 2016 3rd. Q. 2016 Desal Water Production Capacity 8,630 8,630 8,630 8,630 Firm Desal Water Supply 6,748 6,835 6,191 6,217 Av. Desal Water Demand 5,479 5,990 6,150 6,298 Note: Av. Desal Water Demand/Usage consists of Industrial & Community Area including Marafiq & export to Medina Coolant sea water Quarterly Production & Demand 4th Q.2015 1,631 1st. Q.2015 1,631 2nd Q.2016 1,631 3rd Q.2016 1,631 Firm Power Supply 1,300 1,391 1,321 1,391 Av. Power Demand 1,073.23 1,085.37 1,160.76 1,209.10 Gen. Capacity Quarterly Desal Water Production & Demand M³/Hr (in Megawatt) MARAFIQ Company generate power and supply to RC Yanbu City. The electrical power system at Yanbu Industrial City is self-contained. It is designed, constructed, and operated to provide safe, efficient, and reliable electrical service to all its customers. 1,338 MW Average Firm Power Supply during the Yr. 2015 1,075 MW Average power Demand during the Yr. 2015. Quarterly Power Supply & Demand Note: Average Power Demand consists of Industrial & Community Area Including Marafiq. 11.2 MARAFIQ Potable and Process Water Overview: The seawater desalination system at Yanbu Industrial City produces and process water for industrial uses. Potable water is provided for domestic uses and firewater in the residential community and for the needs of operations staff in the industrial zones. Potable water treatment quality complies with the World Health 4th Q.2015 1st. Q.2016 2nd.Q.2016 3rd. Q.2016 Seawater Pupmping Capacity 700,000 700,000 700,000 700,000 Seawater Supply 518,549 421,985 443,566 485,246 Av. Seawater Deamnd 505,493 416,569 438,084 469,248 Note: Average Power Demand /Usage consists of Industrial & Community Area Including Marafiq and export to MDA(Medina). 11.3 Seawater Cooling Production & Demand 5,145 M³/Hr Average Firm Coolant Sea Water Supply during the Yr. 2015 511,180 M³/Hr Average Coolant Sea Water Demand/usage during the Yr. 2015. Organization (WHO). 6,652 M³/Hr Average Firm Desal Water Supply during the Yr. 2015 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Note: Average sea water Demand /Usage consists of Industries & Utilities Marafiq. 5,685 M³/Hr Average Desal Water Demand/usage during the Yr. 2015 Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 23 12.0 TRANSPORTATION 12.1.2 City Public Transportation: Direct Travel is available from RC to Main Cities like: Madinah, Jeddah, Makkah and Dammam Taxi and rent a car services operate within the City.Rent a Car Services accommodate short as well as long distance travel is available from the RC Yanbu City to cities like: Madinah, Jeddah, Makkah Dammam Tabuk and others. Contractors in the City operate their own trasportation services to move workers between camps and the work place. 12.1.1 City Road Systems: RC Yanbu owns a large number of School Buses and provide services to move students between residences and Schools and also for religious schools during evening times . Yanbu Industrial City is connected to all other cities in the kingdom through a network of modern highways. Yanbu is the gate for those who are travelling from north to south of the kingdom. King Abdul Aziz highway connects Jeddah with the coastal northern areas. Secondary roads are branching out of this highway that serves industrial Regional Transportation System and residential areas. There is also the new eastern road that connects the city eastern boundaries with Yanbu Al-Bahr and Yanbu Al-Nakhl. Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 24 12.2 YANBU AIR SERVICES “ Saudi Arabian Airports see an annual increase of more than 10% passengers and 5% of aircraft operations”. Source :Summit Brochure of Airport Modernization, 2-3 Oct. 2016, Riyadh Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 25 12.3 KING FAHD INDUSTRIAL PORT (KFIP) 12.3.1 Port Overview: 12.3.2 Quarterly Progress: Yanbu‟s King Fahd Industrial Port, which extends along 15 KM of coastline, is the largest oil-shipping complex on the Red Sea. Completed by the Royal Commission in 1982 and operated by the Saudi Arabian ports Authority since 1984. Export & Imports Status 90 4th Q. 2015 1st Q. 2016 2nd Q. 2016 3rd. Q 2016 IMPORTS (Q. in Tons) 6,456,472 6,898,114 7,381,562 8,083,008 EXPORTS (Q. in Tons) 22,990,582 20,395,009 24,476,460 25,365,639 TOTAL 29,447054 27,293,123 31,858,022 33,448,647 ACTIVITY 80 9.5% increase in Imports and 3.6% increase in Exports between 2nd Q. 2016 and 3rd Q. 2016. 75% Exports and 25% Imports consists in the 3rd Q. 2016 Qu. in MM Tons 70 60 50 40 “KFIP is the Largest oil shipping port on the Red Sea & 30 20 a major liquid handling terminal” 10 0 Exports 2010 80.76 2011 22.4 2012 23.1 2013 21.02 2014 20.14 2015 81.98 Imports 2.78 1.55 2.4 2.4 2.35 18.63 2015 Imports consists of 18.48% and Exports consists of 81.48%. • Import Products consists of : Liquid Artificial Materials, Solid/Liquid Materials, Oil Products. • Export Products consists of: Liquid/Solid Petro-Chemical Products, Solid Materials and Oil Products. • KFIP Primary Exports are Oil Products. Source: SP & PM and For more Information : visit: www.ports.gov.sa Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 26 SECTION IV 13.0 EMPLOYMENT 13.1.0 Employment Growth Total Employment in Yanbu Industrial City per 2015 survey is 55,030 and Employ jobs (i.e people who work for an Industry, establishment or organization) is the key barometer of Employment trends. Total employment growth average 2,176 jobs per year between 2007 to 2015 and an average compounded growth rate of 5%. Industrial employment increased by an average of 1,380 new jobs on average each year and an average compounded growth rate of 11%. 13.1.1 Employment by Economic Sectors Year End 2015: Industry Construction 3510 (6%) Unclassfied 7269 (13%) Private Construction 4116 (7%) Primary & Secondary Industry 11759 (21%) Utilities & Transport 3286 (6%) Education Services 1514 (3%) Health Services 3,599 (7%) Primary & Secondary Industry 11759 (76%) Light & Support Industry 8059 (18%) Public Construction 5275 (3%) National Govt. 1456 (99%) RCY 2044 (85%) Education Services 1514 (89%) Health Services 3599 (29%) Commercial -Retail 3173 (17%) Utilities & Transport 3286 (33%) MAJOR ACHIEVEMENT OF RC YANBU IN EMPLOYMENT SECTOR National Govt. 1456 (3%) RCY 2044 (4%) Industry Construction 3510 (2%) Private Construction 4116 (5%) Unclassfied 7269 (99%) Light & Support Industry 8059 (15%) 55,030 Public Construction 5275 (9%) 13.1.2 Employment by Economic Sectors & Saudi percentage (%) Year End 2015: Commercial Retail 3173 (6%) “Female employment in Yanbu Industrial City is primarily in Industrial ,Health Services, Education, Retail Services & Banking”.- Population & Employment Survey 2015. “From the beginning a major aim of the RC incorporated in the Yanbu Master Plan, has been the training of young Saudi 's in the technical skills needed to operate the city’s industries and infrastructure.” Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 27 13.1 POPULATION 13.2.1 City Supported Population : 13.2.2 Population Distribution by Sectors: Economic Growth Trends Between: 2007 & 2015 Total Supported Population Saudi Population Saudi % of Total Population Primary & Secondary Industry 41,312 34,151 83% Light & Support Industry 12,064 4,090 34% Utilities and Transportation 8,260 5,141 62% Commercial & Trade Services 5,094 1,693 33% Health Services 8,143 3,064 38% Education Services 7,391 6,878 93% Royal Commission at Yanbu 8,815 6,563 74% National Government 4,948 4,922 99% Public Construction (RC) 6,233 410 7% Private Construction (Commercial & Residential) 4,360 149 3% Industry Construction 3,651 194 5% Unclassified(Students, retirees) 7,541 6,984 93% 117,936 74,239 63 % 140,000 Sector 117,936 98,266 Nos. 105,000 70,000 55,030 37,622 35,000 0 2007 2015 Employment 37,622 55,030 Population 98,266 117,936 Source: 2015 Employment & Population Survey Total Population in Yanbu Industrial City per 2015 survey - 117,936 Total Population change 19,670 between 2007 to 2015; and an average annual growth rate of 2.3%. Analysis of population reflects that there is steady annual increase in the Saudi Population between 2007 and 2015. Analysis of Non-Saudi population reflects irregular in annual increase between 2007 and 2015 due to construction activity. “ANBU INDUSTRIAL CITY CAN ACCOMMODATE A POPULATION OF MORE THAN 285,000 PER YANBU MASTER PLAN 2015”. TOTAL POPULATION Source: 2015 Employment & Population Survey Employees from 29 countries are working in Yanbu Industrial City Per Yanbu Employment and Population Survey 2015. Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 28 SECTION V 14.0 QUALITY OF LIFE OVERVIEW > 300,000 M² Sports Park with 2,500 meter long walk way > 828 Registered Commercial > One City Public Library > One Festival Park & Community Parks Establishments > Special Areas consisting of > Health Facilities (Operational): City Center & Waterfront Hospitals=3, Clinics=10 > Industrial College(1) & Tech. Institute(1), University Colleges(2) and English Learning Centres > 85 Recreation Centers > More than 655.07 Km Paved roads (Highway, Primary, Secondary, Tertiary Roads, Other Roads & Parking Areas) > 54 Schools and Kindergartens including International Schools “ Waterfront Project investment is further enhancing quality of life in Yanbu Industrial City” - Parsons > Safety & Security: 4 Fire Stations and well equipped City Security Team “ Yanbu Industrial City is one of the Best Livable Communities” – UN Environment Program Award 2013 Note: Information updated by the end of 3rd. Q. 2016 Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 29 14.1 City Quality of Life: Summary of resident satisfaction survey “ Yanbu is located directly on the Red Sea Ranked Very Good & Good By Residents with some of the best snorkeling and diving Electricity 90% Water Services in the world. The coral is amazing and at 87% Sewage Services many of the beaches you are able to easily 85% see the start of the coral in quite shallow Storm Drainage 76% Children's Education 76% water. A weekend at the beach is just a few Garbage Collection 76% minutes away and is available almost all Ambulance 75% year round due to the warm climate. It’s Neighborhood Cleanliness 75% certainly easy to throw on a wetsuit and Traffic Signs 75% dive in”Source: Angela Harlow is an Fire Services 74% Park Facilities American Expat. 73% Safety & Security 68% Waterfront Facilities 64% Police Services 60% Commercial Facilities 56% Traffic & Road Safety 52% Health Care Facilities 52% College Opportunities 52% Sports Facilities 50% 0% 20% 40% 60% Source: Quality of Life Survey by Economic Planning Department 80% 100% RC Yanbu lake and Yanbu Industrial College Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 30 15.0 YANBU SMART CITY 15.1 Yanbu Smart City Project: On the sidelines of HRH Deputy Crown Prince Mohammad Bin Salman visit to China, Huawei Tech. Investment Saudi Arabia Co. LTD signed a Memorandum of Understanding with the Royal Commission for Jubail and Yanbu. This agreement aims to support the Saudi Vision 2030 roadmap of transforming the Kingdom to be a pioneering and successful global model of excellence, on all fronts. Aimed at supporting the industrialization process of Saudi Arabia, both parties will collaborate to support the development of the local ICT industry, and the employment of qualified Saudi resources in strategic areas. Huawei will leverage its technologies to serve the Saudi people, in an effort to resolve the challenges associated with the continuing urbanization of the Kingdom and sense of happiness and safety, while increasing the country‟s competitiveness. The agreement includes the implementation of „Smart City‟ technologies, with an aim to interconnect every component in the several cities. This is done through initiatives like a joint strategy and master plan design, smart city competency center, technology innovation and building a smart city reference site together through collaboration, innovation and technology. The parties promise to interconnect every “component” of the city, drive innovation through human and machine, becoming more efficient at managing energy use, resources, mobility, intelligent living with comfort and security, and sustainable development to overcome the limitations of traditional urban development. Representing the Royal Commission for Jubail and Yanbu was H.E. Dr. Alaa Nassif, Chief Executive Officer. Huawei Tech. Investment Saudi Arabia Co., LTD was represented by Ramadan Ding, Chief Executive Officer. Huawei, as a global leading information technology & telecommunication leader has created a specialized center of excellence around Smart City practice with capabilities that are spanning over wide range of services, products & partners. The company recently received the first commercial license in the field of ICT in the Kingdom, and will be running its business in the Kingdom with a 100% ownership privilege. Huawei has a mandate of building effective partnerships with local distributors and enhancing local content, focusing on future achievements and transforming ideas into reality using the latest innovations and the confidence of customers to support the Kingdom's vision 2030. Source: Public Relation Department. Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 31 15.2 Yanbu Smart City Project Goal: Technological and Social infrastructure to facilitate and accelerate sustainable economic growth through 3 (Three Pillars): UNIFIED OPERATION CENTER(UOC) Pillar 1 - Residents (Quality of Life): Broadband Internet Access (Speed up to 100mbps) Voice Service and TV E-Health Community Portal Home Automation and Etc., Pillar 2 - Business (Enterprise Control): Smart Metering CC TV Access Control and ID Environmental Monitoring Hosted and Managed Services Pillar 3 - Public (Services Delivery): SMART HOMES Wireless (zigbee PRO )battery or charge powered Traffic Controls Community Portal: Smart Metering Public Lighting, Irrigation, etc. Asset Management Operation Centers Digital Signage Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 32 15.3.0 Smart City Project Progress as of 3rd Q. 2016: 15.3.1 City wide WIFI ZONE: Following places/Zones successfully made available with WIFI Facilities for the residents of the City. 15.3.2 Out of Two Data centers, One is successfully launched and the 2nd one is 90 % completed . 15.3.3 5,700 homes have Fiber connectivity with RCY and Smart Network can be readily served. 15.3.4 Out of 7 RFP‟s ( 5 belongs to Community Area & 2 Industrial Area) 4 RFP‟s released, 3 to go. 15.3.5 Among Four Projects, one is completed, one is ready for acceptance and Two are completed 70% each 15.3.6 Customers Connected: - 1,044 customers connected in the Community Area by Mobily and 51 by ITC Huawei’s Company Smart City Solutions - 2 Industries connected in the Industrial Area by ITC Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 33 16.0 MAJOR EVENT Release of Electronic Services Portal for the Royal Commission at Yanbu The Royal Commission at Yanbu has launched an initiative to develop an electronic services Portal and automation of business procedures in cooperation with the electronic transactions system. The Portal recently launched by The Chief Executive Officer for Royal Commission at Yanbu his Excellency Dr. Alaa Nasif aims at unifying and automating (RCY) various department procedures. The initiative has been implemented based on the studies of business needs and procedures, in addition to the technical needs that identify the Business Processes Management System (BPMS). The System currently contains various services such as construction and excavation permits, engineering work request, industrial corridors excavation permits, works and maintenance certificate. Additional group of services will be launched targeting different categories and activities before the end of this year. The System is accessible through the following link: www.eservices.rcyanbu.gov.sa , or through Yanbu Portal at the Royal Commission main website. Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 34 17.0 CUSTOMER RATE – SUMMARY CHART SERVICE DESCRIPTION HOUSING Housing Type CUSTOMER RATE ( in USD) RCY Rental Range per month 1 Bed Room 2 Bed Rooms 3 Bed Rooms 4 Bed Rooms 5 Bed Rooms Villas $173 - 291 $243 - 370 $284 - 506 $581 - 992 $577 - 1,085 Townhouse Apartments n/a $132 - 265 $288 - 508 $238 - 412 $400 - 668 $409 - 661 $457 - 992 $437 - 898 $531 - 1,036 - 1 man per room= $ 6 / day (1st Yr.) 2 men per room = $ 5 per day(1st Yr.) 6 men per room = $ 4 per day (1st Yr.) Dorms Commercial Leasing $ 5.87 - 17.87 / M² / Year OR Price per bid submitted by the Investors Industrial Leasing $1.20 / M² / Year (New Industries) and Land Reserved for future Expansion: 1.6 / M² for 1st Year $ 2.1 / M² for 2nd Year $ 2.6 / M² for 3rd,4th,5th Years. Rental Rates for Temporary Locations Provided for Investors RC Contractor $/M² Industrial $/M² Residential $/M² Commercial $/M² 0.5 0.5 1.0 1.3 (2M 20,000 > Measurements 0.6 0.8 1.2 5.5 (2M 20,000 > Measurements > 2 20,000 0.8 1.0 1.3 4.5 (2M 20,000 > Measurements> 2 30,000 0.9 1.2 1.5 5.0 (2M 20,000 > Measurements> 2 50,000 1.0 1.3 4.5 1.9 (2M 20,000 > Measurements> 2 100,000 1.0 1.5 4.4 1.9 (2M 20,000 > Measurements LAND Rate for Pipelines, Conveyor Corridors Temporary Locations for Investments Projects $ 30.5 / M² / Year Corridor Annual Lease Rate Schedule(USD / Linear Meter/Year): Rate for Hydrogen Pipelines Diameter(inches) Developed Corridor* (Rate in $) Undeveloped Corridor (Rate in $) <4 5 -6 7 -8 9 -10 11-12 13-15 >16 40 46.6 53.3 64 73 86.7 100 20 24 26.6 32 37 44 49 Note: * Developed corridor refers to the pipeline corridor with RC provided Infrastructure. Govt. Agencies $ 8 / M² / Year for Land $ 40 / M² / Year for Buildings Industrial Companies $ 4 / M² / Year for HOP (Housing Ownership Program) $ 8 / M² / Year Residential Buildings Outdoor Play Field Outdoor Play Field, Rent per hr. varies from $ 8 to $ 40 Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 35 $0.05 / KWh Industrial Electricity UTILITIES Commercial Electricity: 4000 KWh/month > 8000 KWh/month $0.04 / KWh $0.08 / KWh Potable & Process Water: Commercial : Industrial $2.0 / M³ $2.0 / M³ Octane/RON 95 - $ 0.24 / Liter Octane/ RON 91 - $ 0.20 / Liter $ 0.05 / Liter $ 1.25 / MBTU $ 1.57 / MBTU Gasoline Price Industrial Fuel Oil Gas Ethane Propane, Butane & Natural Gasoline Kerosene Industrial Diesel Transport Diesel Arabian Light Crude & Heavy Crude Oil Heavy Fuel Oil 180 & 380 Education Fee Int. School SERVICES Medical Service Sports Services $ 0.80 /Ton ( Average previous month –price in Japan subtract shipping and insurance price from Ras Tanourah to Japan) $ 25.70 / Barrel $ 14.00 / Barrel $ 19.10 / Barrel $6.35 & $4.40 / Barrel respectively $4.25 & 3.80 / Barrel respectively Tuition Fee: Pre- School = $ 3,716 /yr., KG = $ 15,508 /Yr., Middle School=$ 16,096 /yr., High School = $ 17,459 /yr Description Medical Test for IQAMA Health Certificate Toxins & Mind affecting sub. Detection Test Medical Test for Students Pre-employment medical test + toxins & mind affecting substance detection tests Medical test for driver‟s license Description: Membership Categories for companies Diamond Card ( employees 1 to 300 & above) Silver Card ( employees 1 to 200 ) Bronze Card ( employees 1 to 100 ) Membership categories for Individuals : - Family Card - Male Membership Card - Female Membership Card Sports Training Program : Price in USD $ 80 $ 67 $ 267 $ 53 $ 453 $ 60 Rates for Companies in USD / Yr Single $ 374 $ 428 $ 481 Family $ 468 $ 535 $ 601 $ 668 /yr $ 535 /yr $ 400 /yr Membership Fee with Transportation:$114 per month Membership Fee without Transportation:$ 80 per month Workers Meals Meal Cards: For Supervisors = $ 3.5 /day (1st Yr.) & For Non-Supervisory = $ 2.7/day (1st Yr) Cash Meals: For Supervisors = $4/day(1st Yr.) & Non-Supervisory= 3.2/day (1st Yr.) Soil & Concrete Test Soil, Concrete , Steel and Asphalt Test varies from $ 60 to $ 600 per each activity. Trip Charge for Technician=$ 53 for each round trip and standby Technician $150/hr. SOURCE: RCY – CUSTOMER RATE – SUMMARY CHART INVESTMENT DEVELOPMENT DEPARTMENT, RCY - PROPERTY DEPARTMENT, SAUDI CABINET – DECISION DATED 2015/12/29, MARAFIQ, RCY- INDUSTRIAL CLUSTER DEPARTMENT, INTERNATIONAL SCHOOL. Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 36 SHOULD YOU HAVE ANY QUESTIONS ???? OR WISH TO DISCUSS ANY OF THE RELATED ISSUES OF ECONOMIC REVIEW PLEASE CONTACT: STRATEGIC PLANNING & INVESTMENT DEVELOPMENT DIVISION ECONOMIC PLANNING DEPARTMENT CONTACT PHONE NO: + 966 14 321- 6636 /6427 Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 37 Yanbu Industrial City Economic Review, Strategic Planning & Investment Development Division, Economic Planning Dept. Page 38
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