[Photo by Yang Yeon-ho]
Saudi Arabia’s first-ever project to create an industrial park for foreign companies is finally kicking off. Sixteen small and medium-sized enterprises from South Korea with technologies in eco-friendly vehicles, renewable energy, medical and bio, information technology (IT), and light and heavy industries traveled to Jazan City, Saudi Arabia from November 27th to 30th local time to sign an agreement with the Royal Commission for Jubail and Yanbu (RCJY) forming a local joint venture (JV) and securing land for production. The RCJY, established by Saudi royal decree in 1975, was granted financial and administrative autonomy to develop Jubail and Yanbu into industrial cities and manages Jazan Industrial City, a center for primary and downstream industries.
This Saudi-Korea Industrial Village Project (SKIV), boasting an initial investment of approximately 7.8 trillion won ($6.05 billion), is a key part of Saudi Crown Prince Mohammed bin Salman’s Saudi Vision 2030 to move the country away from an oil-centric economy. Saudi International Industrial Village Company, or SIIVC, signed an official agreement with the RCJY to promote SKIV. Sixteen Korean SMEs will receive full funding from the Saudi Industrial Development Fund (SIDF) and SIIVC to build factories and equipment in the industrial village on the condition that they will transfer technology and hire local labor. Once SKIV is up and running, the annual revenue to be generated by the 16 Korean SMEs will hit 13.23 billion riyal ($3.53 billion), according to the SIIVC.
Jazan is one of the new special economic zones designated by the Saudi government in May 2023, alongside Riyadh, Ras Al-Khair, and King Abdullah Economic City. Resident companies will be entitled to exemptions from customs duties on machinery and raw materials, wage subsidies, full foreign ownership, and relaxed regulations on hiring foreign labor. Jazan Industrial City, where SKIV will be located, has 19.4 kilometers of coastline and one of the three major Saudi ports bordering the Red Sea along with Jeddah and Yanbu. Opened in 1976, Jazan Port serves as Saudi Arabia’s main gateway for importing and exporting goods to Africa.
Korean SMEs are expected to play a key role in the kingdom’s economic and industrial structural reforms. S-Connect Co. will be responsible for procuring and manufacturing core components needed for efficient power supply in the Middle East and Africa. The company, with an investment of 300 billion won ($79.97 billion), plans to produce lithium primary batteries on the site allocated to it within SKIV. Unlike secondary batteries, the lithium primary batteries that it has developed through its subsidiary Aricell Co., although non-rechargeable, can be used for more than 15 years as its self-discharge rate is less than 1 percent per year. It is used as a core power source for smart meters such as electricity, gas, and water and is expected to be used also for oil and gas drilling equipment and military equipment in extreme environments.
Products that can alleviate water shortages in the Middle East and Africa will also be produced. YUMIN Sensor Technology Co., which received 320 billion won in investment, produces film-type liquid detection sensors based on electronic circuitry that detect leakage of dangerous liquids. The product, in addition to reducing the risk of disasters caused by leakage at industrial sites such as refineries and chemical plants, is expected to contribute significantly to alleviating water shortages by preventing losses from leakage when applied to water pipes in the Middle East and Africa, where water leakage is severe. The company is in talks with Saudi Arabian Oil Company (Aramco), Saudi government-run National Water Company (NWC), and Saudi chemical manufacturing company Saudi Basic Industries Corp. (SABIC) to supply its products to 15 countries in region.
Diagnostic system developer ASTA Inc. is targeting the bacteria and cancer diagnosis market with its MALDI-TOF mass spectrometry technology. ASTA has raised 600 billion won in investment and aims to produce 700 medical diagnostic devices a year in Saudi Arabia alone. The medical device market in the Middle East and Africa is expected to grow at more than 7 percent annually, and ASTA plans to become a global medical diagnostics company with total sales of $700 million, including $200 million from diagnostic devices and $500 million from cloud diagnostics.
Ace Valve Co. will produce and supply industrial valves. The company’s valve technology will be applied to connect and control pipes to move oil, water, and gas at the NWC and Aramco, among others. It has acquired 500 billion won in investment and aims to capture a market of 700 billion to 1 trillion won, or about 30 percent of the Saudi industrial valve market that is estimated at 2 trillion won annually. No Star Composite Co. will manufacture and distribute safe liquefied petroleum gas (LPG) containers in the Middle East and Africa region, which lacks city gas infrastructure. The company’s materials have low thermal conductivity, allowing the internal pressure to not increase easily under high temperatures. The valve automatically opens even when the pressure exceeds the required level, reducing the risk of explosion. The product is known to be in high demand in the Middle East and Africa market, where LPG containers are mainly stored indoors.
[Photo by Yang Yeon-ho]
Saudi Arabia’s first-ever project to create an industrial park for foreign companies is finally kicking off. Sixteen small and medium-sized enterprises from South Korea with technologies in eco-friendly vehicles, renewable energy, medical and bio, information technology (IT), and light and heavy industries traveled to Jazan City, Saudi Arabia from November 27th to 30th local time to sign an agreement with the Royal Commission for Jubail and Yanbu (RCJY) forming a local joint venture (JV) and securing land for production. The RCJY, established by Saudi royal decree in 1975, was granted financial and administrative autonomy to develop Jubail and Yanbu into industrial cities and manages Jazan Industrial City, a center for primary and downstream industries.
This Saudi-Korea Industrial Village Project (SKIV), boasting an initial investment of approximately 7.8 trillion won ($6.05 billion), is a key part of Saudi Crown Prince Mohammed bin Salman’s Saudi Vision 2030 to move the country away from an oil-centric economy. Saudi International Industrial Village Company, or SIIVC, signed an official agreement with the RCJY to promote SKIV. Sixteen Korean SMEs will receive full funding from the Saudi Industrial Development Fund (SIDF) and SIIVC to build factories and equipment in the industrial village on the condition that they will transfer technology and hire local labor. Once SKIV is up and running, the annual revenue to be generated by the 16 Korean SMEs will hit 13.23 billion riyal ($3.53 billion), according to the SIIVC.
Jazan is one of the new special economic zones designated by the Saudi government in May 2023, alongside Riyadh, Ras Al-Khair, and King Abdullah Economic City. Resident companies will be entitled to exemptions from customs duties on machinery and raw materials, wage subsidies, full foreign ownership, and relaxed regulations on hiring foreign labor. Jazan Industrial City, where SKIV will be located, has 19.4 kilometers of coastline and one of the three major Saudi ports bordering the Red Sea along with Jeddah and Yanbu. Opened in 1976, Jazan Port serves as Saudi Arabia’s main gateway for importing and exporting goods to Africa.
Korean SMEs are expected to play a key role in the kingdom’s economic and industrial structural reforms. S-Connect Co. will be responsible for procuring and manufacturing core components needed for efficient power supply in the Middle East and Africa. The company, with an investment of 300 billion won ($79.97 billion), plans to produce lithium primary batteries on the site allocated to it within SKIV. Unlike secondary batteries, the lithium primary batteries that it has developed through its subsidiary Aricell Co., although non-rechargeable, can be used for more than 15 years as its self-discharge rate is less than 1 percent per year. It is used as a core power source for smart meters such as electricity, gas, and water and is expected to be used also for oil and gas drilling equipment and military equipment in extreme environments.
Products that can alleviate water shortages in the Middle East and Africa will also be produced. YUMIN Sensor Technology Co., which received 320 billion won in investment, produces film-type liquid detection sensors based on electronic circuitry that detect leakage of dangerous liquids. The product, in addition to reducing the risk of disasters caused by leakage at industrial sites such as refineries and chemical plants, is expected to contribute significantly to alleviating water shortages by preventing losses from leakage when applied to water pipes in the Middle East and Africa, where water leakage is severe. The company is in talks with Saudi Arabian Oil Company (Aramco), Saudi government-run National Water Company (NWC), and Saudi chemical manufacturing company Saudi Basic Industries Corp. (SABIC) to supply its products to 15 countries in region.
Diagnostic system developer ASTA Inc. is targeting the bacteria and cancer diagnosis market with its MALDI-TOF mass spectrometry technology. ASTA has raised 600 billion won in investment and aims to produce 700 medical diagnostic devices a year in Saudi Arabia alone. The medical device market in the Middle East and Africa is expected to grow at more than 7 percent annually, and ASTA plans to become a global medical diagnostics company with total sales of $700 million, including $200 million from diagnostic devices and $500 million from cloud diagnostics.
Ace Valve Co. will produce and supply industrial valves. The company’s valve technology will be applied to connect and control pipes to move oil, water, and gas at the NWC and Aramco, among others. It has acquired 500 billion won in investment and aims to capture a market of 700 billion to 1 trillion won, or about 30 percent of the Saudi industrial valve market that is estimated at 2 trillion won annually. No Star Composite Co. will manufacture and distribute safe liquefied petroleum gas (LPG) containers in the Middle East and Africa region, which lacks city gas infrastructure. The company’s materials have low thermal conductivity, allowing the internal pressure to not increase easily under high temperatures. The valve automatically opens even when the pressure exceeds the required level, reducing the risk of explosion. The product is known to be in high demand in the Middle East and Africa market, where LPG containers are mainly stored indoors.