Emaar, The Economic City (Emaar.E.C), the Tadawul-listed company developing King Abdullah Economic City (KAEC), has signed a Memorandum of Understanding (MoU) with Savola Group through its wholly-owned subsidiary company Savola Packaging Systems (SPS), to establish a plastic industry cluster in the Industrial Zone of KAEC.
Mr. Fahd Al-Rasheed, Chief Executive Officer and Board Member, Emaar. E.C, and Dr. Sami Baroum, Managing Director, The Savola Group; signed the MoU in Jeddah recently. SPS is a wholly owned subsidiary of The Savola Group, a Saudi joint stock company with diversified business interests. SPS is a leading Saudi player in the plastics packaging industry locally and internationally.
As per the MoU, SPS will be the strategic partner of Emaar.E.C in carrying out necessary studies to identify product lines and determine raw material prices, optimum volume, capacities and product research & development for maximum value generation, and in creating a global plastic industry hub within the KAEC Plastics Valley.
Mr. Al-Rasheed said: “The KAEC Plastics Valley, which was unveiled by the Custodian of the Two Holy Mosques King Abdullah bin AbdulAziz AlSaud during his recent visit to KAEC, has already become an investment destination for plastic industries from around the world. SPS is a leader in the plastics industry regionally and has proven its competencies through sustainable growth models. By joining hands with SPS in driving forward the development of the KAEC Plastics Valley, Emaar.E.C is creating a vibrant hub for the plastics industry.”
He added: “This is in line with the vision of the Saudi Arabian General Investment Authority (SAGIA), KAEC’s prime facilitator, to make Saudi Arabia one of the top-ten most competitive economies in the world. The Plastics Valley initiative will lead to employment generation and the growth of ancillary industries, thus complementing our developmental vision of ushering in socio-economic prosperity.”
Dr. Baroum said: “The KAEC Plastics Valley is a significant opportunity for growth for the region’s plastics industry. SPS is a leader in the plastics sector, and the MoU with Emaar.E.C will help shape plastic industry cluster that will make KAEC the regional and global hub for the industry.”
Dr. Mohammad Amin Kashgari, Chief Executive Officer, SPS, added: “Through the MoU, SPS will serve as an anchor tenant or manufacturer in the Plastics Valley, and work to strengthen the involvement of international investors as co-anchors. Our objective is to align the plastics industry to meet the needs of our clients and major raw material suppliers.”
The Industrial Zone of KAEC has been launched to overwhelming investor response with more than 800,000 sq m of land leased out in 2007. More than SR32 billion of international investments are expected in the Zone. The MoU with SPS will add further value to the Industrial Zone, which is fast becoming a magnet for industries.
KAEC is the single largest private sector project in the region and has six components: the Sea Port, Industrial Zone, Central Business District, Educational Zone, Resort District and Residential Communities. Work on the first phase is progressing on an accelerated schedule.
About Emaar, The Economic City:
Emaar, The Economic City (Emaar.E.C), established in September 2006, is a Saudi joint stock company managed by Emaar Properties PJSC, one of the world’s largest property developers, and a number of high profile investors from Saudi Arabia. Emaar.E.C has a share capital of SR8.5 billion consisting of 850 million shares of nominal value SR10 each. Thirty per cent of the equity, worth SR2.55 billion, was offered for public subscription.
Emaar.E.C leads the master-planning and development of the 168 million sq m King Abdullah Economic City (KAEC), a project being built on a pristine location off the Red Sea in the north of Jeddah. SAGIA (Saudi Arabian General Investment Authority), the body responsible for inward investments into the Kingdom, is the prime facilitator for KAEC.
KAEC, a New Age City being built today for tomorrow’s generation of Saudi citizens, has six components – sea port, industrial district, educational zone, central business district with commercial, mixed-use, retail outlets and financial island, resorts and residential area.
The mega-project works closely with the Kingdom’s on-going drive to expand the economy, create employment opportunities for its youthful population and function as a catalyst to attract foreign investment, global trade, commerce and industry. Based on initial forecasts, the project and its several components will create up to one million employment opportunities in the various industries and service-oriented companies that will open in KAEC. It will also be home to 2 million residents.
