Saudi Arabia has recently made significant progress in diversifying its sources of income, shifting from an oil-dependent economy to one increasingly driven by industry. This transformation is largely attributed to Vision 2030, which places industry at the heart of the Kingdom’s economic development.

When discussing the industrial sector in Saudi Arabia, Jubail Industrial City stands out as one of the most important industrial hubs—not only in the Kingdom but globally. This prominence is the result of the government’s strong focus on enhancing its industrial and economic infrastructure.

In this article, we will explore the advantages of Investment in Jubail and its importance for investors interested in the Saudi industrial sector. We will also highlight the investment opportunities available in the city and the licenses required to begin operations there.

About Jubail

Located in Saudi Arabia’s Eastern Province, Jubail is the largest industrial city in the world, spanning more than 1,000 square kilometers. Established in 1975 as a modern industrial hub, it has since become home to some of the world’s most prominent companies, including SABIC—the fourth-largest petrochemical company globally and the largest in the Middle East—as well as the IWPP project, the world’s largest independent water and power project.

Jubail’s strategic location near abundant energy sources and raw materials essential for the petrochemical and refining industries gives it a competitive advantage. This proximity not only supports industrial operations but also ensures seamless access to global markets, making Jubail one of the most attractive destinations for investors in Saudi Arabia’s industrial sector.

Why Investment in Jubail is an Excellent Choice for Foreign Investors?

Since its establishment in 1975, and with continuous development aimed at transforming it into a premier industrial hub, Jubail has achieved remarkable milestones, including:

• Global leadership in petrochemicals: Jubail is often described as the world’s largest single industrial development project , hosting leading companies such as the Northern Petrochemical Company, Aramco Jubail Refinery Company, Eastern Petrochemical Company, Saudi Aramco Total Refining and Petrochemical Company (SATORP), Advanced Petrochemical Company, and Jubail United Company.
• A hub for innovation: The city houses the SABIC Research and Technology Center along with around 13 SABIC-affiliated plants.
• World-class infrastructure: Jubail boasts comprehensive infrastructure and industrial facilities essential for global companies, including gas and feedstock networks, road and railway systems, industrial and commercial ports, water treatment facilities, as well as modern residential units, schools, and hospitals.
• Massive expansion under Vision 2030: The Royal Commission for Jubail and Yanbu has allocated SAR 67.5 billion to double the city’s industrial capacity as part of Saudi Arabia’s Vision 2030.
• Residential and educational growth: Plans are underway to expand housing areas with more than 50,000 new units under construction, alongside the opening of a university scheduled for 2026.
• Strong investment volumes: Industrial investments in Jubail reached approximately SAR 525 billion in 2022.
• Strategic development projects: The Royal Commission has launched the Jubail Industrial City Economic Hub, a key initiative to advance national industry and logistics services.
• Global recognition: In 2021, Jubail Industrial City received the UNESCO Learning Cities Award, honoring its outstanding efforts in advancing education and lifelong learning opportunities.

Available Investment Sectors in Jubail

Jubail offers a diverse range of investment opportunities across several key sectors. For investors, the following areas present significant potential:

• Petrochemical and Mineral Industries
  This sector forms the backbone of Jubail’s economy. Its proximity to abundant energy resources and raw materials required for the petrochemical and refining industries makes it an ideal location for manufacturing and mineral-based investments.
• Real Estate
  The city’s rapid industrial expansion has fueled strong demand for both residential and commercial properties. Opportunities include housing for workers and professionals, as well as office spaces and commercial complexes to support the growing number of companies.
• Hospitality and Hotels
  With the presence of numerous corporations in the region, there is a high demand for hotel apartments and business accommodations. This is driven by the constant flow of official visits, meetings, and international delegations.
• Vocational Training and Education
  As industries in Jubail require specialized skills, there is a growing need for institutions that provide training and equip employees with the technical and technological expertise essential for industrial operations.
• Logistics and Supply Chain
  Strategically located on the Arabian Gulf and connected to major ports, Jubail holds a competitive edge in transportation and distribution. Investments in warehouses, transport services, and distribution centers can serve both local and regional markets.
• Healthcare
  The city’s expanding population and workforce have created a pressing need for modern medical facilities, including hospitals, clinics, and specialized healthcare centers.

Investment in Jubail Conditions

To support the establishment and growth of businesses in Jubail, the Kingdom has outlined clear conditions and specific criteria that investors must meet. The most notable requirements include:

• Submitting a comprehensive feasibility study that details the project concept, market analysis, and operational plans.
• Demonstrating financial capability and proof of the ability to successfully implement the project.
• Ensuring full compliance with the environmental, industrial, and regulatory standards set by the Royal Commission.
• Obtaining all necessary licenses from the Royal Commission, the Ministry of Investment, and other relevant authorities.

Requirements for Obtaining an Industrial License for Investment in Jubail

To launch an industrial project in Jubail, investors are required to provide a specific set of documents and meet the following conditions to obtain an industrial investment license:

Issuance of an investment license for foreign investors.

• The chosen investment activity must not be included in the list of activities excluded from foreign investment.
• All product specifications must comply with Saudi, Gulf, or international standards.
• The applicant must not have any final legal decisions issued against them for violations of laws inside or outside the Kingdom.
• The applicant must fully comply with the conditions and commitments attached to the investment license application form.
• The license must serve the intended investment objectives, with the same conditions applying to license renewal requests.
• The foreign investor must already hold a commercial activity license in Saudi Arabia.
• Submission of the commercial register and the articles of association of the company in its home country, duly certified by the competent authorities and the Saudi embassy.
• Availability of a commercial register to prove professional activity or an extract from the Civil Status Department.
• Submission of the articles of association for limited liability or joint-stock companies, depending on the entity type.
• A valid passport of the general manager.
• A national ID and family card if one of the partners is a Saudi citizen.
• Submission of a partners’ resolution, confirming their intent to invest in the Kingdom, including details such as partners’ names, capital contributions, ownership percentages, facility headquarters, and nature of activity.
• Preliminary approval from relevant ministries or authorities, if the activity requires it.
• A detailed business plan outlining operations and growth strategy.
• Submission of a three-year budget for the facility applying from abroad, demonstrating financial soundness, certified by an accounting firm and authenticated by the relevant authority and the Saudi embassy.
• Proof of financial capacity to invest, aligned with the project’s capital, each partner’s share, and the submitted business plan.
• Registration of a trade name with the Ministry of Commerce.

Finally, Jubail stands out as a promising region with enormous investment opportunities. All you need is to ensure compliance with the required conditions, obtain the necessary licenses, and you can launch your business with confidence and ease.

If you need support, don’t hesitate to contact Mohammed Al-Khliwi’s Office. Our team will help you navigate these procedures smoothly and handle the details on your behalf.

Disclaimer: This content is not legal advice. No liability is assumed. For legal consultation, please contact us.