Doing Business in Saudi Arabia - International Franchise Association

In 2000, Saudi Arabia passed the Foreign Investment Act, which outlines foreign investors’
rights and obligations, provides guidelines for putting the law into practice, and encourages
foreign companies to establish directly-owned industrial and non-industrial ventures in Saudi
Arabia. It also created the Saudi Arabian General Investment Authority (SAGIA) as a
specialized institution in charge of foreign investment. In 2002, the law’s executive rules were
amended to further reinforce the basic principles introduced in the original Foreign Investment
Act. Foreign investors, interested in setting-up a facility to produce petrochemicals must apply
for a license and a commercial registration. Additional information can be found at the website
of the Saudi Arabian General Investment Authority at www.sagia.org.
Opportunities Return to top
Planned projects are:
• Upgrading of the Ras Tanura Petrochemicals Complex & Refinery Upgrade. Saudi
Aramco and Dow Chemical Co. Estimated cost is around $27 billion
• Expansion of the ethylene plant at Chevron-Philips facility in Jubail Industrial City.
Estimated cost is $109 million.
• Expansion of production capacity of (PET) polyethylene by 420,000 metric tons per year
at Ibn Rushd in Yanbu Industrial City on the Red sea.
• In December 2008, SABIC signed agreements with ExxonMobile Chemical (US) for two
plants to produce a mix of petrochemical products including polymers. Estimated cost of
both plants is $800 million. Al-Jubail Petrochemical Co. (Kemya) will own and operate
the first one, while Saudi Yanbu Petrochemical Co. (Yanpet) will own and operate the
second one in Yanbu on the Red Sea.
• Building of a 300,000 tpy low-density polyethylene plant in Jubail for Saudi Kayan.
Estimated cost is $300 million.
• Raqbigh Refining & Petrochemicals Co. (Petro-Rabigh) is planning a $4 billion
expansion of its petrochemical complex in Rabigh on the Red Sea.
• Saudi International Petrochemical Co. (SIPCHEM) signed with Hanwha Chemical Corp.
in July 2009, a joint venture agreement to establish a high-tech petrochemical company.
The new plant in Jubail will cost around $1.1 billion. Operations will start in 2013.
• Project Management & Development Co. will build a plant in Jubail’s second industrial
city to produce 7,500 tons per year of poly-silicon, which is an ingredient of solar cells.
Resources Return to top
Saudi Arabian Basic Industries www.sabic.com
Saudi International Petrochemical Company www.sipchem.com.sa
Saudi Arabian Oil Co. (Saudi Aramco) www.saudiaramco.com.sa
U.S. based companies interested in selling their equipment and services to Saudi Aramco are
requested to contact:
Aramco Services Co.
P.O. Box 4534
Houston, TX 77210
Vendor Registration
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