Saudi Arabia’s King Salman Energy Park (SPARK), which is being developed by Saudi Aramco, has forecast that foreign direct investment (FDI) at the development will exceed SAR7.5 billion ($2bn) in the next two years.
According to SPARK, 15 major energy companies have inked agreements to invest in the 50 square kilometre project, while 15 more are currently in the pipeline.
Investment in Phase 1 of the development, which will be completed in 2021, totalled SAR6bn ($1.6bn).
Meanwhile, following completion, SPARK will add SAR22bn ($5.9bn) annually to Saudi Arabia’s GDP by 2035.
The project will also create thousands of skilled employment opportunities.
“SPARK will be a new engine fueling the growth of the energy sector as well as driving the diversification agenda of our economy,” said Dr. Mohammed Yahya Al-Qahtani, chairman of SPARK.
The development aims to attract local and international industry investors across five sectors including upstream, downstream, petrochemicals, power and water treatment.
The King Salman Energy Park (SPARK) has completed 60 percent of its first phase which consists of infrastructure, roads, utilities, and real estate assets established across 14 square kilometers, in addition to a dedicated three-square kilometer logistics zone and dry port.
Last year, Schlumberger invested SAR172.5m ($46m) in SPARK to develop a facility to provide drilling solutions. The facility is expected to create 260 job opportunities.
According to the United Nations Conference on Trade and Development’s latest World Investment Report, FDI inflows to Saudi Arabia increased for the second consecutive year by a further seven percent to SAR17.3bn ($4.6bn) in 2019.
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