SR 33 Billion Phosphate Project Will Make Saudi Arabia 3rd Largest Phosphate Producer in the World: Report
Saudi Minister of Investment Khaled Al-Falih said that the ministry is working on a new phosphate project, costing SR33 billion, which will double the Kingdom’s capacity of the product to become the third largest phosphate producer in the world.
Addressing the first ministerial session at the Northern Borders Investment Forum 2023 in Arar on Saturday, the minister said that the Kingdom will not only convert phosphate into fertilizers, but will also convert it into advanced chemical products.
Al-Falih said The Saudi Economic Cities and Special Zones Authority (ECZA) is studying the prospect of linking the border areas and free zones with neighboring countries. He hoped that the border area with Iraq in Arar will be the first free economic zone with a neighboring country without taxes, fees, or entry visas in order to serve investors in both countries.
The minister noted that Northern Borders Region includes around SR100 billion investment opportunities. “There are about 100 new investment opportunities, worth SR20 billion, in addition to the existing opportunities, which are valued at SR80 billion. The Kingdom targets investments of more than $3 trillion in various sectors, including mining, within three years,” he said while citing a previous statement of the Ministry of Investment issued in 2022.
The Northern Borders Region includes 25 percent of the Kingdom’s mineral wealth, with a total value of SR1.2 trillion, according to Deputy Minister of Industry and Mineral Resources for Mining Affairs Khaled Al-Mudaifer. The Northern Border Region contains about 7 percent of the global phosphate reserve, and the volume of investment in it amounts to about SR85 billion in two stages. The region includes huge potential for producing renewable energy, especially in light of the European and global demand to import green products with low carbon intensity, in addition to the possibility of exporting electricity to neighboring countries such as Iraq at a very low cost, he said.
Attending the ministerial session, Minister of Commerce Majed Al-Qasabi said that work is underway to establish a logistics zone in the city of Arar. The government will support investors by granting land and providing the necessary financing with facilities for a period of 20 years to serve exporters and beneficiaries in the Kingdom and Iraq.
On his part, Minister of Environment, Water and Agriculture Abdulrahman Al-Fadhli said that Saudi Arabia is investing about SR150 billion in the water sector. “The government aims to recycle 95 percent of waste during the coming period, creating opportunities worth hundreds of billions. The water strategy adopted by Saudi Arabia includes more than 65 initiatives and investments amounting to $20 billion over the next eight years, he pointed out.
The Saudi Public Investment Fund and its subsidiaries aim to invest SR4 trillion in real estate projects in the Kingdom over the next ten years, according to Ahmed Al-Shanqeeti, head of the Fund’s National Development Programs for the Real Estate Sector and Infrastructure. “The Downtown project in the city of Arar is one of the most important of these projects, which aims to develop about 10 million cubic meters of real estate in 12 cities in the Kingdom. The Downtown project aims to create residential, hotel, entertainment and marketing units,” he said, adding that the Saudi sovereign fund aims to achieve a 60 percent local component in its real estate projects in the Kingdom starting in 2025, and thus creating more opportunities for local industries.
