King Salman Energy Park (SPARK) has succeeded in attracting more than 60 investors, boosting its total investments to $3bn.
SPARK is an integrated industrial ecosystem designed to maximize the economic benefits of the energy value chain of Saudi Arabia and the wider region. It plays a vital role in advancing the objectives of Vision 2030 by strengthening efforts to build a prosperous and diverse economy.
Attracting Investments
SPARK announced that its total investments have so far surpassed $3bn after attracting more than 60 investors. In a statement on X, it said that it has seven factories currently operating, with an additional 14 under construction.
King Salman Energy Park has successfully attracted more than 60 investors, with expected investments currently totaling over $3B.
Discover more about how to become a tenant at SPARK here: https://t.co/meZbixYSCp.#SPARK
يسعدنا أن نعلن بأن مدينة الملك سلمان للطاقة قد نجحت حتى… pic.twitter.com/0T3WTQqfMc
— King Salman Energy Park (SPARK) (@ksa_spark) September 29, 2024
By the end of 2023, SPARK signed lease agreements with two new investors, in addition to the beginning of construction on several major projects by the existing investors, according to Asharq Al-Awsat. The total value of these lease agreements exceeds SAR 30mn, further boosting Saudi Arabia’s sustainable industrial growth.
SPARK Major Projects
SPARK’s agreements include a deal with Abdulaziz & Brothers (A&BC), a safety tools and equipment company. It will establish its first SPARK facility to start producing high-quality personal protective gear for the industrial and construction sectors.
Furthermore, Enjaz Al Mustaqbal Industrial Company has plans to take part in the localization process of the heating, ventilation, and air conditioning (HVAC) sector by constructing a facility that supports these efforts.
Meanwhile, BAS Gulf Industrial Company, a subsidiary of the National Metal Manufacturing and Casting Company (Maadaniyat), plans for an expansion of operations by the fourth quarter of 2024. This involves manufacturing industrial valves and delivering post-sales technical services.
Also, Emerson, the global software and engineering giant, has embarked on building a facility at SPARK, which will launch its operations by Q4 2024. Together, these two major projects worth SAR 250mn.
SPARK: An Energy Mega Project
The King Salman Energy Park is a large industrial city for energy-related goods and services. It aims to act as a regional center for the energy sector, through offering a range of integrated solutions to support companies across Saudi Arabia, according to Arab News.
Located in Buqayq in the Eastern Province of Saudi Arabia, SPARK aims to become a global hub for energy, industry and technology by hosting nearly 300 industrial and service facilities. It also aims to create an energy city that produces clean and sustainable resources.
In recognition of its eco-friendly initiatives, SPARK is the first and only industrial city in the world to receive a Silver Leadership in Energy and Environmental Design (LEED) certification.
SPARK Development
Stretching over a total area of 50 square kilometers, the development of SPARK will take place over three phases. Saudi Aramco, in partnership with the Saudi Authority for Industrial Cities and Technology Zones, is taking charge of the development, operation, management, and maintenance of the project’s infrastructure.
In 2022, SPARK announced plans to build a residential complex and workers’ village, with a total value of $150mn. To this end, it signed a contract with a subsidiary of Abdullah M. Bin Saedan and Sons Real Estate Group to embark on the project. The construction of the residential complex will take place in two phases. The first phase covers and area of 30,000 square meters and is projected to end by 2025.
Project’s Significance
Nestled between Dammam and Al Ahsa, SPARK will play a pivotal role in localizing essential products and services across the energy value chain. During the project’s opening ceremony in 2018, the Saudi Minister of Investment, Khalid Al-Falih, said that SPARK will serve as a special economic zone, providing regulatory, financial and non-financial support to tenants.
Furthermore, SPARK will be a critical player in leveraging the Kingdom’s energy resources, in line with Vision 2030’s economic diversification plans. Underlining this, Al-Falih said: “SPARK is one of the country’s most ambitious projects, affirming the Kingdom’s commitment to Vision 2030 by creating thousands of high-skilled jobs, serving as an economic catalyst, and enhancing Saudi Arabia’s strong position in the global energy sector.”
The ambitious energy city is poised to contribute more than $6bn annually to Saudi Arabia’s GDP, as well as creating over 100,000 direct and indirect job opportunities, according to Asharq Al-Awsat.
