King Salman Energy Park will create 100,000 jobs and contribute $6bn to economy
It has already attracted investments from local and international companies
King Salman Energy Park (SPARK), a 50sqkm "energy city megaproject" in Saudi Arabia, is one of the Kingdom's most impressive endeavours into localisation so far. Once operational, it is expected to generate 100,000 direct and indirect jobs and should contribute $6bn to Saudi Arabia's GDP annually.
The first phase of development is slated for completion by 2021, and will require an investment of around $1.6bn. One of the project's initial partners is Baker Hughes, a GE company, which will build an oilfield services facility in SPARK.
The park essentially centralises localisation, and aims to build up the country's energy infrastructure and supply chain. Saudi Aramco is key, and the company's CEO Amin Nasser noted in a press release announcing the groundbreaking of the project that "Saudi Aramco continue[s] to be at the heart of the global oil and gas industry."
Nasser also said that with SPARK's anchor partners,"we are building a world-class energy hub that will accelerate solutions across the value-chain for generations.”
Indeed, the energy titan is a key motivation for suppliers to manufacture their products in Saudi Arabia--if suppliers want to do business with Aramco, they must abide by the In-Kingdom Total Value Add (IKTVA) localisation program.
“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 advancing Saudi Arabia’s strong position in the global energy sector," said Khalid Al-Falih, Saudi Arabia's minister of energy, industry and mineral resources. "The energy park’s unique value proposition makes it an ideal destination for companies looking to invest in the thriving Saudi Arabian energy services market.”