Power & Water Generation and Distribution in Jubail & Yanbu Industrial Cities, Saudi Arabia. The power and water industry in Saudi Arabia is set to play an increasingly important role in the Kingdom`s privatisation programme. Marafiq has been striving from the outset to meet the government`s privatisation objectives in terms of the Council of Ministers` Decision of August 1997. As the first private integrated public utility company in the Kingdom, Marafiq finds itself at the spearhead of the national drive to privatise public enterprises that are economically viable and sustainable.
- Business Type:
- Service provider
- Industry Type:
- Water and Wastewater - Water Utilities
- Market Focus:
- Nationally (across the country)
- more than $1,000,000,000 US
The power and water industry plays a key role in Saudi Arabia’s national development strategy. With an annual growth rate target of 7.5 percent, the value of the electricity, gas and water sector is set to grow to more than SR 21 billion in the next few years, accounting for almost 2 percent of the gross domestic product. As the first private integrated power and water utility company in the Kingdom, Marafiq finds itself at the spearhead of the national drive to privatise public enterprises that are economically viable and sustainable. In particular, it supports the national development plan of providing opportunities to finance, operate and maintain utility services in the power and water sector.
Marafiq is the utility lifeline to the industrial cities of Jubail and Yanbu. These two cities are a beacon of light on the Kingdom's journey of national economic development and privatisation. Jubail and Yanbu have been a resounding success in establishing an industrial support base and infrastructure to encourage domestic and international investment in primary and secondary industries, and provide job opportunities for Saudi nationals. With initiatives such as the formation of Marafiq to support major industrial developments, the Kingdom has been able to sustain its growth and development programme, keep pace with global economic changes and requirements and supply existing and future industries with essential services at competitive prices.
In a relatively short space of time, Marafiq has succeeded admirably in laying a solid foundation as a private enterprise with a customer-focused approach. It can look forward with confidence to continue building on its strong foundation of competitiveness, and to realize its vision to be the preferred supplier of utility services in the Kingdom.
Established in terms of Royal Decree M/29 of 18 October 2000 (22 Rajab 1421 Hijra) as a joint-stock company, Marafiq is owned by its four major shareholders - the Royal Commission for Jubail and Yanbu (RC), Saudi Basic Industries Corporation (SABIC), Saudi Arabian Oil Company (Saudi Aramco), and the Public Investment Fund (PIF). Seven private-sector investors make up the remaining shareholders. Marafiq started operating as a private power and water utility company on 1 January 2003, with SR 2,5 billion of initial owner equity.
Marafiq's main objective, as stated in its charter, is to undertake the operation, maintenance, management, expansion and construction of seawater cooling systems, desalinated and treated water systems, sanitary and industrial wastewater systems and electric power systems to provide essential utility services to industrial, commercial and residential customers in the industrial cities of Jubail and Yanbu.
The Industrial Cities of Jubail and Yanbu
As part of the Kingdom's strategy to optimize its energy resources, the Royal Commission for Jubail and Yanbu embarked a two-stage project in the 1970s to conserve and exploit the enormous reserves of natural gas in the eastern region.
This involved the establishment of a vast industrial network to gather and process natural gas in Jubail Industrial City, followed by the construction of a double pipeline running from east to west across the Kingdom to transport oil and gas from Jubail to Yanbu. The aim was to supply energy for the many industrial projects in Yanbu and to facilitate the export of energy products from the Red Sea coast. The pipeline, which runs for 1,170 kilometres, was completed in 1982.
These two massive industrial complexes on the Arabian Gulf and the Red Sea are shining beacons of Saudi Arabia's vision of industrial and economic development to reduce the country’s reliance on oil exports. Expansion of the two cities in the form of Jubail II and Yanbu II is well underway.
Jubail Industrial City lies 100 kilometres north of Dammam on the Arabian Gulf. The nearest airport is King Fahd International Airport on the western outskirts of Dammam.
Yanbu Industrial City is located on the Red Sea. It has three distinct areas – Yanbu Al Bahar, Yanbu Al Nakheel and Yanbu Al Sinaiyah where Marafiq’s facilities are located. The city is approximately 380 kilometres north of Jeddah, which has an international airport. Yanbu has a domestic airport with connections to most major airports in the Kingdom.
To understand the Marafiq of today, one has to go back to where it all started. Marafiq's foundations were laid in the 1970s when the government established the Royal Commission to develop the two industrial cities of Jubail and Yanbu. The objective was to diversify the national economy and reduce the Kingdom's reliance on its oil revenue by providing the requisite infrastructure and facilities for the establishment of primary, secondary and support industries.
Today the two industrial cities are symbols of the Kingdom’s unprecedented growth in the industrial sector. It is also a reflection of the confidence of foreign investors in the industrial capabilities of the country. Several successful joint ventures between Saudi and international companies such as Chevron, Mitsubishi, Shell and Mobil are located in the two industrial cities. A recent international survey has named Jubail as the city with the best economic potential in the Middle East.
The Royal Commission established the power and water infrastructure in Jubail and Yanbu, comprising a power station in Yanbu, seawater cooling facilities, desalination plants and wastewater treatment plants. By 1999 the ball was set rolling to privatize these utilities. Council of Ministers Decision 57 of 11 July 1999 defined the charter of a new private utility company, leading to the establishment of Marafiq by Royal Decree in October 2000. All the utility assets run by the Royal Commission were transferred to Marafiq, and the new company started operating commercially on 1 January 2003.
To be the preferred supplier of utility services in the Kingdom of Saudi Arabia
To provide profitable and environmentally sensitive power and water services that meet customer needs at competitive and sustainable prices in support of the economic development plans for Jubail and Yanbu
Upholding our corporate values
- Customer Focus
- Team Work
- People Oriented
- Social Responsibility
Through our commitment to
- Satisfying customers' needs and exceeding their expectations
- Providing an economical, reliable and scalable water and power infrastructure that will meet current utility demands and provide for future economic growth in Jubail and Yanbu
- Building a water and power utility business platform that will support a long-term growth strategy to extend our product and service offering beyond Jubail and Yanbu
- Establishing a successful business that adds value for stakeholders
- Providing a working environment that will attract and retain the professional talent and skills that business needs
- Demonstrating good corporate citizenship and care for safety, health and the environment
Marafiq recognises its responsibilities towards all its stakeholders, and especially the industrial, commercial and residential communities in which it operates. The company strives to make and manage its charitable contributions in support of community activities in a way that will contribute to the national economic development agenda in line with Marafiq’s business strategies and operations.Education
Education is one of the main focal areas for Marafiq in which to exercise its social responsibility. There is regular interaction with local schools to recognize and encourage achievement, and to promote environmental awareness and stress the need to use water and power sparingly.Developing Saudi talent
Marafiq’s Professional Development Program for university graduates and On-the-Job Training Program for school graduates provide young Saudis the opportunity to enter the job market in the framework of learning through doing. They work in various environments where they can apply their talents and acquired skills to new situations. They develop their expertise to enhance their own and also the company’s performance and productivity.Saudi Responsible Competitiveness Index
Marafiq was one of the three overall winners of the 2010 King Khalid Responsible Competitiveness Awards and scored the highest marks of all entries in the “Social Responsibility” category. Marafiq was also adjudged the growing company that best followed safety, health and environmental procedures.
The coveted annual King Khalid Awards mark the culmination of the annual Saudi Responsible Competitiveness Index (RCI), which is led by the Saudi Arabian General Investment Authority (SAGIA) and the King Khalid Foundation. The RCI analyses how Saudi companies build competitive advantage by managing their social and environmental impacts. The index determines, amongst others, how companies attract and retain employees, implement strong environmental policies and work with their suppliers.
The King Khalid Responsible Competitiveness Award goes to the three strongest performers on the Index that make the most progress in aligning their core operations to environmental and social development.