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The Energy Transition and the Future of MENA Hydrocarbon States
December 18, 2025Tracing King Salman Energy Park: Saudi Arabia’s Drive for Localisation of Energy Supply Chain
Introduction
A major focus area of Saudi Vision 2030 is the localisation program, which seeks to reduce the Kingdom’s dependencies on foreign goods and promote the manufacture and import of local goods and services, utilising the local talent and resources of Saudi Arabia. In line with these aims, the Kingdom is attempting to manufacture the critical energy solution domestically through the development of King Salman Energy Park, which aims to localise nearly 3/4th of the Kingdom’s energy value chain and contribute %150 billion towards the Saudi Economy by 2050.[1]
The first phase attracted an investment of $1.6 billion. The majority of the first phase was developed by mid-2020. By 2024, King Salman Energy Park attracted over 60 investments worth a total of $3 billion and with 7 factories operational and 14 undergoing completion. The project aims to develop nearly 300 industrial Hubs. The first phase of the SPARK was completed in 2025.[2]
A New Energy City
In 2018, Saudi Arabia launched the King Salman Energy Park, also known as SPARK, a 50 square kilometres special economic zone between Dammam and Al-Ahsa, at the heart of the Kingdom. SPARK is being developed by Energy City Development Company (ECDC), a subsidiary of the Saudi Arabian state-owned own, Aramco, in collaboration with Saudi Arabia Industrial Cities and Technology Zones (MODON) and is closely related to the Kingdom’s goal of localisation and self-reliance. The project is divided into three phases. Part one consisted of developing 14 Square kilometres of infrastructure, roads, utility services, and real estate, which was completed in 2021. Through the project, Saudi Arabia seeks to attract over a hundred thousand jobs and $6 billion towards the country’s GDP.
The economic mega hub will be targeting multiple areas: liquids and chemicals, metal formation, industrial manufacturing, a dry port, and logistical zone, Saudi Aramco drilling and well-maintenance area, a residential, commercial and recreational area and multiple training centres.[3]
Tracing the Investments and Projects
The inception of the project attracted a great number of investments from both regional and international companies. Schlumberger started the construction of its $45 million drilling equipment facility in Spark. Japanese Yokogawa build its equipment facility. US-based Halliburton also announced plans to build its first oilfield speciality chemical manufacturing facility in the region.[4]
In the same year, Sawafi Borets, a joint venture of Sawafi Al-Jazeera Oilfield Products and Services and Russian Borets International, also invested in building a 21,000 square metres electric pumping solution facility. The facility, once developed, will be responsible for manufacturing and assembly of electric submersible pumping systems with an annual production capacity of 500 ESPs, as well as providing testing services.[5]
Saudi Oil Field and Supply Company has invested over $570 million to build multiple ready-made facilities, which will span over an area of a million square metres and will aid small and medium-scale industries with procuring logistics and equipment, renting facilities, providing them with training and workshops and will be investing $400 million. These facilities will help reduce the risk in the initial phases for small companies and investors, as well as promote entrepreneurship and business opportunities among Saudis in SPARK.[6]
In 2020, Baker Hughes and Saudi Aramco, in a 50-50 joint venture, announced the development of a facility centre, which will build new non–metallic solutions, the application of which is utilised in various sectors. In 2021, Baker Hughes started the construction of its largest facility centre in the region in King Salman Energy Park. The 300,000 square metres was scheduled to be developed by 2022 and will provide oilfield services to customers, including drilling solutions, wireline services and pressure pumping systems creating with a 70% localisation for Saudi Nationals. The facility was finally inaugurated in 2025.[7]
In September 2022, SeAH Gulf special steel industries, a joint venture between Saudi Arabian Industrial Investments Company (Dussur) and South Korean steel manufacturer SeAH CSS, announced its 178,000 square metres facility, which will be manufacturing stainless-steel pipes and tubes in King Salman Energy Park. The $240 million facility is targeted to produce 20,000 tonnes of high-quality Tubes and seamless steel annually. The engineering and construction of the project was given to the Saudi-based Sendan International.[8]
In April 2023, Honeywell, which already has seven manufacturing Hubs in Saudi Arabia, announced its latest facility in King Salman Energy Park. The new multi–phased manufacturing centre will include multiple solutions like field instruments, rugged mobile computers, gas detection equipment, fire safety systems and building management systems hardware, etc. Phase one was scheduled to be developed by 2024.[9]
In June 2023, SPARK and Hong Kong-based firm Hutchison Port, which has partnered to develop and operate the dry ports and logistical area of SPARK, inked concession agreements, which will provide the city with shipments, handling cargoes and a storage yard. The port is poised to become one of the largest ports in the Eastern Province of Saudi Arabia and will provide the companies with access to a global centre, further boosting the economy of the Eastern Province.[10]
In 2024, Emerson unrelieved its 13,000 square metres of manufacturing and innovation hub. The project aligned with the sustainable energy goals of Vision 2030 by using renewable energy sources like rooftop solar power generation, compressed air optimisation and lighting system optimisation. The energy-efficient systems are part of Emerson’s net-zero sustainable goals. Emerson has also previously invested in Saudi Arabia in Jubail and Dammam.[11]
In the same year, French-based Schneider Electric announced its own 20,000 square metres of industrial facility, which will focus on developing sustainable and efficient energy solutions like Distributed Control System (DCS), Emergency Shutdown System (ESD), and Compressor Control System (CCS). Earlier in 2022, EnEx Group also announced its drone manufacturing facility that will be developed in SPARK.[12]
In April 2025, National Energy Services Reunited Corp (NESR), which is one of the largest providers of national oilfield services in the Middle East, announced the construction of its 180,000 square metres of industrial facility for providing drilling optimisation and well intervention technology, increasing production enhancement, and introducing new sustainability solutions. The entire facility is scheduled to be developed in four phases and will utilise AI and machine learning to increase productivity, facilitate predictive maintenance, and cut down on the project time. In the first phase itself, the company will transfer its hydraulic fracturing operations to the new facility at SPARK.[13]
In September 2025, Saudi Arabia, in line with their attempt to localise products by 75% by 2030, Dyar Al-Safwah Engineering Consultancy, through its Jolt Green chemical industries to develop a green hydrogen electrode plant in SPARK. The construction is scheduled to begin in 2027 with an aim of producing 750,000 square metres of electrode annually after its completion.[14]
Earlier in May, 2025 emphasis on the localization, SPARK signed lease agreement with Chinese Neway Valve to build industrial valves for supply the Kingdom’s oils and gas factories, Indian Rax to manufacture ductile iron pipes for the vast network of regional water and wastewater networks on which the Kingdom heavily rely due to having no regional permanent rivers, French Schneider Electric Arabia to build automation systems to power the Kingdom energy management, Worldrep to provide the oil and gas industries with drilling chemical to facilitate upstream production.[15]
The workers, residential and commercial zones are being developed by Affordable Housing company, a subsidiary of Saudi-based Bin Saeden group. The Abdullah M. Bin Saedan and Sons Real Estate group has been previously involved in the construction of housing zones in other Saudi projects and has invested over $215 million in infrastructural projects in King Salman Economic City. The zones will be developed in multiple phases.
The company has investment has invested $50 million to build a 30,000 square metres residential area which will feature 459 apartments with options for single, double and triple bedrooms layouts. The company has invested $15 million to develop 25,000 square metres of commercial zones, out of which 15,000 square metres will be available to lease.
The zone will be developed in two phases. The company has also invested $150 million to build a 110,000 square metres of workers’ village zone. The zone will be built in three phases. The first phase of the residential zone and workers’ villages was scheduled to be completed by the end of 2025, and the commercial zone is scheduled to be completed by the end of 2026, respectively.[16]
Conclusion
King Salman Energy Park (SPARK) is an essential part of Saudi Arabia’s localisation attempt and part of the Kingdom’s own Oil and Gas company, Aramco, “In Kingdom Total Value-Added”, which is responsible for its development. The energy city is a step forward for Saudi Arabia’s Aramco toward energy diversification and environmentally friendly solutions.[17]
The growth in the industrial sector will create new job opportunities, lowering the unemployment rate, reducing dependency on the oil sector, diversifying the energy sector and placing the Kingdom as a major manufacturing and export Hub. The economic zone will also lead to an increase in investment and economic opportunity in the eastern province, reducing the stress of Al–Jubail and Dammam.
REFERENCES
[1] Al Arabiya English. (2024, April 2). SPARK is establishing Saudi Arabia as a global logistics powerhouse. https://english.alarabiya.net/News/saudi-arabia/2024/04/02/spark-establishing-saudi-arabia-as-a-global-logistics-powerhouse
[2] Hassan, N. (2024, September 29). SPARK attracts over 60 investors with $3bn in investment. Arab News. https://www.arabnews.com/node/2573237/business-economy
[3] Saudi Aramco. (2018, December 10). SPARK: New era of growth for Saudi Arabia. https://www.aramco.com/en/news-media/news/2018/spark-new-era-of-growth-for-saudi-arabia
[4] Arab News. (2020, July 21). Phase one of SPARK is 60% complete. Arab News. https://www.arabnews.com/node/1707646/business-economy
[5] MEP Middle East. (2020, March 11). Sawafi Borets breaks ground on 21,000m2 HQ and pump production facility. https://www.mepmiddleeast.com/projects/76593-sawafi-borets-breaks-ground-on-21000m2-hq-and-pump-production-facility
[6] Oilfields Supply Centre (OSC). (2021, October 18). Oilfields Supply Centre announces $570m investment in King Salman Energy Park (SPARK). Zawya.
[7] Baker Hughes. (2020, March 10). Baker Hughes breaks ground on its oilfield services regional hub at SPARK in Saudi Arabia. https://www.bakerhughes.com/company/news/baker-hughes-breaks-ground-its-oilfield-services-regional-hub-spark-saudi-arabia
[8] Zawya. (2024, March 25). Saudi-Korean JV Seah GSI breaks ground on $240mln stainless steel tube production facility. https://www.zawya.com/en/projects/industry/saudi-korean-jv-seah-gsi-breaks-ground-on-240mln-stainless-steel-tube-production-facility-go6wdjxo
[9] Arab News. (2023, April 6). SPARK to leverage Saudi Arabia’s position as a global logistics hub under the new Vision 2030 objective. https://www.arabnews.com/node/2283666/corporate-news
[10] ARAB NEWS. (2023, June 26). SPARK, Hutchison Ports partner to operate dry port and logistics zone. Arab News. https://www.arabnews.com/node/2328361
[11] Emerson. (2024, Oktober). Emerson opens new Saudi Arabia manufacturing hub at SPARK.
https://www.emerson.com/en-ae/news/2024/10-emerson-opens-new-saudi-arabia-manufacturing-hub-at-spark
[12] SPARK and Schneider Electric. (2024, September 19). SPARK and Schneider Electric sign agreement for high-tech manufacturing facility in Saudi Arabia. Zawya. https://www.zawya.com/en/press-release/companies-news/spark-and-schneider-electric-sign-agreement-for-high-tech-manufacturing-facility-in-saudi-arabia-f2xbcxal
[13] National Energy Services Reunited (NESR). (2025, April 21). NESR begins construction of 180,000m2 facility at King Salman Energy Park (SPARK).Nasdaq. https://www.nasdaq.com/press-release/nesr-begins-construction-180000m2-facility-king-salman-energy-park-spark-2025-04-21
[14] Al-Kinani, M. (2025, September 24). Saudi–Spanish JV to build green hydrogen electrode plant at SPARK. Arab News. https://www.arabnews.com/node/2616555/business-economy
[15] SPARK (King Salman Energy Park). (2024, September 23). SPARK attracts $1.15 billion in Investment from 9 New Investors. https://www.spark.sa/page/news_detail/3546
[16] SPARK and Bin Saedan. (2023, April 18). SPARK and Bin Saedan launch two key residential and commercial projects valued at $65mln. Zawya. https://www.zawya.com/en/press-release/companies-news/spark-and-bin-saedan-launch-two-key-residential-and-commercial-projects-valued-at-65mln-rh23mp4c
[17] Saudi Aramco. (2019, March). Driving local content and value creation with iktva. Elements Magazine. https://www.aramco.com/en/news-media/elements-magazine/2019/iktva
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