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SPARK Inks Deal to Develop $450m Business Incubator

SPARK Inks Deal to Develop $450m Business Incubator

Friday, 12 July, 2019 - 11:00
An artist's impression of King Salman Energy Park. (SPA)
Dhahran - Asharq Al-Awsat
King Salman Energy Park (SPARK) and Dubai-based Oilfields Supply Center Ltd. (OSC) signed an agreement to establish OSC as an anchor tenant at SPARK.

In collaboration with Saudi Aramco, OSC will develop a business incubator called the Common User Supply Base (CUSB) to support the oil and gas industry in the Kingdom and the region, as well as help accelerate the growth of small and medium-sized enterprises (SMEs) in the energy sector.

OSC plans to invest around $450 million over the next two years.

The agreement was signed by Mohammed Qahtani, SPARK chairman and Saudi Aramco senior vice president for Upstream, and Muneeb Abdulrazzaq al-Kazim, general manager of Oilfields Supply Company Saudi Arabia, in the presence of Amin H. Nasser, Saudi Aramco president, and CEO, and Iqbal Mohammad Abedin, CEO of Oilfields Supply Center Ltd.

For his part, Nasser, said: “OSC’s investment marks an important step in SPARK’s journey to becoming integrated energy, industrial, technology and services hub. It will contribute to supply chain localization, boost job creation and support the overall advancement of the Kingdom’s energy sector.“

“OSC's investment in SPARK and collaboration with Saudi Aramco will position the project as a major enabler for oil and gas manufacturing and service companies and related SMEs,” said Abedin.

“It will enhance their localization plans by both increasing local procurement and value-added manufacturing activities, as well as increasing the employment of skilled Saudi nationals.”

When operational, SPARK is estimated to contribute more than $6 billion to the Kingdom’s GDP annually and create thousands of direct and indirect jobs as well as localize more than 300 new industrial and service facilities.

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