Table of Contents
| Project at a Glance | |
| Project Name | King Salman Energy Park (SPARK) |
| Project Type | Greenfield |
| Project Location | Dammam and Al-Ahsa |
| Sector | Construction |
| Subsector | Industrial Hub |
| Owner | Saudi Aramco |
| Project Area | 50 square kilometers |
| SPARK Regions |
|
| Number of Phases | 3 |
| Project Cost | |
| Project Status | Under Construction |
| Construction Start Date | 2017 |
| Project Completion Date | 2035 |
King Salman Energy Park: Project Overview
King Salman Energy Park (SPARK) is a megaproject under construction in Saudi Arabia’s Eastern Province, strategically located between Dammam and Al-Ahsa. The project spans 50 square kilometers and is currently developed and managed by energy giants Saudi Aramco. The mega project is being built in three phases to establish a world-class industrial ecosystem supporting the energy sector.
SPARK offers services across exploration, production, refining, petrochemicals, and water treatment while promoting supply chain efficiencies and economic diversification aligning with Saudi Vision 2030. Expected to be fully completed by 2035, the project will contribute USD 6 billion annually to GDP and create 100,000 direct and indirect jobs in the Saudi energy sector.
Project Scope
King Salman Energy Park (SPARK) is a fully integrated industrial city designed to support the entire energy value chain while promoting efficiency and sustainability. Strategically located near Abqaiq in the Eastern Province along the GCC railway line, SPARK is divided into five key zones:
Industrial Zone: Organized into five specialized clusters focused on upstream, refining and petrochemicals, power, environment, non-metallic, and digital sectors. These clusters will enhance manufacturing capabilities in areas such as electricals, equipment, fluids, chemicals, metal forming, and industrial services. This fully integrated industrial ecosystem aligns whole kingdoms energy resources and enhances the energy supply chain.
Logistics Zone: Designed to facilitate supply chain operations with a state-of-the-art inland dry port capable of handling up to 10 million tonnes of cargo annually. This zone includes a bonded area, warehouses, a customs zone linked to the Gulf railway, and a re-export and logistics complex.
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Business Zone: Serving as the administrative hub, this area houses Saudi Aramco’s headquarters for drilling and well maintenance, as well as commercial office spaces, retail establishments, and essential support services.
Training Zone: Comprising ten specialized training centers dedicated to workforce development in the energy sector, ensuring the availability of skilled professionals to support industry growth.
Residential and Commercial Zone: A non-industrial area designed to create a dynamic community featuring residential complexes, hotels, and commercial spaces for investment, providing a well-balanced living and working environment.
Project Background
King Salman Energy Park (SPARK) is one of the largest industrial cities In Saudi Arabia developed by Aramco. Construction of the SPARK commenced in September 2017, with full completion targeted by 2035. The first phase was completed in 2021, and the Saudi Authority for Industrial Cities and Technology Zones (MODON) officially issued the park’s operating license.
The leading industrial ecosystem has successfully attracted both local and international investments across industrial, residential, and commercial sectors. In 2019, a significant agreement was signed with Dubai's Oilfields Supply Center Ltd., positioning the center as a key investor and tenant within SPARK. Also, leading global firms, such as the American energy service company Schlumberger, have already established operations in SPARK, with Schlumberger inaugurating its factory during the first phase of development.
In 2020, Energy City Development Company (“ECDC”), the owner and developer of SPARK and ENGIE Cofely, announced the signing of an agreement making ENGIE Cofely act as a facilities management advisor and training provider for SPARK.
In 2021, SPARK also signed two strategic agreements with the Industrialization and Energy Services Co. (TAQA) and the Arab Minerals Co. (AMCO). TAQA is seeking to expand its local operations through the TAQA Industrial Complex with an investment of USD 80 million. AMCO invested USD 69 million to develop a new center in the city.
Dr. Muhammad Yahya Al-Qahtani, chairman of the board of directors at King Salman Energy City, said that the investments of the project’s first phase would form a “global gateway” to the regional energy sector, amounting to approximately 1.6 billion. Later, with the completion of phase one of the energy project, 23 other companies signed the contracts.
A key milestone in SPARK’s development was its recognition as the first industrial city in the world to achieve the LEED Silver Level Certificate in Leadership in Energy and Environmental Design (LEED) in 2020.
King Salman Energy Park Location
King Salman Energy Park is located in the Eastern Province of Saudi Arabia, a region between Dammam and Al-Ahsa. SPARK, which is positioned as the leader of global energy, is located in close proximity to Saudi Aramco’s headquarters.
The energy park is well-connected through major highways and the GCC railway, facilitating seamless transportation and logistics. Also, it is situated near King Fahd International Airport and King Abdul Aziz Seaport to enhance its accessibility for international trade.
King Salman Energy Park: Project Cost
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King Salman Energy Park Contractors
| Contractor | Contract Description | Estimated Cost of Contracts |
| L&T Construction | Awarded a contract for building an oil and gas supply base within SPARK. | USD 133 million and USD 332 million |
| Abdullah M. Bin Saedan & Sons Real Estate Group | To develop a residential complex and workers’ village | USD 150 million |
| Affordable House Company (part of Bin Saedan Group) | Two key projects in the residential and commercial areas over 50,000 square meters | USD 65 million |
| China Railway Construction Corporation | Infrastructure and MEP Contractor | |
| Zamil Steel Construction Company (ZSCC) | Steel structures for SPARK's Administration Office Building, including 480 metric tons of steel and 5,500+ square meters of custom-fabricated metal decks. | |
| Water Transmission and Technologies Company (WTTCO) | 25-year water supply agreement at the Saudi Infrastructure Expo. |
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King Salman Energy Park Tenant Details
| Tenant | Industry/Sector | Project Description |
| Industrialization and Energy Services Company (TAQA) | Energy Services | Developing the TAQA Industrial Park, including facilities for oilfield services, engineering and manufacturing, and a wireline and perforation center of excellence. |
| AMCO | Manufacturing | Investing over SAR 260 million to develop facilities for manufacturing steel pipes, valves, pumps, turbines, and rotary equipment. |
| Abdulaziz & Brothers Safety Manufacturer (A&BC Reliable Protection) | Personal Protective Equipment (PPE) | Establishing a facility to produce high-quality PPE for the industrial and construction sectors. |
| Enjaz Al-Mustaqbal Industrial Company (Future Achievements) | HVAC Manufacturing | Developing a manufacturing facility to support the localization of the heating, ventilation, and air conditioning (HVAC) sector. |
| BAAS Gulf Industrial Company (a subsidiary of National Metal Manufacturing and Casting Company - MAADANIYAH) | Industrial Valves Manufacturing | Constructing facilities to manufacture industrial valves and provide technical after-sales services, with operations expected to commence by Q4 2024. |
| Emerson | Technology and Engineering | Building advanced technology operations at SPARK, with facilities expected to be operational by Q4 2024. |
| SeAH GSI (Joint Venture between Dussur and SeAH CS) | Manufacturing | USD 240 million stainless steel pipes production facility |
| Honeywell | Manufacturing | State-of-the-art regional manufacturing center |
| Baker Hughes | Energy Services | Construction for its Oilfield Services (OFS) regional hub with 300,000 square meter |
| Schlumberger | Energy Services | Center to manufacture Cameron isolation valve technologies, including GROVE valves and ORBIT rising stem ball valves |
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Project Benefits
The King Salman Energy Park (SPARK) will contribute over USD 6 billion to Saudi Arabia’s GDP annually and create up to 100,000 direct and indirect jobs upon its full development. SPARK offers investors unparalleled access to the global energy market, supported by top-tier infrastructure and service.
The sustainability of the park is evident by the construction of a solar farm aimed at generating 50% of its power from renewable energy sources by 2027 and the establishment of a dual water network offering both potable and treated water production options to tenants. One of the largest construction projects in Middle East supports Saudi Aramco’s In-Kingdom Total Value Add (IKTVA) program and Saudi Arabia's Vision of energy transition.
Project Status
In November 2024, during ADIPEC 2024, King Salman Energy Park signed five letters of intent (LOIs) with prominent industry players totaling over SAR 3 billion (approximately USD 800 million). These agreements are expected to create more than 3,000 direct and indirect jobs upon maturity. The companies involved and their planned projects are:
BioChem: Plans to establish a 100,000-square-meter facility to produce 20 kilotons of xanthan gum annually, marking the first plant of its kind in the GCC and MENA regions.
MAN Industries: Intends to develop a 360,000 square meter facility for manufacturing large-diameter carbon steel pipes and providing anti-corrosion coatings, thereby enhancing Saudi Arabia's metal processing sector.
Primetech International Company: Aims to produce blowout preventers and manifolds at its new facility, supporting the expansion of the "Saudi Made" brand in the global energy services market.
Read: Saudi Aramco Master Gas System Expansion Project Phase 3 | Updated Details 2025
Thermocables: Plans to set up a 10,000-square-meter manufacturing hub focused on high-quality specialty cable production.
Dalipal Holdings: Intends to establish a facility spanning over 1,000,000 square meters to produce seamless steel pipes, serving the Kingdom's energy industry.
In November 2024, SPARK announced its success in attracting more than 60 investors and explained that the current investment amount amounts to more than USD 3 billion. SPARK has 7 factories currently operating, including 14 factories under construction. Also, SPARK Utilities has successfully energized third high-voltage substation at King Salman Energy Park.
In December 2024, SPARK Utilities and GCC Lab signed an MoU to enhance construction services for the utility network at King Salman Energy Park. The MoU was signed on the sidelines of the Saudi Smart Grid Conference in Riyadh. Aramco also inaugurated the Novel Non-Metallic Solutions facility at King Salman Energy Park in January 2025.
Conclusion
King Salman Energy Park (SPARK) is a transformative industrial hub driving Saudi Arabia’s energy sector growth and economic diversification. With investments exceeding USD 3 billion and strategic agreements attracting global industry leaders, SPARK is poised to generate over 100,000 jobs and contribute USD 6 billion annually to GDP. Its world-class infrastructure, commitment to sustainability, and alignment with Saudi Vision 2030 make it a prime destination for energy and industrial investments.
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