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King Salman Energy City (Spark) and Dhalipal Holdings Limited have announced the signing of a 25-year land lease agreement on an area of (1,030,916) square meters in Spark, in a move that is a major milestone in Dylibal’s plans to establish a sophisticated base for the smart manufacturing of energy equipment in Saudi Arabia.
Under the agreement, Dalibal International Industries, a wholly-owned subsidiary of Dalipal Holdings Limited (HKEX: 1921), will develop the site to serve a key manufacturing platform serving Saudi Arabia, the Middle East and international markets, according to the Saudi Press Agency (SPA).
The total investment of the project in the Kingdom is expected to reach 2.1 billion dollars and the investments of the first phase will reach 600 million dollars
The agreement represents the transition of the project from the strategic planning stage to the long-term development and implementation phase. Total investments in the project in the Kingdom are expected to reach about US$2.1 billion, while the first phase investments amount to US$600 million. These investments will support the development of advanced manufacturing capabilities for seamless steel pipes, including oil and gas well packaging and production pipes, drilling pipes, and hydrogen pipes.
The project is strategically located within Spark, allowing it to benefit from an integrated industrial system, advanced infrastructure, logistics facilities and services, as well as proximity to the most prominent energy and industry markets in Saudi Arabia, and will contribute to enhancing local manufacturing capabilities and supporting the localization of strategic supply chains for the energy sector.
The signing of the 25-year lease agreement marks a milestone in the Dalibal investment process in Spark
The President and CEO of King Salman Energy City (Spark), Meshaal Al-Zughaibi, stressed that the signing of the lease agreement for 25 years represents a milestone in the Dalibal investment process in Spark, and confirms the investment of the first phase of (600) million US dollars, in addition to the total investment ambition of nearly (2.1) billion US dollars, the size of Dalibal’s commitment to Saudi Arabia, and the confidence of leading Chinese industrial companies in the long-term growth prospects in the Kingdom, praising the partnership with Dalipal in the establishment of a world-class manufacturing platform that will enhance localization, develop high-value industrial capabilities, and serve energy markets across the region.
In the same context, the Chairman of the Board of Directors of Dalibal Holding Company, Meng Fanyeong, explained that Saudi Arabia represents an important strategic market for Dalipal, and one of the main pillars of our international expansion strategy, and will allow the establishment of an advanced manufacturing base at Spark to be closer to its customers, improve the efficiency of regional supply chains, and build a long-term platform for growth in the Middle East, stressing his confidence that this project will become a model for economic cooperation between China and the Kingdom.
The project is an extension of the memorandum of understanding that Dalibal signed with Spark in November 2024 to develop a seamless steel pipe manufacturing facility over an area of more than one million square meters.
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