Saudi Aramco is considering building a new industrial city in the Al-Ahsa district of Saudi Arabia’s Eastern Province, according to a media report citing industry sources.

The state oil company will be looking to repeat the success of the Jubail and Yanbu industrial cities, which are already established on the kingdom’s respective Gulf and Red Sea coasts.

The government offers incentives for private companies to invest in the zones, which provide infrastructure including ports and utilities.

Reuters reported that international engineering companies have already bid for engineering work on the Al-Ahsa industrial city, which will be built around energy-related industries.

Saudi Arabia is also establishing the King Abdullah Economic City on the Red Sea, 100 kilometres north of Jeddah.

The project, launched in 2005, is aiming to provide up to 1 million jobs and provide homes for 2 million people, but has faced delays.