Aramco Reservations (Arabic:محجوزات ارامكو) is a vast area of raw land occupying most of the Eastern Province of Saudi Arabia that has been reserved by the Saudi Arabian Oil Company (Saudi Aramco).
Contents
History
Soon after the discovery of oil and the starting of commercial oil production in Saudi Arabia in the 1930s, the founder of Saudi Arabia King Abdulaziz granted Aramco the right to reserve any unowned land. The reason for that was to provide the company with all the necessary means to establish the modern infrastructure for the oil industry that can be seen now in the Kingdom from pipeline network to oil wells and plants.
Present issues
The demand for land has been increasing especially during the last decade accompanying the economic boom. However, as the supply of raw land is constant due to these reservations the result is a shortage in land and skyrocketing land prices especially after reclamation of seawater was banned. The price per land has exceeded 1 Million Saudi Riyals in some areas where constructions is permitted making the Saudi Arabia's Eastern Province one of highests land value areas.
In addition to the shortage, the following are major urban projects that has been frozen: