Yanbu Al-Sina'iya (literally "the industrial Yanbu") is the industrial city, established in 1975 by royal decree to create a Royal Commission to manage the effort to build a new modern city. It is the most southern part of Yanbu city. Yanbu Al-Sina'iya is divided into two parts, the industrial area to the south, and a residential area (referred to as the Royal Commission by many locals) directly north and adjacent to the industrial area. The industrial area within Yanbu Al-Sina'iya is the area of all the major refineries and petrochemical installations and is still undergoing major growth. This area of Yanbu was a strip of undeveloped coastal desert land on the Red Sea and has been transformed into an industrial city.