The city, to be built in Hofuf, is being built to allow women to become more financially independent, the British newspaper The Guardian reported Sunday.
The Saudi Industrial Property Authority said the city is slated to open next year.
"I'm sure that women can demonstrate their efficiency in many aspects and clarify the industries that best suit their interests, nature and ability," authority Deputy Director General Saleh al-Rasheed said.
The city will create about 5,000 jobs for women in textiles, pharmaceuticals and food-processing, and will be near residential neighborhoods "to facilitate the movement of women to and from the workplace," the authority said in a statement.
Currently, women make up only 15 percent of Saudi Arabia's workforce, the report said. Proposals have also been submitted for four similar industrial cities to be created.