The CIT briefing on investment opportunities in Saudi Arabia was presented by CIT Secretary General Omar Bahlaiwa at the Opportunity Arabia 10 symposium in Manchester, England on October 4, 2013. For more information visit www.SaudiBrit.com

2. 
Saudi Arabia – Key indicators.

Saudi Arabia underlying strengths.

Investment in Saudi Arabia.

Foreign trade of Saudi Arabia.

Saudi estimated Budget - 2013.

Reforms to Enhance Saudi Economy
2

3. SAUDI ARABIA – KEY INDICATORS 2012


GDP: $727 billion (preliminary)

GDP per Capita: $25000.

GDP Growth: 8.6 % (Current)
6.8% (Constant)

Non-Oil Sector GDP Growth:
%11.2.

Currency: Saudi Riyal (SR) 3.75 = $1
Population: 29 million.


Area: 2000000 km2.
Private Sector Growth rate: 8%.
Exports:$396 billion .Imports:$128
billion.

3

4. SAUDI ARABIA -UNDERLYING
STRENGTHS

Strong GDP growth.

Significant budget surplus.

Price level stability.

Owns 25% of world’s Oil reserve.

Fourth Largest Natural Gas reserve.

The largest economy in the Arab World, and among the top 20
Economies in the world (G20).

The Largest producer of Petrochemicals in the Arab World.

Open economy, a member of WTO.
4

5. SAUDI ARABIA -UNDERLYING
STRENGTHS
Cont….

Political stability, member of many Arab & International Organizations.

An attractive environment for investment, among the top 20 recipients
of Foreign Direct Investment in the world.

Investment incentives, Income tax free, financial facilities.

Ranked 12th in ease of doing businesses in 2012.

10th largest worldwide Exporter (excluding intra-EU (27) trade).

21st largest worldwide Importer (excluding intra-EU (27) trade).
5

6. SAUDI ARABIA -UNDERLYING
STRENGTHS
Cont….
Saudi’s GDP among Gulf countries
800
700
600
500
400
727
300
200
358
100
187
172
0
saudi Arabia
U.A.E
Qatar
Kuwait
78
Oman
31.2
Bahrain
$ Billion
•6

7. SAUDI ARABIA -UNDERLYING
STRENGTHS
Cont….
Saudi Arabia’s Ranking in Global Competitiveness 2013/2014
Indicator
Ease of doing businesses
Global competitiveness
Institutions
Infrastructure
Macroeconomic environment
Property rights
Health and primary education
Higher education and training
Goods market efficiency
Financial market development
Technological readiness
Market Size
Business sophistication
Innovation
Ranking Among Arabic
Countries
1
3
4
4
2
5
5
3
4
3
3
1
3
3
Ranking Among
World Countries
12
20
20
31
4
27
53
48
27
27
41
23
28
30
7

8. INVESTMENTS IN SAUDI ARABIA
8

9. FDI (Inflows) Bn US$ -2011
18
16.4
16
14
12
10
8
6.4
6
5.5
4.4
4
2
1.1
0.3
0
Saudi Arabia
Egypt
Emirates
Qatar
Oman
Kuwait
•9

10. FDITO SAUDI ARABIA BY COUNTRY - 2011)
USA
2% 1 %
3%
4%
Kuwait
17%
4%
France
9%
5%
8%
8%
7%
9%
Japan
UAE
Bahrain
China
Germany
UK
FDI in Saudi Arabia2011: 16.4 billion US$
Netherlands
Jordan
USA is the largest investor in Saudi Arabia.
Malaysia
10

11. INVESTMENT INCENTIVES IN SAUDI ARABIA






No bureaucracy and one gate to investment “General
Authority for Investment Arabia (SAGIA)”,
100 % land and corporate ownership to foreigners.
No restrictions on the re-transfer of capital.
No taxes on personal income , taxes 20 % of the benefits on
foreign companies.
The possibility of loss carry-over to later years rather than
factoring them into tax settlements of profitable years.
Foreign investors have the right to benefit from specialized
financial institutions (local and international institutions.)
11

12. ADVANTAGES OF INVESTING IN SAUDI ARABIA
Cont….

Liberalized Market

Domestic Market of over 29 Million People

Proximity to big Markets

Low Labor Costs

Major source of energy

Guarantee of Transfers

National Treatment

Reliable Investment Environment
12

13. ADVANTAGES OF INVESTING IN SAUDI ARABIA
Cont….

Topped the list of GCC and West Asian countries in terms of direct
foreign investment.

Topped the list of Arab host in terms of direct foreign investment, with
estimated flows of $ 38.2 billion, up 39% of the total.

Top of the list of Arab host of inter-Arab investment interfaces, with an
estimated worth of $ 11.6 billion, up 60.4% of the total.

Major investments in west Asia go to three countries: KSA, Turkey and
UAE.

Kingdom concluded 41 bilateral agreements with various worldwide
countries, including 17 investment agreements, and 24 avoidance of
double taxation agreements.
13

14. PLANNED SAUDI INVESTMENTS UP TO 2020
$200 billion
Physical Infrastructure
$92 billion
Petrochemical Expansions
$90.7 billion
Electric Power Generation
$88 billion
Water Desalination
$70.7 billion
Telecom and IT
$53.5 billion
Tourism and Leisure Development
$50 billion
Natural Gas Production
$28.3 billion
Agricultural Expansion
$10.7 billion
Educational and Training
$22 billion
Riyadh metro line
14

15. INVESTMENT OPPORTUNITIES IN HOUSING




King Abdullah decree to support the
Housing Sector through increased
allocations totaling $14.67 billion to the
General Housing Authority and the Real
Estate Development Fund.
The royal decree to support the Housing
Authority in building up to 500,000
housing units for citizens.
King’s initiative will bring down the
existing shortage of housing units from 1.2
million to 700,000.
The decision to increase the real estate
loan from SR300,000 ($80 thousand) to
SR500,000 ($133 thousand) and build as
many as 500,000 housing units, was
reflected in the market with a boost in
demand for plots of land for building
houses and increased activities in the real
estate market.
15

16. INVESTMENT OPPORTUNITIES IN RIYADH
METRO LINE





Riyadh’s population is projected to grow up
to 8.5 million people in the next decade (from
six million currently.)
Saudi Arabia awarded more than $22 billion
in contracts to develop a metro line in
Riyadh..
It is the biggest infrastructure project to be
undertaken in the Kingdom of Saudi
Arabia, and is a cornerstone of the bold future
for Riyadh city.
Six lines will serve the capital city’s
center,
government
facilities, universities, commercial areas, the
airport and the financial district.
Construction of the 175-kilometer (109mile), and 85-station network will be the
longest metro line in the world under
construction, and will create 15,000 jobs over
five years.
16

17. FOREIGN TRADE OF SAUDI ARABIA
17

18. DEVELOPMENT OF SAUDI ARABIA’S FOREIGN
TRADE
Billion Dollars
497
500
429
400
358
323
314
287
281
300
211
365
251
233
192
200
100
70
90
115
95
107
132
0
2006
2007
EXPORTS
2008
IMPORTS
2009
2010
2011
TRADE VOLUME
Today, Saudi Arabia is the 10th biggest exporter and the 21st largest
importer in the world.(excluding intra-EU (27) trade).
18

19. TO (10)FOREIGN TRADE PARTNERS -2011
SAUDI ARABIA EXPORTS TO










USA
Japan
China
S . Korea
India
Singapore
Taiwan
Italy
UAE
Bahrain
14%
13%
13%
10%
8%
4%
3%
3%
3%
3%
SAUDI ARABIA IMPORTS FROM










China
USA
Germany
Japan
S . Korea
UAE
France
Italy
India
UK
13%
13%
7%
6%
6%
4%
4%
4%
3%
3%
19

20. MAIN EXPORTS OF SAUDI ARABIA










Petrochemical Products
Electric Power Towers (High
Tension)
Paper Industries
Medicine
Prefab. Steel Structure Buildings
Air Conditioning Materials
Cleaning Materials
Plastic Textiles
Insulating Materials
Plastic pipes and fittings and
bottles










Miscellaneous Plastic Material
Electric Cables
Irrigation Industries
Electric Poles
Steel Angles for Electric Power
Towers
Transparent Glass
Carpets
Cement
Foodstuff
Copper Wire , bars and jewelry
20

21. SECTORAL BREAKDOWN OF SAUDI’S IMPORTS-2011
Food stuffs
15%
27%
Chemical products
12%
3%
28%
13%
Textiles& Textiles Articles
Base metals
Electrical machines
Others
Electrical machines have the biggest share in Saudi’s imports with 28%.
21

22. ADVANTAGES OF SAUDI’S EXPORTED
PRODUCTS

More than 2000 commodity within 17 groups.

Applying International Standard & Specification .

Accessibility to more than 148 International Markets.

High Quality of Packaging .

Suitable & competitive price .

Financing programs.

Ease of Transport.

Air, sea & land cargo from various ports.
22

23. SAUDI ESTIMATED BUDGET - 2013


Expenditure
Revenues
$218.7 Billion
$221 Billion
SECTORAL BREAKDOWN OF EXPENDITURE) %(
8%
Transport & Communications
8%
Water, Agriculture, Industry
12%
14%
Education
Health & Social Development
25%
Development Funds
23

24. REFORMS TO ENHANCE SAUDI’S ECONOMY

Re-evaluation and issuance of new laws.

Developing IT and Communication platforms.

Attention to sectors in which Saudi Arabia has comparative and
competitive advantages.

Creating more jobs for Saud youth.

Enhance PPP Private / Public partnership.

Accelerating Privatization Program.

Support SME’s and Family Business.

Promotion of Non-Oil Export .
24

25. Come and Share our Future with us.
Thank you . . .
www.csc.org.sa
Email: cit@csc.org.sa
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