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USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization
USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization
USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization
USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization
USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization
USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization
USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization
USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization
USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization
USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization
USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization
USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization
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USSaudiForum -Panel 12 - Ali Al-Ayed -Fostering Technology Transfer and Industrialization

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The 3rd US-Saudi Business Opportunities Forum was held Sep 16-18, 2013, bringing together officials, business people, educators and specialists highlighting the U.S.-Saudi trade relationship and how …

The 3rd US-Saudi Business Opportunities Forum was held Sep 16-18, 2013, bringing together officials, business people, educators and specialists highlighting the U.S.-Saudi trade relationship and how U.S. companies can participate in Saudi Arabia's expansion.

Saudi Arabia is undergoing an extraordinary economic boom. Massive public investment, rapid private-sector growth and new sector initiatives are driving an expansion projected to offer more than $1 trillion in trade and investment opportunities over the next decade.

This panel of distinguished experts highlighted technology transfer and industrialization.

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  • 1. FOSTERING TECHNOLOGY TRANSFER AND INDUSTRIALIZATION 3rd US – Saudi Business Opportunities Forum Los Angeles, USA Wednesday, September 18, 2013 1
  • 2. SAUDI ARABIA’S INDUSTRIALIZATION PROFILE • The Saudi government assures provision of basic infrastructure, financial resources necessary for industrial investment. • Main Goals: Reduce dependence on oil income and adding value to the natural resources. •Create specialized clusters for building industries, developing the human capital and promoting associated business and services. The clusters are in metals processing, automotive value chain, pharmaceutical, solar energy, and plastics & packaging. 2
  • 3. 3 TRANSFER OF TECHNOLOGY INITIATIVES • Import technology to implement more complex and sophisticated projects, such as oil, gas, petrochemical projects, electric power plants, solar energy, telecommunication, construction, advanced aviation electronics and medical services. • Technology has been transferred through joint partnerships; license agreements; co- operation with various research and development (R&D) centres worldwide; and offset programmes. • American, European and Japanese firms have played an instrumental role in Saudi development by supplying the needed know-how, machinery & equipment, expertise together with management services for large projects in the Kingdom. continues…
  • 4. 4 …continued TRANSFER OF TECHNOLOGY INITIATIVES • Saudi Offset investment compensation has helped in economic diversification by nurturing private sector joint venture projects in the civil and defense sectors. Offset commitments of American, British, and French companies, including Hughes Aircraft, Lucent Technologies, Boeing, British Aerospace, McDonnell Douglas, General Electric, General Dynamics ,United Technologies and Thales Group are among the key participants. • Saudi labor adequately trained for the new technology as established by the success of mega petro-chemicals, minerals and petroleum projects. • Saudi Industrial Development Fund (SIDF) is one of the many institutions Saudi government has established to shift its reliance from oil based economy to a manufacturing based set-up. The government has set an ambition target to increase the contribution of manufacturing section of the GDP to 20% by the year 2020.
  • 5. 5 SIDF’s ROLE IN INDUSTRIALIZATION • Established in 1974. Current Capital: US $ 10.7 billion. • To support Industrial (Manufacturing) development through private sector participation. • Provides medium to long term loans for New, Expansion, Modernization, Replacement and Relocation of Industrial Projects • Provides SME financing through its specialized financial guarantee program called “Kafalah” Continues…
  • 6. 6 …continued SIDF’s ROLE IN INDUSTRIALIZATION • Support all forms of ownership structures including 100% foreign owned entities. • Loan amount provided between 50% to a maximum of 75% (for remote locations) of a project’s cost with minimum 25% of owners equity. • Maximum Loan to a single project is US$ 240 million (US$ 320 million for remote locations) • Maximum single borrower exposure is US$ 533 million. • 5 to 20 years loan repayment depending on project’s location and cash flows. continues…
  • 7. 7 …continued SIDF’s ROLE IN INDUSTRIALIZATION • The Fund also extend loans to finance: - Infrastructure development for the industrial cities owned by the private sector (Factory Workers & Employees’ Housing, Hotels, Vocational Training Centers, Logistic Support Services, and Warehousing Services) - Natural gas distribution projects. - Water desalination and sewage treatment projects targeting industrial cities. - Industrial and medical waste treatment projects. - Food and medicine sterilization projects.
  • 8. TOTAL FINANCED PROJECTS (By the end of Fiscal Year 2012) 8 NUMBER OF PROJECTS APPROVED LOAN AMOUNT (US$ MILLION) Chemicals 11.168 Engineering Products 5.788 Consumer Products 4.74 Building Materials 2.993 Cement 2.723 Other Products 0.699 Chemicals 609 Engineering Products 713 Consumer Products 670 Building Materials 397 Cement 31 Other Products 52 Total of 2,472 Projects Total of US$ 28.11 Billion
  • 9. SIDF’s ROLE IN TRANSFER OF TECHNOLOGY • 666 joint venture projects financed by SIDF (27% of total SIDF projects); Total commitment US$ 10.96 billion (39% of total SIDF loans); foreign capital component US$ 4.36 billion (34% of total equity). • United States leads joint ventures in terms of number of projects with 82 financed projects. 9
  • 10. 10 SIDF RELATIONSHIP WITH AMERICAN COMPANIES • Saudi Arabia & the United States enjoy more than 70 years of friendship. • Saudi Arabia is America’s 9th largest trading partner, with total trade of US$ 73.8 Billion in 2012. • First American-owned manufacturing company funded by SIDF in 1976. • SIDF has financed 82 projects involving ownership of more than 65 American companies with foreign equity investment of over US$ 409 Million.
  • 11. 11 SIDF LOANS WITH FOREIGN SHAREHOLDING The ownership of these 82 projects includes more than 65 American Companies. SIDF will continue its role in supporting US-Saudi joint ventures.
  • 12. THANK YOU.

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