Saudi Economy 2012 - CIT

731 views
623 views

Published on

A briefing on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
731
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
13
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Saudi Economy 2012 - CIT

  1. 1. 2012
  2. 2.  Key Economic Data. Saudi Economy from Global Perspective. Foreign Direct Investment (FDI) in KSA. Why Invest in Saudi Arabia? Administrative Reform to Enhance Economic Activities. Saudi Exports & Imports. Investment opportunities in KSA. The 2012 Saudi Budget. 2
  3. 3. (2011) Area 2.000.000 sq. kms Population 28 million Saudi 19.3 million Non-Saudi 8.7 million Population Growth Rate 2.4 No. of Labor Force 8.6 million Gross Domestic Product $ 577 billion GDP/ Capita $ 21000 3
  4. 4. Cont….DEVELOPMENT EXPENDITURES INPREVIOUS PLANS $ 1 Trillion Spent on Development Sectors  Human Resources 36.3 %  Infrastructure 29.1 %  Economic Resources 19 %  Health and Social 15.6 % 4
  5. 5. Cont…. 2006 2007 2008 2009 2010 2011 Nominal GDP 347 377 467 369 435 576 ($ Billion)GDP Growth (%) 13 8.6 22 -22 17.9 32.4Oil Sector GDP 16 8 34.9 -16 25 41 Growth (%) Non-Oil Sector 7.9 8.6 8 5.1 9.2 14.3GDP Growth (%) 5
  6. 6. Cont….Years Average individual Income – US$2003 97442004 110952005 135172006 147652007 154242008 184712009 141292010 162452011 21000 6
  7. 7.  Strong GDP growth. Large budget and current account surpluses . Bank- driven and oil-driven liquidity growth . 25% of world Oil reserves . Fourth Largest Natural Gas reserves. The largest economy in the Arab World, among the top 20 Economy in the world. The Largest producer of Petrochemicals in the Arab World. A member of WTO. 7
  8. 8. Cont…. Saudi is among the top 20 recipients of Foreign Direct Investment in the world. Member of many Arab & International Organization. 10th largest worldwide Exporter (excluding intra-EU (27) trade) and 21st largest worldwide Importer (excluding intra-EU (27) trade). Reached 12th place ranking in World Bank’s 2011 Ease of Doing Business report. Ninth Saudi Development Plan announced August 2010 sets out investment spending of $385 billion in 2010-2014. A major contributor to third world developing economies. Saudi Arabia Foreign Investment $26.5 billion in 2011 8
  9. 9. Cont….Saudi Arabia 577 U.A.E 261 Kuwait 150 Oman 81 Qatar 182 Bahrain 31 0 100 200 300 400 500 600 700 $ Billion •
  10. 10. Cont….Saudi Arabia ranking in the global competitiveness 2011/2012 Index & Sub Index Ranking Among Ranking Among Arabic Countries World Countries Ease of doing business 1 12 Global competitiveness 2 17 Sub Index of competitiveness: Basic requirements 3 16 Efficiency enhancer 1 24 Institution environment 5 34 Infrastructure 5 41 Macroeconomic environment 1 9 Health and primary care 4 51 Higher education and 5 53 training Financial market 7 73 development Technological readiness 5 51 10 Market Size 1 22
  11. 11. Cont…. KSA ranking development for Foreign Direct Investment recipient Years 2006 2007 2008 2009 2010Saudi Arabia Rank 27 20 18 14 8 11
  12. 12. Foreign Direct Investment finance in KSA according to countries 2010 1.40% USA 5% 14% 4% Emirates 2% France 5% 7% Japan 5% Kuwait 4% 9% Netherlands China 10% 9% Bahrain Jordan England Germany Malaysia 12
  13. 13. Cont….Saudi non oil exports compare to foreign investment exports -total ($ 88 bn) 2010 38% Saudi non oil exports $ 54.4 bn FDI exports $ 33.6 bn 62% 13
  14. 14. Cont…. Years 2007 2008 2009 2010Total of the FDI Inflows in 22821 38151 31969 28024 Saudi Arabia ($ million)Total of the FDI Stock in -- -- -- 170395 Saudi Arabia ($ million) 14
  15. 15.  A strategic geographic location Free & Large Market Strong Purchasing Power Economic & Political stability Modern Infrastructure Availability of Energy & Raw Materials No Personal Income TAX Open Economy High rate of liquidity $1 Trillion Investment Opportunity 15
  16. 16. Cont…. Saudi Arabia has topped the list of GCC and West Asia countries in terms of direct foreign investment. Saudi Arabia has topped the list of Arab host in terms of direct foreign investment flows worth $ 38.2 billion, up 39% of the total. Saudi Arabia came on top of the list of Arab host of inter-Arab investments interfaces, worth $ 11.6 billion, up 60.4% of the total. According to the United Nations Conference on trade and Development report, direct foreign investments in west Asia has increased by 12% during the last years, with the majority of these investments going to three countries; KSA, Turkey and UAE. Kingdom concluded 41 bilateral agreements with various countries of the world, including 17 in the area of investment and 24 for the prevention of double taxation. 16
  17. 17.  Restructuring Public Bureaucracy. Re-evaluate and issue new laws. Developing IT and Communication platforms. Attention to sectors in which Saudi Arabia has comparative and competitive advantages. Attention to the environment and Water Resources. Creating more jobs for Young Saudis. Private / Public partnership. Accelerating Privatization Program. Support SME’s and Family Business. Promotion of Non-Oil Export . 17
  18. 18. (2011) Exports $246.5 Billion Export/GDP 55% Imports $106.8 Billion Import/GDP 24% Trade Balance $ 350 Billion 18
  19. 19. SAUDI NON-OIL EXPORTS Petrochemical Products Electric Power Towers (High Tension) Paper Industries Medicines Prefab. Steel Structure Buildings Air Conditioners Cleaning Materials Plastic Textiles Insulating Material Plastic pipes & fittings and bottles 19
  20. 20. SAUDI NON-OIL EXPORTS Miscellaneous Plastic Material Electric Cables Irrigation Industries Electric Poles Steel Angles for Electric Power Towers Transparent Glass Carpets Cement Foodstuffs Copper Wire , bars and rolls 20
  21. 21. ADVANTAGES OF SAUDI NON OIL EXPORTS  High Productivity with advanced technology.  Applying International Standard & Specification .  Availability of Raw Material .  Accessibility to more than 148 International Markets.  More than 2000 commodity within 17 groups.  High Quality of Packaging .  Suitable & competitive price .  Certified for International Markets.  Qualified team for marketing & after sale follow up.  Financing programs.  Air, sea & land cargo from various ports. 21
  22. 22. Value % Share fromRank Country $ Billion Saudi Imports1. U.S.A 14 132. China 12 11.63. Germany 8 7.74. Japan 8 75. S. Korea 4.7 4.46. France 4 47. India 4 3.78. Emirates 3.8 3.59. UK 3.4 3.210. Italy 3.3 3.1 22
  23. 23. ValueRank Country % Share from $ Billion Saudi Exports1. Japan 36 14.52. USA 35 143. China 30 124. S. Korea 25 105. India 19 86. Singapore 10 47. Taiwan 10 48. Emirates 9 39. 8 3 Bahrain10. Thailand 5 2 23
  24. 24. $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 24
  25. 25.  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 support the Housing Authority for building as many as 500,000 housing units for citizens. King’s initiative would 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 ($80thousand) to SR500,000 ($133thousand) and build as many as 500,000 housing units, reflected in the market with a boost in demand for plots of land for building houses and increased activities at real estate market. 25
  26. 26.  Expenditure Budgeted $184 Billion Sectors Allocation % Other Sectors 17 15 Transport & Communications 7 Water, Agriculture, Industry 17 11 Education Health & Social Development 33 Development Funds Revenues Budgeted $187.2 Billion 26
  27. 27. Come and Share our Future with us. Thank you . . . www.csc.org.sa Email: cit@csc.org.sa 27

×