Your SlideShare is downloading. ×
0
Attractive Investment in Down Stream Business Saudi Arabia
Attractive Investment in Down Stream Business Saudi Arabia
Attractive Investment in Down Stream Business Saudi Arabia
Attractive Investment in Down Stream Business Saudi Arabia
Attractive Investment in Down Stream Business Saudi Arabia
Attractive Investment in Down Stream Business Saudi Arabia
Attractive Investment in Down Stream Business Saudi Arabia
Attractive Investment in Down Stream Business Saudi Arabia
Attractive Investment in Down Stream Business Saudi Arabia
Attractive Investment in Down Stream Business Saudi Arabia
Attractive Investment in Down Stream Business Saudi Arabia
Attractive Investment in Down Stream Business Saudi Arabia
Attractive Investment in Down Stream Business Saudi Arabia
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Attractive Investment in Down Stream Business Saudi Arabia

1,572

Published on

Ahmed Suliman Al Rajhi, Vice Chairman, Al Rajhi Group's presentation at the 2010 U.S.-Saudi Business Opportunities Forum in Chicago, IL.

Ahmed Suliman Al Rajhi, Vice Chairman, Al Rajhi Group's presentation at the 2010 U.S.-Saudi Business Opportunities Forum in Chicago, IL.

Published in: Business, Travel
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,572
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
60
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Attractive Investment In Down Stream Business Saudi Arabia USA April 2010 Presented by: Ahmed Al-Rajhi Vice Chairman Al Rajhi Holding Company
  • 2. <ul><li>Advantages and Benefits for the investors in K.S.A ( I ) </li></ul><ul><li>Ownership </li></ul><ul><li>100% foreign ownership allowed </li></ul><ul><li>Monetary policy </li></ul><ul><li>Since 1986 the Saudi Riyal is pegged against the US$ at a rate of SR 3.75 SR to US$ 1.00 </li></ul><ul><li>No restriction on entry and repatriation of foreign capital & profits </li></ul><ul><li>Funding </li></ul><ul><li>The Saudi Industrial Development Funds (SIDF) grants interest free loans for industrial projects </li></ul><ul><li>up to 50% of its total costs including working capital </li></ul><ul><li>The loan is repayable in 5-7 years after grace period of 2-3 years </li></ul>
  • 3. <ul><li>Tax </li></ul><ul><li>Reduction of corporate tax from 45% to 20% </li></ul><ul><li>Tax is applicable to the foreign partner, Saudi partners are subject to 2.5% Zakat </li></ul><ul><li>on their net worth </li></ul><ul><li>No Personal Income Tax </li></ul><ul><li>Duty </li></ul><ul><li>Duty exemption on plant & machinery not produced locally </li></ul><ul><li>Law / labor </li></ul><ul><li>Excellent law & order situation </li></ul><ul><li>No labor unions </li></ul><ul><li>Low Manpower cost </li></ul>Advantages and Benefits for the investors in K.S.A ( II )
  • 4. CONTACT INFORMATIOM <ul><li>Infrastructure </li></ul><ul><li>Excellent road network links all cities within the Kingdom and </li></ul><ul><li>Huge investments in the infrastructures taking place in ports and </li></ul><ul><li>railways. </li></ul><ul><li>Land </li></ul><ul><li>Industrial land available at very low rates </li></ul><ul><li>Raw materials </li></ul><ul><li>Access to advantageously priced raw materials (e.g. PP, PE) </li></ul><ul><li>Utilities Cost </li></ul><ul><li>Excellent infrastructure to supply utilities like water, gas & electricity at very competitive rates </li></ul><ul><li>Electricity 3.2 cents per kwh </li></ul><ul><li>Gas $0.75 per MBTU </li></ul><ul><li>Water $1.60 per m 3 </li></ul>Advantages and Benefits for the investors in K.S.A ( III )
  • 5. CONTACT INFORMATIOM <ul><li>Logistic costs </li></ul><ul><li>Competitive freight rates to local, regional and global markets </li></ul>Advantages and Benefits for the investors in K.S.A( IV )
  • 6. <ul><li>Supply Chain </li></ul><ul><li>Central location for participating in strongly growing GCC markets and supplying goods to Europe, </li></ul><ul><li>Asia/Pacific and the Americas </li></ul>Advantages and Benefits for the investors in K.S.A ( V )
  • 7. Example 1: GPIL <ul><li>GPIL Ltd was established in 1989 with low production capacity (3,000MT/YR) Of BOPP Film and current capacity is (73,000MT/Yr) </li></ul><ul><li>The company is undergoing a major expansion project that will bring total production capacity to 150,000 MT/year 2013. </li></ul><ul><li>Offering packaging solutions to customers in the Middle east/Africa, Europe and the Americas.(more than 35 countries world wide ). </li></ul><ul><li>Representative office in Italy to serve Europe Customers </li></ul>Successful Investments in K.S.A
  • 8. GPIL Sales History 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
  • 9. MATTEX COMPANY <ul><li>Mattex was established in 1996 in Dubai and Jeddah and produces carpet backings, artificial grass backings and geotextiles with a total production capacity of approx. 400 MM m 2 . </li></ul><ul><li>The company is represented in the Americas, Europe, Africa/Middle East and Asia/Pacific. </li></ul>Example 2: Successful Investments in K.S.A
  • 10. Mattex Fabrics Sales History
  • 11. MFJ and MFD End customer Mattex North American Exports Mattex USA Primary, Secondary Backing & Woven Geotextiles Business started early 2005 and continues to grow Georgia: Calhoun + Chatsworth; California: Los Angeles; Employs 6 people in the USA History Products Mattex Local Warehousing
  • 12. Origins : Jeddah (KSA) and Dubai (UAE) Destinations: USA West and East Coast plus Canada Containerized Volumes Figures in FFE * 2010 Figures Are Forecasted Year FFE Quantity (M2) Turnover (USD) 2005 111 16.70 4.84 2006 186 41.86 11.01 2007 384 63.81 19.03 2008 442 65.14 23.54 2009 391 59.18 17.26 *2010 485 67.80 20.46
  • 13. Thank You…

×