

Saudi Arabia – Key indicators.



Saudi Arabia underlying strengths.



Investment in Saudi Arabia.



Foreign trade...
SAUDI ARABIA – KEY INDICATORS 2012



GDP: $727 billion (preliminary)



GDP per Capita: $25000.



GDP Growth: 8.6 % ...
SAUDI ARABIA -UNDERLYING
STRENGTHS


Strong GDP growth.



Significant budget surplus.



Price level stability.



Ow...
SAUDI ARABIA -UNDERLYING
STRENGTHS
Cont….


Political stability, member of many Arab & International Organizations.



A...
SAUDI ARABIA -UNDERLYING
STRENGTHS
Cont….
Saudi’s GDP among Gulf countries
800
700
600
500
400

727
300

200

358

100

18...
SAUDI ARABIA -UNDERLYING
STRENGTHS

Cont….

Saudi Arabia’s Ranking in Global Competitiveness 2013/2014
Indicator
Ease of d...
INVESTMENTS IN SAUDI ARABIA

8
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

Qata...
FDITO SAUDI ARABIA BY COUNTRY - 2011)
USA
2% 1 %
3%
4%

Kuwait

17%

4%

France
9%

5%
8%
8%
7%

9%

Japan
UAE
Bahrain
Chi...
INVESTMENT INCENTIVES IN SAUDI ARABIA










No bureaucracy and one gate to investment “General
Authority for Inv...
ADVANTAGES OF INVESTING IN SAUDI ARABIA
Cont….


Liberalized Market



Domestic Market of over 29 Million People



Pro...
ADVANTAGES OF INVESTING IN SAUDI ARABIA
Cont….


Topped the list of GCC and West Asian countries in terms of direct
forei...
PLANNED SAUDI INVESTMENTS UP TO 2020
$200 billion

Physical Infrastructure

$92 billion

Petrochemical Expansions

$90.7 b...
INVESTMENT OPPORTUNITIES IN HOUSING








King Abdullah decree to support the
Housing Sector through increased
alloc...
INVESTMENT OPPORTUNITIES IN RIYADH
METRO LINE










Riyadh’s population is projected to grow up
to 8.5 million pe...
FOREIGN TRADE OF SAUDI ARABIA

17
DEVELOPMENT OF SAUDI ARABIA’S FOREIGN
TRADE
Billion Dollars

497

500
429

400

358
323

314
287

281

300
211

365

251

...
TO (10)FOREIGN TRADE PARTNERS -2011

SAUDI ARABIA EXPORTS TO












USA
Japan
China
S . Korea
India
Singapo...
MAIN EXPORTS OF SAUDI ARABIA













Petrochemical Products
Electric Power Towers (High
Tension)
Paper Indu...
SECTORAL BREAKDOWN OF SAUDI’S IMPORTS-2011

Food stuffs

15%
27%

Chemical products
12%
3%

28%

13%

Textiles& Textiles A...
ADVANTAGES OF SAUDI’S EXPORTED
PRODUCTS


More than 2000 commodity within 17 groups.



Applying International Standard ...
SAUDI ESTIMATED BUDGET - 2013



Expenditure
Revenues

$218.7 Billion
$221 Billion

SECTORAL BREAKDOWN OF EXPENDITURE) %...
REFORMS TO ENHANCE SAUDI’S ECONOMY


Re-evaluation and issuance of new laws.



Developing IT and Communication platform...
Come and Share our Future with us.
Thank you . . .
www.csc.org.sa
Email: cit@csc.org.sa
25
Saudi Arabia: Gateway to Mideast Investment Opportunities
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Saudi Arabia: Gateway to Mideast Investment Opportunities

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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

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Saudi Arabia: Gateway to Mideast Investment Opportunities

  1. 1.  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
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. INVESTMENTS IN SAUDI ARABIA 8
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. FOREIGN TRADE OF SAUDI ARABIA 17
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. Come and Share our Future with us. Thank you . . . www.csc.org.sa Email: cit@csc.org.sa 25

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