Business Forum: Doing Business in Saudi Arabia - Abdulkarim


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Presentation at the US-Saudi Business Opportunities Forum (Dec 5-7, 2011, Atlanta, GA). Khalid Al Abdulkarim, CEO, Al Abdulkarim Holding, presented at the panel titled, "Doing Business in Saudi Arabia: An Insider's View for New to Market Companies".

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Business Forum: Doing Business in Saudi Arabia - Abdulkarim

  1. 1. Khalid Al-AbdulKarim Chief Executive Officer Al-AbdulKarim Holding Company 1
  2. 2. 1932 Saudi Arabia became a unified country 1930’s Oil discovered - first oil shipment 1950’s Major oil fields discovered 1960’s Crude oil facilities expanded 1970’s Major gas projects undertaken 1970’s Public infrastructure projects initiated 1970’s Petrochemical expansion begins 1980’s Continued infrastructure development 2000 Crude Increments, offshore Gas Programs 2011 Major petrochemical expansion 2
  3. 3. Market Segment US$ Physical infrastructure 140 billion Petrochemical Expansion 92 billion Electric Power Generation 91 billion Water Desalination 88 billion Telecom & IT 71 billion Tourism & Leisure 54 billion Natural Gas Production 50 billion Agricultural Expansion 28 billion Education & Training 11 billion 3
  4. 4. 4
  5. 5. Local Manufacturer Name Primary Products Jubail Petrochemicals Polyethylene, Ethylene Saudi Petrochemicals Styrene, Caustic Soda Nalco Petroleum, N-Gas, Chemicals Arabian Minerals & Chemicals Bentonite, Barite, Mica, Silica Arabian Gaskets Gaskets Ameron Saudi Arabia Concrete Pipes & Fiber Glass Al Olayan Kimberly Clark Consumer Paper Products ISCOSA Control Panels, Gas Turbines 5
  6. 6. 2011 Dow Chemical and Saudi Aramco formally established SADARA which is slated to become one of the largest Integrated Petrochemical complex in the world 6
  7. 7. Land of economic opportunity Most favorable “ease of doing business” rating in the region (per World Bank) Currency (Saudi Riyal) tied to the U.S. dollar Stable, pro-business government Local manufacturing incentives High income, conservative population High English language literacy rate Low taxes 7
  8. 8. Description 1 U.S. company can open their own subsidiary or local manufacturing in Saudi Arabia with 100% direct investment. 2 U.S. company establishes an agency agreement with a Saudi company. Saudi company sells products on a direct delivery basis (no warehousing). Saudi company provides local warehousing and distribution services 3 Saudi company provides product installation, warranty, maintenance and training services 4 U.S. company and Saudi company enter into a joint venture manufacturing partnership 5 Saudi company provides manufacturing and licensing agreement 8
  9. 9. Supply defect-free products Develop effective marketing strategies Maintain competitive pricing structures Establish reliable supply chains Consistently meet Saudi Customs requirements Install effective communications, reporting and process control mechanisms Resolve customer issues and claims quickly Develop long-term business strategies Be flexible, open and transparent 9
  10. 10. Family owned business with trading experience for generation Evolved into manufacturing and services Core competencies Industrial systems and automation Communications systems Laboratory systems, chemicals and services IT consultation, enterprise applications, services Electrical supplies and power transmission Local manufacturing and assembly facilities and over 1 MM sq. ft. of warehousing in Saudi Arabia 10
  11. 11. Supply Chain Agreement with Saudi Aramco, SABIC, Power and Water Utilities 36 sales and distribution centers serving customers in Saudi Arabia, Kuwait, Bahrain, Qatar and United Arab Emirates Frequently recognized as a top-tier supplier and service provider Strong commitment to excellence 11
  12. 12. Saudi Arabia’s economic development has been strong and steady and will continue to be so Saudi Arabia offers long-term growth opportunities for companies with the right products and services Al-Abdulkarim Holdings is available to help U.S. companies market, sell and manufacture their products Attractive economic incentives are available when products are manufactured in Saudi 12
  13. 13. Khalid Al-AbdulKarim Chief Executive Officer Al-AbdulKarim Holding Company 13