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Peter Oosterveer, Group President, Energy and Chemicals, Fluor Corporation's presentation at the 2010 U.S.-Saudi Business Opportunities Forum in Chicago, IL.

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  1. 1. U.S.-Saudi Business Opportunities Forum April 29, 2010 • Chicago, Illinois, USA Peter Oosterveer Fluor Group President Energy & Chemicals
  2. 2. <ul><li>A leading Engineering, Procurement, Construction, and Maintenance firm </li></ul><ul><li>36,000 employees operating in 66 countries </li></ul><ul><li>Revenues of $22 billion in 2009 </li></ul>Fluor’s Diversified Industries AV20100185
  3. 3. Fluor’s Energy & Chemicals Group Three Business Lines AV20100185 Graphic is 20090278 <ul><li>Oil & Gas Upstream, Downstream, and Chemicals Markets </li></ul><ul><li>2009 Revenues of $11.9 billion </li></ul><ul><li>11,500 Home Office employees in 25 offices </li></ul>
  4. 4. Fluor Activities in the Middle East During the Last 5 Years AV20100185
  5. 5. Fluor Arabia Overview and History <ul><li>Fluor has worked in Saudi Arabia since 1947 and now operates as Fluor Arabia Limited, a 50/50 partnership between Fluor and E.A. Juffali & Brothers. </li></ul><ul><li>Fluor’s head office is our wholly-owned building in Al-Khobar built in 1978. </li></ul><ul><li>Fluor provides project/program management, front-end engineering and detailed engineering services. </li></ul>AV20100185
  6. 6. Opportunities <ul><li>Massive capital spending will create demand for every type of goods and service </li></ul><ul><li>Saudi Aramco Capital Program over next 5 years: US$50 billion </li></ul><ul><li>Petrochemicals: SABIC alone will double current production to 100 million tpy by 2020. Additional growth by Tasnee and Sipchem. </li></ul><ul><li>Power: Additional 12,000MW through 2015 </li></ul><ul><li>Many large infrastructure programs (new cities, universities, rail/road networks) </li></ul><ul><li>Mining/Aluminium: large investments by Maaden </li></ul>AV20100185
  7. 7. Why Saudi Arabia? <ul><li>Saudi Arabia is ranked 13 th out of 181 for ease of doing business (IFC/World Bank) </li></ul><ul><li>Government Incentives for investment (PIF/ SIDF) </li></ul><ul><li>Large and growing domestic market </li></ul><ul><li>World-class infrastructure: Power, Highways, Ports, Airports, IT </li></ul><ul><li>Very low-cost energy and labor </li></ul><ul><li>Strong banking sector </li></ul><ul><li>Low corporate and no personal taxes </li></ul>AV20100185
  8. 8. Business Environment <ul><li>Private sector companies in Saudi Arabia (including government companies like Saudi Aramco) highly professional – similar to working with most US or European companies </li></ul><ul><li>Structure of Government entities, like anywhere, are more complicated </li></ul><ul><li>5 year business visa makes visiting Saudi Arabia easy and Saudi clients can obtain a 5 year business visa to the United States </li></ul><ul><li>Family friendly environment: US Embassy/companies again allowing families; good schools available </li></ul>AV20100185
  9. 9. Recommendations for American Companies Entering the Saudi Market <ul><li>SAGIA offers a one stop-shop for new entrants to the Saudi market </li></ul><ul><li>US Commercial Service at the Embassy </li></ul><ul><li>Although not required, a local partner can be helpful in understanding the market and culture </li></ul><ul><li>Increased need for hiring Saudis – training and understanding of local labor laws are key </li></ul><ul><li>Consider investing in industries that are part of the Clusters Program </li></ul>AV20100185
  10. 10. Conclusion <ul><li>If you haven’t been to Saudi Arabia – GO! </li></ul><ul><li>Saudi Arabia is a dynamic and growing country with unlimited opportunities </li></ul><ul><li>Don’t miss it </li></ul>AV20100185