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Development of xyz company's activities in GCC region

Provide a guideline with necessary information
and tips to XYZ company in order to demonstrate the
significant potential of developing its activities in the
GCC market with a special focus on Saudi Arabia

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Development of xyz company's activities in GCC region

  2. 2. ContentsContents Background Information 1 2 Purpose of the Presentation 3 Overview of GCC Market 4 GCC Construction Sector Overview 5 Construction Opportunities in KSA 6 XYZ Competitive Advantage5 Construction Opportunities in KSA 6 XYZ Competitive Advantage 7 Market Entry Strategies Overview 8 Choose appropriate Market Entry Strategy What can I offer to XYZ ?10 y g pp p y gy 9 Create detailed Market Entry Plan S. MOBAYED, Feb 20122/19
  3. 3. My Background Information1 My Background Information Profile Competencies Education Employment Skills S. MOBAYED, Feb 20123/19
  4. 4. Purpose of the Presentation2 Purpose of the Presentation  Provide a guideline with necessary information  d ti t XYZ i d t d t t thand tips to XYZ company in order to demonstrate the  significant potential of developing its activities in the  GCC  market with a special focus on Saudi Arabia marketmarket  Provide information about the distinct market  entry strategies that could be adopted for  penetrating this region  Give an idea about what I would be able to  offer for XYZ company in developing and expanding  its activities in the designated regionits activities in the designated region S. MOBAYED, Feb 20124/19
  5. 5. Overview of GCC Market3 Overview of GCC Market  The six‐member Gulf Cooperation Council  (GCC) S di A bi U it d A b E i t (UAE)(GCC)—Saudi Arabia, United Arab Emirates (UAE),  Kuwait, Qatar, Bahrain and Oman—represents one of  the wealthiest country groupings in the world  The GCC is a major source of foreign  investment capital: by 2020, GCC countries areinvestment capital: by 2020, GCC countries are  expected to have over US$3.5 trillion in foreign  direct investment holdings  Furthermore, the region is being positioned as  a leading trading hub serving the Middle East, Africa  d S th t A iand Southeast Asia S. MOBAYED, Feb 2012S. MOBAYED, Feb 20125/19
  6. 6. Country 2010 Rank USA 4 Switzerland 21 Canada 8Overview of GCC Market3 GCC  Ease of doing business in the GCC  ranks better than India China and Russia Canada 8 KSA* 13 UAE 33 Kuwait 61 Overview of GCC Market GCC Country S&P Moody’s Bahrain A A2 Kuwait AA- Aa2 ranks better than India, China and Russia  (IFC & World Bank ranking) Kuwait 61 Qatar 39 Bahrain 20 Oman 65  The 6 GCC countries are all rated  “i t t d ” b M d ’ Kuwait AA Aa2 Oman A A2 Qatar AA- Aa2 Saudi Arabia AA- A1 Oman 65 China 89 Russia 120 I di 133“investment grades” by Moody’s.Arabia UAE N/A Aa2 India 133  The high oil price has allowed governments to set more  ambitious budgets and ensure an expansion of their capital  investments programs S. MOBAYED, Feb 20126/19
  7. 7. GCC Construction Sector Overview4 GCC Construction Sector Overview  Infrastructure Projects currently underway in Infrastructure Projects currently underway in  the GCC region aggregate to $ 2.8 trillion  P j i h i d fi i l b ki d Projects with committed financial backing and  sustained economic impact will continue  Saudi construction boom will drive listed  Developers and Construction companies  In ‘08, Qatar announced plans to spend close to  ~$150bn over a 5‐year period. An additional ~$50bn   is expected to be spent on infrastructure related to  World Cup 2022 S. MOBAYED, Feb 20127/19
  8. 8. GCC Construction Sector Overview4 GCC Construction Sector Overview S. MOBAYED, Feb 20128/19
  9. 9. GCC Construction Sector Overview4 GCC Construction Sector Overview S. MOBAYED, Feb 20129/19
  10. 10. Construction Opportunities in KSA55 Construction Opportunities in KSA  Saudi Arabia represents the largest Saudi Arabia represents the largest  construction market in the Middle East and one of  the fastest growing markets in the world  Saudi Arabia has budgeted more than US$385  billion on roads, airports and energy projects for the , p gy p j five‐year period from 2010 to 2015  In recent years, record high oil prices and large  oil revenues have made it possible for the  construction industry to employ extra liquidity for its y p y q y development S. MOBAYED, Feb 201210/19
  11. 11. Construction Opportunities in KSA55 Construction Opportunities in KSA S. MOBAYED, Feb 201211/19
  12. 12. Construction Opportunities in KSA55 Construction Opportunities in KSA Economic Cities Industrial Cities Major Economic Sectors •Kind Abdullah  Economic City •Jizan Economic City P i Abd l A i bi •Jubail Industrial City I •Jubail Industrial City II R Al Kh i I d i l Ci •Power  •Water and Wastewater Oil G d P h i l•Prince Abdul Aziz bin  Mousaed City •Knowledge Economic City •Ras Al‐Khair Industrial City •Yanbu Industrial City •Sudair Industrial City •Oil, Gas and Petrochemicals •Railroads and Roads •Airports and Ports •Tabuk Economic City •Ras Al‐Khair Economic City •Sudair Industrial City •Airports and Ports •Tourism S. MOBAYED, Feb 201212/19
  13. 13. Construction Opportunities in KSA55 Riyadh •Sudair City Development ‐ $ 40b •Princess Noura Bint AbdulRahman University of Woman $ 11 5b Construction Opportunities in KSA •Princess Noura Bint AbdulRahman University of Woman ‐ $ 11.5b •Riyadh Airport Tunnel Project ‐ $ 800M Jeddah •Jeddah Mile High Tower ‐ $ 13.6b $•Jeddah Hills Community‐ $ 11.2b •Jeddah Gate Development – $ 1.6b Dammam •Al Khobar Lakes Project – $ 1.2bj •Al Marina Project – $ 1b •Dammam‐Jubail railway ‐ $ 1b S. MOBAYED, Feb 201213/19
  14. 14. XYZ Competitive Advantage6 XYZ Competitive Advantage 1. Highly trained people 2 Sophisticated equipments 6 XYZ  Resources 2. Sophisticated equipments 3. International experience 4. Business partners Resources Distinctive  Competencies Differentiation Advantage XYZ Value XYZ  C bili iCapabilities 1. Technology & Innovation 2. Up‐dated methodology 3. Multidiscipline applications 4 Low budget Vs High Quality4. Low budget Vs High Quality S. MOBAYED, Feb 201214/19
  15. 15. Market Entry Strategies Overview7 Market Entry Strategies Overview  Market entry strategy will provide a strategic  Road to Success 7 roadmap to help organize the thought process.  There are six market entry strategies that y g could be considered for Saudi Arabia/GCC region:  Local Agent  (Representative) Joint Venture Partnership Foreign Direct  Investment Joint Venture Strategic Alliance Investment  (Branch/Regional  Office) Joint Venture  Project S. MOBAYED, Feb 201215/19
  16. 16. Choosing appropriate Market Entry Strategy8 Choosing appropriate Market Entry Strategy  Most small companies use the direct exporting strategy by engaging a local agent or  representative, however, there are a number of options that could be more convenient to be  considered   Tips for minimizing risks and choosing the right strategy: ld ll l l l h1‐ Building excellent local relationships 2‐ Getting excellent legal assistance 3‐ Adopting “Consortium” approach (players from different parts of the market) 4‐ Being careful in selecting local agents or partners 5‐ Entering the market gradually to establish a foothold, a “toe in the water” approach 6‐ Using a “less risk” and “less profit” strategy at the entry stageg p gy y g S. MOBAYED, Feb 201216/19
  17. 17. Create detailed Market Entry Plan9 Create detailed Market Entry Plan  Developing a market entry plan will assist to  understand the costs and benefits of each possible  9 approach to the market, and will provide signals when  to exit the market in the event that things don't go  according to plan  A market entry plan will address: • Which sectors represent the best short‐ and  long term opportunities by location and industry?long‐term opportunities, by location and industry? • Competitive positioning recommendations • Penetration strategies, and potential  candidates Opportunities candidates • Strategic partner options and candidates • Level of support required to build  partnerships by direct market presence Positioning Support partnerships by direct market presence • Costs and benefits of market entry options Costs S. MOBAYED, Feb 201217/19
  18. 18. What can I offer to XYZ?10 What can I offer to XYZ? 1. Take the lead to develop XYZ activities in GCC and Middle  East 2. Develop/Implement XYZ business and sales strategies 3. Identify new opportunities for the designated markets3. Identify new opportunities for the designated markets 4. Engage/Select  the best strategic partner/agent 5 Build excellent local business relationships5. Build excellent local business relationships 6. Lead the bidding process and close  contractual/commercial negotiations 7. Support/facilitate the executions of awarded projects 8. Oversee the Foreign Direct Investment process and set  up regional or branch office (if decided)  9. Represent XYZ in the Gulf region (MENA Region?) S. MOBAYED, Feb 201218/19
  19. 19. THANK YOUTHANK YOU Research  MarketSAMER MOBAYED ThinkAct Business Development & Marketing Email: Skype: samer.mobayed Plan Ahead Skype: samer.mobayed S. MOBAYED, Feb 201219/19