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 market.

1. DEVELOPMENT OF XYZ COMPANY ACTIVITIES
IN
GULF REGIONGULF REGION
(GCC & KSA)
Prepared For:Prepared For:
XXXXXXXX
XXXXX
XXXX
XXXXXXXX
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Prepared By: Samer MOBAYED
Feb 20121/19

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. My Background Information1 My Background Information
Profile
Competencies
Education
Employment
Skills
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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
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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. 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
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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
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8. GCC Construction Sector Overview4 GCC Construction Sector Overview
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9. GCC Construction Sector Overview4 GCC Construction Sector Overview
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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
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11. Construction Opportunities in KSA55 Construction Opportunities in KSA
S. MOBAYED, Feb 201211/19

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. 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
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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. 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. 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
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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. 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. THANK YOUTHANK YOU
Research
MarketSAMER MOBAYED
ThinkAct
Business Development & Marketing
Email: samermobayed@hotmail.com
Skype: samer.mobayed
Plan Ahead
Skype: samer.mobayed
S. MOBAYED, Feb 201219/19