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IPA Newsletter March 2011 ( File Size = 1 MB)


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IPA Newsletter March 2011 ( File Size = 1 MB)

  1. 1. IPA March 2011 Monthly Newsletter Your Internal Public Relations... “ INVEST IN SAUDI “ STRATEGY IN THE MAKING The Invest in Saudi Strategy, led by MONITOR group, started the kick off with an objective of delivering strategic focus in attracting quality FDI & DDI . The Invest in Saudi Strategy, led the investor landscape through traditional customer IPA along with Monitor Group, This will help SAGIA to identifykicked off earlier this month.  The priority groups of investors thatengagement will follow a share similar perceptions, behaviorsproprietary methodology of Monitor and investment parameters acrossGroup entitled “Growth path” that each sector.  With thiswill start with assessing the understanding SAGIA will be able tocompetitive advantage across a develop detailed marketing plansbroader array of strategic sectors that activate the investor segments support, however with thefor the Kingdom and identifying the that are most attractive and outputs of the strategy Sectorspecific opportunities that would be promising to Saudi Arabia. Heads and the Investmentof interest to foreign and domestic A key component of the Invest Saudi Promotion and Attractioninvestors.  A key objective of the strategy will be the collaboration department will be in a betterInvest Saudi strategy is to improve with other stakeholders.  SAGIA will position to target specific nichethe quality of investment. One of in some serves as the investment opportunities that will help tothe key levers that will be employed promotion agency for all key FDI realize the desired economicis the use of targeted incentives to stakeholders in the Kingdom and as objectives of attracting $150 Bnensure that investors are motivated such represent to varying degrees in DDI and FDI by 2015, whichto make the right kind of of support the sectors therein.  On will correspond to the creation ofinvestments in Saudi Arabia.   one hand this will result in a 500,000 new jobs.The unique approach of Monitor will broader set of sectors for SAGIA todevelop a deeper understanding of 1]
  2. 2. THE WAY FORWARD... In the increasingly competitive environment for FDI, a fundamental challenge for the investment promotion agency (IPA) in the developing world is to meet the information requirements and facilitate the right opportunity towards the investors needs. The stakes are very high for IPA to position Saudi Arabia as the prime investment destination. To achieve this, the IPA will continue to drive “awareness” led activations to ultimately drive conversion to attraction to action. This is based on Invest in Saudi Activation strategy to include a dual approach and will also look into reverse engineering which will be action of targeted investors which have a high attraction multiplier factor leading to increased awareness amongst targeted investors; hence bottom up approachDual Approach activation Strategy: I. Direct targeted AAA: Activation plan 2011 to drive Awareness, Attraction, & Action targeted operational plan 2011. This will include a massive activation plan to drive IPA & SAGIA presence and activation in the following: a. Anchor global events b. Sector premier events c. Regional events d. Local events 2]
  3. 3. 3 PILLARS II. Reverse engineer targeted AAA: Activation plan 2011 to identifying FDI/DDI regional & sector gaps and addressing these gaps by proactively targeting investors to setup operations in the Kingdom. a. Hit list of targeted investors. a. Pre-license & licensing of targeted investors. b. Activation of targeted investors. All of the above will be coupled with a tailor made activation kit and media plan which will include various tools i.e.: a. Selective investment opportunitiesAwarenes b. Marketing , sales, incentive kits investment c. Interactive display and point of sales material. d. SAGIA investor marketing collaterals e. Licensing guides, leaflets, intent application forms, etc. f. Advertorials, press releases, newsletters, web AAA AWARENESS ? ATTRACTION ACTION 1) Building knowledge of After creating AwarenessAttraction the Kingdom as a competitive investment destination of the Kingdom & SAGIA, we then move into engaging potential investors in the investing Issuing investment 2) SAGIAs service process, this includes: License !! offerings to potential investors. 1) Promoting specific investment opportunities 3) Building Awareness: 2) Explaining licensing - 1st meetings with procedures potential investors - Speaking at local & 3) Introduction to international events potential local partners - Sending SAGIA brochureAction 3]
  4. 4. IPA CRM CERTIFIED“Targeted Investors at the heartof invest in Saudi IPA Strategy” With an objective to target 40b USD FDI/DDI investors via empowerment and training for IPA equally for the year 2011 and doubling FDI/DDI regarded teams to be fully operational. within the next five years, this initiative is a cornerstone to achieve that. Based on various discussions with both OSS & ECA licensing teams we have established a IPA CRM certified is an initiative with an project targets by phase, milestone, timeline, objective to proactively accelerate converting and accountability plan to deliver on this key quality investments into the Kingdom. This initiative. requires a qualified and an empowered team to serve targeted investors wherever they are. Hence new IPA structure integrates the global coverage of Europe, Americas, Asia/Australia, and Middle East & Africa it is a fortune opportunity to institutionalize targeting IMMEDIATE TERM Q1 2011 MEDIUM TERM Q2 2011 LONG TERM Q3-4 2011 1) IPA to provide a hit list of 1) OSS/ECA to provide all 1) OSS/ECA online licensing new targeted investors necessary training content processes & procedures. relevant to certify IPA CRM 2) OSS/ECA to develop minimum initiative. 2) IPA to provide input based on requirements application phases I & II based on targeted process for targeted investors. 2) IPA CRM certified training to investors initiative. certify all regional offices to 3) OSS to validate and issue either issue either a provisional license 3) OSS/ECA/IPA to identify a provisional license (pre license) (pre license) or an active license required resources/systems/ or an active license. independently based on operations of online licensing. targeted investor’s hit lists by 4) IPA team to follow thru on region. activation in time bounded interval. 3) IPA CRM international role to follow thru on activation in time bounded interval, fast track, and activate VIP services i.e. Visa issuance etc. 4) IPA to identify additional services based on targeted investors and invest in Saudi strategic work in which outcomes will be institutionalized during this phase. 5) SLA agreement with all stakeholders to be developed jointly. 4]
  5. 5. OUR OPERATIONS An Insight to the way we monitor things ... TRACK’EM HOW ?: the process of WHY ?: this data is used collecting and organizing all to improve the investment DID you know ?? conversion process by: the data related to SAGIAs at the end of 2010, a total of 918 interaction with investors, • Providing up to date investors have been tracked: : including: and sharable information on each • Investor contact • 918 (Aware) as Total investor engaged with information Tracked investors. any SAGIA employee • Investor meeting • 281 (Attracted) Potential • Monitoring the investor minutes attraction process to investors moved to learn from successes, attraction by signing MOU • Potential Investor Or showing more interest obstacles…etc stage: AAA in existing Opportunities. • Using this data to build • Next steps & action strategies and action • 53 (Action) Investors items items in support of Issued new licenses & start converting each business in KSA. investor to the Action stage Track’em A monthly reporting mechanism that monitors all AWARENESS, ATTRACTION and ACTION conversion rates , that helps pave the way to achieving our KPI’s. Diagram below give sample of brief status report for January and February of 201130 MONTH AWARENESS ATTRACTION ACTION January 27 17 022.5 February 23 6 0 Total 50 23 0 15 7.5 Activities are aimed to enhance Action conversion rates and achieve higher 0 Attraction targets for action. Key tarket on average 20% converstion Awareness rate January February For more information please contact 5]
  6. 6. Conflict-battered Iraq has received around $5.06 billion while the occupied Palestinian territories emerged with one of the lowest levels of FDI, which totaled around $1.2 GLOBAL billion due to persistent tensions and Israeli restrictions. The report showed FDI flow into the GCC FDI TRENDS : declined in 2009 for the first time in many Global Distribution years because of the 2008 global fiscal crisis. From around $60 billion during Emerging markets have a larger 2008, FDI into GCC dropped to nearly $50 share of FDI flows coming out of the recessionFDI Watch in the Region billion last year. – Nine non-developed economiesOnly Qatar bucks the trend as economic A breakdown showed the UAE was the are in the top 20 FDI countriescrisis hits FDI flow into remaining GCC main victim of the downturn, with FDI (e.g. China and India)countries. inflow tumbling from around $13.7 billionThe UAE has attracted more than $73 in 2008 to nearly $four billion in 2009, one ! Companies are increasinglybillion in foreign direct investment (FDI) of its lowest levels over the past 15 years. becoming internationalized (as measured by number of foreignsince it was created nearly four decades ago FDI flow into Saudi Arabia slumped from a record high of around $38.1 billion to affiliates divided by the number ofto emerge as the second top capital all affiliates) this trend continuedrecipient in the region, according to UN nearly $35.5 billion in the same period. accelerated during the recessionstatistics. There was a decline in Bahrain and OmanSaudi Arabia, the world’s oil basin, while Kuwait recorded a net inflow of $145remained the largest Arab destination of million in 2009 compared with a negative ! Notable amongst the trends isFDI, attracting nearly $147.1 billion, net flow of nearly $51 million. that Latin American companiesshowed the figures by the United Nations Qatar was an exception in the Arab region, are becoming more and moreConference on Trade and Development with FDI inflow more than doubling from globally; moving from 5% in 2009 around 4.1 billion to $8.7 billion in the to 8% of cross-border M&A sales(UNCTAD). same period. Experts attributed the surge in 2010Cumulative FDI flow into the UAE totaledaround $73.4 billion, nearly 26 per cent of to investments by the country’s foreignthe combined foreign capital received by partners in gas projects, which have turned ! !West Asia" saw a decline Qatar into the top LNG supplier in the of 29% in FDI in 2009the six-nation Gulf Cooperation Council world, with its current production – However, Saudi Arabia only(GCC), which controls over 45 per cent of exceeding 40 million tones per year. declined 7%the world’s oil.Taken together, FDI by the UAE and Saudi Despite the sharp rise in FDI flow into theArabia accounted for around 80 per cent of GCC over the past 10 years, it remained a ! Dubai‘s debt crisis and the fall of Turkey greatly impacted !Westthe total FDI of nearly $278 billion received tiny fraction of the global FDI of nearly $17.74 trillion, not exceeding 1.5 per cent. Asia"by the 29-year-old GCC.Qatar, the world’s top LNG exporter, Compared with FDI flow into developingemerged as the third largest FDI target nations, the GCC also accounted for only ! Countries with stable around 5.6 per cent of the total capital of financial systems, like Saudiwithin the GCC, receiving nearly $28.1 $4.89 trillion. Arabia, are strategicallybillion. It was followed by Bahrain, with As for the UAE it accounted for around 0.4 positioned to acquire foreigncumulative FDI of about $14.9 billion, companies coming out of theaccording to UNCTAD. per cent of the world’s total, 1.5 per cent of recessionFDI flow into Oman stood at around $13.2 the FDI in developing countries and over 10billion while Kuwait emerged as one of the per cent of the Arab FDI.least attractive investment destination inthe region, with only $986 million.Outside the GCC, Egypt was the largest FDIrecipient and the third in the whole Arabworld, with cumulative FDI of about $66.7billion.It was followed by Morocco with around$40.7 billion, Lebanon, with $32 billion,Tunisia with nearly $31.8 billion, Jordanwith $18.7 billion and Algeria with $17.3billion. Source: Middle East Business News 6]