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1 Copyright © 2009 The National Competitiveness Center
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Copyright © 2009 The National Competitiveness Center
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SAGIA seeks to encourage investment, embrace innovation, and enhance the Kingdom’s competitiveness
Attracting sufficient investment to achieve rapid and sustainable economic growth in Saudi Arabia, capitalizing on the Kingdom’s competitive strengths as the global capital of energy and as a
SAGIA’s SAGIA’s VisionVision competitive strengths as the global capital of energy and as a
major hub between East and WestVisionVision
SAGIA’sSAGIA’sPositioning Saudi Arabia among the world’s most competitive nations through the creation of a pro-business environment aSAGIA s SAGIA s
MissionMissionnations through the creation of a pro-business environment, a knowledge-based society, and by developing new, world-class “Economic Cities”
Copyright © 2009 The National Competitiveness Center
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National Competitiveness Center: Driving Change
To plan, orchestrate, and publicize reforms and titi h t ff t i th Ki d
NCC’s NCC’s PP
P id d t d i bj ti d i
competitiveness enhancement efforts in the KingdomPurposePurpose
Provide data-driven, objective advice on competitiveness improvement opportunities
Establish Competitiveness Advisory Councils in a number of important sectors, bringing together the key private and public sector stakeholders
Publish the annual Competitiveness Review andPublish the annual Competitiveness Review and other sector competitiveness reviews
Solicit advice from top consulting firms
Copyright © 2009 The National Competitiveness Center
Measure 300 indicators of competitiveness from international sources (e.g., WEF, IFC, and others)
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Straddling the east and west, Saudi Arabia recognizes the potential of its g g ptransport and logistics sector to drive competitiveness and has invested heavily in supporting infrastructure
Transportation Infrastructure Projects Under Construction
Current RailLandbridgeNorth-South
Al H d th
Railroad Expansion
Multiple freight and passenger railways are under development, these
Airport Expansion
$US 666 million is being spent to develop, create, and expand 23 airports, i l di M di h T if Haramain
Ras Al-Zawr
Ha'il Jubail
Al-Hadeetha
Dammam
under development, these will– Increase and
facilitate tourism– Transport resources
from the north to industrial centers
including Madinah, Taif, Najran, and other regional airportsJeddah’s airport will have a capacity to handle 30 million passengers
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Airport Expansion
Jeddah
Buraydah
Riyadh
Dammam
Medina
Mecca
industrial centers– Transport goods
across the country and to export markets
annually
Red Sea Terminal/
Road Construction
8,250 km of roads will be constructed over the course of 2009 2010
Jeddah Islamic Port
The Port will have the capacity to hold 1.8 MM shipping containers
Copyright © 2009 The National Competitiveness Center
course of 2009-2010 bringing the total network up to 183K km from 42K in 1994
The total capacity for Jeddah ports will reach 6 MM containers by 2011
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Saudi Arabia has also ushered in important reforms to streamline customs pprocedures and reduce the costs of importing and exporting
1 Established “single window” for customs clearance at Jeddah PortEstablished single window for customs clearance at Jeddah PortPreviously, traders and brokers had to travel between numerous “satellite” offices in the port and to private banks, located outside the port. Now, traders and brokers can accomplish all tasks under a single roof
Launched Electronic Data Interchange (EDI)Developed under the auspices of the Ministry of Finance, jointly with the Customs Department, the Saudi EDI has allowed paper forms to be completely replaced by the electronic submission of customs declarations, both for imports and exports, and of shipping manifests.
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3 Reduced port handling fees by 50%
4 Increased use of x-rays to inspect containers
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These reforms have made it cheaper and faster to move goods into and out of Saudi Arabia
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These reforms and investments have contributed to Saudi Arabia’s growing
Global Competitive Index: 2007 MENA Country Ranks Global Competitive Index: 2010 MENA Country Ranks
competitiveness, as seen in the WEF’s Global Competitiveness Index…Saudi Arabia has moved from 35th to 21st in the last 4 years, and is now 2nd in the MENA region
p y p y
2117
35 32 31 30
43 4237
37 35 34 32
2521
77
49
65
80
97
81
Copyright © 2009 The National Competitiveness Center
Saudi Arabia
Tunisia Qatar KuwaitSyria Egypt Jordan Bahrain Oman UAE Egypt Syria Jordan OmanBahrain TunisiaKuwait UAE Saudi Arabia
Qatar
Note: Saudi Arabia did not appear in the GCI rankings prior to the 2007-08 ReportSource: Global Competitiveness Report 2007–2008, Global Competitiveness Report 2010–2011, World Economic Forum
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And have contributed to its reputation as a desirable destination for foreign
Annual FDI Inflows ($B) into Saudi Arabia
direct investment, as shown by UNCTAD’s World Investment Report
Country 2009 Rank FDI Inflows ($B)
Saudi Arabia leads the region in FDI in-flows and had the 8th largest amount globally in 2009
Due to the financial crisis FDI inflows declined by 7%, but this was much lower than most other
United States 1 $130
China 2 $95
France 3 $60
Hong Kong, China 4 $48
countries; the US declined by nearly 60%
United Kingdom 5 $46
Russian Federation 6 $39
Germany 7 $36
Saudi Arabia 8 $36I di 9 $35
$35.5$38.2
CAGR79%
India 9 $35
Belgium 10 $34
Italy 11 $31
Luxembourg 12 $27
Netherlands 13 $27
$22.8
$17.1Netherlands 13 $27
Brazil 14 $26
British Virgin Islands 15 $25
Ireland 16 $25
Australia 17 $23
$12.1
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Canada 18 $19
Singapore 19 $17
Spain 20 $15
$1.9
2008 200920052004 20072006Source: UNCTAD
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These reforms and investments have also made KSA an easier place to do business, as shown in the World Bank’s Ease of Doing Business IndexReforms across Saudi Arabian government agencies have vaulted the Kingdom into the Top 20 for “Ease of Doing Business”
IFC’s ‘Ease of Doing Business’ Rank, Saudi Arabia, 2004-2011
16th10
1
13th11th
38th 38th
23rd
40
30
20
67th60
50
40
67th
2004145 Countries
R k d
2005155 Countries
R k d
2006175 Countries
R k d
2007178 Countries
R k d
2008181 Countries
R k d
80
70
2009183 Countries
R k d
2010183 Countries
R k d
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Ranked Ranked Ranked Ranked Ranked
Source: Doing Business 2011; World Bank / IFC; NCC Analysis
Ranked Ranked
