2012

Key Economic Data.

Saudi Economy from Global Perspective.

Foreign Direct Investment (FDI) in KSA.

Why Invest in Saudi Arabia?

Administrative Reform to Enhance Economic Activities.

Saudi Exports & Imports.

Investment opportunities in KSA.

The 2012 Saudi Budget.

2

Area 2.000.000 sq. kms

Population 28 million

Saudi 19.3 million

Non-Saudi 8.7 million

Population Growth Rate 2.4

No. of Labor Force 8.6 million

Gross Domestic Product $ 577 billion

GDP/ Capita $ 21000

(2011)

3

DEVELOPMENT EXPENDITURES IN

PREVIOUS PLANS

Human Resources 36.3 %

Infrastructure 29.1 %

Economic Resources 19 %

Health and Social 15.6 %

$ 1 Trillion Spent on Development Sectors

4

Cont….

5

Cont….

2006 2007 2008 2009 2010 2011

Nominal GDP

($ Billion)347 377 467 369 435 576

GDP Growth (%)13 8.6 22 -22 17.9 32.4

Oil Sector GDP

Growth (%)16 8 34.9 -16 25 41

Non-Oil Sector

GDP Growth (%)7.9 8.6 8 5.1 9.2 14.3

6

Cont….

Years Average individual

Income – US$

2003 9744

2004 11095

2005 13517

2006 14765

2007 15424

2008 18471

2009 14129

2010 16245

2011 21000

7

Strong GDP growth.

Large budget and current account surpluses .

Bank- driven and oil-driven liquidity growth .

25% of world Oil reserves .

Fourth Largest Natural Gas reserves.

The largest economy in the Arab World, among the top 20 Economy in the world.

The Largest producer of Petrochemicals in the Arab World.

A member of WTO.

8

Cont….

Saudi is among the top 20 recipients of Foreign Direct Investment in

the world.

Member of many Arab & International Organization.

10th largest worldwide Exporter (excluding intra-EU (27) trade) and

21st largest worldwide Importer (excluding intra-EU (27) trade).

Reached 12th place ranking in World Bank’s 2011 Ease of Doing

Business report.

Ninth Saudi Development Plan announced August 2010 sets out

investment spending of $385 billion in 2010-2014.

A major contributor to third world developing economies.

Saudi Arabia Foreign Investment $26.5 billion in 2011

•

31

182

81

150

261

577

0 100 200 300 400 500 600 700

Bahrain

Qatar

Oman

Kuwait

U.A.E

Saudi Arabia

$ Billion

Cont….

10

Cont….

Saudi Arabia ranking in the global competitiveness 2011/2012

Index & Sub Index Ranking Among

Arabic Countries

Ranking Among

World Countries

Ease of doing business 1 12Global competitiveness 2 17

Sub Index of competitiveness:Basic requirements 3 16

Efficiency enhancer 1 24

Institution environment 5 34

Infrastructure 5 41

Macroeconomic environment 1 9

Health and primary care 4 51

Higher education and

training

5 53

Financial market

development

7 73

Technological readiness 5 51

Market Size 1 22

Goods market efficiency 4 34

11

KSA ranking development for Foreign Direct Investment recipient

Cont….

20102009200820072006Years

814182027Saudi Arabia Rank

12

Foreign Direct Investment finance in KSA according to countries 2010

14%

7%

9%

9%10%

4%

5%

5%

2%4%

5%

1.40% USA

Emirates

France

Japan

Kuwait

Netherlands

China

Bahrain

Jordan

England

Germany

Malaysia

13

Cont….

Saudi non oil exports compare to foreign investment exports -total

($ 88 bn) 2010

62%

38%

Saudi non oil exports $ 54.4 bn

FDI exports $ 33.6 bn

14

Cont….

2010200920082007Years

28024319693815122821Total of the FDI Inflows in

Saudi Arabia ($ million)

170395------Total of the FDI Stock in

Saudi Arabia ($ million)

A strategic geographic location

Free & Large Market

Strong Purchasing Power

Economic & Political stability

Modern Infrastructure

Availability of Energy & Raw Materials

No Personal Income TAX

Open Economy

High rate of liquidity

$1 Trillion Investment Opportunity

15

16

Saudi Arabia has topped the list of GCC and West Asia countries in terms of direct foreign investment.

Saudi Arabia has topped the list of Arab host in terms of direct foreign investment flows worth $ 38.2 billion, up 39% of the total.

Saudi Arabia came on top of the list of Arab host of inter-Arab investments interfaces, worth $ 11.6 billion, up 60.4% of the total.

According to the United Nations Conference on trade and Development report, direct foreign investments in west Asia has increased by 12% during the last years, with the majority of these investments going to three countries; KSA, Turkey and UAE.

Kingdom concluded 41 bilateral agreements with various countries of the world, including 17 in the area of investment and 24 for the prevention of double taxation.

Cont….

Restructuring Public Bureaucracy.

Re-evaluate and issue new laws.

Developing IT and Communication platforms.

Attention to sectors in which Saudi Arabia has comparative and

competitive advantages.

Attention to the environment and Water Resources.

Creating more jobs for Young Saudis.

Private / Public partnership.

Accelerating Privatization Program.

Support SME’s and Family Business.

Promotion of Non-Oil Export .

17

Exports $246.5 Billion

Export/GDP 55%

Imports $106.8 Billion

Import/GDP 24%

Trade Balance $ 350 Billion

(2011)

18

SAUDI NON-OIL EXPORTS

Petrochemical Products

Electric Power Towers (High Tension)

Paper Industries

Medicines

Prefab. Steel Structure Buildings

Air Conditioners

Cleaning Materials

Plastic Textiles

Insulating Material

Plastic pipes & fittings and bottles

19

SAUDI NON-OIL EXPORTS

Miscellaneous Plastic Material

Electric Cables

Irrigation Industries

Electric Poles

Steel Angles for Electric Power Towers

Transparent Glass

Carpets

Cement

Foodstuffs

Copper Wire , bars and rolls

20

ADVANTAGES OF SAUDI NON OIL EXPORTS

High Productivity with advanced technology.

Applying International Standard & Specification .

Availability of Raw Material .

Accessibility to more than 148 International Markets.

More than 2000 commodity within 17 groups.

High Quality of Packaging .

Suitable & competitive price .

Certified for International Markets.

Qualified team for marketing & after sale follow up.

Financing programs.

Air, sea & land cargo from various ports.

21

22

12

4.

1314U.S.A

3.

Value

$ BillionCountryRank

11.6

5.

6.

7.

8.

9.

10.

1.

Germany

Japan

8

8

France

4.7

India

Emirates

UK

Italy

4.4

4

3.4

7.7

3.5

3.3

3.8

4

4

3.7

3.2

7

3.1

2. China

% Share from

Saudi Imports

S. Korea

23

35USA

4.

14.536Japan

3.

Value

$ BillionCountryRank

14

5.

6.

7.

8.

9.

10.

2.

1.

China

S. Korea

30

25

India

Singapore

19

Taiwan

Emirates

Bahrain

Thailand

8

4

8

12

3

5

9

10

10

4

3

10

2

% Share from

Saudi Exports

Physical Infrastructure$200 billion

Petrochemical Expansions$92 billion

Electric Power Generation$90.7 billion

Water Desalination $88 billion

Telecom and IT$70.7 billion

Tourism and Leisure Development$53.5 billion

Natural Gas Production$50 billion

Agricultural Expansion$28.3 billion

Educational and Training $10.7 billion

24

25

King Abdullah decree to support the Housing Sector through increasedallocations totaling $14.67 billion to the General Housing Authority andthe Real Estate Development Fund.

The royal decree support the Housing Authority for building as many as500,000 housing units for citizens.

King’s initiative would bring down the existing shortage of housing unitsfrom 1.2 million to 700,000.

The decision to increase the real estate loan from SR300,000($80thousand) to SR500,000 ($133thousand) and build as many as500,000 housing units, reflected in the market with a boost in demandfor plots of land for building houses and increased activities at real estatemarket.

Expenditure Budgeted $184 Billion

Revenues Budgeted $187.2 Billion

15

7

11

33

17

17

Sectors Allocation % Other Sectors

Transport & Communications

Water, Agriculture, Industry

Education

Health & Social Development

Development Funds

26

Come and Share our Future with us.

Thank you . . .

www.csc.org.saEmail: cit@csc.org.sa

27