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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