key economic data. saudi economy from regional & global perspective. foreign direct investment...
TRANSCRIPT
SAUDI ARABIA,YOUR PARTNER IN THE
MIDDLE EAST2011
CONTENTS
Key Economic Data. Saudi Economy from Regional & 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 2011 Saudi Budget.
2
KEY ECONOMIC DATA
Area 2.000.000 sq. kms
Population 27.1 million Saudi 18.7 million Non-Saudi 8.4 million
Population Growth Rate 2.4
No. of Labor Force 8.6 million
Gross Domestic Product $ 435 billion
GDP/ Capita $ 16000
(2010)
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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
Key Economic Data
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Key Economic Data
2005 2006 2007
2008 2009
2010
Nominal GDP ($ Billion) 307 347 377 467 369 435
Growth 9.2 13 8.6 22 -22 17.9
Oil Sector 15.4 16 8 34.9 -16 25
Non-Oil Sector 6.7 7.9 8.6 8 5.1 9.2
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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 major contributor to third world developing economies. A member of WTO. Member of many Arab & International Organization. 10th world wide Exporter (excluding intra-EU (27) trade). 21nd word wide Importer (excluding intra-EU (27) trade).
SAUDI ECONOMY FROM REGIONAL GLOBAL PERSPECTIVE
Cont….
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• 7
SAUDI ECONOMY FROM REGIONAL GLOBAL PERSPECTIVE
Cont….
SAUDI ECONOMY FROM REGIONAL GLOBAL PERSPECTIVE
Ease of doing business 2011 report for the selected economy
(Covering 183 countries)Economy Ease of
doing business
Starting a
business
Dealing with
construction permit
Registering
property
Getting credit
Saudi Arabia 11 13 14 1 46
Japan 18 98 44 59 15
Malaysia 21 113 108 60 1
Emirates 40 46 26 4 72
South Africa 34 75 52 91 2
Qatar 50 111 30 58 138
Spain 49 147 49 54 46
Turkey 65 63 137 38 72
Source : Rankings – Doing business - The world bank group
Cont….
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Ease of doing business 2011 report for the selected economy
(Covering 183 countries)Economy Protectin
g investors
Paying taxes
Trading across
borders
Enforcing
contracts
Closing a
business
Saudi Arabia 16 6 18 140 65
Japan 16 112 24 19 1
Malaysia 4 23 37 59 55
Emirates 120 5 3 134 143
South Africa 10 24 149 85 74
Qatar 93 2 46 95 36
Spain 93 71 54 52 19
Turkey 59 75 76 26 115
Source: Rankings – Doing business - The world bank group
SAUDI ECONOMY FROM REGIONAL GLOBAL PERSPECTIVE
Cont….
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SAUDI ECONOMY FROM REGIONAL GLOBAL PERSPECTIVE
Cont….
10
KSA top Foreign Direct Investment recipient in Arab Countries
SAUDI ECONOMY FROM REGIONAL GLOBAL PERSPECTIVE
Cont….
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KSA ranking development for Foreign Direct Investment recipient
2010 2009 2008 2007 2006 Years
8 14 18 20 27 Saudi Arabia Rank
FOREIGN DIRECT INVESTMENT (FDI) IN KSA
12
Foreign Direct Investment finance in KSA according to countries
13
FOREIGN DIRECT INVESTMENT (FDI) IN KSACont….
Saudi non oil exports compare to foreign investment exports -total ($ 51.2 Billion) -2009
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FOREIGN DIRECT INVESTMENT (FDI) IN KSACont….
Saudi’s share of foreign direct investment finance ($ Billion)
WHY INVEST IN SAUDI ARABIA ?
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
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WHY INVEST IN SAUDI ARABIA ?
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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….
REFORMS TO ENHANCE ECONOMIC ACTIVITIES
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 .
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• Exports $184.4 Billion- Export/GDP 49.9%
• Imports $80.3 Billion- Import/GDP 21.7%
SAUDI EXPORTS & IMPORTS
(2009)
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SAUDI NON-OIL EXPORTS
Petrochemical Products Electric Power Towers (High Tension) Paper Industries Medicines Prefab. Steel Structure Buildings Air Conditioners Cleaning Materials Plastic Textiles Insulating Material Plastic pipes & fittings and bottles
SAUDI EXPORTS & IMPORTS
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SAUDI NON-OIL EXPORTS
Miscellaneous Plastic Material Electric Cables Irrigation Industries Electric Poles Steel Angles for Electric Power Towers Transparent Glass Carpets Cement Foodstuffs Copper Wire , bars and rolls
SAUDI EXPORTS & IMPORTS
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ADVANTAGES OF SAUDI NON OIL EXPORTS High Productivity with advanced technology. Applying International Standard & Specification . Availability of Raw Material . Accessibility to more than 148 International Markets. More than 2000 commodity within 17 groups. High Quality of Packaging . Suitable & competitive price . Certified for International Markets. Qualified team for marketing & after sale follow up. Financing programs. Air, sea & land cargo from various ports.
SAUDI EXPORTS & IMPORTS
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SAUDI NON-OIL EXPORTS ($ BILLION)
Year Value Growth
2003 10.9 29.7%
2004 15.3 40%
2005 19 24%
2006 21 10.5%
2007 28.5 35.7%
2008 30.7 10%
2009 27.1 - 16.3%0
5
10
15
20
25
30
35
2003 2005 2007 2009
Value
SAUDI EXPORTS & IMPORTS
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TOP 10 TRADING COUNTRIES EXPORTING TO SAUDI ARABIA (2009)
10.8
4.
14.213.6U.S.A
3.
Value$ BillionCountryRank
11.3
5.
6.
7.
8.
9.
10.
1.
Japan
Germany
7.2
7.6
India
4.2
Italy
France
UK
Brazil
4.4
3.7
3.4
7.6
4
2.4
3.8
3.5
3.4
3.7
3.6
8
2.5
2. China
% Share from Saudi Imports
S. Korea
23
TOP 10 TRADING COUNTRIES IMPORTING FROM SAUDI ARABIA (2008)
48Japan
4.
16.552U.S.A
3.
Value $ BillionCountryRank
15.3
5.
6.
7.
8.
9.
10.
2.
1.
China
S. Korea
28
27
India
Taiwan
23
Singapore
Bahrain
Emirates
Holland
7.3
3.8
9
8.9
2.9
7
9
12
12
3.8
2.9
8.6
2.2
% Share from Saudi Exports
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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
COME & SHARE OUR FUTURE WITH USOPPORTUNITIES IN KSA UP TO 2020
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Oil and Gas
> $9 billion Materials (products, equip, instru, chem.,etc) ARAMCO
> $9 billion Oil and Gas Services
$9 billion Industrial materials and services SABIC
Water and Electricity
10 millions m3/d Demand in 2024
Water 6 millions m3/d Supply in 2003
$38.26 billions Distribution and recycling [capital]
$7.9 billion Desalination/power projects
66000 MW Demand in 2024
Electricity$6.1 billions Generation Projects
$2.2 billions Transmission Project
Mining
$1.50 billion Al Jalamid
$3.49 billion Az Zubairah
SUMMARY OF OPPORTUNITIES
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INVESTMENT OPPORTUNITIES IN HOUSING
27
King Abdullah decree to support the Housing Sector through increased allocations totaling $14.67 billion to the General Housing Authority and the Real Estate Development Fund.
The royal decree support the Housing Authority for building as many as 500,000 housing units for citizens.
King’s initiative would bring down the existing shortage of housing units from 1.2 million to 700,000.
The decision to increase the real estate loan from S 300.000 ($80K) to SR500,000 ($133K) and build as many as 500,000 housing units, reflected in the market with a boost in demand for plots of land for building houses and increased activities at real estate market.
THE 2011 BUDGET
Expenditure Budgeted$155 Billion
Revenues Budgeted $144 Billion 28
