state of the industry2012/02/02 · saudi arabia’s economy saudi arabia’s economy 2011 source :...
TRANSCRIPT
![Page 1: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/1.jpg)
MODON
Saudi Industrial Property Authority
Tokyo, Japan Jan 31 - Feb 2, 2012
![Page 2: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/2.jpg)
Outline
• Saudi Arabia’s Economy
• Japanese - Saudi Investments Partnership
• National Industrial Strategy Vision & Objectives
• MODON in Brief
• Investment Incentives
• Our Clients
• Our Industrial Cities
• MODON’s Supply Chain Projects
• MODON’s Infrastructure Projects
![Page 3: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/3.jpg)
Saudi Arabia’s Economy
Saudi Arabia’s Economy 2011
Source : Central Department of Statistics & Information
National GDP
$577 (in Billion USD)
Per Capita GDP
$20,328 (USD)
GDP growth
6.77%
Industrial sector growth
28.27% Export growth
35.73% Import growth
1.45%
Contribution of exports
to GDP 61.6%
![Page 4: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/4.jpg)
Saudi Arabia’s Economy
Gross Domestic Product by sectors at Current Prices (Billion USD)
Source : Central Department of Statistics & Information
0
50
100
150
200
250
300
350
2007 2008 2009 * 2010 * 2011
Oil Sector
Non- Oil Sector
![Page 5: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/5.jpg)
Saudi Arabia’s Economy
Gross Domestic Product sectors breakdown at Current Prices (Billion USD)
Source : Central Department of Statistics & Information
0
50
100
150
200
250
300
350
2007 2008 2009 * 2010 * 2011
Oil Sector
Private Sector
Govt. Sector
Industrial Sector
![Page 6: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/6.jpg)
Saudi Arabia’s Economy
Gross Domestic Product of the Industrial sector at Current Prices (Billion USD)
Source : Central Department of Statistics & Information
0
5
10
15
20
25
30
35
40
2007 2008 2009 * 2010 * 2011
![Page 7: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/7.jpg)
Saudi Arabia’s Economy
Saudi Industrial Development Fund (SIDF) Loans (Million USD)
Source : SIDF
0
500
1,000
1,500
2,000
2,500
3,000
2006 2007 2008 2009 2010
![Page 8: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/8.jpg)
Number of Companies
50+ Started from mid 70’s
Total Investments
$2,5+ Billion USD
Petrochemical, Chemical, Water & Energy, and Services
Largest Investment
$1,5 Billion USD
Petro Rabigh
Latest Investment
ISUZU Motors Ltd.
1
2
3
4
Japanese - Saudi Investments Partnership
Source : JETRO - Riyadh
![Page 9: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/9.jpg)
Japanese - Saudi Investments Partnership
Japanese - Saudi Investments By Decade (Million USD)
Source : JETRO - Riyadh
T
A
R
G
E
T
E
D
![Page 10: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/10.jpg)
Vision
"A globally competitive industry, based on innovation and acting as a major tool in
transforming national resources into sustainable wealth"
Key strategic goal
"To increase the contribution of the manufacturing sector to the GDP
to 20% … "
"Manufacturing is our strategic choice to diversify the economy"
Source: KSA National Industrialization Strategy document, Factiva
NIS, manufacturing identified as a key development sector Goal is to diversify away from oil and gas and develop human capital
![Page 11: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/11.jpg)
NIS strategic goal to be achieved by reaching four targets
Four targets help reach strategic goal of 20% manufacturing contribution by 2020 Four targets are interrelated
GDP 3x
Increasing manufacturing GDP threefold
Manufacturing Saudization
-> 30%
Increasing share of Saudi labor in manufacturing to
30%
Share of tech man products
-> 60%
Increasing share of "technology"/value add manufacturing products
to 60%
Share of exports in man
-> 35%
Increasing share of exports revenues versus domestic
revenues to 35%
Grow Man. GDP
1
2
3
4
1
Employment
Saudi employment
More export oriented sectors
More value add sectors
3 4
More Saudi involvement "nice jobs"
More Saudi involvement "int'l jobs"
More jobs
More jobs for Saudis
2
Source: KSA National Industrialization Strategy document; BCG analysis
![Page 12: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/12.jpg)
Eight improvement axes identified to achieve NIS targets
Description NIS axes
• Improve macro-economic policies (i.e., monetary and fiscal policies, wages) • Stabilize micro-economic indicators (to attract local and foreign investments) • improve trade policies and market competition
Overall business environment
• Stimulate industrial diversification and achieve balanced development • Important factors behind industrial development • Stimulate innovation and development by sharing skills
Industrial complexes
• More attention should be devoted to SMEs (i.e., industrial SMEs support, industrial SMEs incubation, business resources center, competitiveness development and industrial modernization center, industrial financing mechanisms)
Business community and SMEs
• Link R&D efforts with development processes (i.e., linking science and technology network with innovation in industrial companies, linking educational output to labor market needs)
• Promote innovation in small and medium scale industrial facilities
Industrial innovation and productivity
• Ensure the availability of technically and scientifically qualified and well-trained resources • Train personnel to deal with, develop, and maintain modern machinery and equipments
HR development
• Develop infrastructure in the traditional industrial regions and the new industrial cities/zones • Enhance provision of industrial services and supportive activities (i.e., handling, shipping, storage)
Infrastructure and logistics support
• Move the Kingdom towards higher technology-content industries • Provide continuing support for the development of existing industries which have earned
successful comparative and competitive advantages (i.e., petrochemicals)
New industry verticals
• Manage the implementation of NIS Governance mechanism
1
2
3
4
5
6
7
8
Source: NIS; BCG annalists
![Page 13: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/13.jpg)
MODON in Brief
• History Established in 2001
Independent, self-funded public organization
• Roles Regulate, develop and promote industrial properties
and technology zones
• Facts Overseas 75 million m2
34.5 million m2 developed during the last 3 years
86% growth of land developed now VS. 40 years ago
300,000 Employees
3,000 factories
![Page 14: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/14.jpg)
MODON in Brief
Increase Industrial Lands to 150 million m2 in 2015
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
![Page 15: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/15.jpg)
Investment Incentives
Competitive Advantages
State of the Art Infrastructure
Largest Market in ME
One Stop Shop
Housing & Commercial Centers
Competitive Leasing Rates in GCC
Industrial Cities around KSA
Incentives
Starting from
¢27 / M2 / year
Subsidized electricity rates
Tax exemption (for equipments & raw
materials)
Government financing up to 75%
Export Financing Program
Human Resources Support Program
![Page 16: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/16.jpg)
Our Clients - Local
![Page 17: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/17.jpg)
Our Clients - International
![Page 18: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/18.jpg)
Existing Industrial Cities
1. Riyadh 1
2. Riyadh 2
3. Jeddah 1
4. Jeddah 2
5. Dammam 1
6. Dammam 2
7. Makkah
8. Madinah
9. Qaseem
11. Al- Ahsa
11. Assir
12. Al- Jouf
13. Tabuk
14. Hail
15. Najran
16. Jazan
17. Rabigh
18. Al-Kharj
19. Ar’ar
![Page 19: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/19.jpg)
Existing Industrial Cities
![Page 20: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/20.jpg)
Existing Industrial Cities
![Page 21: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/21.jpg)
![Page 22: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/22.jpg)
![Page 23: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/23.jpg)
![Page 24: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/24.jpg)
Cities Under Development
1. Riyadh 3
2. Jeddah 3
3. Dammam 3
4. Sudair
5. Qaseem 2
6. Al-Zulfi
7. Shaqra
8. Hafer Al-batin
9. Al-Baha 1
![Page 25: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/25.jpg)
Existing Industrial Cities
![Page 26: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/26.jpg)
Existing Industrial Cities
![Page 27: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/27.jpg)
Existing Industrial Cities
![Page 28: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/28.jpg)
Existing Industrial Cities
![Page 29: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/29.jpg)
Existing Industrial Cities
![Page 30: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/30.jpg)
![Page 31: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/31.jpg)
![Page 32: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/32.jpg)
Cities Under Planning
1. Jeddah 4
2. Salwa
3. Al-Baha 2
4. Military Industries Complex (Al Kharj)
![Page 33: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/33.jpg)
![Page 34: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/34.jpg)
![Page 35: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/35.jpg)
1200
1000
800
600
400
200
0
MODON Number of Factories
![Page 36: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/36.jpg)
Category #
Existing 19
Under Development 9
Under Planning 4
Factories 3,000+
Labor 300,000+
MODON in Numbers
![Page 37: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/37.jpg)
Electronic Services
• Electronic Services
Sadad
PMS
E-MODON
GIS
![Page 38: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/38.jpg)
MODON’s Supply Chain Projects
–3PL
–Containers terminal
–Dry Port
–Rail freight
![Page 39: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/39.jpg)
MODON’s Infrastructure Projects International Codes in Standard & Specification
• Roads
ASTM
AASTHO
• Utility
ACI
BS
ASA
ASCE
![Page 40: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/40.jpg)
Infrastructure Projects during the past 4 years
![Page 41: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/41.jpg)
Study / Survey $ 28
Development $ 480
Rehabilitation $ 72
Utilities & Services setup $ 533
Total $ 1,113
*In Million USD
Infrastructure Projects during the past 4 years
![Page 42: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/42.jpg)
Infrastructure Projects for the next 5 years
![Page 43: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/43.jpg)
Study / Survey $ 80
Development $ 1,333
Rehabilitation $ 266
Utilities & services Setup $ 1,333
Total $ 3,012
*In Million USD
Infrastructure Projects for the next 5 years
![Page 44: State of the Industry2012/02/02 · Saudi Arabia’s Economy Saudi Arabia’s Economy 2011 Source : Central Department of Statistics & Information National GDP $577 (in Billion USD)](https://reader030.vdocuments.site/reader030/viewer/2022040823/5e6cc6c02854f3054f1d2d35/html5/thumbnails/44.jpg)
Thank You
www.modon.gov.sa +966920000425