the era of new manufacturing in saudi arabia
TRANSCRIPT
National Industrial Clusters Development Program
Ministry of Commerce & Industry
The Kingdom of Saudi Arabia
The Era of New Manufacturing in Saudi Arabia
Presented to: US – Saudi Business Opportunities Forum
Chicago, Illinois
April 28, 2010
2
IND
US
TR
IAL
CLU
ST
ER
SIN
DU
ST
RIA
L C
LU
ST
ER
SSaudi Arabia is investing in value added manufacturing serving 400 million consumers
A center serving over 400 million consumers Vast oil, Petrochemicals and Mineral resources Competitive power cost (3.2 cents/KWH) Rapid growth of young educated Saudi’s 1st economy in the MENA & 23rd globally 7th globally in rewarding Tax system (20% flat tax) 13th globally in ease of doing business Largest free market in MENA region
Turkey
IranSyria
Egypt
Sudan Oman
Qatar
Kuwait
UAE
Bahrain
IraqPakistan
MENA- Middle East and North Africa
3
IND
US
TR
IAL
CLU
ST
ER
SIN
DU
ST
RIA
L C
LU
ST
ER
SA multitude of specialized Government and Private agencies committed to make you successful
1. Ministry of Commerce & Industry Industrial Clusters Program
2. Saudi General Investment Authority3. Saudi Industrial Development Fund Industrial loans annual charges
4. Industrial Land leasing (per sqm/year): MODON (government) Royal Commission (government) PetroRabigh park (private) Economic Cities (private)
5. Human Resource Development Fund6. Saudi Export Program7. Chambers of Commerce
Industrial strategy Window for
Manufacturing One Step Shop
2.5%
$0.26-0.53 $1.06 $1.6 Commercial rates Training & wage
support Export credit &
insurance Window for business
4
IND
US
TR
IAL
CLU
ST
ER
SIN
DU
ST
RIA
L C
LU
ST
ER
SThe chosen sectors are export oriented & being developed as clusters that are globally competitive
Home Appliances
Automotive
Metals Processing
Plastics & Packaging
Solar Energy
Oil & Gas Offshore*Oil & Gas Offshore*
Energy Goods & Services*Energy Goods & Services*
* Initiative championed by Saudi Aramco
5
IND
US
TR
IAL
CLU
ST
ER
SIN
DU
ST
RIA
L C
LU
ST
ER
SThe Metals Cluster will produce material & products to serve the new industries and the export markets
Anchor Projects Aluminum flat rolling mill – 400 k tons
Steel flat rolling mill – 1.75 million tons
Aluminum casting
Steel casting & forging
Aluminum cable & wire
Supporting businesses and servicess and services
Cluster services
Industry Associatio
n
Research & training
Metals Products
Intermediates
Basic materials
6
IND
US
TR
IAL
CLU
ST
ER
SIN
DU
ST
RIA
L C
LU
ST
ER
SThe Automotive cluster to capture a significant portion of the fast growing $75 billion market in the region
Tier N
Tier 2
Tier 0.5/1
Auto Companie
s
Supporting businesses and services
Research &
Training
Industry Associati
on
Cluster Services
Imp
ort
Anchor Projects
120 k unit Car assembly plants 25 k unit Truck assembly
plants 8 million Tire plant 600 k unit Powertrain plant
7
IND
US
TR
IAL
CLU
ST
ER
SIN
DU
ST
RIA
L C
LU
ST
ER
SHome appliances cluster targets products that are efficient and essential for the quality of life in the MENA
Anchor Projects
Air Conditioning Expansions: 1.5 million units annually Home Appliances: 2.3 million units annually Compressors: 5 million units annually Appliances Motors: 3 million units annually
8
IND
US
TR
IAL
CLU
ST
ER
SIN
DU
ST
RIA
L C
LU
ST
ER
SA major player in the Solar industry from R&D through manufacturing of products and ultimately export of power
IngotPoly
SiliconWafe
rCell Module System
The crystalline PV value chain
ModuleSubstrate (e.g. glass)
System
The thin-film PV value chain
9
IND
US
TR
IAL
CLU
ST
ER
SIN
DU
ST
RIA
L C
LU
ST
ER
SPlastic and Packaging is increasing value by becoming a consumer products goods center for the region and beyond
SAUDI ARABIA POLYMER CAPACITY FORECAST(2008, thousand tons per year)
SAUDI ARABIA POLYMER FORECAST(thousand tons per year)
Note: In the right-hand chart, “Others” represent a number of new products such as :SBR, EPR, PBR, Carbon Black, EPDM, PPMA, PA, EVOH, PACN, POM, Carbon Fibers, etc…
10
IND
US
TR
IAL
CLU
ST
ER
SIN
DU
ST
RIA
L C
LU
ST
ER
SEnergy Goods Cluster targeting 30 “Anchor Projects” worth $5 billion investments increasing local sourcing to 70%
Current Locally manufactured
Highly Engineered
Immediate target projects
28%
22%
50%
Pipe
OCTG
Valves
Pumps
Specialty Chemicals
Heat Exchangers
Vessels
Compressors
Mechanical Seals
Drill Bits
Well Heads
Subsea Cables
11
IND
US
TR
IAL
CLU
ST
ER
SIN
DU
ST
RIA
L C
LU
ST
ER
S
Offshore Exploration & Drilling
Offshore Platform Fabrication
Offshore Submersible Pumps
Subsea Valves & Cables
Surveying
Industrial Marine Services
Pipeline Scrapping & Laying
Environmental Services
The Oil & Gas Offshore Cluster’s targeting platform fabrication and specialized services capabilities
12
IND
US
TR
IAL
CLU
ST
ER
SIN
DU
ST
RIA
L C
LU
ST
ER
S
Leadership committed to industrializing the nation.
Significant resources directed to support manufacturing.
Focus is on value added manufacturing & services. We welcome American companies as strategic
partners. We are reliable, fair, & long term partners.
Summary
““To live well, a nation must produce well.”To live well, a nation must produce well.”Source: Made in America, Regaining the Productive Edge
Contact usCouncil of Saudi Chambers Building in
RiyadhPhone: +966 (1) 218-8999Fax: + 966 (1) 218-8911
Email: [email protected]