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Role of Primary Industrial Projects in the National Economy. By Mohammed H. Al-Mady Vice Chairman & Managing Director . Agenda. Global Petrochemical Trends. Migration to “The Best Cost” Locations. Evolution to Higher Value “Downstream” Products. Impact on Saudi Arabian Economy.
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Role of Primary Industrial Projects in the National Economy By Mohammed H. Al-Mady Vice Chairman & Managing Director
Agenda • Global Petrochemical Trends. • Migration to “The Best Cost” Locations. • Evolution to Higher Value “Downstream” Products. • Impact on Saudi Arabian Economy. • Saudi Arabia’s Investment Prospects. • Saudi Arabia’s Current Situation. • Future Saudi Arabia Business Development Prospects. • Partnership Financial Track Record
Agenda • Global Petrochemical Trends.
Agenda • Global Petrochemical Trends. • Migration to “The Best Cost” Locations.
Chart 1 FOR PAST 15 YEARS, GLOBAL PETROCHEMICAL INDUSTRY MIGRATING TO DEVELOPING REGIONS... …DEVELOPING REGION CAPACITY HAS BEEN EXPANDING 4x FASTER THAN IN TRADITIONAL MAJOR MARKETS.
Chart 2 INDUSTRY MIGRATION TO DEVELOPING REGIONS PARTLY REFLECTS THEIR FASTER ECONOMIC GROWTH ... …PROJECTED TO CONTINUE FOR AT LEAST NEXT DECADE.
Chart 3 INDUSTRY MIGRATION ESPECIALLY ENCOURAGED BY THE DEVELOPING REGION'S ENERGY RESOURCES ... …PARTICULARLY IN MID-EAST AND SAUDI ARABIA.
Chart 4 INDUSTRY TRENDS SEEM FAVORABLE FOR MID EAST COMPARED TO OTHER DEVELOPING REGION PRODUCERS… …AND SAUDI ARABIA SEEMS WELL PLACED WITHIN MID EAST.
Chart 5 MIGRATION TO DEVELOPING REGIONS EXPECTED TO CONTINUE… …WITH MID-EAST AND SAUDI ARABIA AS MAJOR BENEFICIARIES.
Agenda • Global Petrochemical Trends. • Migration to “The Best Cost” Locations. • Evolution to Higher Value “Downstream” Products.
Chart 5 MIGRATION TO DEVELOPING REGIONS EXPECTED TO CONTINUE… …WITH MID-EAST AND SAUDI ARABIA AS MAJOR BENEFICIARIES.
Agenda • Global Petrochemical Trends. • Migration to “The Best Cost” Locations. • Evolution to Higher Value “Downstream” Products. • Impact on Saudi Arabian Economy.
Chart 6 PRIMARY MANUFACTURING HAS GROWN RAPIDLY... ...WITH AN INDIRECT 'MULTIPLIER' EFFECT ESTIMATED AT 5-8x ON DIVERSIFYING ECONOMY AS A WHOLE.
Chart 7 CHEMICAL INDUSTRY EXPANSION PROVIDES SOLID FOUNDATION FOR MANUFACTURING GROWTH... ...BY UTILIZATION OF 'STRANDED' GAS RESOURCES.
Chart 8 CHEMICAL INDUSTRY EXPANSIONS HAVE 'BEGUN' TO DIVERSIFY AND EXPAND TRADE...
Agenda • Global Petrochemical Trends. • Migration to “The Best Cost” Locations. • Evolution to Higher Value “Downstream” Products. • Impact on Saudi Arabian Economy. • Saudi Arabia’s Investment Prospects.
Agenda • Global Petrochemical Trends. • Migration to “The Best Cost” Locations. • Evolution to Higher Value “Downstream” Products. • Impact on Saudi Arabian Economy. • Saudi Arabia’s Investment Prospects. • Saudi Arabia’s Current Situation.
Chart 4 INDUSTRY TRENDS SEEM FAVORABLE FOR MID EAST COMPARED TO OTHER DEVELOPING REGION PRODUCERS… …AND SAUDI ARABIA SEEMS WELL PLACED WITHIN MID EAST.
Agenda • Global Petrochemical Trends. • Migration to “The Best Cost” Locations. • Evolution to Higher Value “Downstream” Products. • Impact on Saudi Arabian Economy. • Saudi Arabia’s Investment Prospects. • Saudi Arabia’s Current Situation. • Future Saudi Arabia Business Development Prospects.
Agenda • Global Petrochemical Trends. • Migration to “The Best Cost” Locations. • Evolution to Higher Value “Downstream” Products. • Impact on Saudi Arabian Economy. • Saudi Arabia’s Investment Prospects. • Saudi Arabia’s Current Situation. • Future Saudi Arabia Business Development Prospects. • Partnership Financial Track Record.
Chart 9 PAST FINANCIAL RESULTS WERE GENERALLY SATISFACTORY… …EVEN THOUGH 1987-1999 WAS A VOLATILE PERIOD …FOR MANY GLOBAL PETROCHEMICAL COMPANIES.
Chart 10 20 YEARS AGO, SEVERAL GOALS ESTABLISHED FOR SABIC AND PRIMARY INDUSTRIAL DEVELOPMENT IN THE KINGDOM... … 20YEARS LATER, GOALS ARE NOT MUCH DIFFERENT. WHAT IS DIFFERENT IS THE KINGDOM'S ABILITY TO SHOW INVESTORS A TANGIBLE TRACK RECORD OF INDUSTRIAL DEVELOPMENT SUCCESS.