Downstream Opportunities for U.S. companies in Saudi Arabia’s Petrochemical Sector

1. Downstream Opportunities for U.S. companies in Saudi Arabia’s Petrochemical Sector Webinar – 6 Nov 2013 Royal Commission for Jubail and Yanbu

2. Contents Overview of the Royal Commission (RCJY) Investment Opportunities - PlasChem Investment Opportunities - Clusters Investment Enablers Conclusion

3. OVERVIEW - RCJY Royal Commission’s Industrial Cities

4. OVERVIEW - RCJY Promote industrial, residential and commercial investment Provide land, utilities and infrastructure for industrial development Develop, operate and maintain public facilities and services Royal Commission’s Responsibilities Strategic Master Planning of the development and future growth of Industrial cities Comprehensive Management of Jubail, Yanbu & Ras Al Khair

5. OVERVIEW - RCJY Royal Commission - Major Highlights GDP Production Growth Investment 9.0 % of the world petrochemicals production 20.2% Average annual growth rate of FDI 9.4% of KSA GDP. 65% of GCC Industrial Investment 12.4 % of KSA Non-Oil GDP. 5

6. OVERVIEW - RCJY Global Partners

7. OVERVIEW - RCJY Total Area 1,062KM2 Jubail Industrial City – Overview Map

8. OVERVIEW - RCJY Yanbu Industrial City – Overview Map Total Area 605 KM2

9. OVERVIEW - RCJY Ras Al Khair – Overview Map Total Area 100 KM2

10. OVERVIEW - RCJY Industrial Investments

11. Investment Opportunities - PlasChem Plas To attract the Plastic downstream conversion industries To house the downstream chemical manufacturers Chem To provide common services & facilities Yanbu Jubail Park

12. Investment Opportunities - PlasChem PlasChem General Opportunities

13. We aim to have diverse players in the parks… Resin Suppliers Additives Machinery Suppliers Other Services Other Eqpt. Suppliers Processors • Extruders • Injection molding Blow molding • Compression presses • Thermoforming • Rotational molding • Feeders • Injection molders • Extrusion • Blow molders • Blown/cast films producers • Rotational molders • Thermoformers • Calendering operators • Reaction molders • Transfer molders • Accelerators • Anti-oxidants • Antistatic agents • Blowing agents • Colorants • Conductive agents • Fillers • Flame retardants • Inhibitors • Lubricants • Plasticizers • Stabilizers • Molds/dies • Auxiliary equipment • Chillers • Impregnators • Plotters • Process control equipment • Acetails – acrylics • ABS – Alkyds • Alloys/Blends • Barrier Resins • Cellulosics • Epoxies • Elastomers • Fluoropolymers • Liquid crystals • Melamine • Nitrile Resins • Nylon • Phenolics • Polyamide-Imide • Polycarbonate • Polyester • Polyethylene • Polypropylene • Polystyrene • Polyurethanes • Polyvinyl chloride • Silicones • TPO/TPE/TPU • Urea • CAD/CAM • Legal • Accounting • Consulting • Market research • Advertising • Legal • Education Final Goods • Agricultural • Appliances • Automotive • Packaging • Building and construction • Electrical • Electronics • Telecoms • Health care • Adhesives • Coatings • Furniture • Fast food • Toys • Textiles • Consumers products Distributors Wholesalers Retailers Compounders Traders Recyclers

14. Conversion Global Standard Model Water Staging Area SECURITY Fire Station Steam Air Land ready with hook ups Investor 7 Land ready with hook ups Investor 4 Land ready with hook ups Investor 1 Waste Water Land ready with hook ups Land ready with hook ups Land ready with hook ups Investor 8 Power Investor 5 Investor 2 Waste Disposal Maintenance BLD H Roads Communication Land ready with hook ups Land ready with hook ups Land ready with hook ups Investor 9 Investor 6 Investor 3 Pipe Racks

15. PlasChem Park Example Plot Plan Road Abahsain Mauser Ascalon Manuli Road InnoC Industry 2 Industry 3 Industry 4 Industry 1 Gate Logistics Astra Admin Medical Canteen Services Logistics Industry 5 Admin Medical Canteen Services Railway Phase 1 Phase 2 Phase 3 Utility lines

16. PlasChem- Most Attractive & Viable Opportunities Industrial drums and large containers Medical and pharma bottles Cable and wire compounds Thermoplastic Engrg. compounds Non-woven fabrics Biaxially-oriented films Cling films Films for frozen meat, fish, Barrier Heavy duty sacks Stretch and shrink films Pipes & Conduits Specialty & Corrugated Pipes Geomembranes Pipe fittings Electrical fittings Flexible foam Industrial coatings Architect coatings Personal care products Inks Hindered phenols Phthalate esters Acrylamide/Polyacrylamide Alcohol Ethoxylates PIB/PIBSA Ethoxylated Amines MFS Concrete additives Synthetic Rubber PU products Silicone Recreational equipment Lane dividers Preforms and Bottles Toys Acrylic Acid Linear Alphaolefins Propylene Oxide/MPG MEG PTA/PET

17. Investment Opportunities - Clusters Auto Cluster Development

18. Investment Opportunities - Clusters Auto Zone Enabling Projects

19. Investment Opportunities - Clusters Other Cluster Based opportunities • DesalinationCluster • Components manufacture • Tubings & pipes • Valves, Instruments, Control Systems • Treatment Systems & Chemicals • PharmaCluster • Vaccines • Generic medicines • Bulk Drugs • Formulations • Other supplies & accessories • LogisticsCluster • Warehousing services • Multimodal transport

20. Investment Opportunities - Clusters Ras Al Khair – Metals & Mineral Based opportunities

21. Investment Opportunities Infrastructure plans & Projects

22. Investment Enablers RCJY Cities – Competitive Advantage

23. Investment Enablers RCJY Cities – Quality of Life

24. Investment Enablers Place to work and live…

25. Investment Enablers Schools Technical Institutes Availability of Talented Workforce No. of Students :2,080 For Industries’ Workforce No. of Schools : 143 No. of Students : 50,779 Industrial Colleges University Colleges No. of students : 9,225 6 specialties in Bachelor degree 7 specialties in Technical Diploma No. of students : 5,771 6 specialties in Bachelor

26. Closing Remarks

27. Thank You www.rcjy.gov.sa Faysal Al-Rasheed Consultant & Director, Investments and Industrial Clusters RCJY - Riyadh