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The Era of New Manufacturing in Saudi Arabia Presented to: US – Saudi Business Opportunities Forum Chicago, Illinois Apr

The Era of New Manufacturing in Saudi Arabia Presented to: US – Saudi Business Opportunities Forum Chicago, Illinois April 28, 2010. Saudi Arabia is investing in value added manufacturing serving 400 million consumers. Kuwait. Turkey. A center serving over 400 million consumers

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The Era of New Manufacturing in Saudi Arabia Presented to: US – Saudi Business Opportunities Forum Chicago, Illinois Apr

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  1. The Era of New Manufacturing in Saudi Arabia Presented to: US – Saudi Business Opportunities Forum Chicago, Illinois April 28, 2010

  2. Saudi Arabia is investing in value added manufacturing serving 400 million consumers Kuwait Turkey • 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 Syria Iraq Iran Pakistan Bahrain Egypt Qatar Saudi Arabia UAE Sudan Oman MENA- Middle East and North Africa

  3. A multitude of specialized Government and Private agencies committed to make you successful • 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 • 1. Ministry of Commerce & Industry • Industrial Clusters Program • 2. Saudi General Investment Authority • 3. 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 Fund • 6. Saudi Export Program • 7. Chambers of Commerce

  4. The chosen sectors are export oriented & being developed as clusters that are globally competitive Metals Processing Energy Goods & Services* Oil & Gas Offshore* Automotive Home Appliances Solar Energy Plastics & Packaging * Initiative championed by Saudi Aramco

  5. The Metals Cluster will produce material & products to serve the new industries and the export markets Supporting businesses and services s and services Cluster services Industry Association Research & training Basic materials 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 Intermediates Metals Products

  6. Anchor Projects 120 k unit Car assembly plants 25 k unit Truck assembly plants 8 million Tire plant 600 k unit Powertrain plant The Automotive cluster to capture a significant portion of the fast growing $75 billion market in the region Auto Companies Tier 0.5/1 Tier 2 Tier N Import Supporting businesses and services Research & Training Industry Association Cluster Services

  7. 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 Home appliances cluster targets products that are efficient and essential for the quality of life in the MENA

  8. A major player in the Solar industry from R&D through manufacturing of products and ultimately export of power The crystalline PV value chain Poly Silicon Ingot Wafer Cell Module System The thin-film PV value chain Substrate (e.g. glass) Module System

  9. Plastic 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. Energy Goods Cluster targeting 30 “Anchor Projects” worth $5 billion investments increasing local sourcing to 70% • Pipe • OCTG • Valves • Pumps • Specialty Chemicals • Heat Exchangers • Vessels • Compressors • Mechanical Seals • Drill Bits • Well Heads • Subsea Cables 28% 50% 22% Current Locally manufactured Highly Engineered Immediate target projects

  11. The Oil & Gas Offshore Cluster’s targeting platform fabrication and specialized services capabilities • Offshore Exploration & Drilling • Offshore Platform Fabrication • Offshore Submersible Pumps • Subsea Valves & Cables • Surveying • Industrial Marine Services • Pipeline Scrapping & Laying • Environmental Services

  12. Summary • 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.

  13. Contact us Council of Saudi Chambers Building in Riyadh Phone: +966 (1) 218-8999 Fax: + 966 (1) 218-8911 Email: info@ic.gov.sa www.saudiclusters.com “To live well, a nation must produce well.” Source: Made in America, Regaining the Productive Edge

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