investment opportunities. in 2020 (~3b sar)” access to full package scheme of incentives for the...

Investment Opportunities

Integrating towards a prosperous future

Sectors

Mining 7Aluminium foundry alloys plant 8

Aluminium Wheels & Casting plant 9

Aluminium composite Panel plant 10

Aluminium Fluoride (AIF3) plant 11

DCP (HCI Route) plant 12

Integrated Steel and Iron Production Plant 13

Proppants plant 14

Gold Prospect - AlWajh Belt 15

Gold Prospect - Hazm Shubat 16

Copper Prospect - Al Shizm Belt 17

Zinc Prospect - Ar Ridaniyah 18

Industry 21Plant for manufacturing shock absorbers 22

Plant for Fuel Pump manufacturing 23

Plant for manufacturing Alternator 24

Plant for manufacturing A/C Compressor 25

Plant for Belts manufacturing 26

Plant for manufacturing Permanent Magnet Motors 27

Plant for High-Voltage EV Connectors manufacturing 28

Plant for manufacturing Wiper Blade 29

End-to-end manufacturing of generic oral solid dosages 30

Manufacturing of generic sterile injectables 31

Processing plant for sea food 32

Machining shops for aerostructure segments 33

Aircraft mechanical systems manufacturing 34

Establishing marine fin shish cages 35

End-to-end manufacturing of generic oral solid dosages 36

Manufacturing of generic sterile injectables 37

Insulin Delivery Device 38

Advanced Wound Management 39

High volume intermediate products 40

Plastics packaging 41

Adhesives and sealants 42

Tires manufacturing 43

Construction plastics 44

Thermoplastic Engineering Compounds (ETP) 45

Catalysts 46

Flexible Foams 47

Agrochemicals 48

Surfactants 49

Rubber hoses 50

Oil field chemicals 51

Valves manufacturing 52

Pumps manufacturing 53

Compressors manufacturing 54

Logistics 57Establishment of a Wheel manufacturing plant for trains 58

Establishment of a plant for packing and winding traction motors 59

Intermodal Yard Operation 60

Car/ Wagon Manufacturing/ Assembly 61

Concession to operate and maintain the Mashaaer Metro line 62

2nd concession contract for cargo handling services in King Abdulaziz international airport 63

Develop and operate logistics zone close to major sea ports 64

Energy 67Nacelle Housing 68

Wind turbine blades 69

Cell and Modules 70

Wind tower 71

Alfaisliah Solar park 72

Solar Electricity Production in Jeddah 73

Solar Electricity Production in Rabigh 74

Madinah solar PV park 75

Rafha solar PV park 76

Qurayyat solar PV park 77

Mahd AlDahab solar PV park 78

v

MiningThe Saudi mining sector offers a wide array of investment opportunities for global companies operating across the mining value chain. The Saudi Vision 2030 goals of increasing employment and GDP contributions from mining, combined with recent success in many upstream and midstream projects in a number of commodities, has recently transformed the Saudi mining sector.

Today, NIDLP offers investment opportunities supported by promising geologic prospects, enhanced data access, a robust and enabling regulatory environment, competitive terms, growing supply chains, and access to healthy regional and international markets.

Saudi Arabia have invested over $40 billion in fully integrated mining value chains in partnership with the private sector and built on its rich mineral resources. In addition to significant production in precious and base metals, a mine to metal aluminium value and phosphate production has propelled the Kingdom to become the third largest global supplier of fertilizer. Mining now delivers a $17 billion contribution to national GDP.

6 7

Mining

Description Description

Regional market size


Deal Specific Conditions


Financials Financials

Aluminum foundry alloy plant with a capacity of ~25K tons producing alloys AlSi7Mg, AlSi9Mg, AlSi11 (Mg) with potential application areas in automotive, wheels, chassis components, electrical application etc...

Approx. land requirement is 1,500 square meter

Aluminum wheels & casting plant with a capacity of ~120K units annually for the local market

Approx. land requirement is 5,000 square meter

250K-300KTons p.a.

200K- 250KTons

Competitively priced feedstock from Maaden


Investment required

35-45Million SAR

Investment required

84-110Million SAR

Mining

Aluminium foundry alloys plant Aluminium Wheels & Casting plant

Preferred Location Preferred Location

Ras Al Khair Ras Al Khair

Maaden

Contact:[email protected]

Promoted byMaaden


Promoted by

8 9

Mining



Local market sizeDeal Specific Conditions



Aluminium composite panel (ACP) plant with a capacity of ~25K tons

Approx. land requirement is 30K square meter

Aluminium fluoride plant with a capacity of 20K tons p.a.

300K-400KTons in MENA

25M- 30Mby 2027


Potential long term offtake agreement with Maaden

Investment required

66-90Million SAR

Investment required

100-150Million SAR

Mining

Aluminium composite Panel plant Aluminium Fluoride (AIF3) plant


Ras Al Khair Jubail, Ras Al Khair

Jeddah

Maaden


Promoted byMaaden


Promoted by

10 11

Mining

Description

Addressable MarketLocal market size


Financials

DCP granulation plant with a planned capacity of ~30K tons per annum producing semi finished product going to animal feed to livestock (cow, buffalo and goat), poultry and fish

Limited competition in the market (Local DCP producer, Arasco, uses most of its production for its own animal feed)

10K tons by 2020 or

~20MSAR by 2020

Competitively priced feedstock in Wa’ad el Shamal

Required Investment

50-60Million SAR

DCP (HCI Route) plant

Preferred Location

Wa’ad al Shamal

Maaden


Promoted by

Description

Addressable MarketLocal market size


Financials

Integrated mega steel plant to produce a wide range of steel and iron products

Capacity as following: - 5.3M tons of iron pellets, 3.4M of DRI, 1M tons of square

billets, 2.7M tons of slabs, - 1.7 m tons of HRC, 0.3 m tons of coated steel sheets, 800 K tons

of cold rolled steel sheets, 600K tons of galvanized iron sheets - 400K tons of welded pipes, 1 M ton of plate, 300K ton of wire

~19.5Bin 2016 or ~13M ton (+3% p.a.)

Potential for an offtake agreement from local manufacturers to substitute imports

Required Investment

~28BSAR

Mining

Integrated Steel and Iron Production Plant

Preferred Location

Jubail, Ras Al Khair

Yanbu Industrial City

Industrial Clusters


Promoted by

12 13

Mining

Description

Addressable Market Global market


Financials

Set up of a proppants plant with a planned capacity of 250K tons with 2 modules with a capacity of 125K tons each

~55M tons (+10% p.a.)

Potential offtake agreement with Maaden Competitively priced feedstock in Wa’ad el Shamal

Required Investment

~300Million SAR

Payback period

5-7 Years

Proppants plant

Preferred Location

Wa’ad al Shamal

Maaden


Promoted by

Description



Financials

Exploration prospect for AlQubbah, an area with gold prospect The hosting rock is Quartz and rhyolite

Prospective area of ~30 sq km

~4Ktons

Access to the mining incentive package

Required Investment

~300-400Million SAR

Mining

Gold Prospect - AlWajh Belt

Preferred Location

Alwajh gold belt

Saudi Geological Survey


Promoted by

14 15

Mining

Description



Financials

Exploration prospect for Hazm Shubat, an area with gold prospect The hosting rock is Breccia, mafix, intermediaries volcanics

Prospective area of 24 sq. km

~4Ktons


Required Investment

~450-500Million SAR

Gold Prospect - Hazm Shubat

Preferred Location

Description



Financials

Exploration prospect for Al Shizm Belt is a copper prospect The hosting rock is Basalt and Rhyolite


~23M tons

Local demand: 300K tons


Required Investment

~300-350Million SAR

Mining

Copper Prospect - Al Shizm Belt

Preferred Location

East of Yanbu

Near Tathlith Gold Belt





Promoted by Promoted by

16 17

Mining

Description



Financials

Exploration prospect for Ar Ridaniyah, an area with zinc prospect The hosting rock is volcaniclastic


~14M tons

Local demand: ~80K tons


Required Investment

~180-250Million SAR

Zinc Prospect - Ar Ridaniyah

Preferred Location

Ad Dwadmi



Promoted by

18 19

IndustryNIDLP aims to build a sustainable and competitive manufacturing sector to increase its share of the national GDP and job market, targeting investment opportunities in the industrial sector worth more than $300 billion. This includes further developing the chemicals sector -particularly in specialty chemicals - and commercial and military manufacturing alongside developing automotive manufacturing to take advantage of significant local and regional demand.

The program will also develop pharmaceutical and medical supplies industries and leverage the existing ecosystem and proximity to MENA markets. Moreover, the transformation of the Kingdom’s power sector creates opportunities to develop the renewable energy equipment manufacturing sector, which can serve both local and regional demand.

NIDLP plans to grow the Kingdom’s food processing activities in targeted segments with a competitive advantage and develop the aquaculture sector to compete on a global scale leveraging Saudi Arabia’s natural endowment and quality production. The Kingdom also has a goal to localize 50% of military capabilities, which creates an opportunity for a local military manufacturing sector.

One hundred existing factories will be transformed into model factories as part of our industry 4.0 revolution, through an investment of $800 million. Moreover, five capability centers will be established to showcase new technologies and provide various services and training programs to support the transition to industry 4.0.

20 21

Industry | Automotive

Description

Addressable Market Deal Specific Conditions

Financials

• Development of a plant to manufacture Shock Absorbers for mid-size vehicles, with a capacity of 2M units per year

• The production would be addressed to the local OEMs for initial production in addition to serving the local and regional spare part market

Access to full package scheme of incentives for the Automotive industry

Required Investment

~ 81Million SAR

Plant for manufacturing shock absorbers

Preferred Location Jubail or Riyadh


Description


Financials

• Development of a plant to manufacture Fuel Pumps for mid-size vehicles, with a capacity of 150K units per year

• The production would be addressed to the local OEMs for initial production in addition to serving the spare part market

• 2-3 OEMs producing 300K units p.a.

• Underlying local demand of 1.6 M cars per year

• Local and export demand: ~4.6m units p.a. in 2020 (~3B SAR)”


Required Investment

~ 60Million SAR


Plant for Fuel Pump manufacturing

Riyadh Riyadh

Jubail Jubail


• Underlying local demand of 1.6M cars per year

• Local and export demand: ~41m units p.a. in 2020 (~19B SAR)

Industrial Clusters


Industrial Clusters



22 23


Description


Financials

• Development of a plant to manufacture Alternator for mid-size vehicles, with a capacity of 0.5M units per year



Required Investment

~ 43.5Million SAR

Plant for manufacturing Alternator



Description


Financials

• Development of a plant to manufacture A/C Compressor for mid-size vehicles, with a capacity of 0.1M units per year




• Local and export demand: ~4.2m units p.a. in 2020 (~7B SAR)”


Required Investment

~ 61Million SAR


Plant for manufacturing A/C Compressor

Riyadh Riyadh

Jubail Jubail



• Local and export demand: ~24 M units p.a. in 2020 (~12.5B SAR)

Industrial Clusters


Industrial Clusters



24 25


Description


Financials

• Development of a plant to manufacture Belts for mid-size vehicles, with a capacity of 1.5M units per year



Required Investment

~ 52Million SAR

Plant for Belts manufacturing



Description


Financials

• Development of a plant to manufacture Permanent Magnet Motors for mid-size vehicles, with a capacity of 0.1M units per year




• Local and export demand: ~3.2m units p.a. in 2020 (~17B SAR)


Required Investment

~ 107Million SAR


Plant for manufacturing Permanent Magnet Motors

Riyadh Riyadh

Jubail Jubail



• Local and export demand: ~24 M units p.a. in 2020 (~4.5B SAR)

Industrial Clusters


Industrial Clusters



26 27


Description


Financials

• Development of a plant to manufacture High-Voltage EV Connectors for mid-size vehicles, with a capacity of ~5 M units per year



Required Investment

~ 35.5Million SAR

Plant for High-Voltage EV Connectors manufacturing



Description


Financials

• Development of a plant to manufacture Wiper Blade for mid-size vehicles, with a capacity of 2.5M units per year




• Local and export demand: ~59.5m units p.a. in 2020 (~4B SAR)


Required Investment

~ 39Million SAR


Plant for manufacturing Wiper Blade

Riyadh Riyadh

Jubail Jubail



• Local and export demand: ~1.4 M units p.a. in 2020 (~180B SAR)

Industrial Clusters


Industrial Clusters



28 29

Industry | Aquaculture


Addressable Market Addressable MarketDeal Specific Conditions



• Production of generic solid oral dosages from off-patent drugs

• Capacity would be ~7M - 10M units p.a.

• Production of Generic sterile injectables from off-patent

• Capacity would be ~10M units ampoules, 5M lyophilized vials”

Access to the full incentive package for the Pharma industry


Required Investment

~ 200Million SAR

Required Investment

~ 200Million SAR

End-to-end manufacturing of generic oral solid dosages

Manufacturing of generic sterile injectables


Industry | Pharma

KAEC, Sudair, Dammam


KSA Domestic market of

13.5B SAR with a growth rate of 7% p.a.


1900M SAR with a growth rate of 6% p.a.

Industrial Clusters


Industrial Clusters



30 31



Addressable Market Addressable MarketDeal Specific Conditions



Establishment of a sea food processing plant for premium fish (e.g. Mangrove snapper, seabass) and shrimp with a capacity of ~7500 tons for the first year

The plant would operate 3 distinct lines:- Fillet Packaging- Shrimp Packaging - Canning, Marinating Line”

• Development of a machining shops for aero-structure components/ parts

• Target processing of work packages from international OEMs, levering offsets and local content rules”

Guaranteed access to local aquaculture production

Dedicated food-processing park with integrated hatcheries

Offset obligations can be leveraged to secure access work packages and OEM certification

Required Investment

~ 120Million SAR

Required Investment

50 - 150Million SAR

Potential revenues

100 - 300Million SAR

Processing plant for sea food Machining shops for aerostructure segments


Industry | Aerospace

Jeddah

Jazan

Tabuk

Processed sea food market size: ~ 150k tons (~7.5B SAR) in 2017 (+14% p.a.)

~546k tons by 2030 (~25 B - 30 B SAR) Global market: 122M tons

Local market size

6-30B SAR with a growth rate of 0.8-1.4%% p.a.

Ministry of Environment, Water and Agriculture


Promoted by

Riyadh aero-city

Jeddah AACC

National Industrial Development and Logistics Program


Promoted by

32 33


Description


Financials

Development of a plant to manufacture components with aerospace applications (e.g. large machined pieces for landing gear, brackets)

Offset obligations can be leveraged to secure access work packages and OEM certification

Required Investment

~ 50-100Million SAR

Profit Pool> 4Billion SAR

Aircraft mechanical systems manufacturing

“Global market size:

~75 Bn SARGrowth for actuation components:

~3%-4%

National Industrial Development and Logistics Program


Promoted by

Jeddah

Jazan

Tabuk

Preferred Location Jeddah/ Jazan/ Tabuk

Description


Financials

Establishment of finfish farm along the red sea coast with up to 24 cages

The production capacity is ~21 tons per cage

Allocated area for the farm

Accelerated process for the investment “

Required Investment

~ 2-3Million SAR

Establishing marine fin shish cages

Preferred Location


Along Red Sea

KSA market size of sea food:~340K tons in 2017 (+ 8.7% p.a.)~781K tons by 2030 (15-20B SAR) Global market size: ~ 100M tons”

Ministry of Environment, Water and Agriculture


Promoted by

34 35


Description


Financials

• Production of generic solid oral dosages from off-patent drugs

• Capacity would be ~7M - 10M units p.a.


Required Investment

~ 200Million SAR

End-to-end manufacturing of generic oral solid dosages

Preferred Location



13.5B SAR with a growth rate of 7% p.a.

Description


Financials

• Production of Generic sterile injectables from off-patent

• Capacity would be ~10M units ampoules, 5M lyophilized vials


Required Investment

~ 200Million SAR

Manufacturing of generic sterile injectables

Preferred Location

Industry | Pharma



1900M SAR with a growth rate of 6% p.a.

Industrial Clusters


Industrial Clusters



36 37

Industry | Medical supplies

Description


Financials

• Development of a plant to manufacture Insulin delivery devices

• The plant would cover 30%-40% of the local market demand

• Insulin delivery devices include insulin syringes, insulin pens, jet injectors”

Access to the full incentive package for the medical supplies industry

Required Investment

~ 10Million SAR

Insulin Delivery Device

Preferred Location


Global market size

~ 19-22B SARLocal market size

80M SAR (+6% p.a.)”

Description


Financials

• Development of a plant to manufacture products to manage advanced wound

• The plant would cover 30%-40% of the local market demand

• Advanced wound management products are for the treatment of acute and chronic wounds, including leg, diabetic and pressure ulcers, burns and post-operative wounds”

Access to the full incentive package for the medical supplies industry

Required Investment

~ 15Million SAR

Advanced Wound Management

Preferred Location

Industry | Pharma


Global market size

~ 13B SARLocal market size

80M SAR (+6% p.a.)”

Industrial Clusters


Industrial Clusters



38 39

Industry | Chemicals

Description


Financials

• Development of a manufacturing complex to produce high volume intermediate products (e.g. plastic sheets, films and fibers) with a capacity of 2.8M ton per year

• The plant would be established within a plastic products cluster, an export hub of semi-finished plastic products

Access to dedicated value park incentives packages including competitive feedstock prices

Required Investment

~ 2,600Million SAR

High volume intermediate products


Rabigh Rabigh

Local market size

18M SAR (+6% p.a.)”

Ministry of Energy, Industry and Mineral Resources





Description


Financials

Development of a plant to manufacture bulk plastic packaging products (e.g. bottles, closures and caps, flexibles, tubes, etc.) with a capacity of ~1M ton per year

* Access to dedicated value park incentives packages including competitive feedstock prices

Required Investment

~ 2,600Million SAR

Plastics packaging


MENA market size

65B SAR

40 41


Description


Financials

• Development of a plant to manufacture adhesives and sealants products with a capacity of 750K ton per year

• The plant would produce waterborne adhesives, hardening sealants, solvent-borne adhesives, non-hardening sealants and 100% solid adhesive products

• The plan would be established within a specialty cluster in the kingdom”

* Access to dedicated value park incentives packages including competitive feedstock prices

Required Investment

~ 4,400Million SAR

Adhesives and sealants

Preferred Location

Rabigh

Local market size

~ 2B SAR (+9% p.a.)Local market size

~ 4.5B SAR (+4% p.a.)



Promoted by


Description


Financials

• Development of plant to manufacture tires for transportation with a capacity up to 100 KT p.a.

• The plant would produce 3 types of tires: Tires for trucks, cars, and aircraft


Required Investment


Tires manufacturing

Preferred Location

Yanbu

Jubail

Global market size

~ 52M SAR (+4% p.a.)Local market size

~6.17K Tons(+8% p.a. or 3B SAR)

Royal Commission for Jubail and Yanbu


Promoted by

42 43

Preferred Location

Description


Financials

• Development of a plant to manufacture plastic pipes with a capacity of 270K ton per year

• The plant would focus on producing high value added pipes

• The plan will be established within a plastics products cluster in the kingdom


Required Investment

400-450Million SAR

Construction plastics


Local and Regional Market size

~22B SAR

Rabigh



Promoted by


Description


Financials

• Development of a plant to manufacture Thermoplastic Engineering Compounds (ETP) with a capacity up to 23 KT p.a.

• ETP are plastics that can be reheated and reformed several times”


Required Investment

90 - 120Million SAR

Thermoplastic Engineering Compounds (ETP)

Preferred Location

Global market size


~320K Tons(+12% p.a. or 3B SAR)

Rabigh



Promoted by

44 45

Preferred Location

Description


Financials

• Development of a plant to manufacture catalysts, with a capacity of 160K ton per year

• The plant would focus on producing catalysts for emission control, and for refining

• The plant would be established within a specialty cluster in KSA”


Required Investment

~1,300Million SAR

Catalysts


Local and Regional Market size

~3B SAR (+5% p.a.)

Jubail



Promoted by


Description


Financials

Development of a plant to manufacture plastic foam products (not based on polystyrene) with a capacity up to 18 KT p.a.


Required Investment

50 - 60Million SAR

Flexible Foams

Preferred Location

Global market size


~80K Tons(+13% p.a. or 1B SAR)

Rabigh



Promoted by

46 47

Preferred Location

Description


Financials

• Development of a plant to produce Agrochemicals with a capacity up to 55 KT p.a.

• Plant will focus on producing herbicides, insecticides, fungicides and seed treatment compounds


Required Investment

50 - 70Million SAR

Agrochemicals


Global market size


~15K Tons(+10% p.a. or 0.1B SAR)

Jubail



Promoted by


Description


Financials

• Development of a plant to manufacture Surfactants with a capacity of 360K ton per year capacity

• The plant would focus on producing surfactant for detergent, personal care, fabric softeners, industrial and institutional cleaners

• The plan would be established within a specialty cluster


Required Investment

150-170Million SAR

Surfactants

Preferred Location


4B SAR (+3% p.a.)Local market size

~4B(+8% p.a.)

Jubail



Promoted by

48 49

Preferred Location

Description


Financials

• Development of a plant to produce rubber hoses with a capacity up to 20 KT p.a.

• Rubber hoses are end use products manufactured from SBR, BR or EPDM


Required Investment

200-250Million SAR

Rubber hoses



~7B SAR (+4% p.a.)Local market size

~15M(+8% p.a.)

Yanbu



Promoted by


Description


Financials

• Development of a plant to produce Oil field chemical with a capacity of 280K ton per year

• The oil field chemicals plant would focus on producing stimulating (fracturing) chemicals, drilling fluids, oil production chemicals, cementing and stimulating (acidizing) products

• The plant will be established within a specialty cluster


Required Investment

13 -13.2Million SAR

Oil field chemicals

Preferred Location



~8B(+2% p.a.)

Jubail



Promoted by

50 51

Preferred Location

Description


Financials

• Development of a plant to manufacture, assemble and test industrial valves. In addition, the investor would provide after sales services e.g. maintenance

• The plant capacity would cover 20% - 30% of the local demand

• Growth is mainly driven by the increase in demand from large companies such as SABIC, ARAMCO, the Electricity Company and Desalination Company

Access to full package scheme of incentives for the Machinery and equipment industry

Required Investment

30-45Million SAR

Valves manufacturing

Industry | Machinery and equipment



~6.4B SAR

Industrial Clusters


Promoted by


Description


Financials

• Development of a plant to manufacture, assemble, maintain and test pumps. In addition, the investor would provide after sales services e.g. maintenance


• Growth is driven by the increase in demand from large companies such as SABIC, Aramco, the Electricity Company and Desalination Company


Required Investment

80 - 90Million SAR

Pumps manufacturing

Preferred Location


~157B SAR (in 2015)Local market size

~4.5B(+7% p.a.)

Industrial Clusters


Promoted by

52 53

Preferred Location

Description


Financials

• Development of a plant to manufacture, assemble, test and maintain industrial compressors. In addition, the investor would provide after sales services e.g. maintenance


• Growth is driven by large companies such as SABIC, ARAMCO, the Electricity Company and Desalination Company”


Required Investment

105-124Million SAR

Compressors manufacturing



~142B SAR (+3.5% p.a.)Local market size

~3.5B SAR

Industrial Clusters


Promoted by

54 55

LogisticsNIDLP seeks to create the right conditions to transform Saudi Arabia into a logistics hub, including improving infrastructure, transport networks, land, sea and airports. The program aims to enhance the attractiveness of the logistics sector and increase its GDP contribution by $59 billion by 2030 through total investments worth more than $35 billion.

NIDLP includes the construction of five new airports, the expansion of three air freight stations and the construction of two new stations, as well as the construction of over 4,000 kilometers of railway lines for freight and passenger transport. Together, these developments aim to improve the domestic infrastructure and enhance Saudi Arabia’s capacity for export, enabling it to fully leverage its strategic location as a hub connecting three continents; Africa, Asia and Europe.

The program will create conditions that will improve the Kingdom’s ranking to 25th by 2030 in the World Bank Logistics Performance Indictor.

56 57

Logistics

Description


Financials

Wheel manufacturing plant to produce wheels for locomotives and wagons for local and regional demand

Supply wheel to Saudi Rail (SAR) to substitute imports (current consumption > 25K wheels p.a)

• Potential offtake agreement with Saudi Rail

• Competitively priced energy and funding

Required Investment


Establishment of a Wheel manufacturing plant for trains

Preferred Location

Local market size

25 to 30K(wheels p.a.)

~60M – 700M SAR

Saudi Railway Company


Promoted by

Riyadh

Dammam

Preferred Location

Description


Financials

Plant for packing and winding traction motors in Saudi to serve SAR’s existing fleet or 400 traction motors requiring periodic packing and winding

No specialized workshops in the kingdom and motors are sent abroad for maintenance “

Offset / service contract with SAR to maintain its current fleet

Required Investment

150-200Million SAR

Establishment of a plant for packing and winding traction motors

Logistics

Local market size

~30 - 40M(SAR p.a.)



Promoted by

Riyadh

Dammam

58 59

Logistics

Description


Financials

Develop and operate intermodal yards for general and cargo rail

N/A Required Investment

1- 1.5BSAR

Intermodal Yard Operation

Preferred Location

Local market size

0.5 - 1.5 Mn TEUs per year

RiyadhSAR

Jeddah Port

Sudair,Dammam



Promoted by Preferred Location

Description


Financials

Setting up a plant for Car / Wagon manufacturing and assembly and localizing the required expertise to support the rail industry in Saudi Arabia

Potential offtake agreement with SAR for produced wagons and cars

Required Investment

2.5BSAR

Car/Wagon Manufacturing / Assembly

Logistics

Local market size

1B(SAR p.a.)

KingdomWide



Promoted by

60 61

Logistics

Description


Financials

• Operate and maintain the Mashaaer al mouqadassa metro line and its related facilities

• 1 metro line with 9 stations to be operated during the Hajj days ~1 week per year

Commitment to operate line for a period of 5 years that could be extended

Required Investment Limited investment required (operating existing asset)

Concession to operate and maintain the Mashaaer Metro line

Preferred Location

Local market size

~500K Passenger per day during the Hajj period

Holy Mecca



Promoted by Preferred Location

Description


Financials

• Concession to handle the cargo at King Abdulaziz international airport. • All existing infrastructure in place only requires investments in

superstructure and equipments • The total shipments received in 2018 to King Abdulaziz International

Airport are approximately 500K tons and are expected to increase by more than 3% p.a.

• Current handling capacity is ~230K tons and the objective of this 2nd concession is to increase the handling capacity at the airport “

Support in all governmental requirements e.g. Licensing process, business establishment

Required Investment Limited investment required (mostly machinery and equipment)

2nd concession contract for cargo handling services in King Abdulaziz international airport

Logistics

Local market size

~2.8BSAR

Potential market in King Abdulaziz airport ~850 Mn SAR

General Authority of Civil Aviation


Promoted by

King Abdulaziz international airport -

Jeddah

62 63

Logistics

Description


Financials

Develop and operate logistics zone in key Preferred Locations in proximity to the Eastern and Western coasts with a total area of 3.3 M square meter. Ideally located in proximity to main ports and the land bridge rail line. Target industries are electronics, food and beverage, apparel & textile, automotive & spare parts”

N/A Required Investment

7BSAR

Develop and operate logistics zone close to major sea ports

Preferred Location

Local market size

~500-900M SAR p.a.

MAWANI


Promoted by

Jeddah Islamic Port

King Abdulaziz Port, Dammam

64 65

EnergyNIDLP aims to maximize the use of renewable energy to diversify local energy sources, stimulant economic development, ensure sustainable growth and reduce pollutions. Close to 60 gigawatts of renewable energy will be introduced by 2030 by implementing 35 projects around the Kingdom using several technologies including solar, wind and concentrated solar power, while focusing on localizing manufacturing and driving job creation and regional development.

To support industrial growth and clean electricity generation, gas production capacities will be increased to 18 billion standards cubic feet by 2020 while the current gas distribution network is expanded and enhanced.

66 67

Energy | Renewable Energy manufacturing

Description


Financials

• Development of a plant to assemble wind nacelle housing.

• Manufacturing activities include: nacelle cover manufacturing, protective coating

• Assembly activities include: drivetrain and gearbox assembly, pitch and yaw component assembly, generator assembly, brake assembly, internal wiring

Access to the general incentive package

Required Investment

~ 400Million SAR

Nacelle Housing

Preferred Location

Local market size is

~2.6B SAR p.a. (~400 nacelles p.a.)

• Underlying market of 16GW target generation from Wind Towers by 2030

Saudi Arabian General Investment Authority


Promoted by

Yanbu

NEOMSaudi Arabian General Investment Authority


Promoted by

Description


Financials

• Development of a plant to manufacture/assemble wind turbine blades.

• Manufacturing activities include: Mold cavity manufacturing

• Assembly activities include: Layering of FRP sheets, assembling Balsa wood, application of epoxy resin, heating / curing, sanding, coating and painting, assembling of pin bolts”


Required Investment

~ 937Million SAR

Wind turbine blades

Preferred Location



~1.8B SAR p.a. (~400 nacelles p.a.)


Yanbu

Rabigh

NEOM

68 69


Description

Addressable MarketDeal Specific Conditions

Financials

• Development of a plant to manufacture/assemble Solar PV units.

• The focus of this opportunity is on manufacturing and assembly of solar PV units.


Required Investment

~ 13BSAR

Cell and Modules

Preferred Location


~3.4B SAR in 2019 or ~2 GW

As of 2020, local demand: ~6.76B SAR or ~4 GW

• Underlying market of a 40GW target generation from PV units by 2030

SudairNEOM

Saudi Arabian General Investment Authority


Promoted by

Description


Financials

• Development of a plant to manufacture/assemble wind turbine towers that carry the nacelle and rotor.

• Manufacturing activities include: Cutting, beveling, rolling of plates and tack welding, longitudinal welding, circumference welding of sections, sandblasting, painting

• Assembly activities include: Site transport of individual sections and assembly on site”


Required Investment

~ 1.5BSAR

Wind tower

Preferred Location



~1.8B SAR (~400 towers)


Yanbu

Rabigh

NEOMSaudi Arabian General Investment Authority


Promoted by

70 71

Energy | Power generation

Description


Financials

Construction and operation of a solar power station to produce electricity in Alfaisliah city with a capacity of 600 MW

Purchasing power agreement with the government over 25 years

Required Investment

~ 600MSAR

Alfaisliah Solar park

Preferred Location

Local demand for solar generated energy:

~20 GW by 2026 and

~40 GW by 2030”

Renewable Energy Project Development Office (REPDO)


Promoted by

AlFaisaliah



Promoted by

Description


Financials

Construction of a solar power station to produce electricity in Jeddah with a capacity of 300 MW


Required Investment

~ 1BSAR

Solar Electricity Production in Jeddah

Preferred Location



~20 GW by 2026 and

~40 GW by 2030”

Jeddah

72 73


Description


Financials

Development of a solar power station to produce electricity in Rabigh with a capacity of 300 MW


Required Investment

~ 1B SAR

Solar Electricity Production in Rabigh

Preferred Location


~20 GW by 2026 and

~40 GW by 2030”

Rabigh



Promoted by

Description


Financials

Development of a solar power park to generate electricity in Madinah province with a capacity of 50 MW


Required Investment

~ 188MSAR

Madinah solar PV park

Preferred Location



~20 GW by 2026 and

~40 GW by 2030”

Medina



Promoted by

74 75


Description


Financials

Development of a solar power park to generate electricity in Rafha province with a capacity of 45 MW


Required Investment

~ 169M SAR

Rafha solar PV park

Preferred Location


~20 GW by 2026 and

~40 GW by 2030”

Rafha



Promoted by

Description


Financials

Development of a solar power park to generate electricity in Qurayyat with a capacity of 20 MW


Required Investment

~ 75MSAR

Qurayyat solar PV park

Preferred Location



~20 GW by 2026 and

~40 GW by 2030”

Qurayyat



Promoted by

76 77


Description


Financials

Development of a solar power park to generate electricity in Mahd AlDahab with a capacity of 200 MW


Required Investment

~ 750M SAR

Mahd AlDahab solar PV park

Preferred Location


~20 GW by 2026 and

~40 GW by 2030”

Mahd AlDahab



Promoted by

78 79

Value Proposition to Investors

80 81

Value Proposition to Investors Value Proposition to Investors

Mining upstream Mining mid and downstreamDomestic demand stimulation

Local content policies favoring Saudi based manufactured

Industrial Zones Extensive logistics network (including road, rail, sea-ports capacity, new air-strip) to support mining sector development

New copper and zinc smelting plant and steel mega-plants as potential outlet for base metal and iron ore

R&D Mining Center of Excellence with focus on applied innovation and consultancy services for technology dissemination, extractive metallurgy support, and other activities, including EHS training

Intensified public spending in RDI activities in NIDLP sectors (SAR 13bn) creating positive externalities for industrial investors

Industry 4.0

Industry 4.0 enablement package: including loans, Industry 4.0 capability centers, 100 model factories, telecoms infrastructure, etc. (see detailed page)

Export enablement Export enablement package: including new export financing solutions such as EXIM bank and streamlined export procedures (see detailed page)

Export promotion of products manufactured locally (including through strategic G2G partnerships)

Talent Availability of well-trained Saudi talent in mining-related operations Availability of geological, mineral engineers and metallurgy, in partnership with Saudi and international universities

Funding SIDF loans up to 75% of the capital invested, at more competitive rates for strategic investments, with an 18 month grace period and new products & services (see detailed page)

SAR 500 mn Exploration Fund by 2020 to support explorers and de-risk exploration campaigns

Financial incentives Competitive energy prices to ensure profitability of mining players

Regulations and doing business New mining investment law and regulations to accelerate mining activities Streamlined and online licensing process and governance Mining investors one-stop-shop in all KSA regions National Geological Database to enable online access to all of the national records Updated HSE regulations tailored to the mining sector

Domestic demand stimulation Local content policies favoring Saudi based manufactured

Industrial Zones End-to-end logistics connectivity (including road, sea-ports capacity, and industrial land) to support mining sector development

New copper and zinc smelting plants and steel mega-plants, in addition to existing Aluminum complex as source of locally produced intermediate products

Access to 40+ industrial cities across the kingdom, with upgraded infrastructure and equipment (see detailed page)

New Special Economic Zone (SEZ) status on select industrial cities

R&D Metallurgical Alloy Development Center to provide alloy development services to enhance competitiveness

Intensified public spending in RDI activities in NIDLP sectors (SAR 13bn) creating positive externalities for industrial investors

Industry 4.0




Talent Dedicated capability building and vocational training programs (e.g., industrial colleges, leadership programs)


Financial incentives Competitive energy prices to ensure profitability of midstream and downstream players

Regulations and doing business Streamlined and online licensing process and governance

Specific

Generic detailed in the pack

Specific


82 83


Logistics LogisticsInfrastructure

National transport strategy and integrated masterplan to ensure alignment and integration of logistics projects

- New and expanded airports to meet growth expectations of air traffic - Upgraded sea and land ports infrastructure to support growth of moved goods - Increased railway cargo and urban transport capacity to accommodate

anticipated growth

R&D and Innovation Intensified public spending in RDI activities in NIDLP sectors (SAR 13bn) creating

positive externalities for industrial investors Industry 4.0




Talent Access to academia, facilities, and equipment to support development of human capital (e.g. Aviation Academy)


Financial incentives Financial support tailored to the different players (e.g. 3PL, etc.) in the logistics sectors

Regulations and doing business Flexible national PPP regulatory framework to facilitate attraction of private investors and create transparency in the sector

International standards for aviation safety and security to simplify integration with other countries

Improved safety of railway system to reduce probability of accidents

Industrial Zones Dedicated Auto City for 3-4 OEM and multiple supplier manufacturing plants with automotive test track, auto academy, logistics hub, and other shared services







Auto Academy for vocational trainings established in the auto park


Financial incentives Duty rebate for every car produced (anchor OEM 3:1 and other OEMs 2:1) 12-15% of car value given as production incentive, to be spent on local value added activities: Saudis wage support, experts/knowledge transfer and training

Regulations and doing business Industrial database (e.g. suppliers, production) and reports from the Industrial Information

Specific


Specific


84 85


Pharmaceutical Medical Supplies Domestic demand stimulation

Off-take agreements (2+1) years are currently granted to manufactures of all drugs types to support their investments.

Industrial Zones Access to academia, facilities, and equipment to support development of a biopharma business (vs. providing basic infrastructure) (Located in the Eastern region (KAUST)

Access to 40+ industrial cities across the kingdom, with upgraded infrastructure and equipment

New Special Economic Zone (SEZ) status (see detailed page)

R&D Support from a National Command Center that facilitates the end-to-end clinical trial process including providing access to select government facilities

Industry 4.0





Funding SIDF loans coverage up to 75% of capital invested and longer repayment terms up to 20 years are provided to certain strategic drug segments such as vaccines, plasma and biologics

Financial incentivesN/A

Regulations and doing business Fast track registration is granted for certain drugs such as Life threating conditions, Unmet medical needs, SFDA exempted list, 1st or 2nd generics

Verification review of registration (30 days) are given to all products Abridging registration (60 days) that have been approved and marketed by stringent authorities such as FDA (Food and Drug Administration) and EMA (European Medicines Agency)

Domestic demand stimulation Local content formula in purchasing, favoring Saudi based manufactured products Longer contract periods (2+1) to secure demand

Industrial Zones Access to academia, facilities, and equipment to support development of medical supplies (vs. providing basic infrastructure)

Access to 40+ industrial cities across the kingdom, with upgraded infrastructure and equipment



Industry 4.0





Funding SIDF loans coverage up to 75% of capital invested and longer repayment terms up to 20 years are provided to certain strategic drug segments such as vaccines, plasma and biologics


Regulations and doing business Easy registration for low risk devices (no international jurisdictions’ approval)

Specific


Specific


86 87


Machinery and equipment Food processing Domestic demand stimulation

Local content policies favoring Saudi based manufactured products

Industrial Zones Access to 40+ industrial cities across the kingdom, with upgraded infrastructure and equipment



Industry 4.0 Industry 4.0 enablement package: including loans, Industry 4.0 capability centers, 100 model factories, telecoms infrastructure, etc. (see detailed page)







Domestic demand stimulation Local content policies favoring Saudi based manufactured products

Industrial Zones Access to dedicated food processing industrial zones, with specific infrastructure and equipment (e.g. cold storage, ready warehouses & logistics solutions), with low rent and up to 20 years lease periods



positive externalities for industrial investors Industry 4.0 Industry 4.0 enablement package: including loans, Industry 4.0 capability centers, 100

model factories, telecoms infrastructure, etc. (see detailed page)







Specific


Specific


88 89


Chemicals Aquaculture Domestic demand stimulation

Off-take agreements (2+1) years are currently granted to manufactures of all drugs types to support their investments.

Industrial Zones Chemicals infrastructure and related services in several industrial cities (e.g. Jubail, Yanbu) for basic and intermediate chemicals

Access to dedicated special economic (Spark, Maritime, Jazan) with industry specific equipment and shared services (e.g. one stop shop, utilities, security, etc.)

R&D Intensified public spending in RDI activities in NIDLP sectors (SAR 13bn) creating



Export enablement Improved regional and global trade agreements e.g. GCC, GAFTA to further grow global share of chemicals produced locally

Export enablement package: including new export financing solutions such as EXIM bank and streamlined export procedures (see detailed page)



Funding SIDF loans coverage up to 75% of capital invested at more competitive rates for strategic investments, with an up to 24 months grace period and new products & services see detailed page)

Financial incentives Specific tax regime, depending on project economics and according to approved policies

Sustainable and competitive power tariff for the strategic industries Access to feed stock with competitive and appropriate price, long term contracts, appropriate payment terms (45 days)


Cooperative association to be established of the companies working in plastic industries

Domestic demand stimulation Awareness campaigns aimed at increasing general public awareness of locally produced seafood and its health benefits vs. imported seafood

Industrial Zones 6-8 marine clusters to be developed across KSA with required infrastructure (with main services e.g. floating docks, ice factory, gas stations, boat maintenance workshops).

Development of infrastructure (e.g. feed mills, processing plants and Hatcheries) Access to food processing dedicated industrial zones

R&D Intensified public spending in RDI activities for aquaculture (SAR 322 Mn) to increase species possibilities and best possible Feed Conversion Ratio

Industry 4.0








Specific


Specific


90 91


Aerospace EnergyDomestic demand stimulation

Local content policies encouraging local investment in aviation manufacturing and MRO

Industrial Zones Access to Aerospace Clusters located next to the Riyadh and Jeddah airports dedicated to aviation and military fields

8+ new companies and operations to be established for manufacturing, MRO, assembly line, and aerospace specific material e.g., aluminum, titanium and composite


R&D Intensified public spending in RDI activities in NIDLP sectors (SAR 13bn) creating





Talent Training collaboration programs between local institutes and international players Aviation educational programs for secondary and tertiary levels


Financial incentives Financial incentive packages tailored to the aviation industry e.g., tax and duty relief


Domestic demand stimulation Extended visibility on the energy mix to 2030 (58.7 GW 2030 target capacity for renewables)

Increasing local content requirements

Industrial Zones 35+ parks to be developed by 2030. Parks are being pre-developed to boost projects bankability and expedite execution (e.g., geotechnical, environmental, energy yield, permitting studies, etc.)

Improved Transmission & Distribution infrastructure, including adopt smart grid and smart meters technologies

R&D Intensified public spending in RDI activities for aquaculture (SAR 322 Mn) to increase species possibilities and best possible Feed Conversion Ratio

Potential partnerships between KACARE and private investors to localize new renewable technologies (SAR 1bn)

Industry 4.0 Industry 4.0 enablement package: including loans, Industry 4.0 capability centers, 100 model factories, telecoms infrastructure, etc. (see detailed page)

Export enablement Power export enablement to leverage underutilized generation capacity, via interconnected countries agreements


Availability of talent training through KACARE Renewable Energies Humain Ressource development program



Regulations and doing business Energy efficiency enhancements through national efficiency standards National Center for Renewable Energy Data to provide renewable energy data and information to all users

Specific


Specific


92 93

EnablementPackages

94 95

Objective• Become the key financial enabler for NIDLP sectors

(industry, mining, logistics, energy) • Expand product and services offerings to serve

different needs across sectors • Improve processes and policies to ease access

to funding

Main offerings Availability Entity

• Expanding coverage of financing to all NIDLP sectors

February 2019

√ Term loansRest linked to mandate

Q2 2019

• Additional capacity of funding to support project financing up to

75% of the capital invested

2019 SIDF

• New financing products including working capital, acquisitions, and term loans

• New services including business consulting services to address investors needs across sectors

Enablement Packages

Financial Enablement Package

SAR Total value of offering

40 BN

Objective• Improve competitive advantage of KSA manufacturing

companies by adopting industry 4.0 technologies including achieving full potential automation rate

• Build a new technology ecosystem focused on creating local Industry 4.0 technology players in the Kingdom


• Access to 5 capability centers that offer various services such as I4.0 technologies showcasing and trial, development and capability building trainings, technology development and transfer

2019 KACST

• Funding for up to

75% of capital invested for a 100 selected industry 4.0 model factories

√ SIDF

• Fiber optic equipped industrialcities to enable i4.0 technologies

2019 MODON / MCIT

• A program to upgrade 100 factories by adopting Industry 4.0 technologies to become model factories for others to follow

2019 MODON

• A program to support and enable Saudi entrepreneurs active in Industry 4.0 technologies through grants and direct investments

2019 KACST

Enablement Packages

Industry 4.0 Enablement Package


5.3 BN

96 97

Enablement Packages

Export Enablement Package

Objective• Providing financing to Saudi exporters and their

customers, enabling the Export Financing Ecosystem, and increasing the financial literacy of Saudi Exporters


• Launch of the Saudi EXIM Bank

Q4 2019 Saudi Exports

• Interim Export Financing solution (PSS Export Financing initiative)

√ Saudi Exports & PSS


30 BN

Northern Border

EasternProvince

Al Jouf

TaboukHail

Qassem

Riyadh

Madinah

Makkah

Abha

Asir

Jazan

Najran

Enablement Packages

Industrial cities and SEZs Enablement Offerings

Objective• To promote the ease of doing business in KSA and

attract more investments and trade

Main offerings Industrial cities

• Access to 40+ industrial cities across the kingdom, with upgraded infrastructure and equipment

• Introduction of a new Special Economic Zones status, allowing for flexible regulations and policies

Royal Commission cities Economic cities Industrial cities (Modon)


50+ BN

98 99

Objective• Increase levels of trade facilitation by simplifying and

increasing the speed of border processing for generally large importers (low-risk companies) and remove the burden of customs

Objective• Create one destination to serve the industrial investor

through the industrial journey and ease doing the business

Main offerings Main offeringsAvailability AvailabilityEntity Entity

The Saudi AEO program is a Customs-led, government-wide priority:

• AEO benefits package 1:- Prioritized all customs

procedures- Reduce risk - Publish Name of Members on

Customs website- Member of the AEO Customs

Consultative Group- Dedicated Key Account

Manager

• AEO benefits package 2:- Dedicated fast lane at land

border- Advanced ruling- Deferred payment - Possibility for Customs and

OGA inspections at location suggested by the AEO

- Free training once a year - MRA benefits

Launch of a unified electronic industrial platform “SENAEI” providing:

• Information and data for the industrial investors

• Services needed by the industrial investor to establish any project

• Integration and interdependence between service partners

• Consultation and technical support to ease doing business

2019 2019

Operational Q3, 2019

SC MEIM

SC

Enablement Packages

Authorised Economic Operator


N/ASAR Total value of offering

N/A

Enablement Packages

SENAEI electronic platform for industrial services

100 101

102 103

investment opportunities. in 2020 (~3b sar)” access to full package scheme of incentives for the...

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