state of the industry2012/02/02 · saudi arabia’s economy saudi arabia’s economy 2011 source :...
TRANSCRIPT
MODON
Saudi Industrial Property Authority
Tokyo, Japan Jan 31 - Feb 2, 2012
Outline
• Saudi Arabia’s Economy
• Japanese - Saudi Investments Partnership
• National Industrial Strategy Vision & Objectives
• MODON in Brief
• Investment Incentives
• Our Clients
• Our Industrial Cities
• MODON’s Supply Chain Projects
• MODON’s Infrastructure Projects
Saudi Arabia’s Economy
Saudi Arabia’s Economy 2011
Source : Central Department of Statistics & Information
National GDP
$577 (in Billion USD)
Per Capita GDP
$20,328 (USD)
GDP growth
6.77%
Industrial sector growth
28.27% Export growth
35.73% Import growth
1.45%
Contribution of exports
to GDP 61.6%
Saudi Arabia’s Economy
Gross Domestic Product by sectors at Current Prices (Billion USD)
Source : Central Department of Statistics & Information
0
50
100
150
200
250
300
350
2007 2008 2009 * 2010 * 2011
Oil Sector
Non- Oil Sector
Saudi Arabia’s Economy
Gross Domestic Product sectors breakdown at Current Prices (Billion USD)
Source : Central Department of Statistics & Information
0
50
100
150
200
250
300
350
2007 2008 2009 * 2010 * 2011
Oil Sector
Private Sector
Govt. Sector
Industrial Sector
Saudi Arabia’s Economy
Gross Domestic Product of the Industrial sector at Current Prices (Billion USD)
Source : Central Department of Statistics & Information
0
5
10
15
20
25
30
35
40
2007 2008 2009 * 2010 * 2011
Saudi Arabia’s Economy
Saudi Industrial Development Fund (SIDF) Loans (Million USD)
Source : SIDF
0
500
1,000
1,500
2,000
2,500
3,000
2006 2007 2008 2009 2010
Number of Companies
50+ Started from mid 70’s
Total Investments
$2,5+ Billion USD
Petrochemical, Chemical, Water & Energy, and Services
Largest Investment
$1,5 Billion USD
Petro Rabigh
Latest Investment
ISUZU Motors Ltd.
1
2
3
4
Japanese - Saudi Investments Partnership
Source : JETRO - Riyadh
Japanese - Saudi Investments Partnership
Japanese - Saudi Investments By Decade (Million USD)
Source : JETRO - Riyadh
T
A
R
G
E
T
E
D
Vision
"A globally competitive industry, based on innovation and acting as a major tool in
transforming national resources into sustainable wealth"
Key strategic goal
"To increase the contribution of the manufacturing sector to the GDP
to 20% … "
"Manufacturing is our strategic choice to diversify the economy"
Source: KSA National Industrialization Strategy document, Factiva
NIS, manufacturing identified as a key development sector Goal is to diversify away from oil and gas and develop human capital
NIS strategic goal to be achieved by reaching four targets
Four targets help reach strategic goal of 20% manufacturing contribution by 2020 Four targets are interrelated
GDP 3x
Increasing manufacturing GDP threefold
Manufacturing Saudization
-> 30%
Increasing share of Saudi labor in manufacturing to
30%
Share of tech man products
-> 60%
Increasing share of "technology"/value add manufacturing products
to 60%
Share of exports in man
-> 35%
Increasing share of exports revenues versus domestic
revenues to 35%
Grow Man. GDP
1
2
3
4
1
Employment
Saudi employment
More export oriented sectors
More value add sectors
3 4
More Saudi involvement "nice jobs"
More Saudi involvement "int'l jobs"
More jobs
More jobs for Saudis
2
Source: KSA National Industrialization Strategy document; BCG analysis
Eight improvement axes identified to achieve NIS targets
Description NIS axes
• Improve macro-economic policies (i.e., monetary and fiscal policies, wages) • Stabilize micro-economic indicators (to attract local and foreign investments) • improve trade policies and market competition
Overall business environment
• Stimulate industrial diversification and achieve balanced development • Important factors behind industrial development • Stimulate innovation and development by sharing skills
Industrial complexes
• More attention should be devoted to SMEs (i.e., industrial SMEs support, industrial SMEs incubation, business resources center, competitiveness development and industrial modernization center, industrial financing mechanisms)
Business community and SMEs
• Link R&D efforts with development processes (i.e., linking science and technology network with innovation in industrial companies, linking educational output to labor market needs)
• Promote innovation in small and medium scale industrial facilities
Industrial innovation and productivity
• Ensure the availability of technically and scientifically qualified and well-trained resources • Train personnel to deal with, develop, and maintain modern machinery and equipments
HR development
• Develop infrastructure in the traditional industrial regions and the new industrial cities/zones • Enhance provision of industrial services and supportive activities (i.e., handling, shipping, storage)
Infrastructure and logistics support
• Move the Kingdom towards higher technology-content industries • Provide continuing support for the development of existing industries which have earned
successful comparative and competitive advantages (i.e., petrochemicals)
New industry verticals
• Manage the implementation of NIS Governance mechanism
1
2
3
4
5
6
7
8
Source: NIS; BCG annalists
MODON in Brief
• History Established in 2001
Independent, self-funded public organization
• Roles Regulate, develop and promote industrial properties
and technology zones
• Facts Overseas 75 million m2
34.5 million m2 developed during the last 3 years
86% growth of land developed now VS. 40 years ago
300,000 Employees
3,000 factories
MODON in Brief
Increase Industrial Lands to 150 million m2 in 2015
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Investment Incentives
Competitive Advantages
State of the Art Infrastructure
Largest Market in ME
One Stop Shop
Housing & Commercial Centers
Competitive Leasing Rates in GCC
Industrial Cities around KSA
Incentives
Starting from
¢27 / M2 / year
Subsidized electricity rates
Tax exemption (for equipments & raw
materials)
Government financing up to 75%
Export Financing Program
Human Resources Support Program
Our Clients - Local
Our Clients - International
Existing Industrial Cities
1. Riyadh 1
2. Riyadh 2
3. Jeddah 1
4. Jeddah 2
5. Dammam 1
6. Dammam 2
7. Makkah
8. Madinah
9. Qaseem
11. Al- Ahsa
11. Assir
12. Al- Jouf
13. Tabuk
14. Hail
15. Najran
16. Jazan
17. Rabigh
18. Al-Kharj
19. Ar’ar
Existing Industrial Cities
Existing Industrial Cities
Cities Under Development
1. Riyadh 3
2. Jeddah 3
3. Dammam 3
4. Sudair
5. Qaseem 2
6. Al-Zulfi
7. Shaqra
8. Hafer Al-batin
9. Al-Baha 1
Existing Industrial Cities
Existing Industrial Cities
Existing Industrial Cities
Existing Industrial Cities
Existing Industrial Cities
Cities Under Planning
1. Jeddah 4
2. Salwa
3. Al-Baha 2
4. Military Industries Complex (Al Kharj)
1200
1000
800
600
400
200
0
MODON Number of Factories
Category #
Existing 19
Under Development 9
Under Planning 4
Factories 3,000+
Labor 300,000+
MODON in Numbers
Electronic Services
• Electronic Services
Sadad
PMS
E-MODON
GIS
MODON’s Supply Chain Projects
–3PL
–Containers terminal
–Dry Port
–Rail freight
MODON’s Infrastructure Projects International Codes in Standard & Specification
• Roads
ASTM
AASTHO
• Utility
ACI
BS
ASA
ASCE
Infrastructure Projects during the past 4 years
Study / Survey $ 28
Development $ 480
Rehabilitation $ 72
Utilities & Services setup $ 533
Total $ 1,113
*In Million USD
Infrastructure Projects during the past 4 years
Infrastructure Projects for the next 5 years
Study / Survey $ 80
Development $ 1,333
Rehabilitation $ 266
Utilities & services Setup $ 1,333
Total $ 3,012
*In Million USD
Infrastructure Projects for the next 5 years
Thank You
www.modon.gov.sa +966920000425