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Page 1: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

01

WATER ANDWATER TREATMENT

Page 2: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

1LARGE AND GROWING DESALINATION INDUSTRY

2INCREASING PRIVATIZATION AND LOCALIZATION OPPORTUNITIES

3ACCESS TO LARGE REGIONAL MARKETS

4WELL DEVELOPED ECOSYSTEM IN PLACE

4 REASONS TO INVEST IN THE WATER SECTOR IN KSA

Page 3: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

03

Page 4: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37
Page 5: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

LARGE AND GROWING DESALINATION INDUSTRY

Page 6: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

KSA IS THE LARGEST COUNTRY IN TERMS OF DESALINATION CAPACITY IN THE WORLD

LARGE AND GROWING DESALINATION INDUSTRY

22% 54%OF WORLDWIDE CAPACITY OF GCC CAPACITY

(SWCC, IWIPP, IWP, Marafiq and others)

(SWCC, IWIPP, IWP, Marafiq and others)

TOTAL DESALINATION CAPACITY

KSA SHARE OF THE DESALINATION CAPACITY

8.3MM3 PER DAY , 2017

Page 7: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

07

48 DESALINATION PLANTS WITH CAPACITY >10,000 M3/DAY

DESALINATION CAPACITY OF LARGE DESALINATION1 PLANTS IN KSA

THE SMALL SIZE SW DESALINATION PLANTS (ABOUT 190 PLANTS) WITH A CAPACITY OF <10,000 M3/DREPRESENTS AN INSTALLED CAPACITY OF ABOUT 0.6M M3/D.

1. >10,000 m3/day

Source: Water Desalination Mapping Study by SWCC 2016-2017

Capacity (m3/d, 2016)

800,000

500,000

200,000

50,000

10,000

Technology

RO

MSF

MED

Western coast

Number of plants: 33

Total capacity: 3.782 M m3/d

Other plants (capacity <10k m3/d)

Number of plants: 190

Total capacity: 0.6 M m3/d

Eastern coast

Number of plants: 15

Total capacity: 3.938 M m3/d

Future projects

Page 8: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

LARGE AND GROWING DESALINATION INDUSTRY

KSA AIMS TO SATISFY INCREASING PRODUCTION CAPACITY THROUGH IWP/IWPP GREENFIELD PROJECTS

Million m3 per day , 2016 to 2035

FORECASTED DESALINATION PLANTS CAPACITY IN KSA

Source: Water demand Study by SWCCNote: This is under study and Ministry of Environment, Water and Agriculture will release the official demand.

+3.1

%

2016 2017

New capacity—IWP Greenfield projects Installed capacity—IWP Installed capacity—EPC

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

7.7 8.3 8.3 8.3 8.59.8 9.9 10.1 10.1 10.2 10.3 10.5 10.5 10.7 10.8 10.9 11.0 11.5 11.8 12.3

Page 9: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

09C

apac

ity

of o

wn

ed p

lan

ts (m

3 /d

)N

um

ber

of

pla

nts

ow

ned

Total

SWCC

IWPP/IWP

Marafiq

Others

8.3

4.9

2.4

0.6

0.4

100%

59%

29%

7%

5%

Total

SWCC

IWPP/IWP

Marafiq

Others

48

20

6

7

15

100%

42%

13%

15%

31%

DRIVERS OF GROWTH

GROWING AGRICULTURE INDUSTRY

LARGE AND GROWING KSA POPULATION

GROWING INDUSTRIAL SECTORS

(E.G. CONSTRUCTION, F&B,

MINING)

2016

DESALINATION PLANTS BREAKDOWN BY OWNER

Page 10: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

THE CURRENT DESALINATION PLANTS AND FUTURE OPPORTUNITIES

Installed capacity breakdown by technology, 2016

CURRENTLY, DESALINATION PLANTS IN KSA RELY MAINLY ON MSF TECHNOLOGY

Number of plants

Source: GWI Database, SWCC 2015 annual Report, IC Water Desalination Industry Mapping Study

Total

48

MSF

16

RO

26

MED

6

100% 59%

28%

13%

LARGE AND GROWING DESALINATION INDUSTRY

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11

Number of new planned projects by 20302016-2030

IN THE FUTURE, ADDED PLANTS WILL RELY MAINLY ON RO TECHNOLOGY

MSF

TBDMED

TECHNOLOGY NUMBER OF NEW PROJECTS

2

28RO

Page 12: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37
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13

INCREASING PRIVATIZATION AND LOCALIZATION OPPORTUNITIES

Page 14: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

INCREASING PRIVATIZATION AND LOCALIZATION OPPORTUNITIES

DEVELOPERS, MANUFACTURERS AND OTHER INVESTORS CAN TAP INTO THE KSA DESALINATION MARKET

DEVELOPERS CAN BUILD, OWN AND OPERATE NEW DESALINATION PLANTS

OTHER INVESTORS CAN PROVIDE SERVICES INCLUDING BRINE EXTRACTION, TRAINING SERVICES, WORKSHOPS & OTHER INNOVATIVE SOLUTIONS

MANUFACTURERS CAN PRODUCE CHEMICALS AND EQUIPMENT USED IN DESALINATION PLANTS

Page 15: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

15

KSA GOVERNMENT IS COMMITTED TO PRIVATIZE OR COMMERCIALIZE COMPONENTS OF THE VALUE CHAIN

PRODUCTION STORAGETRANSMISSION DISTRIBUTION

Privatization opportunities

New IWPP/IWP

desalination

projects with a total

capacity of ~3M m3

per day are to be

commissioned by

2022

Commercialization

of transmission

services through

commercial

agreements with

private sector

players

12 new strategic

water reserves with

a capacity of ~20M

m3 to be developed

by 2030

Commercialization

of distribution

services through

commercial

agreements with

private sector

players

CommercializationPrivatization

Source: Driving Private Sector Participation in the Saudi Water Sector - WEC

DESALINATION VALUE CHAIN

Page 16: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

INCREASING PRIVATIZATION AND LOCALIZATION OPPORTUNITIES

WEC’S MANDATE HAS BEEN RECENTLY EXPANDED TO ENABLE THE REALIZATION OF THE VISION

Regulatory authority

MINISTRY OF ENVIRONMENT, WATER AND AGRICULTURE

MINISTRY OF FINANCE SUPPORTS THE SECTOR (TEMPORARY

UNTIL REFORM OF SUBSIDIES)

Source: Driving Private Sector Participation in the Saudi Water Sector—WEC

WEC’S MANDATE

Procurement of water desalination, purification, treatment and co-generation projects

Procurement of storage tanks Procurement of dam projects Purchase and sale of desalinated, purified,

treated and non treated water Purchase and sale of related electricity and

ancillary services

PRODUCTION DISTRIBUTION COMPANIES

GROUND WATER

DESALINATE COGEN WATER

SURFACE WATER

TSE

STRATEGIC RESERVOIRS

TRANSMISSION

WEC

REGION 1

REGION 2

REGION ...

PRIVATE SECTOR PUBLIC SECTOR

Page 17: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

17

NEW IWPP/IWP DESALINATION & SEWAGE PROJECTS WITH WEC TO BE COMMISSIONED BY 2022

Capacity

Current Stage

Next Stage

Expected commissioning

Capacity

Current Stage

Next Stage

Expected commissioning

Capacity

Current Stage

Next Stage

Expected commissioning

600,000 m3/day

Shortlisting of bidders

Letter of award

2021

250,000 m3/day

RFP issued

Receiving RFP

2022

450,000 m3/day

RFP received

Announcement of Shortlisted of bidders

2022

RABIGH-3 IWP

JEDDAH AIRPORT-2 ISTP

SHUAQAIQ-3 IWP

Capacity

Current Stage

Next Stage

Expected commissioning

1,170,000 m3/day, 3,000 MW

EOI released

Issuing RFQ

2022

JUBAIL-3 IWPP

Source: Driving Private Sector Participation in the Saudi Water Sector - WEC

Page 18: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

INCREASING PRIVATIZATION AND LOCALIZATION OPPORTUNITIES

IN ADDITION, 10 SEWAGE TREATMENT PLANTS WITH WEC WILL BE TENDERED WITH A TOTAL CAPACITY OF ~1.8MN M3 PER DAY

Source: Driving Private Sector Participation in the Saudi Water Sector - WEC

FOLLOWED BY:

Madinah ISTP

Capacity 200,000 m3/day

Jazan ISTP

Capacity 120,000 m3/day

Tabouk ISTP

Capacity 100,000 m3/day

Makkah ISTP

Capacity 250,000 m3/day

Najran ISTP

Capacity 100,000 m3/day

Al Ahsa ISTP

Capacity 138,000 m3/day

Riyadh North ISTP

Capacity 300,000 m3/day

Al Qaseem ISPT

Capacity 200,000 m3/day

Hafer AlBatin ISTP

Capacity 150,000 m3/day

Jeddah South ISTP

Capacity 250,000 m3/day

Page 19: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

19

12 NEW STRATEGIC WATER RESERVES PROJECTS WITH A CAPACITY OF ~20MN M3 TO BE DEVELOPED BY 2030

Current 2020 2030

1.2 days storage

3 days storage

7 days storage

UPCOMING TENDERS

12

20MN

12PROJECTS

20MN M3 STORAGE CAPACITIES

DIFFERENT LOCATIONS ACROSS THE KINGDOM

Page 20: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

INCREASING PRIVATIZATION AND LOCALIZATION OPPORTUNITIES

INVESTMENT OPPORTUNITIES FOR MANUFACTURERS AND OTHER INVESTORS

EQUIPMENT TO BE LOCALIZED

WORKSHOPS & TRAINING SERVICES INCLUDING EQUIPMENT, FIRE FIGHTING & SECURITY AND TECHNICAL & VOCAL TRAININGS

BRINE COMMERCIALIZATION AND USAGE IN OTHER PRACTICES

OTHER INNOVATIVE SOLUTIONS IN THE DESALINATION INDUSTRY

Source: Team analysis

Page 21: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

21

LIST OF EQUIPMENT INVESTMENT OPPORTUNITIES (I/II)

Source: Investment opportunities in Water Desalination Industry - SWCC

INVESTMENT OPPORTUNITY EQUIPMENT

KSA AND GCC DESALINATION ADDRESSABLE MARKET SAR MILLIONS PER YEAR

Membrane first pass

Evaporator shell/Tube

Intake screens

Intake/Booster/Brine discharge pumps

Dissolved air floatation (DAF)

HP pumps

Membrane second pass

Heat recovery, heat rejection pumps

Brine heater

Common/Post treatment/backwash pump

Energy recovery device

Filtration equipment

RO membrane pressure vessels

Electrical drives (Motors)

Electrical-Chlorination system

HP piping and valves

SAR 944

SAR 980

SAR 758

SAR 530

SAR 298

SAR 283

SAR 94

SAR 367

SAR 367

SAR 199

SAR 159

SAR 133

SAR 129

SAR 123

SAR 129

SAR 100

SAR 1,376

SAR 1,753

SAR 610

SAR 561

SAR 332

SAR 314

SAR 138

SAR 326

SAR 326

SAR 212

SAR 202

SAR 148

SAR 143

SAR 137

SAR 131

SAR 127

SAR 1,160

SAR 1,367

SAR 684

SAR 546

SAR 315

SAR 299

SAR 116

SAR 347

SAR 347

SAR 206

SAR 181

SAR 141

SAR 136

SAR 130

SAR 130

SAR 114

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

(2016-2025) (M) (2026-2035) (M) (2016-2035) (M)

Page 22: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

INCREASING PRIVATIZATION AND LOCALIZATION OPPORTUNITIES

LIST OF EQUIPMENT INVESTMENT OPPORTUNITIES (II/II)

Source: Investment opportunities in Water Desalination Industry - SWCC

INVESTMENT OPPORTUNITY EQUIPMENT

KSA AND GCC DESALINATION ADDRESSABLE MARKET SAR MILLIONS PER YEAR

Flocculators

Piping structure and erection material

Membrane racks/piping

Steam supply system

Vacuum Pumps

Pre/Post chemical dosing pumps

Intake piping

LP piping and valves

Deaerator (incl. Ejectors)

Post treatment/brine discharge piping and valves

Electric mixers

Cleaning system (sponge ball)

Pre/Post treatment tanks

Air blowers

Lime contractors

SAR 87

SAR 54

SAR 37

SAR 79

SAR 78

SAR 49

SAR 24

SAR 41

SAR 42

SAR 31

SAR 13

SAR 20

SAR 4

SAR 6

SAR 0.04

SAR 110

SAR 66

SAR 41

SAR 53

SAR 49

SAR 53

SAR 30

SAR 46

SAR 37

SAR 27

SAR 17

SAR 18

SAR 5

SAR 8

SAR 4

SAR 99

SAR 60

SAR 39

SAR 66

SAR 64

SAR 51

SAR 27

SAR 44

SAR 40

SAR 29

SAR 15

SAR 19

SAR 5

SAR 7

SAR 2

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

(2016-2025) (M) (2026-2035) (M) (2016-2035) (M)

Page 23: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

23

BRINE COMMERCIALIZATION

SWCC BRINE CONTAINS:

EXAMPLES OF SWCC PLANTS PRODUCE BRINE:

MINERAL

NO

RED SEA BRINE

PLANT(S) NAME PHASE LOCATION WATER M3/DAY BRINE M3/DAY

GULF SEA BRINE TOTAL BRINE TONS / YEAR

Chloride CL mg/L

Sodium Na mg/L

Sulphate SO4 mg/L

Magnesium Mg mg/L

Calcium Ca mg/L

1

2

3

4

33, 750

16,480

4,690

1,977

603

Ras Alkhair

Jeddah

Yanbu 3

Ras Alkhair RO

Ras Alkhair

Jeddah 4

Yanbu Expansion

RAS ALKHAIR

Jeddah

Yanbu

310,656

740,656

221,575

68,190

621,312

2,221,968

664,725

204,570

35,500

18,990

49,13

2,264

715

62

30

9

4

1

FINDINGS:

Salts and magnesium compounds are currently techno-economically feasible and candidates for by-product

commercialization.

Growing desalination industry globally driving technology innovation leading to growing focus on brine management

(near ZLD) and by-product commercialization, with early indications of trending lower costs, lower energy requirements,

and higher recovery of water and other resources.

Source: BCG, SWCC New Business Development (NBD), Workshop on New Business opportunities

Page 24: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

INCREASING PRIVATIZATION AND LOCALIZATION OPPORTUNITIES

COMMERCIALIZED TRAINING CENTER

DESIGN OF TRAINING COURSES AND PROGRAMS FORM THE START DATE OF THE CENTER UP TO THE SECOND QUARTER OF THE YEAR 1439 H. (2018)

PROGRAMS NUMBER OF SESSIONSTHE NUMBER OF

TRAINEES

Development programs and employee career path plans

Foundation programs for engineers

Foundation program for operators and technicians

4725

27

47

48767

1109

5724

Source: SWCC, training center.

TOTAL 8827

4628

3300

899GENERAL

MAINTENANCE

OPERATION

02000 2000 2000 2000 2000 2000 2000 2000 2000 20001000

LOCATIONJUBAIL CITY

605 LECTURE HALLS

48 CLASSROOMS, SEMINARS, AND MEETING ROOMS

416 HOUSING CAPACITY

60 TECHNICAL TRAINERS

300 RESTAURANTS

27 WORKSHOPS &SIMULATORS

ISO 9001 CERTIFICATE

Page 25: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

25

TO CAPITALIZE ON LOCALIZATION OPPORTUNITIES, INDUSTRIAL STAKEHOLDERS HAVE KICKED OFF VARIOUS LOCALIZATION EFFORTS

LOCAL CONTENT AND PRIVATE SECTOR DEVELOPMENT UNIT“BRING THE PRIVATE SECTOR TO ITS FULL POTENTIAL, MAXIMIZE LOCAL SPENDING AND OPTIMIZE BALANCE OF PAYMENTS”

IKTVA PROGRAM LOCALIZATION ELECTRICITY INDUSTRY

SABIC’S NUSANED PROGRAM

BUILD LOCAL CONTENT

In line with the establishment of LCPSD, government entities have made initiatives to increase the support of local manufacturers create jobs, transfer technology and knowledge

Doubling the percentage of locally-produced energy-related goods and services to 70% by 2021

Exporting 30% of the output of the local energy goods and services industry

Achieving SABIC’s localization agenda and local industry development

Supporting investors in related areas

Increasing the percentage of local purchases

Contributing to localize spare parts, services and chemicals

Including the percentage of localization & local content in studies

Raising local content levels in purchases and projects

Attracting more foreign investment in the electricity industries

Transferring knowledge and technology

Source: SAGIA Team analysis

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Page 27: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

ACCESS TO LARGE REGIONAL MARKETS

Page 28: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

ACCESS TO LARGE REGIONAL MARKETS

3 KEY FACTORS MAKE EXPORTS TO NEIGHBORING COUNTRIES FAVORABLE

1. Greater Arab Free Trade Area Source: Team analysis

GEOGRAPHIC ADVANTAGE

FAVOURABLE TRADE REGULATIONS ON INDUSTRIAL GOODS

TRADE AGREEMENTS WITH OTHER ARAB COUNTRIES

KSA is located at a close proximity to GCC, African,

Asian and European countries and thus has a logistical

advantage (i.e., lower transportation cost, shorter delivery

time) over several other countries

KSA has set favourable trade regulations on the export of

industrial products/equipment

Following GAFTA1 – Goods produced in any of the GAFTA

member countries shall be exempted from duty in any

other member country

Page 29: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

29

ACCESS TO A VAST NUMBER OF CONSUMERS WITHIN 7 HOURS OF AIR TRANSPORT

7 HOURS

Most of European markets within 7 hours

4 HOURS

All of Asia’s key markets within 4 hours

5 HOURS

5 Hours from half the world’s population

Page 30: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

REACHING NEW MARKETS IS SUPPORTED BY A MATURE LOGISTICAL INFRASTRUCTURE

1. Ministry of Transport 2. TEU stands for twenty-foot equivalent unit Source: Saudi Arabia’s Vision 2030; SAGIA; Industrial Clusters; Saudi Railways Organization; Ministry of Transport; Saudi Ports Authority; Saudi Arabia’s Vision 2030

10 MAIN HARBORS

Largest marine network in the Middle East region

- 6 leading container ports

- Over 240 M tonnes of cargo handled in 2017

King Abdullah Port at KAEC with 4M TEUs2 annual capacity

- Fastest growing port in the world

- Port throughput increased by 14% in first half of 2017

27 AIRPORTS

Connecting KSA with 81 airports in 45 countries

1.2M tonnes of cargo crossing the airport facilities in 2015

King Abdulaziz International Airport in Jeddah is the third largest airport in the Middle East by passenger traffic

The number of airports is expected to boom as new airports are being built (e.g. Taif and Jeddah new airports) and existing ones are being expanded (e.g. Riyadh airport)

>1,700 KM OF RAILWAYS

Cargo line: 556 km starting at King Abdul Aziz Port in Dammam and ending in Riyadh

Branch lines: 486 km connecting industrial sites and facilities

Approx. 700 thousand containers handled every year

Additional 1,500 km are to be added in upcoming years

>200,000 KM OF ROADS

66,000 km of roadways connecting major cities and providing access to railways, ports and airports

>140,000 km of dirt roads

12,000 km of roads connecting Saudi Arabia’s regions to international borders

ACCESS TO LARGE REGIONAL MARKETS

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31

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33

WELL DEVELOPED ECOSYSTEM IN PLACE

Page 34: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

WELL DEVELOPED ECOSYSTEM IN PLACE

INVESTOR-CENTRIC ECOSYSTEM IS ESTABLISHED BY THE GOVERNMENT FOR PRIVATE SECTOR INVESTORS

CLEAR GOVERNANCE AND REGULATORY FRAMEWORK

INCENTIVES AND COMPETITIVE PRICES TO ATTRACT PRIVATE SECTOR INVESTORS

Page 35: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

35

CLEAR ALLOCATION OF ROLES ALONG THE VALUE CHAIN

SECTOR ROLE ALLOCATION

DEVELOPERS/ OEMS

* And other standardization agencies based on export locations Source: Team analysis

SECTOR OWNER SECTOR PLANNER/ PROMOTER

SECTOR REGULATOR

Ministry of Environment, Water and Agriculture (MEWA)

Saline Water Conversion Corporation (SWCC)

National Water Company (NWC)

Water & Electricity L.L.C

Electricity & Cogeneration Regulatory Authority (ECRA)

Saudi Standards, Metrology and Quality Organization (SASO)*

Page 36: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

SAGIA acts as the one stop shop to facilitate investors’ interactions with government entities

LICENSES ISSUER FUNDER/INVESTOR

Ministry of Commerce & Industry

Saudi Industrial Development Fund (SIDF)

Other key government supporting entities

WELL DEVELOPED ECOSYSTEM IN PLACE

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37

SAUDI ARABIA OFFERS LOW AND COMPETITIVE PRICES IN THE INDUSTRIAL CITIES

Land cost

Construction cost

Wages

Power

Natural gas

Ethane

Diesel

Average industrial land for lease starting from 0.26 USD per sqm per month

Standard cost of construction of 650 USD USD per sqm

Operator wage: 3 USD per hourTechnical wage: 7 USD per hourSupervisor wage: 10 USD per hour

0.048 USD per kWh for the industrial sector

1.75 USD per MMBTU

1.75 USD per MMBTU

14 USD per barrel

Page 38: WATER AND WATER TREATMENT - Invest Saudi · 2019-06-16 · Electric mixers Cleaning system (sponge ball) Pre/Post treatment tanks Air blowers Lime contractors SAR 87 SAR 54 SAR 37

IN ADDITION, EFFECTIVE WATER R&D CURRENTLY EXISTS IN THE KINGDOM

Desalination technologies

Intake and pre-treatment technologies

Water chemistry

Materials selection and applications

Desalination seawater

Water treatment

Treatment of sewage water

Chemical solvents

Seawater reverse osmosis pilot facility

Absorption desalination pilot facility

SWCC DESALINATION TECHNOLOGIES RESEARCH INSTITUTE

KAUST WATER DESALINATION AND REUSE CENTER

KACST WATER RESEARCH INSTITUTE

Source: Responsible entities

WELL DEVELOPED ECOSYSTEM IN PLACE

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SAUDI ARABIA OFFERS A WIDE RANGE OF INVESTOR-CENTRIC INCENTIVES

Custom duty exemption

Custom duty drawback

Loans

Land incentives

Nationalization incentives

Ownership

Repatriation of capital

Customs duty exemptions for primary raw materials, manufacturing equipment, and spare parts (not available in KSA)

Refund to importers/ exporters on raw material imports that are processed in Saudi Arabia and re-exported as more finished products

Up to 75% of project financing through soft loan by SIDF

Land for lease starting from $ 0.26 per sqm

Up to 15% (for male) and 20% (for female) of the monthly salaries of KSA nationals employees to be covered by HRDF

100% foreign direct ownership allowed

No restrictions on repatriation of capital

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SAGIA SERVICES

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SAGIA SERVICES

SEVEN SERVICE CATEGORIES TO BE OFFERED TO INVESTORS...

Source: International benchmarks, Team Analysis

MARKET AND ECONOMIC INTELLIGENCE

SET-UP ASSISTANCE

MATCHMAKING AND LINKAGE

INCENTIVES ASSISTANCE

SITE VISITS

IMPROVING BUSINESS CLIMATE

LOCATIONSEARCH

Provide information to help investors evaluate and plan

Develop business connections and linkages with local market

Assist investor in fact finding missions

Find the best location for projects

Provide variety of facilitation and liaison support

Structure incentives packages and build business cases

Create a better investment ecosystem

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25 PRE & POST-INVESTMENT SERVICES OFFERED TO INVESTORS

MARKET AND ECONOMIC INTELLIGENCE

SET-UP ASSISTANCE

MATCHMAKING AND LINKAGE

INCENTIVES ASSISTANCE

SITEVISITS

IMPROVING BUSINESS CLIMATE

LOCATIONSEARCH

Provide standard information packages

Provide periodic reports and case studies

Develop Ad-hoc info packages/reports

Share contacts and databases

Connect to industry/trade

associations, and commissions

large local companies for potential partnership

professional services other FDI companies for

reference SMEs for supply-chain universities and

research centers

Plan trip, set-up logistics and bookings

Set up meetings with ministries and other stakeholders

Provide High-touch guide on site/property search

Connect with real estate agencies for deep assistance and evaluation

Provide advice on corporate structure Liaise with governmental entities and provide advice

on applying for visas, permits, licenses and utilities Connect with executive onboarding assistance

agencies Connect with recruiting employees agencies Generate publicity, joint press release, launch events Connect with financial partners for co-financing and

support

Advise and develop specific incentive packages, and mediate negotiations with local authorities

Build business cases and feasibility studies

Develop policy recommendations based on feedback

Submit investors’ proposals for amendment of legislation

Troubleshoot investor operational issues

Source: SAGIA

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SAGIA SERVICES

6 SERVICE CATEGORIES TO GOVERNMENT STAKEHOLDERS

Source: SAGIA

INTERNATIONAL AND DOMESTIC OUTREACH

STRUCTURING & DETAILING INVESTMENT OPPORTUNITIES

SET-UP “DEAL TEAM”

MARKET “INVEST SAUDI” AND INVESTMENT OPPORTUNITIES

FACILITATION OF INVESTOR SET-UP

Create a better business environment for investors

Structure projects into detailed, attractive investment opportunities for investors

Promote Saudi Arabia and its promising economic sectors into attractive investment destinations

Generate leads and interest with local and international investors

Set-up a joint team representing all relevant KSA stakeholders, with the aim of converting interest into real investments

Once investors’ decision is made, ensure they set-up their business smoothly in KSA

IMPROVING BUSINESS CLIMATE

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6 SERVICE CATEGORIES AND 20 SERVICES TO GOVERNMENT STAKEHOLDERS

IMPROVING BUSINESS CLIMATE

INTERNATIONAL AND DOMESTIC OUTREACH

STRUCTURING & DETAILING INVESTMENT OPPORTUNITIES

SET-UP “DEAL TEAM”

MARKET “INVEST SAUDI” AND INVESTMENT OPPORTUNITIES

FACILITATION OF INVESTOR SET-UP

Solve sector regulatory and climate hurdles

Communicate improvements

Develop sector-level investment opportunities

Test investment opportunities with potential investors

Build business cases

Develop marketing materials for “Invest Saudi” and sectors

Develop sector value proposition (incl. messages, channels, etc)

Organize marketing campaigns

Build event calendar Develop investor

profiling based on intelligence data

Reach out to investors Follow-up with

investors

Provide in-depth market intelligence on investor and sector

Connect investor to stakeholders

Manage site visits to KSA Support in location search Conduct cost-benefit analysis Facilitate negotiation and

design incentive packages

Conduct a primary validation on investor’s application

Assist investors in setting-up business

Source: SAGIA

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ABOUT SAUDI GENERALINVESTMENT AUTHORITY

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Saudi General Investment Authority is the Kingdom’s investment promotion agency, and the gateway for foreign investment. Our priorities are toattract and develop foreign investment, enhance the nation’s investment climate, increase the ease of doing business, and eliminate obstacles from investors’ journey.

To discover the countless opportunities, across major economic sectors, that Saudi Arabia has to offer:

Imam Saud Bin Abdulaziz Road

P.O. Box 5927, Riyadh 11432Kingdom of Saudi ArabiaT + 966 11 203 5555

F + 966 11 263 2894E [email protected]

[email protected]

CONTACT US NOW

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