Saudi Economy 2013 - CIT
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The 2013 Saudi economy report from CIT provides an excellent overview of economic data, trade and investment opportunities and Saudi budget info.
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Saudi Economy 2013 - CIT
- 1. 2013
- 2. Key Economic Data. Saudi Economy from Global Perspective. Foreign Direct Investment (FDI) in KSA. Why Invest in Saudi Arabia? Administrative Reform to Enhance Economic Activities. Saudi Exports & Imports. Investment opportunities in KSA. The 2013 Saudi Budget. 2
- 3. (2012) Area 2.000.000 sq. kms Population 28.4 million Saudi 19.5 million Non-Saudi 8.9 million Population Growth Rate 2.4 No. of Labor Force 8.6 million Gross Domestic Product $ 727 billion GDP/ Capita $ 26000 3
- 4. Cont…. DEVELOPMENT EXPENDITURES IN PREVIOUS PLANS $ 1 Trillion Spent on Development Sectors Human Resources 36.3 % Infrastructure 29.1 % Economic Resources 19 % Health and Social 15.6 % 4
- 5. Cont…. 2007 2008 2009 2010 2011 2012 GDP (at current prices) 385 476 376 456 597 727 ($ Billion) GDP Growth (%) 8.6 23.6 -21 21 31 22 Non-Oil Sector 8.6 8 5.1 9.2 14.3 11.2 GDP Growth (%) and information (cdsi) Source: Central department of statistics 5
- 6. Strong GDP growth. Large budget and current account surpluses . Bank- driven and oil-driven liquidity growth . 25% of world Oil reserves . Fourth Largest Natural Gas reserves. The largest economy in the Arab World, among the top 20 Economy in the world. The Largest producer of Petrochemicals in the Arab World. A member of WTO. 6
- 7. Cont…. Saudi is among the top 20 recipients of Foreign Direct Investment in the world. Member of many Arab & International Organization. 10th largest worldwide Exporter (excluding intra-EU (27) trade) and 21st largest worldwide Importer (excluding intra-EU (27) trade). Reached 12th place ranking in World Bank’s 2012 Ease of Doing Business report. Ninth Saudi Development Plan announced August 2010 sets out investment spending of $385 billion in 2010-2014. A major contributor to third world developing economies. Saudi Arabia Foreign Investment $16.4 billion in 2011 7
- 8. Cont…. Saudi Arabia 597 U.A.E 360 Kuwait 176 Oman 72 Qatar 173 Bahrain 31 0 100 200 300 400 500 600 700 $ Billion •8
- 9. Cont…. Saudi Arabia ranking in the global competitiveness 2012/2013 Index & Sub Index Ranking Among Ranking Among Arabic Countries World Countries Ease of doing business 1 12 Global competitiveness 2 18 Sub Index of competitiveness: Basic requirements 3 13 Efficiency enhancer 3 26 Institution environment 3 15 Infrastructure 2 26 Macroeconomic environment 4 6 Health and primary care 4 58 Higher education and 4 40 training Financial market 3 22 development Technological readiness 3 35 9 Market Size 1 24
- 10. Cont…. KSA ranking development for Foreign Direct Investment recipient Years 2006 2007 2008 2009 2010 Saudi Arabia Rank 27 20 18 15 13 Source: Sagia 10
- 11. FDI inflow by source in 2010 (Total US $ 28 Billion) 1.40% USA 5% 14% 4% Emirates 2% France 5% 7% Japan 5% Kuwait 4% 9% Netherlands China 10% 9% Bahrain Jordan England Germany Malaysia 11
- 12. Cont…. Saudi non oil exports compare to foreign investment exports -total ($76 Billion) 45% Saudi non oil exports $ 42 bn FDI exports $ 34 bn 55% 12
- 13. Cont…. Years 2007 2008 2009 2010 Total of the FDIInflows in 22821 38151 31969 28024 Saudi Arabia ($ million) Total of the FDI Stockin -- -- -- 170395 Saudi Arabia ($ million) 13
- 14. A strategic geographic location Free & Large Market Strong Purchasing Power Economic & Political stability Modern Infrastructure Availability of Energy & Raw Materials No Personal Income TAX Open Economy High rate of liquidity $1 Trillion Investment Opportunity 14
- 15. Cont…. Saudi Arabia has topped the list of GCC and West Asia countries in terms of direct foreign investment. Saudi Arabia has topped the list of Arab host in terms of direct foreign investment flows worth $ 38.2 billion, up 39% of the total. Saudi Arabia came on top of the list of Arab host of inter-Arab investments interfaces, worth $ 11.6 billion, up 60.4% of the total. According to the United Nations Conference on trade and Development report, direct foreign investments in west Asia has increased by 12% during the last years, with the majority of these investments going to three countries; KSA, Turkey and UAE. Kingdom concluded 41 bilateral agreements with various countries of the world, including 17 in the area of investment and 24 for the prevention of double taxation. 15
- 16. Restructuring Public Bureaucracy. Re-evaluate and issue new laws. Developing IT and Communication platforms. Attention to sectors in which Saudi Arabia has comparative and competitive advantages. Attention to the environment and Water Resources. Creating more jobs for Young Saudis. Private / Public partnership. Accelerating Privatization Program. Support SME’s and Family Business. Promotion of Non-Oil Export . 16
- 17. (2012) Exports $396 Billion Export/GDP 54.4% Imports $128 Billion Import/GDP 17.6% Trade Balance $ 268 Billion 17
- 18. SAUDI NON-OIL EXPORTS Petrochemical Products Electric Power Towers (High Tension) Paper Industries Medicines Prefab. Steel Structure Buildings Air Conditioners Cleaning Materials Plastic Textiles Insulating Material Plastic pipes & fittings and bottles 18
- 19. SAUDI NON-OIL EXPORTS Miscellaneous Plastic Material Electric Cables Irrigation Industries Electric Poles Steel Angles for Electric Power Towers Transparent Glass Carpets Cement Foodstuffs Copper Wire , bars and rolls 19
- 20. ADVANTAGES OF SAUDI NON OIL EXPORTS High Productivity with advanced technology. Applying International Standard & Specification . Availability of Raw Material . Accessibility to more than 148 International Markets. More than 2000 commodity within 17 groups. High Quality of Packaging . Suitable & competitive price . Certified for International Markets. Qualified team for marketing & after sale follow up. Financing programs. Air, sea & land cargo from various ports. 20
- 21. (Non-oil products) Value Rank Country % Share from $ Billion Saudi Exports 1. China 5915 14 2. Emirates 4617 11 3. India 2202 5.2 4. Turkey 1640 3.9 5. Egypt 1348 3.2 6. USA 993 2.4 7. Italy 908 2.2 8. S. Korea 839 2 9. 533 1.3 Thailand 10. Spain 396 1 21
- 22. Value % Share from Rank Country $ Billion Saudi Imports 1. China 17.3 13.1 2. USA 16.5 12.6 3. Germany 8.9 6.8 4. Japan 8.3 6.3 5. S. Korea 7.7 5.9 6. U.A.E 5.4 4.1 7. France 4.8 3.7 8. Italy 4.6 3.5 9. India 4.3 3.3 10. UK 3.8 2.9 22
- 23. $200 billion Physical Infrastructure $92 billion Petrochemical Expansions $90.7 billion Electric Power Generation $88 billion Water Desalination $70.7 billion Telecom and IT $53.5 billion Tourism and Leisure Development $50 billion Natural Gas Production $28.3 billion Agricultural Expansion $10.7 billion Educational and Training 23
- 24. King Abdullah decree to support the Housing Sector through increased allocations totaling $14.67 billion to the General Housing Authority and the Real Estate Development Fund. The royal decree support the Housing Authority for building as many as 500,000 housing units for citizens. King’s initiative would bring down the existing shortage of housing units from 1.2 million to 700,000. The decision to increase the real estate loan from SR300,000 ($80thousand) to SR500,000 ($133thousand) and build as many as 500,000 housing units, reflected in the market with a boost in demand for plots of land for building houses and increased activities at real estate market. 24
- 25. Expenditure Budgeted $218.7 Billion Sectors Allocation )%( 8 8 Transport & Communications 12 Water, Agriculture, Industry 14 Education Health & Social Development 25 Development Funds Revenues Budgeted $221 Billion 25
- 26. Come and Share our Future with us. Thank you . . . www.csc.org.sa Email: cit@csc.org.sa 26