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Saudi Arabia
The place to be
Saudi Arabia
Drive for economic diversification and liberalization Largest privatization program in the world
Now the focus is on developing soft infrastructure During 70s, government spent mainly on hard infrastructure
Implementation of an unprecedented number of Mega projects Enhancement of womens role in the Saudi economy and removal of obstacles
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Saudi Arabia
Saudi Arabia
The 10 X 10 Program
One of the worlds top 10 competitive investment destinations by 2010
Saudi Arabia
Oil Producing Capacity
Untapped Potential
Energy Advantage
Geographic Location
Untapped Potential
Economic Boom
Opportune Time
Exhaustive research
Studies at least 1000 Free Zones around the world, thoroughly analyzed the 60 most successful zones and determined the factors leading towards their success.
Europe: 3
China/East Asia: 25 North America: 4 South America: 2 Africa: 4 MENA South Asia: 20
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An innovation
Private Sector
Capital provider Land owner Developer
Thinking BIG!
Medinah Rabigh
Jazan
Thinking BIG!
Tabouk Hail
Eastern Province
Medinah Rabigh
Area: 168 million sq m Investment Size: US$ 27 billion Jobs: 1 million
Jazan
Population: 2 million Zones: Sea Port, Industrial Zone, Central Business District, Water front Resort Area, Education Zone, and Residential Zones
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Thinking BIG!
Tabouk Hail
Eastern Province
Medinah
Area: 100 million sq m
Rabigh
Jazan
Population: 300,000 Zones: Industrial Park (will occupy 2/3 of the City), Sea Port, Agriculture repackaging and distribution, Fisheries, Business and Cultural Center, Health & Education Areas Focus: Heavy Industries, Lifestyle, Agro Industries, and People Development
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Thinking BIG!
Tabouk Hail
Eastern Province
Medinah Rabigh
Jazan
Zones: Taiba Complex for Technology and Knowledge based Economy, Technological and Administrative Colleges, Theme Parks, Islamic Civilization Studies Centre, Complex for Medical Studies, Biological Sciences and Health Services, Complete Business Centre, Residential Areas, Passengers station, Commercial Area, King Abdul Aziz Mosque Focus: Knowledge Based industries, Tourism and Services
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Thinking BIG!
Tabouk Hail
Eastern Province
Medinah Rabigh
Jazan
Population: 80,000 Zones: Logistics & transportation Center, Dry Port, International Airport, Petrochemical Industries Center, Business Center, Knowledge Center, Agriculture industries, Mining Center, Entertainment Area Focus: Logistics, agribusiness, minerals, and construction material
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The impact
In 2020, the Economic Cities will grow to create an economy equivalent to 2 X Pariss Population
Economic Aspiration
Saudi Economy Today GDP Jobs Population GDP/capita USD 310 bn 7.5 million 23.8 million USD 13,000
Economic Cities in 2020 USD 150 bn* 1.3 million 4.5 million USD 33,500
* Direct GDP contribution only. Indirect spillover effect is estimated to contribute an additional USD ~ 100 billion
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SMART City
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SMART City
25% of proven oil reserves. Avg. 2006 production 11 MB/D Worlds lowest production cost/barrel
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SMART City
2,068
2,050 1,425
-30%
670 248
EU US SAUDI ARABIA US
-63%
SAUDI ARABIA
Fertilizer
Steel 365
292
247 143
-42%
345
-15%
Germany
SAUDI ARABIA
DRI/FAF
BF/BOE
FAF
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SMART City
KSA global competitive advantage up to 26% of industry revenues 15% location advantage 11% EC and cluster benefit
*Of upstream production **Of MENA market
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Pillar 2: Clustering
UPSTREAM MIDSTREAM DOWNSTREAM
SMART City
Aluminum
Refineries
Smelters
Factories: Casting, Packaging, Extrusion, Auto Steel Fabrication, Rebar, Rod, Forged, etc. Fertilizer Manufacturing: Packaging, Plastics, Auto Parts, Tires ~ 70,000
Steel
Steel Processors
Fertilizer
Petrochemical
Employment
~ 10,000
~ 30,000
VALUE CHAIN
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SMART City
All major trade routes between East & West pass through the Red Sea along Saudi Arabias west coast. Launch pad and access to over 250 million consumers.
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SMART City
TEC PABMEC
KAEC JEC
Multi modal logistics network enabling efficient East West connection Growing addressable market, +52 million TEUs by 2020
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SMART City
Power
Airports
Roads
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SMART City
Infrastructure
Health network
3,200
Education*
1,500
Total basic infrastructure costs for a city of 500,000 could exceed USD28 billion
Entertainment
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SMART City
Industrial Services
Energy Logistics Agriculture Tourism Real Estate Knowledge
Public Services
Health Care Government Services Education Safety & Security Traffic & Transportation
Personal Services
Communication Housing Financial Entertainment
SMART City
The aim for the Economic Cities is to rapidly grow into vibrant and prosperous cities that offer an attractive lifestyle for professionals and families.
Tourism Entertainment Health & Education Family Business
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SMART City
LEED
Leadership in Energy and Environmental Design Green Building Rating System The accepted benchmark for the design, construction, and operation of high performance green buildings. Sustainable site development Water savings Energy efficiency Materials selection Indoor environmental quality
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SMART City
SAGIA
128 SERVICES License Work Permit Visa Renewals
SAGIA, through its One Step Shop, will be the only channel point between the investors and residents and the Government.
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SMART City
1,300
900
360
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Pillar 10: Regulations & Incentives Regulations 100% Foreign Ownership No local sponsor is required 100% Property ownership to Foreign Investors 3rd rank for ease of registering property in the IFCs Doing Business 2008 No Minimum Capital Requirement No restrictions on repatriation of capital Sector Specific Regulations Investor Engagement
SMART City
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Pillar 10: Regulations & Incentives Fiscal Incentives One of the worlds most efficient and competitive tax systems
SMART City
No personal income taxes and only a 20% corporate tax rate for foreign companies Under the Paying Taxes indicator, Saudi Arabia ranks 7th among the 178 countries ranked in the IFC Doing Business 2008 report. Able to carry forward losses on balance sheets indefinitely Jazan and Hail Economic City are eligible for tax credits Up to 50% on payroll and training costs
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Its Happening
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THANK YOU
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