National Industrial Clusters Development Program
Ministry of Commerce & Industry
The Kingdom of Saudi Arabia
The Era of New Manufacturing in Saudi Arabia
Presented to: The Saudi - Italian Business Forum
Council of the Chambers of the Saudi Chambers, Riyadh
November 6, 2010
2
IND
US
TR
IAL
CLU
ST
ER
SSaudi Arabia is heavily investing in value added manufacturing serving at least 400 million consumers
1st economy in the MENA & 23rd globally 7th globally in rewarding Tax system (20% flat tax) 13th globally in ease of doing business A center serving over 400 million consumers Vast oil, Petrochemicals, Mineral and Metals resources Competitive power cost (3.2 cents/KWH) Rapid growth of young educated Saudi’s Largest free market in MENA region
Turkey
IranSyria
Saudi ArabiaEgypt
Sudan Oman
Qatar
Kuwait
UAE
Bahrain
IraqPakistan
MENA- Middle East and North Africa
3
IND
US
TR
IAL
CLU
ST
ER
SSpecialized Government and Private agencies committed to make investors successful
1. Ministry of Commerce & Industry
Industrial Clusters Program2. Saudi General Investment Authority3. Saudi Industrial Development Fund
Industrial loans4. Industrial Land leasing ($per sqm/year):
MODON(government)
Royal Commission (government) PetroRabigh park (private) Economic Cities (private)
5. Human Resource Development Fund6. Saudi Export Program7. Council of the Chambers
Industrial strategy New Manufacturing One Step Shop
2.5% annual charges
$0.26-0.53 $1.06 $1.6 Commercial rates Training & wage
support Export credit &
insurance Home for business
4
IND
US
TR
IAL
CLU
ST
ER
SThe chosen sectors are export oriented & being developed as globally competitive & sustainable clusters
Home Appliances
Automotive
Minerals & Metals+
Plastics & Packaging
Solar Energy
Oil & Gas Offshore*
Energy Goods & Services*
Petrochemicals^
+ by Ministry of petroleum, Clusters Program, Maaden, Sabic and private industry^ by Ministry of Petroleum, Royal Commission J&Y, Sabic, Saudi Aramco, and private industry* by Saudi Aramco, Taqa and private industry
5
IND
US
TR
IAL
CLU
ST
ER
SMinerals & Metals Cluster will produce material & products to serve the new industries and the export markets
2011 Target2012 - 20132013 - 2015
ExistingPlanned
Established but not Mature
Completed
Hot Rolled Plate
Flat Roll Mini Mill
Specialty Alloy Steels
Round Billets
Iron / Steel Foundry
Marine
Hot Rolled Sheet
Cold RolledSheet
GalvanizedSheets
Pumps / Valves
Other Castings
StampingHeat
Treating
Plating Machining
Rod / Wire
Tool Steel
Bearings Steel
Specialty Bar Grades
Alu
min
um
In
go
t/Liq
uid
Foundries
Continuous Caster & Cold Mill
Auto Body & Other Sheet
Products
Can Stock
Common Alloy Sheet
Building Sheet
Foil Stock
Zinc / Magnesium
ingots/Aggregates
Alloying Agent
Zinc PowderCopper
Cathodes
SheetPlate
Beams
Vessels
Pipes
Seamless Pipe
CableWire
Cable/ Wire
AppliancesAutomotive
TransportationIndustrial Products
1 2 3
3
1
Aluminum
Zinc / MagnesiumCopperIron / Steel
Processing
DC Mill
Copper Rod
ChemicalsPharma Packaging
4 5 6
Forging
A
A
A
A
4
5
3
3
3
64
32
1
Liquid / Ingot
Ingot
Liquid
Liquid
The Foundries usually produce one or more metals.
Alum Rod
3
32
1
IngotExtrusion
6
IND
US
TR
IAL
CLU
ST
ER
SThe Automotive cluster to capture a significant portion of the fast growing $75 billion market in the region
7
IND
US
TR
IAL
CLU
ST
ER
SPlastic and Packaging is increasing value by becoming a consumer products goods center for the region and beyond
SAUDI ARABIA POLYMER CAPACITY FORECAST(thousand tons per year)
SAUDI ARABIA POLYMER FORECAST(thousand tons per year)
Note: In the right-hand chart, “Others” represent a number of new products such as :SBR, EPR, PBR, Carbon Black, EPDM, PPMA, PA, EVOH, PACN, POM, Carbon Fibers, etc…
0
5,000
10,000
15,000
20,000
25,000
production
8
IND
US
TR
IAL
CLU
ST
ER
SA major player in the Solar industry from R&D through manufacturing of products and ultimately export of power
IngotPoly
SiliconWafer Cell
Module
System
The crystalline PV value chain
ModuleSubstrate (e.g. glass)
System
The thin-film PV value chain
9
IND
US
TR
IAL
CLU
ST
ER
S
Leadership committed to industrializing the nation.
Significant resources directed to support manufacturing.
Focus is on value added manufacturing & services. We welcome Italian companies as strategic
partners. We are reliable, fair, & long term partners.
Summary
“To live well, a nation must produce well.”Source: Made in America, Regaining the Productive Edge
Contact usNational Industrial Clusters Development
Program@ Council of Saudi Chambers Building in
RiyadhPhone: +966 (1) 218-8999Fax: + 966 (1) 218-8911
Email: [email protected]
Recommended
