The Kingdom of Saudi Arabia
Ministry of Commerce & Industry
National Industrial Clusters Development Program
The Era of New Manufacturing in Saudi Arabia
Presented to: US – Saudi Business Opportunities Forum
Chicago, Illinois
April 28, 2010
Kuwait
Turkey
Syria
Egypt
Iraq
Iran
Pakistan
Bahrain
Qatar
UAE
Sudan
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INDUSTRIAL CLUSTERS
Saudi Arabia is investing in value added manufacturing
serving 400 million consumers
Oman
A center serving over 400 million consumers
Vast oil, Petrochemicals and Mineral resources
Competitive power cost (3.2 cents/KWH)
Rapid growth of young educated Saudi’s
1st economy in the MENA & 23rd globally
7th globally in rewarding Tax system (20% flat tax)
13th globally in ease of doing business
Largest free market in MENA region
MENA- Middle East and North Africa
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1. Ministry of Commerce & Industry
 Industrial Clusters Program
2. Saudi General Investment Authority
3. Saudi Industrial Development Fund
 Industrial loans annual charges
4. Industrial Land leasing (per sqm/year):
 MODON
(government)
 Royal Commission
(government)
 PetroRabigh park
(private)
 Economic Cities
(private)
5. Human Resource Development Fund
6. Saudi Export Program
7. Chambers of Commerce
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Industrial strategy
Window for Manufacturing
One Step Shop
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2.5%
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INDUSTRIAL CLUSTERS
A multitude of specialized Government and Private agencies
committed to make you successful
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$0.26-0.53
$1.06
$1.6
Commercial rates
Training & wage support
Export credit & insurance
Window for business
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Metals Processing
Energy Goods & Services*
Automotive
Oil & Gas Offshore*
INDUSTRIAL CLUSTERS
The chosen sectors are export oriented & being developed as
clusters that are globally competitive
Home Appliances
Solar Energy
Plastics & Packaging
* Initiative championed by Saudi Aramco
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Basic
materials
Anchor Projects
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Aluminum flat rolling mill – 400 k tons
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Steel flat rolling mill – 1.75 million tons
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Aluminum casting
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Steel casting & forging
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Aluminum cable & wire
INDUSTRIAL CLUSTERS
The Metals Cluster will produce material & products to
serve the new industries and the export markets
Intermediates
Metals Products
Supporting businesses and services
s and services
Cluster
services
Industry
Association
Research &
training
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INDUSTRIAL CLUSTERS
The Automotive cluster to capture a significant portion of
the fast growing $75 billion market in the region
Anchor Projects
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120 k unit Car assembly plants
25 k unit Truck assembly plants
8 million Tire plant
600 k unit Powertrain plant
Tier 0.5/1
Import
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Auto
Companies
Tier 2
Tier N
Supporting businesses and services
Research &
Training
Industry
Association
Cluster
Services
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INDUSTRIAL CLUSTERS
Home appliances cluster targets products that are efficient
and essential for the quality of life in the MENA
Anchor Projects
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Air Conditioning Expansions:
Home Appliances:
Compressors:
Appliances Motors:
1.5 million units annually
2.3 million units annually
5 million units annually
3 million units annually
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INDUSTRIAL CLUSTERS
A major player in the Solar industry from R&D through
manufacturing of products and ultimately export of power
The crystalline PV value chain
Poly Silicon
Ingot
Wafer
Cell
Module
System
The thin-film PV value chain
Substrate
(e.g. glass)
Module
System
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SAUDI ARABIA POLYMER FORECAST
SAUDI ARABIA POLYMER CAPACITY FORECAST
(thousand tons per year)
(2008, thousand tons per year)
25,000
INDUSTRIAL CLUSTERS
Plastic and Packaging is increasing value by becoming a
consumer products goods center for the region and beyond
20,000
15,000
10,000
production
5,000
0
Note: In the right-hand‫‏‬chart,‫“‏‬Others”‫‏‬represent‫‏‬a‫‏‬number‫‏‬of‫‏‬new‫‏‬products‫‏‬such‫‏‬as‫‏‬:
SBR,‫‏‬EPR,‫‏‬PBR,‫‏‬Carbon‫‏‬Black,‫‏‬EPDM,‫‏‬PPMA,‫‏‬PA,‫‏‬EVOH,‫‏‬PACN,‫‏‬POM,‫‏‬Carbon‫‏‬Fibers,‫‏‬etc…‫‏‏‏‬
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 Pipe
 OCTG
 Valves
INDUSTRIAL CLUSTERS
Energy Goods Cluster targeting 30 “Anchor Projects” worth
$5 billion investments increasing local sourcing to 70%
 Pumps
28%
 Specialty Chemicals
 Heat Exchangers
50%
 Vessels
 Compressors
 Mechanical Seals
22%
 Drill Bits
 Well Heads
 Subsea Cables
Current Locally manufactured
Highly Engineered
Immediate target projects
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 Offshore Exploration & Drilling
 Offshore Platform Fabrication
INDUSTRIAL CLUSTERS
The Oil & Gas Offshore Cluster’s targeting platform
fabrication and specialized services capabilities
 Offshore Submersible Pumps
 Subsea Valves & Cables
 Surveying
 Industrial Marine Services
 Pipeline Scrapping & Laying
 Environmental Services
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Leadership committed to industrializing the nation.
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Significant resources directed to support manufacturing.
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Focus is on value added manufacturing & services.
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We welcome American companies as strategic partners.
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We are reliable, fair, & long term partners.
INDUSTRIAL CLUSTERS
Summary
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Contact us
Council of Saudi Chambers Building in Riyadh
Phone: +966 (1) 218-8999
Fax: + 966 (1) 218-8911
Email: info@ic.gov.sa
www.saudiclusters.com
“To live well, a nation must produce well.”
Source: Made in America, Regaining the Productive Edge