1 2 3 VISION To promote engineering profession, facilitate engineers and engineering establishments to reach ideal solutions, enhance the level of performance, and encourage innovation & creativity to achieve an internationally recognized position. 4 OBJECTIVES 1. Build engineering efficiencies that effectively contribute to the economic growth of Saudi Arabia. 2. Create conducive environment for innovation, development, and creativity that serve the requirements of the society. 3. Encourage Saudi Engineering firms and Saudi Engineers to develop their competitive abilities. 5 STRATEGY 1. Raise the standard of engineering education in academic, training, and professional fields. 2. Enhance the capabilities of engineers and technicians. 3. Authorize rules that control the licenses, engineering practices, and ethics of the profession. 4. Encourage research, development, innovation, and creativity in all engineering fields. 5. Offer attractive and prompt services to companies, engineering offices, and engineers. 6. Review decisions and codes of practices/systems. 7. Active participation of Saudi engineers and engineering companies. 8. Encourage integration between national companies. 9. Promote small and medium sized engineering establishments and individual engineering offices. 10. Edify the society about goals and assignments of the council. 6 OFFICES HEAD OFFICE (RIYADH) RIYADH DAMMAM JEDDAH 7 DUTIES SAUDI COUNCIL OF ENGINEERS IS THE MAIN REGULATORY FOR ALL ENGINEERING ACTIVITIES IN SAUDI ARABIA 8 MEMBERSHIP 9 TECHNICAL COMMITTEES TECHNICAL COMMITTEES WERE ESTABLISHED (TOTAL 20) COVERING DIFFERENT ENGINEERING DISCIPLINES SUCH AS MECHANICAL, ELECTRICAL, CIVIL, ARCHITECTURAL, TRAFFIC, SAFETY, ETC. 10 PROFESSIONAL PROGRAMS 11 PROFESSIONAL PROGRAMS 12 PROFESSIONAL PROGRAMS 13 PROFESSIONAL PROGRAMS 14 CONFERENCES & SEMINARS SAUDI COUNCIL OF ENGINEERS HAS ORGANISED SEVERAL CONFERENCES AND SEMINARS IN ASSOCIATION WITH INTERNATIONAL & LOCAL INSTITUTIONS 15 CONFERENCES & SEMINARS 16 CONFERENCES & SEMINARS 17 CONFERENCES & SEMINARS 18 CONFERENCES & SEMINARS 19 CONFERENCES & SEMINARS 20 CONFERENCES & SEMINARS 21 TRAINING PROGRAM SAUDI COUNCIL OF ENGINEERS HAS CONDUCTED A NUMBER OF TRAINING PROGRAMS FOR SAUDI ENGINEERS AND TECHNICIANS 22 TRAINING PROGRAM 23 TRAINING PROGRAM 24 TRAINING PROGRAM 25 EDUCATION SAUDI COUNCIL OF ENGINEERS IS CONTINUALLY FOCUSSED ON EDUCATION AND KNOWLEDGE SHARING FOR ENGINEERS AND TECHNICIANS 26 EDUCATION 27 EDUCATION 28 EDUCATION 29 BUSINESS OPPORTUNITIES IN SAUDI ARABIA SAUDI COUNCIL OF ENGINEERS IS DEVELOPING A PROGRAM TO PROMOTE CO-OPERATION BETWEEN SAUDI ENGINEERING OFFICES AND INTERNATIONAL ENGINEERING COMPANIES TO SERVE THE SAUDI MARKET 30 BUSINESS OPPORTUNITIES IN SAUDI ARABIA 31 BUSINESS OPPORTUNITIES IN SAUDI ARABIA 32 BUSINESS OPPORTUNITIES IN SAUDI ARABIA 33 GOVERNMENT SUPPORT 34 GOVERNMENT SUPPORT 35 GOVERNMENT SUPPORT 36 GOVERNMENT SUPPORT 37 38 Saudi Arabia Economy and Opportunities On the road to sustainable growth - Dr. A. Alrabiah 39 The new business environment and investment opportunities in Saudi Arabia “Energy, Transportation and Knowledge-based Industries”. •Run an international campaign •Europe •US •Asia MISSION 40 2 ENERGY Petrochemicals Downstream to Petrochem Minerals Power & Water 41 3 TRANSPORTATION Railways Roads Air/Seaports Logistics 42 KNOWLEDGE-BASED INDUSTRIES Healthcare Life Science Education IT 43 Key Economic Data Development Expenditures in Previous Plans $ 1 Trillion Spent on Development Sectors Human Resources 36.3 % Infrastructure 29.1 % $ 1 Trillion Spent on Development Sectors Economic Resources 19% Health and Social 15.6 % 44 Saudi Economy From Regional Perspective 2004 GDP Comparison Saudi Arabia 250.6 U.A.E. 75.1 (2003) Egypt 75 Morocco 50.1 Kuwait 41.7 (2003) Libya 29.1 Tunisia 28.2 Syria 23.1 Lebanon 21.8 Oman 21.7 (2003) 0 50 100 150 200 250 45 Saudi non-oil Exports ($ billion) Year Value Growth 1999 5.3 8% 2000 6.3 18.9% 2001 7.2 14.3% Value 2002 8.4 16.6% 2003 10.9 29.7% 2004 13.6 24.7% 46 Investment Opportunities 47 Investment Climate in Saudi Arabia Saudi Arabia offers a stable investment climate: Ongoing socio-economic and political reforms reinforce political stability. Features of current investment climate: Growing domestic demand due to increasing population. Tracking and abolishing investment barrier and administrative obstacles Securing lucrative investment opportunities due to prominent position in world’s oil, gas, and petrochemical industries. SAGIA’s investment strategy. 48 Investment Climate in Saudi Arabia Stable exchange rate for Saudi Riyal. Free movement of capital Excess liquidity seeking investment opportunities. Largest financial sector in the GCC. “A well-managed and well-supervised banking sector” (the IMF Public Information Notice, Dec. 2003) 49 In late 2004 the Saudi General Investment Authority(SAGIA) estimated that Saudi Arabia will need investments in excess of $600bn until the year 2020 to meet its growth needs. 50 Investment Opportunities Saudi Railways 51 Investment Opportunities… (Saudi Railways) Three new railways will be constructed: 1. Saudi Landbridge: linking Jeddah to Dammam via Riyadh (approx. 950 km) 2. Makkah Madinah Rail Link: linking Makkah, Jeddah, Madinah and Yanbu (approx. 600km) 3. Jubail Rail Link: linking Jubail to Dammam (115 km) and upgrading existing rail link between Riyadh and Dammam. 52 Investment Opportunities Energy 53 ARAMCO and its partners are planning to invest $70 Billion in expanding and upgrading the oil and gas capacity of Saudi Arabia over the next five years. This will also include increasing the refining capacity by 2 million barrels, one million of which will be in facilities inside Saudi Arabia. 54 ARAMCO has doubled the gas reserves of Saudi Arabia over the last decade and doubled its gas production and processing over the last five years. It has improved its global ranking from fifth to fourth in gas reserves in the last few years. It is important to note that only 15% of Saudi Arabia has been explored for gas by the end of 2005. 55 Petrochemicals Saudi Arabia is planning to double its global market share of petrochemical production from the present 6.5% to 13% in five years. SABIC the leading regional petrochemical company and one of the Global 500 companies has announced plans to spend $25bn over the next five years to increase its production from 47 million tons to 130 million tons. 56 Investment Opportunities Water and Electricity 57 The Saudi Ministry of Water and Electricity is undertaking a huge expansion and upgrading of the Saudi water and electricity capacity in cooperation with the private sector based on a public private partnership (PPP) framework. The first of its large projects was the Shuaiba Desalination plant which was awarded last year to a consortium of companies from Saudi Arabia and Malaysia at a cost of around $1.3bn. 58 The Ministry of Water and Electricity has already announced plans to spend approx. $18.7bn over the next five years on water resource projects. Spending on electricity projects will be between $4-6 bn per annum over the next five years. Experts estimate that Saudi Arabia needs to spend $100bn on water projects in Saudi Arabia and $117bn on electricity projects over the next 20 years. 59 Investment Opportunities Mining 60 ‘Maaden’ the government owned mining company has announced its intention to privatize within the next five years, and has started investing in a new industrial mining complex in Ras Alzour in the Eastern Province of Saudi Arabia. It intends to invest approximately $10bn over the next five years in that complex which will include an aluminum smelter and a phosphate processing plant. 61 Investment Opportunities Knowledge Based Industries 62 Investment Opportunities in the IT Sector Driving forces behind the expansion of the IT sector include: Largest market in the middle east, with an average growth rate of 15% per annum. Growth in the business and private sector demand for telecommunication services. Government needs for IT services. Significant internet potential. 63 Investment Opportunities in the IT Sector Investment opportunities come in the form of: Enhancements projects of the IT value chain. New projects: Content Applications Value added services Data network management And other areas 64 Investment Opportunities Real Estate Sector 65 Real Estate Sector In 2004, the value of real estate transactions including sales of existing units amounted to SR 900 billion. The real estate sector is driven recently by domestic demand and not by speculation. Strong economic and demographic fundamentals are the core drivers of growth in real estate. 66 Real Estate Sector Through 2010 the forecast is that total new real estate construction in the Kingdom will reach $129 billion. In order to meet demand, through 2020 a total of 2.62 million housing units will be built, at an average rate of 163,750 units per annum. Through 2020, total new investment in housing will amount to $320 Billion. 67 68 Fields of Major Investment Petrochemicals and downstream industry. Mining. IT & Telecommunications . Power generation/ Desalination. Municipal Projects. Aviation Railways. Tourism. Higher education Health & bio Technology 69 Impact of reforms and economic development Licenses Issued by SAGIA As of Nov-2006 Number Total Finance (US$ Billion) Industrial 1619 47.038 Services 3052 51.246 8 0.121 Activity Agricultural Total 4679 98.405 SAGIA(Saudi General Investment Authority) 70 Privatization Investment Sector •telecommunication • civil aviation • Desalination • highways management • Railways • sports clubs • government hotels • municipal services • social service centers • Saudi employment services • health services • education services • agricultural services • cleaning and waste management • Power • public parks and recreation centers 71 $624 Billion Investment Market $140 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 72 $624 Billion Investment Market Physical Infrastructure % % petrochemical expansions % electric power generation water desalination % % telecom and IT tourism and leisure development % % natural gas production agricultural expansion % % educational and training 73 Some of the major projects announced The General Authority for Civil Aviation is planning to spend $8bn to expand the Jeddah, Madinah and Tabouk airports in Saudi Arabia over the next five years. Four of six planned Special Economic Zones with investments expected to exceed $100bn. The ICT Center in Riyadh. (Information & Communication Technology Center) The Financial center in Riyadh. 74 Major projects announced recently The Sudair Industrial City in Riyadh with a total area of 160 square kilometers. The development of the Abha Central Business District. And many-many other projects. 75 Council of Saudi Chamber of Commerce & Industry Thank you www.saudichambers.org.sa 76