SAUDI EXPORTS DEVELOPMENT
CENTER (SEDC)
FUTURE EXPORTS POTENTIAL OF NON-OIL
PRODUCTS PER SAUDI ARABIA 9TH FIFTH
PLAN AND 2020 NATIONAL INDUSTRIAL
STRTEGY
CONTENTS
1.
2.
3.
4.
5.
6.
7.
8.
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IMPORTANT INDUSTRIAL STATISTICS & INDICATORS
FACTS OF KSA LOCAL MANUAFCTURING INDUSTRY
KSA 2020 NATIONAL INDUSTRIAL STRATEGY
KSA MAIN OBJECTIVES OF 2020 NATIONAL INDUSTRIAL
STRATEGY
LIKLEHOOD OF ACHEVING MAIN OBJECTIVES OF
NATIONAL INDUSTRIAL STRATEGY
GOVERNMENT BUDGETTED INVESTMENT 9TH FIFTH PLAN
EXPORTERS FUTURE EXTERNAL & INTERNAL CHALLNGES
SEDC RECOMMENDATIONS
KSA INDUSTRIAL COMPARISON 1974 ,
2010
ITEM
1974
2010
Number Factories
198
4645
Total Investment ( Billion SR)
12.3
404
33,928
529,816
na
20
Total labor
No. Industrial Cities (not including
Jubail & Yanbu Royal Commission +
Aramco Refineries (84 million M2)
3
KSA EXPORTS 2006-2010
YEAR EXPORT WITH
OIL
(BILLION SR)
2006
791.3
2007
874.4
2008
1175.5
2009
721.1
2010
941.8
4
EXPORT OF
NON-OIL
(BILLION SR)
70.0
83.3
98.7
85.0
114.0
% OF
TOTAL
EXPORTS
9%
10%
9%
12%
12%
AVERAGE GROWTH OF NON-OIL
EXPORTS 1992, 2010
SECTOR
5
AVERAGE
GROWTH
Food Items
11,4%
Chemical & Petrochemical Products
13,5%
Minerals and related Manufactured Products
12,3%
Electrical Machineries & equipments
11,9%
Other Products
13,0%
KSA MANUFACTURING DISTRIBUTED
VALUE-ADDED 2009
VALUE-ADDED CLASSIFICATION
6
Wages & Salaries
Profit
Depreciation
Financing Costs
Rentals
Total
% OF TOTAL
VALUEADDED
35,6%
30,5%
28,2%
3,9%
1,8%
100%
FACTS OF KSA MANUFACTURING
 High value-added of wages & salaries indicate growth of GNP for this
item along with increase in manufacturing production capacities
 Competitive financing costs and rentals that are considered important
elements of attracting foreign investment into Saudi Arabia (SIDF+Local
banks, SEP)
 Breakdown of 35,6% Value-added of Wages & Salaries :-
Wooden Products (75,6%) , Metal Products (71,6%) , Textiles and
leather products (63,3% , Building materials (60,7% , Paper & Printing
products (60,5%)
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KSA 2020 NATIONAL INDUSTRIAL
STATEGY
 WIDENING INDUSTRIAL/MANUFACTURING BASE
 PROTECTING NATIONAL ECONOMY FROM
NEGATIVE FLUCTUATING INTERNATIONAL
ECONOMY
 DEVELOPING MANUFACTURING TECHNOL AND
ATTRACTING FOREIGN INVESTMENT THROUGH
TECHNOLGY TRANSFER
 DEVELOPING INDUSTRIAL REASERACH AND
SPECFICATIONS CENTERS
 CONCENTRATING ON INDUTRAIL SAUDIZATION
TRAINING PROGRAMMS AND SUPPORTS TO SMIES
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KSA 2020 TARGEETED OBJECTIVES
 INCREASING INDUSTRIAL CONTRIBUTION TO GNP TO 20% BY





9
2020
INCREASING INDUSTRIAL VALUE-ADDED THREE TIMES THAN IT
IS NOW PER EACH INDUSTRIAL SECTOR
INCREASIN SHARE OF NON-OIL INDUSTRIAL PRODUCTS IN
GNP FROM ITS CURRENT OF 18% TO 35% BY 2020
INCREASING EXPORTS OF IT BASE FROM ITS CURRENT OF 30%
TO 35% BY 2020
INCREASING INDUSTRIAL SAUDIZATION EMPLOYMENT FROM
ITS CURRENT OF 15% TO 30% BY 2020
EXCERTING EFFORTS FOR KSA TO BE IN BEST POSITION
AMONG THE BEST 30 INDUSTRIAL COUNTRIES OF AN
AVERAGE OF 2 ADVANCING POSITION PER YEAR TO REACH
THAT LEVEL BY 2020
LIKELIHOOD OF ACHIEVING KSA 2020 TARGEETED
OBJECTIVES
 KSA PRODUCES 25% OF GRAND TOTAL OF ARAB
COUNTRIES’ GDP
 KSA ECONOMY IS STIL THE FASTEST IN THE WORLD
DESPITE INTERNATIONAL PREVALING PROBLEMS
 KSA IS THE 20 TH INTERNATIONALLY OF WORLD WIDE
COMPETATIVNESS
 WORLD BANK HAS GIVEN KSA 12TH POSITION AMONG
ALL COUNTRIES FOR EASY FACLITATION OF PROJECTS
IMPLMENTAIONS
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KSA FUTURE INVESTMENT SECTORS
PER NINTH FIFTH PLAN (2010-2015
 WATER DESLINATION AND SEWAGE PROJECTS
 SOLAR & RENEWABLE ENERGY PROJECTS
 DOWN STREAM PROJECTS IN CHEMICAL &
PETROCHEMICAL PRODUCTS
 SPECILAIZED PLASTIC PACKING & PACKAGING
PRODUCTS
 PHARMACEUTICALS PROJECTS
 AUTO GENUINE SPARE PARTS (Industrial Clustering)
 CONSTRUCTION MATERAILS
 ENGINEERING PRODUCTS
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KSA BUDGETED INVESTMENT FOR THE
NINTH FIFTH PLAN (2010-2015)
 GOVERNMENT ALLOCATED A BUDGET OF 490 BILLION
US DOLLARS (1837.50 BILLION SAUDI RIYALS)
 AT LEAST 15% OF WHAT THE GOVERNMENT HAS
ALLOCATED WOULD BE AN EXTRA INVESTMENT FROM
PUBLIC AND PRIVATE SECTORS (ABOUT 73.5 US BILLION DOLLARS
(276 BILLION SAUDI RIYALS) (THROUGH DRECT FOREIGN INVESTMENT AND JOINTVENTURES)
 TOTAL GOVERNMENT, PUBLIC & PRIVATE SECTORS
WOULD BE AROUND 564 BILLIONS US DOLLARS (ABOUT
2113 BILLION SAUDI RIYALS
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EXTERNAL EXPORTS CHALLANGES OF NONOIL PRODUCTS
 GOVERNMENT EXPECTED INTERFERANCE TO DISCOURAGE EXPORTS
OF PRODUCTS ASSOCIATED WITH HIGH CONSUMPTION OF WATER
USAGE (bottled waters, dairy & Juices products)
 GOVERNMENT GREATER INCENTIVES ALLOCATION ON PRODUCTS OF
DOWN STREAM INDUSTRIES WITH GREATER EXPORTS VALUE-ADDED
(Chemicals & Petrochemicals, Plastic packing & Packaging, Auto genuine branded spare parts,
Engineering products, Solar & renewable energy, Water treatments ,Construction materials, Mining )
 STRONGER LOCAL & EXPORTS COMPETITION FROM MORE OF FUTURE
“DIRECT FOREIGN INVESTMENT” WITH UP-TO-DATE TECHNOLOGY
TRANSFER AND OFF-TAKE MARKETING AGREEMNTS
 REDUTION OF IMPORTS TARRIF RATES PER WTO CONCESSION
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INTERNAL EXPORTS CHALLNGES OF
NON-OIL PRODUCTS
 SO FAR NO RESPONSIBLE GOVERNMENT EXPORTS
ABODY EXIST (SAUDI EXPORTS DEVELOPMENT AUTHORITY 5 YEARS NO START)
 ONLY ONE EXPORT TRADING COMPANY EXIST WITH
WEAK PERFORMANCE WITH SAUDI EXPORTING
MANUFACTURERS (Saudi Exports Company (Public)
 LIMITED REGULAR SHIPPING LINES TO SEA PORTS IN
AFRICAN COUNTRIES AS THEY CONSIDERD TRAGET
MARKETS FOR MOST SAUDI EXPORTERS
14
INTERNAL EXPORTS CHALLNGES OF NON-OIL
PRODUCTS (CONTINUE)
 UNJUSFIABLE FEES ON SAUDI EXPORTS TAKEN FROM
SOME COUNTRIES TO PROTECT THEIR INDUSTRIES
(PROTECTIONISM) OR AS A PRCATICED WIDE SPREAD
CORRUPTION TO AVOID
 INACTIVE SAUDI EMBASSIES AND COMMERCIAL
ATTACHEE ASSIGNED IN COUNTRIES WITH GREATER
POTENTIAL FOR SAUDI EXPORTS

15
RARE QULAFIED SAUDIS TO TAKE OVER EXPORTS
RESPONSBILITIES OF MOST EXPORTING FACTORIES
SEDC RECOMMENDATIONS
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1.
EXPORTERS REQUIRED LOBBYING EFFORTS WITH
CONCERNED GOVERNMENT MINISTRIES FOR “Saudi
Exports Authority” FOR REAL START NEXT YEAR/2013
2.
CONCENTRATING ON EXPORTS OF PRODUCTS THAT
DO NOT INTERFER WITH GOVERNMENT NATIONAL
INDUSTRIAL STATEGY
3.
FOCUS ON EXPORTS OF MANUFACTURED PRODUCTS
WITH HIGHER PROFIT MARGIN TO OVERCOME
AFFECTED RELATED RISKS
SEDC RECOMMENDATIONS
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4.
STRONG ACTIVATION OF SAUDI EMBASSIES AND
COMMERCIAL ATTACHEE IMPORTANT ROLE FOR
PRMOTING SAUDI-MADE PRODUCTS
5.
HIRING AND UNDER TAKEN EXPORTS TRAINING
COURSES OF SAUDI STUDENTS GRADUATED FROM
WESTERN UNVERSITIES
6.
PROVIDING INFORMATION OF COUNTRIES
PARCTICING NON-TARRIFS OBSTACLES (SEDC)
SEDC RECOMMENDATIONS
7.
FOCUSING MANUFACTURING ON LESS LABOUR
INTENSIVE TECHNOLOGY FOR MAINTAINIG
HIGHER QUALITY SPECFICATIONS AND
COMPETATIVNESS
8. BENIFITING FROM SIDF FINACING SUPPORTS FOR
FURTHER CAPACITY EXPANSION TO INCREASE
RANGE OF PRODUCTS FOR NEWER LOCAL AND
EXPORTS MARKET SEGMENTS
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THANK YOU FOR LISTENING
EID ALKAHTANI
EXECUITIVE DIRECTOR
SAUDI EXPORTS DEVELOPMENT CENTER
(SEDC)
TEL: 01-218-2380
FAX:-1-218-2399
E-MAIL: EALKAHTANNI@CSC.ORG.SA
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