Fast-Growing Economy Patronising Local Japanese Set Up Manufacturing Kingdom to See Steady Requires Vision Manufacturing Sector Bases, Training Institutes Economy in 2013-14
inside 20 48 53 f o c28 u s Saudi Commerce a n d e c o n o m i c r e v i e w
i s s u e 228 • a p r i l 2013 • y o u r w i n d o w o f opportunity i n t o s a u d i a r a b i a a n d t h e g u l f • s r 20
Saudi Dairy Industry Meets 77% Local Demand
4 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 Altraiki PrintingAltraiki Company – Fax: 966-3-8471412 Printed by www.grantha.comJ Menon, Designed by magazine. authors, andnotnecessarily thoseofthe thepersonalviewsmagazine reflect oftheir andresearch papers publishedinthis Articles acknowledged. reproduced, provided thesource is inthismagazinemay appearing be Articles ISSN: 1319-4623 E-mail: [email protected] Tel: +966-3-8598166Fax: +966-3-8570607 Dept. Marketing For contact: advertising (or itsequivalent) countries US$100 Other Arabia Saudi SR240 In Subscription rates (Annual) Chamber, Arabia. Dammam,Saudi monthly magazinepublishedby Asharqia CommerceSaudi &Economic Reviewisa Iqbal Khan Irfan Editor-in-Chief E-mail: [email protected] Tel: +966-3-8598174Fax: +966-3-8570607 Arabia ofSaudi Kingdom P. O. Box 719,Dammam31421 No. 228–April 2013
INSIDE Demand 77% Local Meets Industry Dairy Saudi V R E F -G Saudi Commerce Saudi ISSUE
228 t AND "13*- 2013 M S L P t
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4"6%* REVIEW "3"#*" "/% FOCUS - E S S K 5)& (6-' t 43 20 59 Tenders 58 Contracts Products56 New & Technology 46 OilinPerspective 44 Projects Update 16 Regional News Roundup 12 News 10 ChamberSpotlight 08 Events 07 Comment 06 Contents COVER FEATURE REGULAR FEATURESREGULAR Demand 77% Local Industry Meets Saudi Dairy Trade Enquiries 22 Economy in2013-14 Kingdom to See Steady FOCUS 28 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 5
e n e r a l G s e r e n e r a l b G r e t a r y e m c e h a i r m e n M . S -C t r e t a r y e c c ss o a r d i h a i r m a n e Abdul Hadi H. Al Zoubi Abdul Hadi H. Al Zoubi Abdullah A. Almajdouie Abdullah M. Al Zamil S. Al Quraishi Faisal Ghassan A. Al Nemer Hana A. Al Zuhair Ms. Hassan M. Al Zahrani Ibrahim M. Al Jomaih Khalid M. Al Ammar Ghadran S. Al Ghamdi Mohammad S. Al Farraj Nasser S. Al Hajri Saleh A. Al Sayed Salman M. Al Jishi Samira A. Al Suwaigh Ms. S Relations & Media; Supervisor Editorial Public Al Homiyn Abdul Rahman F. Engr. C Abdulrahman R. Al Rashed V Abdullah H. Al Ammar A. Al Shureia Fahad B Abdul Rahman A. Al Wabel Abdul Rahman A. Al A P. O. Box 719, Dammam 31421, Kingdom of Saudi Arabia Box O. P. http://www.chamber.org.sa 20
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Fast-Growing Fast-Growing RequiresEconomy Vision INTERVIEW INTERVIEW Japanese Set Up Up Set Japanese Manufacturing Training Bases, Institutes in KSA 48
SPECIAL REPORT Sector Manufacturing Manufacturing Patronising Local Local Patronising
6 6 SaAUDI u d i CoOMMER m m e r cCeE aAND n d EcCoONOMI n o m i cC ReEVIEW v i e w /IssSSuUE e 228/ARIp rL i l 20132013 tradeTRADE enENQUIRIESquiries P o [email protected] China. Tel: 008613121887889,Email: Mumeizama Clothing Co., Ltd, Handan, Contact: Mr. Mazhar Alam, Sandi- wear and Islamic clothing. workers clothes, schooluniform, rain- army uniform (including camou age), frocksetc., leisureskirts, and sports-wear, – denimclothing ladies/gents/ jeans, kids with latest the machines. O e cient work and skilled team equipped 1,900,000 pieces of having shirts, ahighly producing 1,700,000pairs of trousers and with capacity the tion with afactory for forPRODUCTS: Looking - coopera 312 4678921,Fax: +903124678921, 8/6 GOP Ankara 06700Turkey, Tel: +90 International, Arjantin Cad. Halici Sok. Contact: Mrs. Nergis Unlu, Eraner frozen vegetables fruits, and chocolates. bulk insteel or drums plastic containers; and bottles glass and 1lt, 4lt, 5lt tins and supply olive oil in 250 ml, 500 ml, 1 lt PE capers,toes, pickles and gs,able dried to oil, olives, tomato paste, toma sun dried - PRODUCTS: Exporter/producer of olive mmfe.at, Website: www.mmfe.at. Vösendorf, Marktstraße 5Email: o ce@ Contacts: MMFEngineering e.U.A-2331 Rollers and Monorail guidance systems. bearings, roller ball Axial bearings, Radial fourbearings, point contact bearings, mation, D credentials. Commerce concerned. parties the to directly respond may o ers business these in interested Readers R ODUCTS: Industrial Auto goods, - TRADE ENQUIRIES TRADE does not assume responsibility for their rive technology, ball Radial A T CHINA USTRIA URKEY ther products ther Saudi T P anajansteel.net. Web: www.anjanasteel.net Kolkata 700071,India. E-mail: expoasi@ Centre, 33A,Jawahar Lal Nehru Road, Contact: M/sChatterjee International cated Items P India. E-mail: [email protected] Sowcarpet, Chennai, Tamil Nadu 600079, Perumal Koil Garden Street, 11th Lane, Proprietor, Rokya International, No. 2/5, Contact: Mr. A.Sheik Dawood, P E-mail: [email protected] Chennai, Tamil Nadu 600062,India. 22, North Mada Street, irumullaivoyal, Contact: Mr. V. Sivanathan, Vetri Exports, P +44207-6085719, Fax: +44207-0221680 com, Website: www. hushnappy.com, Tel: EC1V 4PY, UK;Email: obi@hushnappy. 11379, 145-157St. John Street, London, Development Director, Hush Brands Suite Contact: Obi Ejimbe, Business Hushcalled Nappy P Email: [email protected] 66-43377361, Tel +Fax +43–42822293; Bervellach 12,A-9620 Hermagor. Tel: +43- Contact: Karin Franz Import Export, more.and ring binder, briefcase, spiral pad, boxes exercise folder band, books, with rubber ing. Paper Products for schooland o ce laminated, MD as logs,sawn timber, veneers, panels, European and S P Website: www.telmek.com 312 5878798,Email: li@telmek.com, Turkey. Tel: +903125878741,Fax: +90 Advisor, Telmek Telecommunication A.Ş, Contact: Ms. Alev Elvan, & ImportExport 19”rack cabinet. cabinet, server PRODUCTS: Automatic door for li, eraner.com Websites: www.turkeytradeport.com, www. turkeytradeport.com /info@eraner. com, Mobile: +905394567981.Emails: info@ R R R R R R ODUCTS: S ODUCTS: T ODUCTS: S ODUCTS: S ODUCTS: Baby disposable diapers ODUCTS: T F, and plywood Floor pices, Groundnut pices, Garments, Rice olid Rubber T rack Fittings and Fabri- imber, and Logs S outh American timber I NDIA UK yres awn. awn. - P Website: www.carpetcellar.com 26518891. Email: [email protected]. 41641777/26261777. Fax: 011-26963664/ New Delhi 110049,India. Ph: 011- Gaon Marg, Near Siri Fort Auditorium, Carpet Cellar, 1,Anand Lok, Khel Contact: Mr. Nishant Chandra, e Missions, Interior D P [email protected] 25334227. Email: [email protected], 09331445000/09831027224/033- 033-25330624/25552298. Mob: Road, Kolkata 700002,India. Ph: 9, Manmatho Nath Ganguly Contact: Mr. Jhawar, N.R. Rubbertech, S P dujodwala.com; [email protected]. 33079381/22841281. Email: admin@ India. Ph: 022-33079300/22824089/022- 212, Nariman Point, Mumbai 400021, Products ltd. 812, Tulsiani Chambers, Contact: Mr. Mohan Agarwal, Dujodwala P [email protected] Mob: 9929477977/8890977977.Email: (Rajasthan), India. Ph: 01463-246235. Madanganj, Kishangarh, Ajmer 152, Ricco Industrial Area, Silora, Director, Minerals, B.R.K. H-1- Contact: Mr. Omprakash, Managing Email: [email protected] Perumbalur Dist, Tamil Nadu, India. 4/134, Millath Nagar, V. Kalathur 621117 Contact: Mr. A.Nazeer, No. Rose Exports, P ganpatitraders_mfgtd@redi mail.com com; [email protected]; Email: ganpatitraders_mfgtd@yahoo. Jaipur 302015,India. Ph: 09351429848. Traders, D-5,Ganesh Marg, Bapunagar, Contact: Mr. Prabha Gupta, Ganpati P 28149869. Email: [email protected] 28149869, India. Mob: 09323090023/022- Bhayander East, Dist., ane 401105/022- Milan Industrial Estate, Navghar Road, Manager, Rama Industrial Enterprises, 10, Contact: Mr. Edwin Smith, Export ware Products and and ynthetic Resin R R R R R R ODUCTS: Gemstones, Jewellery Beads, ODUCTS: C ODUCTS: Hand-knotted C ODUCTS: Minerals ODUCTS: Kitchenware and House- ODUCTS: Paper Plates, Food Grains C .F. Bulbs amphor, Phenolic Resin, esigners arpets to to arpets Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 comment 7 -
You will chase it. I meet many ‘enterprising’ people in my line of work. I see these entrepreneurs entrepreneurs these see I work. of line my in f people you are an enterprising person you will not wait for an opportunity to knock ‘enterprising’ on your door. many meet I it. chase will You andinofsee the life, all areas Theyseeopportunity minds. and active eyes open walk with the in present. future We can create one for ourselves. for one create can We The lesson I learnt is that challenging problems can have simple solutions. That unknown Michael Jordan said obstacles don’t have to stop you. If you run into a wall, don’t turn around and around turn wall,a don’t run into you If you. stop to have don’t obstacles said Jordan Michael One of the workers suggested using an industrial electric fan which was stored in the maintenance maintenance the in stored was which fan electric industrial an using suggested workers the of One Then the staff who worked on the assembly line was asked to see if they could come upwith a come tocould if seethey asked was line onassembly the worked who staff the Then The production engineers were asked to solve the problem immediately and they worked very very andworked they immediately problem tothe asked solve were engineers production The Recently, in one of those forwarded mails, I read an interesting ‘case study’ from Japan. It claimed claimed It Japan. from study’ ‘case interesting an read I mails, forwarded those of one in Recently, The common code is that they take advantage of a situation by being creative to be different. They different. be to creative being by situation a of advantage take they that is code common The [email protected] tunity for himself. for tunity Japanese worker Japanese took advantage of the dared situation, to think anddifferently createdan oppor give up. Figure out how to climb it, go through it or work around it. around work or it through go it, climb to how out Figure up. give room and not currently being used. He positioned the fan at the point on the assembly line where the the where line assembly the on point the at fan the positioned He used. being currently not and room - ap the at on fan the switched then He department. dispatch the to way their on passed by boxes soap a into line the of out boxes empty blew simply it fan, the passed box soap each as and setting propriate was solved. problem they The be reused. where could collected bin and storage simpler and less expensive solution to the problem. to solution expensive less and simpler hard to devise an x-ray machine with high-resolution monitors manned by two people to watch all watch to people two by manned monitors high-resolution with increased machine This x-ray an devise to hard empty. were them of none see to line production the along passed that boxes soap the happy. not was management The cost. the production that that one biggest of cosmetics Japan’s company received complaints from stockists that recent - ship ments of their soap had contained some empty soap boxes. dispatch the to Immediately the soap of management boxes referred packaged the all transported which line, assembly the to problem the department. dare to see things differently or go against the crowd. While doing so, they do not always make money money make always not do they so, doing While crowd. the against go or differently things see to dare to a make difference surely will that stance a feel-good-about-yourself enthuse but rewarded or get their future. I Create Opportunity Create If you run into a into run you If turn don’t wall, up. give and around to how out Figure through go it, climb it around work or it 10 8 SSAUDIa u d i CCOMMERo m m e rCcEe ANDa n d EECcONOMIo n o m iCc RREVIEWe v i e w//IISSssUEu e 228/228/AARIp rL i l2013 2013 EVeventsENTS Center (DIEC), Dammam Center (DIEC), Venue: Exhibition Dhahran International Date: 12-14 May projects. energy-saving technologies, innovation and production,energy andpower supply, equipment andapparatus, automation machines, motors,of electrical electrical equipment,production and measuring engineering, controlling electrical duction, alternative energy pro sources, electricity transformation, seismicandgeo-researches, The pro le for exhibitsincludeenergy Exhibition and Power Generation Conference & InternationalSaudi Water Electricity Convention Center, Jeddah Venue: Jeddah International Exhibition & Date: 07-10 May services. feeding, andbaby products and maternity of andchildcarenurseries facilities;allkinds outdoor toysonline learning; andgames; options;educationaltoys; delivery ucts; and infantmeals;beverages; fresh prod- bedding;decoration;baby ing accessories; furniture; liv- wheelers;nursery seats; kids babybuggies car andprams;baby carriers; baby babies, infants, maternity; andduring suitableforcluding clothesandaccessories intheline- vanced productsandservices Expo willdisplay thelatest andmostad- The Baby exhibitors andKids of Mother Mother Baby and Kids Expo Dammam Center (DIEC), Venue: Exhibition DhahranInternational Date: 04-10 May framing, objetsd’art. and lamps, rugsand oorcoverings, artwork niture, andfabrics, lightingand furnishings furniture, outdoor furniture, occasionalfur bedroom furniture, loungefurniture, dining turers, wholesalersanddesigners, including releasesof new by manufac- international This expo willshowcase acomplete range Design &Home Decoration Expo InternationalSaudi Furniture, Interior K INGDO M O F S AUDI A RABIA - - common platform exhibitors from theiron ona andSteel SaudiArabiabrings Metal andSteel ArabiaMetal Saudi Riyadh Exhibition Center (RICEC), Venue: Riyadh International Convention & Date: 12-14 May and nursing. ized healthservices medicine, community in theevent willincludegeneralandspecial- thatwillbeexhibited products andservices tions andhealthinsurancecompanies. The drug manufacturers, healthcare organiza- providers, and pharmacies medical services Exhibits attheSaudiHealthevent willinclude Health Saudi Dammam Center (DIEC), Venue: Exhibition DhahranInternational Date: 12-14 May systems and equipment. ogy andassociated equipment;maintenance technolsystems- and equipment;LNGtanker environmental and contracting; engineering systems and equipment;engineering design distillation systems andequipment;electrical technology andequipment; ment; cryogenic and equipment;control valves andequip systems and equipment;computer systems engineering systems andsupplies;cleaning and buildingrelated businesses;chemical andpetrochemical plantengineering ery The pro le for exhibitsincludesallre n - Petrochem Arabia Dammam Center (DIEC), Venue: Exhibition DhahranInternational Date: 12-14 May MRI systems. communication systems, energy e ciency, technologies, cogeneration/self-generation, ogy, automation, generation distribution cablingandsubstationtechnol - electrical meters; Power: technology, billingandutility gauges, water analysisandtesting, water sensing, reverse osmosisunits, valves and pipes and ttings, pumpsand lters, remote drainage systems, euentwater treatment, central control systems, desalinationplants, The pro le for exhibitswillinclude: Water: WEPower - Jeddah Venue: Center Jeddah for Forums &Events, Date: 19-22 May collaborations are generated. are available atthisExpo,portunities andnew demand oftheshow. op Amplenetworking reasonsone oftheprime for the increasing executed is atthisshow andthisactivity productrangesare ofnew also Introduction inthisshow inupcomingeditions. participate over theworld, thetra cmotivatingthemto come across ahuge crowd comingfrom all inthisshow will Exhibitors participating ally andgetinto businessdealingswiththem. attendees willgetto meetexhibitors person- items. Food &Hotel Arabiaisaplacewhere food the businessofo ering quality superior and mostrenowned companiesinvolved in Food together &Hotel thebest Arabiabrings Food &Hotel Arabia Venue: Jeddah Hilton, Jeddah Date: 19-21 May exhibitors. and logistics. about80 The exhibitionexpects ligence, management, ICT, legal, accounting researchplanning, market andbusinessintel- andmedia,strategy consultancy, marketing and colleges, vocational training institutes, ists, educationandtraining, universities Private Investors, Equity Venture Capital - investment solutions, insurance services, banks, nancialinstitutions, nancial services, age, consumergoods, ITande-businesses, manufacturers, retail, trading, food andbever SMEs, franchising, tions, NGOssupporting authorities, Free Zone authorities, Associa- investments tradedepartments, Industry, ChambersofCommerceMinistries, and The SMEwillinclude exhibitors atIzdehar Izdehar SME Venue: Venue to beannounced, Riyadh Date: 18-21 May too willsetuppavilions atthisevent. Germany, like Countries Italy, Turkey andUAE ofthisfair.Egypt will bethemainparticipants like countries African andNorth Eastern and non-ferrous metalindustries. Middle forging, furnace, metalmachining industrial and steel, metalrecovery, diecasting, casting, - - CHAMBER SPOTLIGHT 10 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 chamber spotlight PPP projects.PPPJanuary2013,fourbig-ticket In these in participate to investors Saudi urged eration with the foreign and local investors. He coop in developed tobe haveplanned been projectsnumberof programawhich under government’s public-private partnership (PPP) over 4.2millionvisitors lastyear. Philippines in 2012. The Philippines attracted traveledtotourists Saudi30,000 nearly that adding Ezzedin Mr. levels,” saidsatisfactory tour the of reached not has Arabia Saudi from number ists the attractions, tourist sites inthePhilippines.Heritage UNESCO two the of one also is It world. the in river underground navigable longest the of 8.2 km, the Palawan Underground River is length a With 2012. in 7 Nature New of Wonders the in listed was It Philippines. attractions in tourist renowned very the of one is which River Underground Palawan recognition andawards, heobserved. white sand beach, have received international Boracaysuchasfamouslongwhichits isfor lection of beaches. Some Philippines beaches, offeringislands se 7,107 wide of a composed country archipelagic an is Philippines the that said sector,EzzedinMr. tourism country’s was present on the occasion. Al Wabel,Secretary GeneralChamber,the of A.Abdulrahman Mr.Philippinesdelegation. the received Chamber, Asharqia of Member nanas. ba- and pineapples including fruits tropical biscuits,agricultural products and rangea of of foodstuffs such as sweets, snacks, noodles, tradedelegation which represented an array recreation facilitiesinPhilippines. and resorts motels, hotels, in investments consider to businessmen Saudi invited He Asharqiaat meeting a month. last Chamber in Kingdom, the to Ambassador Philippines Tago,H. Ezzedin Mr. by disclosed was This projects. related tourism particularly ture infrastruc- its of development the in ments Philippines Philippines Tourism Seeks Investments h Piipns masdr oe his noted ambassador Philippines The world-class of lot a have “Although we on focused diplomat Philippines The his in potential bright the Highlighting Board Almajdouie, A. Abdullah Mr. Philippines a leading was Ezzedin Mr. s okn fr ad invest Saudi for looking is - - - - der to bring them back to the Kingdom un- Kingdom the to back them bring to der or in products agricultural cultivate to tries coun- many in investing started has Arabia erationthefield in agricultureof since Saudi around SR40million. Philippines,period,duringtheamounted to from Philippines. imports Saudi imports Saudi of totalpineapples from the of half morethan representing million SR500 over at Philippinesofbananasimports valuedwere very Saudi 2011, In market.Saudi arethe in popular bananas Philippines that saying Kingdomparticularlytropicaltheits fruits in great prospects for Philippines food products to the Philippines’ development projects. million $100 ofgovernment’s commitment Saudi of part as was region.ThisMindanao developmentthe variousofroad projects in alreadyprovided $20 million as soft loans for Philippines.has Kingdomvelopmentin The de infrastructure the to ment’scontribution way communications andgaspipeline. rail- and road of fields the in approved were infrastructure projects under the PPP program Tago, Philippinesto theKingdom Ambassador Mr. AbdullahA.Almajdouie, Board MemberofAsharqia Chamber, presents amemento to Mr. Ezzedin H. e tesd h iprac o coop of importance the stressed He are therethat AlmajdouieobservedMr. govern- Saudi out pointed Ezzedin Mr. - - - valued atSR13.1billion. were Philippines to exports Saudi while lion mil- SR800 around to amounted Philippines from imports Saudi 2011, In year.previous the in billionSR10.2against as 2011, in lion bil- SR13.9 to rose trade two-way the tistics, inrecentcountries years,” hesaid. creasetradeexchangesin betweentwothe in- noticeable a in resulted which missions high-rankinggovernment officials and trade of visits reciprocal frequent also are “There ence have won- experi the heart and of Saudi employers. loyalty their and Kingdom the in work andFilipinosmillion live a halfover as strengthened be further will Philippines culturalcurrentandrelationshipstrade with Chamber Board Member. come,” the to noted years in increase cantly signifi- will sector Philippines’agricultural in investments Philippines. “Saudi in modities com- agricultural of number a produce to ventures joint up set already have investors Saudi of number a riculturalinvestmentsas ag- Saudi for destination suitable a become der its food security program. Philippines has According to the Saudi government sta- government Saudi the toAccording Mr. Almajdouie hoped that Saudi Arabia’s Asharqia Chamber photograph alongwithofficialsof delegation poseforagroup Members ofthePhilippines trade chamber spotlight Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 11 Abdulrahman R. Al-Rashed, Chairman country has kept its door open for the Saudi Larousi. businessmen, observed Dr. of Asharqia Chamber, said: “We develop need to cordial relations between Saudi Arabia and Libya, which will facilitate trade and investments in both must develop countries. a mechanism in We which one can explore opportunities in all the sectors. the in edge competitive a has Kingdom The oil and gas sector which we can share with other countries.” - “Libya has a it “Libya line where has long coast He pointed He out pointed that some of Saudi com- Libyan Oil Minister, Dr. Abdul Bari Bin Ali Larousi is seen with Abdulrahman R. Al-Rashed, Chairman of R. Al-Rashed, is seen with Abdulrahman Abdul Bari Bin Ali Larousi Dr. Oil Minister, Libyan the Chamber. visit to during the former’s Chamber Asharqia already already developed good heritage We cities. have developed this for the growth of tour the panies have approached already Libyan government for the investment, including a company for a cement plant. The volume of investments is around $450 million. The ism market. We would like to invite Saudis to to Saudis invite to like would We market. ism in the tourism and health tourism sec- invest said are countless,” tors opportunities where Larousi. Dr. Saudi and Libyan businessmen in talks at the Chamber. businessmen in talks at Saudi and Libyan - , Dr. , Abdul Dr. Bari Bin Minister
Oil
an Dr. Dr. Larousi was addressing a group of The Minister noted that Libya is willing Libya is in its transition period and the Apart from oil and gas sector, there are y Lib Ali Larousi has invited Saudi businessmen to invest in Libya’s oil industry which has vast opportunities and promising future. He stressed the importance of sharing the technology between the coopera- the two upgrade would said, he which, countries, a new level. tion to leading Saudi by extended businessmen support “The recently. Chamber at King Asharqia Mosques, Holy Two the of Custodian the Abdullah Bin Abdulaziz during our political that for thankful and we are was great crisis help and likewould we - continue to this rela Kingdomthe to visit Our levels. all at tionship our in participate to all you invite to mainly is economic development, which has a - prom ising future, especially in the oil and gas sec- use can you expertise, the all have you As tor. said. he Libya,” in thing same the to cooperate with Saudi Aramco in to order gas and oil The talent. and technology share industry in Libya is the strongest economic sector and it has attracted talents. The many new Libyan global government is all set to open its economy for foreign - inves tors and is expecting a good from response the business community. “The Arab world should utilize this opportunity and this will encourage trade and businesses across the Arab countries, which is very much essary nec- under present circumstances,” added. Larousi Dr. formed being are new and regulations rules countries Arab from investors more attract to The particular. in Arabia Saudi and general in is government planning to have special tax exemptions for the foreign investors so that companies can the explore opportuforeign - disclosed. he nity, many other sectors which are seeking for
eign eign investment, such as manufacturing, ports and transportation. Present oil plants have great maintenance works for which Saudi companies can bid with their experi- ence. All the ports of Libya need renovation and industrial estates are ready to industries. house manufacturing Libyan Oil Sector Offers Vast Opportunities Vast Oil Sector Offers Libyan 12 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 news round up nities and ways to facilitate information ex information facilitate to ways and nities - to bilateraldiscuss opportu Canberra trade be holding periodic meetings in Riyadh and will council the end, Tocountries. this fromboth investors and businessmen of tives representa- comprise should council ness steps inthisregard.key organize business delegations as one of the also will It partnerships. and activities ness busi- promote to businessmen Australian the and Saudi for with platform a as serving council countries both in sectors ness busi- the between interactions facilitate to and Australia to enhancebilateral trade. Arabia Saudi both from efforts continuous the of result a as came MoU the Al-Otaiby, Khalid Chambers Saudi of Council General the of Secretary to According emony. cer Craig signing the at Trade present were forEmerson Minister Australian and on behalf of the Australian side. Balghonaim of Council Saudi Chambers, while Tom the signedHarley it of chairman of behalf on joint Saudi-Australian committee session. 9th the of part as Council Business Saudi-Australian the form the Australian Industry Group in Canberra to memorandum of understanding (MoU) with SR2T Investments Spur Kingdom’s Business Realty year,” he said. Jeddah’s real estate business estate real Jeddah’s year,”said. he for 100,000 residential units in the city every 2020. by units million 1 at demand is “There Jeddah of needs housing the put Ghamdi the major problems facing the Kingdom. Al- of one is Housing Jeddah. in TaifahAl-Aqar of chairman Al-Ghamdi, Khaled plots,” said housing of meters square million 110 need would it and annually billion 117 SR of cost estimated at 4.5 million units at an estimated intheworld.real estate markets top the of one country the making trillion, 2 SR than more reached have Arabia Saudi The T Kingdom-Australia Trade Surges to $2.15Billion otal The MoU stipulates that the joint busi- joint the that stipulates MoU The aims council joint this that added He Qabbani Samir by signed was MoU The “The Kingdom’s“The housing need in 2020 is C ouncil
invest
of Saudi Chambers signed a ments in real estate across - - needed to regulate the Kingdom’s real es- real Kingdom’s the regulate to needed is said, he commission, a Such formation. its recommended has Chambers Saudi of Council the that adding delay, further out up a higher commission for real estate with- set to need the stressed Al-Ghamdi billion. 200 SR at estimated are construction under whereproperties Jeddah in especially years recent in stride giant a taken has Kingdom the in market estate real The stability. and region’sthe to security countries Gulf other and Arabia Saudi in sector the in in- vestment increasing the three attributed past He months. the over concluded deals of worth billion 21.5 SR with fast growing is period same the during Kingdom the from imports Its meat. and wheat vebarley, hicles, motor passenger in including exports major 2011-12, with billion 2.15 $ a to risen has Arabia Saudi Australia’swith trade two-way economies. strongest world’s the of one in products their for market potential explore to companies Australian for opportunity good a provides felt, they which, council business the of launch the countries.of thetwo change between the business communities utain uies ice welcomed circles business Australian - sector’s increased to theGDP. contributions the for driver a as serving besides disputes tate sector and as serve a reference for all its aboutAustralia.and alsolearning pursuingare whohigherAustralia students studies in Saudi young are These countries. two the between ties cultural promoting for significant very That’s them. accompanying with about 72,000 family members in Australia students studying in the Australian universities Saudi approximately 12,000 official. are There Australian an accordingto family and women can for,workespeciallyand they homefrom it for do so anywhere going without line andcrudeoil.included fertilizers ia plcto cn lo e oe on- done be also can application Visa news round up Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 13 - As for the interbank rate, SAIBOR, the sub the SAIBOR, rate, interbank the for As which contributed to the rise of the loans-to- the of rise the to contributed which the end of January. 79.9 by deposits ratio to will dued aid environment interest banks in avoiding any liquidity shortages by allowing the given However, cheaply. funds to access rise in credit which translated into larger li- between differential the movements, quidity SAIBOR and LIBOR has widened to over 70 The bps. pace is far from worrying as SAMA is closely monitoring risk indicators for the to expected is SAIBOR system. financial Saudi 100 bps. around hover - - As As for the private sector, total claims ex The bank said, the pace of credit will slightly moderate during 2013. Furthermore, during moderate 2013. slightly Furthermore, percent 6.8 gained sector public the to credit Y/Y as treasury bills recorded a gain of 13.5 liquid- excess from risks The annually. percent continue will SAMA thus, subdued, remain ity their The wait-and-see approach. growth of lending has once again outpaced deposits panded panded by 16.0 percent on an annual basis during January. The banking system is pected ex to soften the pace of credit to avoid their balance sheets. overheating ------the essential variables in de
of
one Representing the largest portion of de “SAMA’s policy is likely to mirror that However, time and savings deposits Saudi banks’ combined loans portfolio The robust economy facilitated the pos- accelerated credit long-term In addition,
As
termining the future of lending, deposits in the Saudi financial system are more than risingcredit the accommodate to adequate market and its potential. The base of depositary Saudi banks has reached SR trillion during 1.27 January, according to the lat MonetaryArabian (Saudi Agency) SAMA est same the over percent 13.7 of rise a bulletin, month last year. their increased have deposits demand posits, share to 60.2 percent by an annual gain of have individuals and Businesses percent. 15.5 added Y/Y 11.9 to percent their demand de a amassed entities government while posits The staggering 87.8 on percent annual basis. suppressed interest rate environment con- and time from away investors keep to tinues deposits. savings of the US; consequently, we do see not any the changes National before 2014,” fore Bank (NCB) said in its report. Commercial managed to increase by 9.1 percent during Y/Y January to reach SR it 323.4 Interestingly, is billion. still below the peak level recorded by the end of 2008 at SR 367.6 bil- lion. Furthermore, other quasi monetary de as percent 14.9 annual an at increased posits by 12.8 expanded deposits currency foreign during January. percent rose for another month to reach SR 1.01 tril- lion, setting an annual rate of 16.3 percent Y/Y for the month of January, a slight decel- month. the previous eration over sibility of maintaining an elevated level of credit expansions as investments increase within the Kingdom. banks Local are expect with credit of level current the maintain to ed 2013. for selective approach a more at an annual 26.8 to pace credit total of of share its 16.5 raise to January percent during December. during percent 26.3 from percent Representing the bulk of credit, short-term - fol percent 53.7 of share a with stands credit Y/Y growth. its 9.2 percent lowing Kingdom’s Bank Deposits Rise to SR 1.27 Trillion 1.27 Bank Deposits Rise SR to Kingdom’s 14 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 news round up KSA’s Finance Remains Strong ed to promoting stability and developmentpromotingstabilityandto ed contribut has that institutions financial over policies and monetary its distinct supervisory prudentapproach its the of inimplementation succeeded has Kingdom the that confirmed rating the that saying Agency, RatingFitch of outlookpositive the for tion satisfac- his expressed Almubarak Abdullah public debtto itslowest level ever. the of reductioncontinued the to addition in economy, domestic the of and production capacity absorptive the enhance will transportmeans,publicwhichhousingand as suchsectors, key many in projectsment develop and infrastructure supporting for spending government the of portion large of the Two Abdullah. King HolyMosques Custodianthedirectives underKingdom,of the by followed policies economic and cal fis- successful the to sectors. due its is of This omy, sustainability of its growth and diversity confidence in the strength of the Saudi econ- boosts agencies rating international largest the of one by rating positive the said Assaf economy andits financialposition. Saudi the of strength the confirmed move The (AA). at ceiling high a with Positive to Arabia’s sovereign rating outlook from Stable Fitch oevr SM Gvro D. Fahad Dr. Governor SAMA Moreover, a of appropriation of result a also is It Al- Ibrahim Dr.Finance of Minister Saudi R ating Agency has upgraded Saudi - - but the consumer price index is dominatedisindex consumer pricethe but accelerated, therefore services and goods ing 47percent.” stagger a by expanded GDP nominal when year a 2011, in eased have actually should (at least on the current account) that inflation ment to the openness of the Saudi economy mains ataround 85). re ratio loan-deposit average (the system banking the in liquidity ample is there and lows historic near remain rates since cant signifi- as seen not is this but 2012, in up ticked rates interest Market said. report signals,the rate interest domestic to spond re which of neither rents, domestic and prices food global by driven largely is tion to remain anyso. likely case,is and infla- In caps, statutory to subject is personal consumption for credit Bank 2015. until rates policy in moves upward any be to thereforeunlikely are there and dollar US the to broadly accommodative. remain will policy Kingdom’s monetary the 2013-2015report issued recently, stated that fronting economy. theworld con- challenges deflect to it enabling serves, re Kingdom’sfinancial the of enhancement continuous the and sector financial its of Saudi Minister ofFinance Minister Saudi Dr. Ibrahim Al-Assaf By definition, the price of non-tradeable non-tradeable of price the definition, By testa- a is “it said report the Moreover, pegged remain to expected is riyal The Forecast Baseline Saudi its in Samba, - - - - percent by end-2015. tioncontinue tomoderate, reaching some 4 government strategy. therefore,Overall infla- with line inyears, few next theover line on pectedto continue as more housing comes ex is trend This down. trending is but inflation rate) overall the than (higher high still is inflation Rental rents. is inflation of driver in thelatter (atleastin2013). ciesweanticipateas somemonetary easing curren- market emerging against strength gaineconomicfundamentals.alsoshould It given years of couple next the overeuro the againststrengthen to dollar the expect we pathsarenotoriously difficult to predict, but rate Exchange dollars). in denominatedare inves- (commodities purchases their increase non-USD tors as commodities of price share), Sambasaidinthereport. market protect to order in cost higher the absorb not do suppliers (assuming Arabia Saudi for imports non-USD of cost the raises thereby and riyal, weaker a means viously ob dollar weaker A dollar. US the of rection di- the on depend will much though import costs, contain to help should economy inflation eased to 5 percent from 5.4percent. price consumer Consequently, moderated. these and items, imported by SAMA Governor Dr. Fahad AbdullahAlmubarak Domestically, the report noted, the main noted,main Domestically,the report the the raise to tends also weakness Dollar globalgenerallyweak a ahead, Looking - - news round up Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 15 -
travel market is expected is market expected travel
s ’ Arabia The The organization also described Saudi of percent 26 that showed also study The in- travel the from officials some However, powerful a represent would “E-commerce Travel, Elaf at director marketing Muheeb, Saudi to grow to $11.4 billion in 2014 compared to compared 2014 in billion $11.4 to grow to ac- percent, 4 of increase an 2012, billion $10.2 Research Market Global by study a to cording PhoCusWright. Company aviation market as mature and stable. growing by 2.6 It percent every is year with low- cost airlines expected to grow by 7.6 percent 2013 for Figures to 2014. 2012 from annually pending. are the users of smart phones in Saudi Arabia use and them book to information travel obtain percent 25 About tickets. flight purchase and Kingdom the in reservations travel 2012 all of were done online. Smart phones constitute 60 percent of used mobile phones in Saudi the study. to Arabia according and exaggerated are numbers the think dustry of Chairman information. inaccurate on based said Nasser Group, Al-Tayyar, Travel Al-Tayyar he cannot confirm the projected numbers in the report, adding that $11.4 billion is too high a volume for the sector in the are Kingdom numbers the thought He 2014. in reach to theoretic and not based on the Saudi market and system. However, he thought if Saudi system, the e-commerce implements Arabia these projections could be correct. the on called Al-Tayyar said. he tool,” purchase authorities to give more attention to domes- that the saying lack tic of tourism, a tourism the in increase the for factor main the industry their to offspend taking of travelers number “Itna- human a is every abroad vacations year. change the place.” to ture thought the projected numbers are Saudis- reason said He higher.” be might “they and able a pay “Saudis increasing. are abroad traveling said. he abroad,” countries visit and travel to lot peo most says Travel Fursan of Fadl KhaledBa ple book and purchase tickets online, adding adding online, tickets purchase and book ple that one airlines had a revenue of almost one billion riyal. He estimated that domestic and abroad tourism in Saudi Arabia increased by about 25 percent, adding that China demand in for increasing is Arabia Saudi to traveling and Europe. 7/21/11 11:58 AM Travel Sector Growth to Reach Billion $11.4 to Sector Growth Travel Re SuwaiketAd_18793.indd 1 16 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 REGIONAL NEWS partners.” and estabish themselves as reliable industry potential their as develop to work such Botswana, markets, diamond emerging as important particularly be will This ability. profit on pressure increased facing now is industry the However, trade. diamond the facilitate to been has banks the of role the Historically, industry. the to relevance their world and need to continue to demonstrate the of rest the with competition in now are financiers established “The said: Diamond Exchange, Dubai Chairman, Meeus, Mr. Peter model. financing its on implications resulting the and years 20 past the over try indus- the in changes the discussed Zohar Even- Chaim Mr. author acclaimed and lyst diamondproducingAfrican nations. the for development and growth stimulate to programmes financing sustainable for Dubai need and the highlighted Exchange, Diamond Centre Commodities Multi Dubai the by recently hosted 2013’), (‘DDC The strong commitment to its key role in improv- a Through percent. 19.7 by grew revenue products branded where MENA, the in tion iscurrentlyArab world goingthrough. the circumstances that difficult the despite medications, high-quality providing by ties communi- local the and worldwide markets theirHikma’scompanies tovariousof ment commit the reflect results These percent. 5.2 increase revenue organic $1,108.7 with million to 2012 year the during percent 2012. ended 31December year the for results preliminary its recently reported US, the and (MENA) Africa North acrosscountries Europe, East and the Middle pharmaceutical multinational group with sales covering growing 50 fast Jordan-based Hikma’s Revenues Up Hikm Sustainable Financing Diamond Conference on Focuses A panel led by diamond industry ana- industry diamond by led panel A Hikma saw strong demand for medica- for demand strong saw Hikma 20.8 by increased Group’s revenue The Dubai a Pharm imn Cneec 2013 Conference Diamond aceuticals L, the PLC, - - ket. mar Egyptian the in potential growth its ing facility to the Group and significantly enhanc - of this year, adding a dedicated cephalosporin ChemicalIndustries (“EPCI”) theatbeginning the and Pharmaceuticals of for Company acquisitionEgyptian the and 2012; April in SudanPharmaceutical SavannainIndustries theyear.acquisitions completed during addition, Hikma enhanced In its product approvals. portfolio product through 74 received and products new 14 launched markets, and countries all across areas therapeutic key in prices affordable at treatment quality high percent revenue growth. formanceglobalin Injectables delivered 48.9 per excellent products, medicinal injectable of production the in sector health the ing While we have benefited from public sup public from benefited have we While particular. in Angola and Africa in erations growand op vestmentmining to support in- for and need infrastructure dire financial a improved is “There said: He tions. na- diamond African facing issues current the highlighted ENDIAMA-E.P. of CEO and im cmltd t aqiiin of acquisition its completed Hikma companyThecontinued provide tonew Mr. Antonio Carlos Sumbula, President President Sumbula, Carlos Antonio Mr. - - - - Angola.” of people the of benefit the for these resources develop to investors welcome and we prospecting for open still is territory Angolan the of cent per 60 Around nies. compa- and operations mining diamond in invest to sector private the encourage to taken be to need steps additional port, REGIONAL NEWS Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 17 - “Major investments in transforming the Global Islamic banking assets with ing to significantly higher operational and commercial risk. In Oman for example, the has BankingRegulatoryIslamic Framework recentlybeenintroduced, requiring Islamic banking institutions to ensure that all core banking systems are certifiedcompliant. as Shari’a Discussions underway. are model operating with management reveal that a common theme ‘to across most get banks to is know Nazim. Mr. noted their customers,” commercial banks are now at $1.55 trillion at end of 2012 and projected $2trillion to by 2015. exceed Ernst &Young’s Islamic Banking Universe in its estimates repre sentsbanksacross major22 Islamic finance market. - - “Inability gen- of most Islamic banks to In comparison to their conventional Qatar was the fastest growing market where Islamic Islamic where market growing fastest the was Qatar than more by grown have to expected are assets banking 2012 during 23 percent ing an honest introspection of their oper erate accurate data and on time remains a serious concern for the the board as well as management,the regulators. Where such information is available, the analysis remains very rudimentary and has not re banking peers, Islamic banks remain - tech nologically disadvantaged systems as are primarily designed for software finan- cial institutions based banking on frameworks. conventional While the regulators are industrylooking to tackle this issue, it remains a concern for the industry lead- ating model, especially with regards to the data management infrastructure.” weak advan- competitive true a to translated ally he said. tage,” - - - -
assets with commer
banking
Qatar was the fastest growing market Islamic Global Partner, Nazim, Ashar Mr. Islamic Banking Assets in GCC Hit $445B in GCC Hit Banking Assets Islamic Islamic cial banks in the GCC reached $445 billion at the end of 2012, up from $390 billion in 2011, with the outlook for the industry re - accord 2013, in positive relatively maining ing to estimates by Ernst & GlobalYoung’s Islamic Banking Center. This represents a 14 percent year-on-year growth, which is considerably lower than the fiveyear aver age of 19 percent. where Islamic banking assets are expected to have grown by more than 23 percentduring 2012. While Islamic banking assets by grew GCC the in banks commercial with 14 percent in 2012, conventional banking assets grew by only 8.1 percent indicating the relative resilience and potential of the industry. Banking Center, Ernst & Young said: expect “We a relatively positive the outlook Islamic banking industry for in the GCC. Quality of growth remains under pressure and we expect more Islamic banks initiat 18 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 REGIONAL NEWS achieving a diversified energy mix and ex mix energy diversified a achieving to fundamental develop is energy Renewable ment. economic encourage and jobs futureenergyourleaders, create specialized train 1 Shams like projects sophisticated in energy,” pointed out renewable Dr. of Al Jaber. benefits future“Investments and mediate solar projects,” heobserved. large-scale deploying of advantage mental environ- and economic the proves 1 Shams and renewables, in investments major for poised is East Middle the fact, electricity.In generates it how transformationin major a undergoingis regionexponentially, theing - ris energy for demand the Masdar. “With of CEO Jaber, Al Ahmed Sultan Dr. East,” said Middle the in development energy newable re for breakthrough a is 1 Shams of ration inaugu- “The energy. renewable in unprecedented growth for poised is Africa North and East Middle the potential, energy able ship,” henoted. leader energy long-term secure our to country enable will that development capital human of type the is scale, such of project withinternational companies and building a closelyworkinggained, theyexpertise “The President. the project,” said this on worked a step toward energy long-term security. in the country’s economic diversification and inauguration of Shams 1 is a major milestone the that adding ergy,”Nahyan Al Sheihk said provideren- major of a as position its taining Emirates’Arab main- Unitedto thecommitment demonstrates power of sources able of energy and economic diversification. UAE’sthe goal in achievement major a it ing his pride in the inauguration of Shams 1, call- 20,000 homes. President Al powerNahyan to expressed energy clean generate will plant power connected grid 100-megawatt the Locatedin the western region of Abu Dhabi, solar world. the in operation in concentrated(CSP) plant power largest the 1, inaugurated Shams recently Dhabi, Abu of Ruler and Emirates Arab United the of President Sheikh World’s Largest Power Solar Plant inAbu Dhabi “Our wise leadership recognizes the im- the recognizes leadership wise “Our world’sthe of half nearly Holding renew - “We are proud of the young Emiratis that renew- into leadership our “Expanding Khalifa i Zyd l Nahyan, Al Zayed Bin - - - - ball fields – Shams 1 incorporates the latest latest the incorporates 1 Shams – fields ball portunity for growth,” he said. op tremendous a see we and development, East is poised for a surge in renewable energy policies and investment programs, the Middle man and CEO of Total. bold new targets, “With chair Margerie, de Christophe Mr. East,” said Middle the in project energy renewable tive innova - most and largest the build to journey idle most oftheyear. and expensive are which generators, shaving”“peak for need its reduce can UAE demand,the peakgeneratedduringpower solar With road. the off cars 15,000 taking or trees, million 1.5 planting to equivalent an year, per CO₂ of tonnes 175,000 mately approxi- displacing emissions, carbon UAE’s installed CSPcapacity. world’sthe ofpercent 10% to close and ity capac- energy renewable Gulf’s the of cent per 68 almost for accounts portfolio energy the addition of Shams 1, Masdar’s renewable percent).With(20 Solar Abengoa and cent) per (20 Totalpercent), (60 Masdar between venture joint a Company, Power Shams by resources,” hesaid. hydrocarbonprecious our lifeof the tending Covering an area of 2.5 km² – or 285 foot “Shams 1 is the culmination of a three-year thereduces projectinnovative CSP The developed and designed was 1 Shams - - - - - energy requirements. country’slong-termthesupport velopedto ergy and peaceful nuclear power is being de en- renewable fields, oil Alongside evolving. is regionthe 1, Shams of additionthe with sents the roots of its Bedouin heritage. repre Today, and industry the hydrocarbon of country’s centre the is Dhabi Abu of Region he observed. energy,”future of boundaries the pushing to forward look we and more1, Shams likeprojects needs region The change. climate and security energy address that power of sources clean sustainable, integrate to nity - opportu an is energy solar of abundance SantiagoAbengoaSeage,ofCEOSolar. “The world’srenewable energypotential,” saidMr. desert. the arid waterconsumptioncritical a advantage– in system that significantlydry-cooling reduces thecycle’s efficiency. Shams1 also features a as it enters the turbine, dramatically boosting steamheatboosterheater to a project uses drives a turbine and generates electricity. The filled pipes, Shams produces 1 steam, which centrating heat from direct sunlight onto oil- con- By collectors. trough parabolic tracking 768 on mounted mirrors 258,000 than more parabolicin trough technology andfeatures suc o get rd, h Western the pride, great of source A Middle “The East holds nearly half ofthe - - Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 19 From left, Mr. Ahmed left, Mr. From H. Al-Theyab, Director Managing Water HANA of Abdullah and Mr. Almajdouie, of President Almajdouie Group
The The event was attended by Mr. Abdullah Almajdouie, Almajdouie Group is one of the pioneers in providing National Plant for Healthy Water or “HANA Water” was President President of Almajdouie Group, along with Mr. S.I. Mustafa, CEO; Mr. Khalid Alghamdi, COO and other executives from Almajdouie Logistics. Hana Water team was headed by its Managing Director, Mr. Ahmed H. Al-Theyab. Aws CFO, Naser, Mr. Hassan Shanyia, Plant & Operational Director and Bakhos, Elias Marketing and other executives Mr. Director owns that solutions management chain supply and logistics and operates the largest fleet in theregion. The company was established in 1965 and through the years it flourished “3PL Inof companies. the a into group 2012, it has received Services Provider of the award Year” and holds a Guinness Book of World Records title for transporting the freight. heaviest road by item established for more than thirty years and is characterized by a unique position through the availability of natural un- of one as considered is Water HANA wells. water derground Its East. Middle the and GCC in plants water bottled best the plant operates at very high yields using global techniques which are the latest in European Union countries and the production lines worldwide. largest Mr. Ahmed H. Al-Theyab, Managing Director of HANA Water, Mr. S. I. Mustafa – CEO of of CEO – Mustafa I. S. Mr. Water, HANA of Director Managing Al-Theyab, H. Ahmed Mr. of Almajdouie Group. President Abdullah Almajdouie, and Mr. Almajdouie Logistics - advertorial , a leading logistics and logistics leading a , . LLC . o C CONTRACT RENEWAL RENEWAL CONTRACT ogistics L douie j a Under the new contract, Almajdouie and Hana not only not Hana and contract,Almajdouie new the Under can we Water, Hana with relationship our “Incontinuing In his speech, Mr. Ahmed Al-Theyab, Managing Director m l A supply chain management solutions provider, announces its renewal of partnership with one of the leading drinking another 5 years. for Water, HANA supply companies, water renewed their existing contract but also signed contract another of agreement for the increasing the meet to order in project supply the for total in trucks of 240 dedicated the Kingdom. products around Water demands of Hana attest to the strengthening of our partnership said further”, Mr. Abdullah Almajdouie, President of Almajdouie Group. teams joint our years, 6 past the “over that, furtheradded He targets. business our exceeded also but achieve just not did Through this partnership, both companies developed common understanding which a gives us the leading edge our common goals”. achieve to of said Hana Water, that during the past years of partnership that understanding great a developed have companies both helped Hana Water becomes a leader in the market. He fur ther mentioned the plans of Hana to launch its juice products juice its launch to Hana of plans the mentioned ther in the market, its existing product lines. in addition to ALMAJDOUIE – HANA WATER ANNOUNCE ANNOUNCE WATER HANA – ALMAJDOUIE 20 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 INTERVIEW Fast-Growing Economy Requires Vision appreciation. of matter a is frameworks Islamic and rules market free under development economic kingdoms the in role major a play to sectors private the for given encouragements the that to addition In scale. wide a in development economic the for lot a served has oil on pendency de- the decrease to as so non-oilsectors other of and mining agriculture,industry, development the through fication diversi- economic Kingdom’s grams. pro- expansion enormous of means by economy its diversifying on intent also progress.the for support major a is encounter they problems the overcome in them as- sisting and performance project of ment improve the for - advices marketingand with technical, administration, financial along assistance financial providing of fiedeconomy andgrowth. The provision tinue on its path towards a con - more diversi- to country the helped has stance of Middle the East. heavyweight Industrial the Arabia Saudi made has investors foreign the as well as sectors business private the by ments invest- sustained with coupled feedstock some challenges ahead. An abundance of far as businessmen are concerned, despite as economy,well it’s the at all look we If nomic diversification? Saudi Economy,- its eco especially How theemerging you do see sector non-oil industries and the provitheand industries non-oil sector Kingdom’s encouragement of the private kingdom’s investors’profile as The hub. investors, which would further boost the would definitely attractpotential foreign This project. massive a itself devel - is opment infrastructure the public for funding of announcement recent The opments intheKingdom? thefuture youhow- do see devel Being ayoung Saudi businessman n ie ih C, h kndm is kingdom the GCC, with line In fiscal proactive Government’s The - Nasser A.AlAnsari INTERVIEW Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 21 I believe that the Eastern Province has Province Eastern the that believe I This serves as the driving force for more potential and growth prospects than prospects growth and potential more any other in provinces the Kingdom and can serve as a major investment hub for economic development of Saudi Arabia. The Investors are attracted towards this particular province due to many reasons and the main one is its enormous oil & gas resources which stand as a base for industries. other many the development of non-oil the region’s economic sectors such as industries, in- frastructure, banking & realfinance, es- tate, domestic & foreign trade, tourism service other and sectors. Council? through aim do you What Businessmen Young Asharqia Council? This is one of the great steps the taken by chamber in order to on businessmen one Asharqia platform. bring young Chamber has been trying to develop and - contrib and businessmen young support ute to the of creation - a business environ ment over the years. Theirefforts and commitment to this initiative is notable and has made are trying a We change. to create awareness among the young uni- versity graduates about the business po- tential of the Kingdom. By utilizing the we platforms, are different tryingto - edu cate and train the young generation, so that they are prepared for the new - busi ness challenges. By conducting seminars and workshops, the council has all efforts made to transfer the entrepreneurial generation the coming to message Nasser A. Al Ansari as currently Business works Development Manager AbdulRazzak of Mohammed Qanbar Board Al- a also is He Ltd. Co. Sons & Ansari member of Al Ansari Holding, & Constructions and Contracting Abyan Abyan Materials. Arrangements Arrangements for numerous job SMEs SMEs require special attention as training programs training should programs be conducted im- to order in sectors private various in provs industrial the knowledge. youth’s Research in monitoring the economic issues of the private sector needs to be conducted frequently in order to study the root cause variables affecting their operational flowand to take corrective actions. they will generate more job - opportuni ties for Saudi nationals which we discussing are now. The process needs to be streamlined, documentation which is very lengthy now. meetings, Organize such more as Saudi Businessmen conferences, to bring together young businessmen and the government ficials.- of Seminars on topics should various be conducted in order to specific explore opportunities for investments and future development of the dom. - king Maximum support to be to given young entrepreneurs and SME’s to set up globally competitive enterprises in the Eastern province. Opportunities and support need to be given to Saudi Women to findemployment that they their careers. deserve improvise to and As As the Economy of the Saudi Kingdom Arabia of has been witnessing boom economic in the past few it years, an itself gearing surely but steadily been has in the international to beplayer a major Eastern the mix, this In arena. industrial Province has undoubtedly been a sig- nificant partner leading the future industrial of growth of the Kingdom. The unique environment with Province’s its resources vast of availability made tailor has given and opportunities rise to pos- sibilities of getting a free zone, one. decided have to Kingdom if the How do you see- do you the Eastern prov How hub? ince investment as next - Saudi Commerce and of Saudi Shariff ohammed Commerce Authorities should Authorities look into the se- Saudi Saudi Arabia has followed an - excel TheSaudi primary, secondary and What are the concerns, which the concerns, you are What think would become for obstacles investments? future When we analyze the there whole are still gaps to be filled.More fa- system, initiating for organized be to need cilities foreign Investments into the kingdom and to explore the Kingdoms’ markets. provided be to need opportunities More for the members of the authority in or der to travel to other nations by way of tie ups. establishing and trade missions rious issues and challenges and try to solve those, otherwise small issues will emerge as serious ones in the Decision future. should be taken considering to which has economy, our of the future requirements. global economic address sion sion of facilities for the foreign investors to explore the market have initiated the future development of the country in a major way. This also has proved sus- a tained growth for the kingdom to - estab base. technological and advanced an lish lent economic strategy for ment through the eight - develop five-year plans which form the milestones major for the success. Thecountry’s - pro development such government, the by rendered grams as SIDF, have contributed a lot for the sectors. industrial the young of growth bonded markets are well set for - devel im- As the globalopment. environment proves, the investors become more so - phisticated and the country could - ma ture into an important regional - finan cial centre. Liberalization of the overall drive, privatization the policy, economic - re tax policy, investment the of revision forms, new mining regulations and the proposal to set up a capital market - au thority serve as vital growth factors for the Kingdom. about the idea of sustaining high growth while while ReviewEconomic high growth the idea of sustaining about maintaining price stability Business DevelopmentBusiness Manager A. Al Nasser of Al Ansari Holdings, with M speaks Ansari Saudi Dairy Industry Meets 77% Local Demand
By Mohammed Shariff COVER FEATURE COVER Dairy industry in Saudi Arabia has grown from rags to riches overcoming two major challenges – harsh climate and lack of adequate grazing land. Saudi manufacturers of dairy products are now able to meet more than 77 percent of the Kingdom’s dairy needs and in the future, they expect to exceed the local demand and export their products in large quantities to the neighboring countries. 2013 p r i l 228/ A u e ss / I e v i e w R c o n o m i c E a n d
e c o m m e r C a u d i S 22 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013
COVER FEATURE 23 Mr. Khalid Mr. Daou, Project Manager of Saudi Agro- the data, Ministry’s Agriculture Saudi to According Mr. Frenie Daves, Production Manager of Al Safi The beverage processing sector in the Kingdom Domestic players have reigned in the juice sector, The future liesvery bright food for theKingdom’s withcoupled the investors, interested The of influx GCC Market Saudi Arabia now caters to 61 percent of the GCC’s dairy market, with an increasing number of health- conscious consumers helping to sustain the demand dairy in the country. for products dairy continues industry region’s “The GCC said: Food - $2.8 bil of a value reached now has and consolidate to share percent 61 a holds part, its for Arabia, Saudi lion. of the GCC dairy market, establishing the country as the premier growth destination for key players in the dairy industry.” region’s dairy food market in Saudi Arabia has been forecaste to be worth $5,109.4 million with an expected annual in the future. 6.5 percent of rate growth Thestrong support givenby the local has government provided the much-needed boost for these companies like products for demand domestic the of most meet to added. he dairyjuices, confectionary products”, and a veryrepresents large segment of the food processing of import the factories, licensed 90 over With industry. subsequent competitors’ products have declined over the years as the domestic demand being increasingly carbonated The capacity. installed country’s the by met beverage segment is, as expected, locally by packaged are all products but brands predominated foreign by bottles. made which is notably one of the strongest growth areas in soft-drinkthe sales.Kingdom’s The high sales figures and the rapid development have pushed some dairy- based companies to venture into juice-production as well. and beverage industry as foreign investors are eyeing possible agreements and joint-venture - op investment already have groups multinational date, To portunities. formed strategic partnerships with local to companies produce dairy and juice products that will be - dis tributed not only in the local market but also across Africa. the East Middle and Asia, Southeast vibrant outlook of the food and beverage sector, - defi nitely affirmsthat the industry is set togrow and de- years. few in the next velop - -
ccording ccording to the industrial data, Saudi farmers dairy increased their annual from 650,000 tons in 2009 to 925,000 in 2011, production
Today, Saudi Today, Arabia boasts of the world’s largest The Dairy, food and beverageindustry in the Theseproducers have not only earmarked growth Success in the Saudi dairy industry is due to - gov The story of the Saudi dairy industry’s growth from from growth industry’s dairy Saudi the of story The come come and the skepticism it faced. Although the harsh and is milkcow breeding for - too climate inhospitable ing, Saudis have made it happen relying on their own ingenuity and perseverance, supported by extensive government programs and cooperation from foreign partners. integrated dairy farms – Almarai Dairies and Al Safi Farm. Almarai, established in cooperation with Irish the agri-food pioneer Alastair foods dairy McGuckian integrated largest the and now is his Paddy, brother that quality for reputation a with world the in company is unmatched within the Gulf countries while Al Safi Farm, a joint venture with the International France’s farm dairy integrated largest the also is Group, Danone 1998). Records Book World of (Guinness in the world. strength from going been has Arabia Saudi of Kingdom to strength in recent years. It provides ample oppor tunities for industry players to invest in innovations, especially in product packaging, and eventually - con country the within both presence market their solidate for forecast market The positive well. as theregion and food beverage industry and alsohas led the Kingdom’s include that players of breed new a of emergence the to sub-sector groups in dairy, juice and nectar - manufac turing. in alsothe have but Kingdom started to eye the bigger the in opportunities acquisition into looking by picture region. Companies today not only produce for mass - prod their export to started also have but localmarket key other and Iran, UAE, the like markets new into ucts world. in the Arab markets ernment support, said Mr. Monther Al Harthi, GM, Al Rabie Saudi Food Company. “Thefound a firm ally inindustry the Saudigovernment, which has has continued to provide assistance by offering attractive financing schemes,duty free importof equipmentas well as some raw materials and packaging materials.
generating a revenue of SR13 billion a year. a year. billion SR13 of a revenue generating small, scattered farms to massive units equipped with state-of-the-art machinery and large stocks of cattle is astonishing considering the obstacles it had to over A Saudi Dairy Industry Meets 77% Local Demand Local 77% Meets Industry Dairy Saudi 24 COVER FEATURE Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 Sour 1,000 1,200 1,400 Sour M Evaporated
Sour 660,00 680,00 700,00 720,00 740,00 760,00 780,00 800,00 820,00 200 400 600 800 ce: Almarai Almarai ce: 0 ce: Almarai Almarai ce: ce: ce: 0 0 0 0 0 0 0 0 0 FA Butter Ghee, 11% Ghee, Butter PRI & Global Resear Global & PRI 2007 Natural Cheese, 26.7% Cheese, Natural Pr ilk 2007A Fo ospec Pr , 6% , Evaporated M Evaporated Labneh M ospec rec ilk - Shor - ilk 2.3% tus & Global Resea Global & tus Saudi Ar asted t us & Global Resea Global & us 2008E Saudi Ar t Ot 2008E ch netn i rsac ad eeomn ad state-of- and development and research in investing Danone. the Over past 30 years, Al hasbeen Safi Dairy cattle, and is the supplier of high-quality Holstein milk to Al 37,000 Safiof herd a has land, of hectares 3,500 covers that world the in farm largest dairy integrated the single has Dairy Safi “Al said: Company Dairy ilk her Cheese, 11 Cheese, her 2.7% Wo abia Produc rld Milk&Dair rc To abian Dair h rc tal M tal Condensed M Condensed Cr M 2009F h 2009F ilk - - ilk eam % 2.4% ilk & Dair & ilk Lo ng & Shor & ng twise Growth(’000tons) y y ilk Pr y Mark 2010F odu 2010 t 2.2% y Mark ct Mi F2 lk - Shor - lk et C Butter Ghee Butter Dair Laba et Supply(’000tons) 2011F t, 4% t, omposition Cr 1.6% 0 y Dese y 11F n eam, 6% eam, Gr owth rt Y oghur 2012F 1.4% 2012F t, 3% t, Ot Cheese Natural Yo Mi Laban, 11% Laban, ghu her Cheese her lk - - lk Lo rt 2013F ng & Shor & ng 1.1% 2013F t, 20.7% t, 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% as compared to estimated the 3.9million tons in2010. market is expected to increase to 4.4 million tons in 2013 market,dairy the Saudi Arabian andmilk dairy product Consequently, since population is a key growth factor of million. 31.1 to 2007-13 during percent 2.0 of CAGR a march toward self-sufficiency. its overcomein has ithurdles the and faced it skepticism great the considers one when impressive more the all is industry dairy Saudi the equipment. rapidof success The and technology acquisition new ofplants cessingthe and farms, purchase the of ones, new construction the of pro- provided to farmers have helped the expansion est-free loans.of The millions riyalsof in loansBankthe has existing of support varies from technical advice to long-term inter industry’s dairy ticipantin phenomenal growth.Its range par active an been has Bank Agricultural ArabianSaudi strongly encouraged the private sector’s involvement. The the nation’s food security policy. The government hasalso of segment industry,vital considered a this isof it as port ofparts Kingdom. the other throughout scattered are remainder The region. Western the in eight and Province Eastern the in 14 Province has approximately 16 dairy projects; there are Riyadh cattle-rearing. to conducive more and humid less is there climate the because Riyadh, outside area, Most are large cattle operations located in the Al-Kharj Todayfarms. 86. aredairy there specialized three only had Arabia Saudi 1980, In population. the of teristics level in the country, weather and demographic charac- country is much dependent on taste preference, income of conversion from traditional farming. low capitalintensive relativelyindustry. There trendis increasean in a being and acquisition through nies, compa- existing by operations of expansion products, rising population, which increases the demand of these attributedtowards the mainly is market the in growth expected The 2008-13. duringpeercent CAGR1.7 ofa at increase to expected supplyproductis dairy & milk remain at same the level of 11.9percent in2012. percent during 2009-010, the while ratio isto expected 11.9 of ratio’averagelevel an atmilk remained to ucts Agriculture onFAPRI,addition, the based average the ‘dairy prod - & 2009-10 CAGR of Food 17.1 percent to 696.6 million tons. In at and increased has supply milk (FAO),Organization the (FAPRI) Institution efficient productionmilk.” ofhighquality for bench-mark global a company the made has This methodologies. know-howandfarming dairy prietary pro- own its developed company has The production. farmingandforage green technologiesof dairy the-art Saudi Arabian population is expected to increase at increase to expected is populationArabian Saudi The Saudi government has remained steady in its sup- any in products dairy & milk consumption of The world the FAPRI, to according forward, Going Research Policy Agriculture & Food to According - - Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013
COVER FEATURE 25 32 31 30 29 28 27 26 25 21.8 12.4 12.4 31.1 2013F 192.7 904.3 494.1 143.0 254.8 245.5 463.0 463.0 1168.5 2013F 4375.5 ch 30.5 2012F - - - et (’000 tons) 21.3 12.2 12.2 ulation - RHS 188.9 886.6 484.4 140.1 249.8 240.7 454.0 454.0 p 2012F 1,145.6 29.9 2011F 4,290.0 Po t Mark 29.3 2010F 20.9 11.9 11.9 esentation 2009 & Global Resear 185.2 869.2 474.9 137.4 244.9 236.0 445.1 445.1 Pr ’ 2011F S 1,123.1 4,206.0 28.7 estors 2009F v In y Milk & Produc t Market - LH 28.1 20.5 11.7 11.7 2008E 181.6 852.2 465.6 134.7 240.1 231.3 436.3 436.3 oduc Pr 2010F 1,101.1 4,123.0 ilk & 27.6 Book 2008, Almarai y M 2007 ct Fa Dair CIA 20.1 11.5 11.5 s, 27.1 178.0 835.4 456.5 132.1 235.4 226.8 427.8 427.8 tu 2009F 2006 1,079.5 4,042.0 opulation (mn) & Dair opulation ospec Pr 26.5 2005 Saudi P 19.7 11.3 11.3 174.5 819.1 447.5 129.5 230.8 222.4 419.4 419.4 ce: Almarai 2008E 1,058.3 Soft Drinks All soft drinks categoriesregistered positivetotal cur value rent growth in 2011, with the soft drinks market as a whole growing by 8 percent. Growth was mainly driven by heavy investment in marketing in order to attract the growing local population. Increased distri- among among the GCC member countries and act as a mar In some ket dairyleader. KSA product range, has very strong hold i.e. laban and condensed milk. The- domi of nation Saudi products Arabian in the regional mar due mainly is which future, in prevail to expected is ket to the in producer of presence largest i.e. Saudi Arabia on. and so Al Safi NADEC, Almarai SADAFCO, our 3,963.0
S 4,600 4,400 4,200 4,000 3,800 3,600 3,400 - 19.3 11.0 11.0 171.1 803.1 438.8 126.9 226.3 218.0 411.2 411.2 2007 1,037.7 3,886.0 omposition 18.9 10.8 10.8 et C esentation 2009 & Global Research 167.8 787.4 430.2 124.5 221.9 213.8 403.2 403.2 2006 Pr 1,017.4 ’ 3,810.0 t Mark estors v 18.6 10.6 10.6 164.5 772.1 421.9 122.0 217.6 997.6 209.6 395.3 395.3 2005 3,736.0 tus and In ec p os e Pr ilk ilk y Milk & Produc t t Lif ong t ‘000 tons y Deser e: Almarai c According According to ‘Almarai prospectus’, the number A major portion of Saudi dairy market is associ- Saudi Arabian dairy products are widely marketed ilk – Shor ilk – L ther Cheese ondensed M oghur otal M M Laban Y Labneh Cream Dair Natural Cheese Evaporated M C Butter Ghee O T Saudi Dair of of cows in Saudi Arabia had was increased 81,710 to 112,432 in in 2007, 2003 as to jumped further per has whichnumber The FAPRI Outlook. 2008 Agriculture 135,000 (excluding young stocks) in 2008. Meanwhile, per cow milk production in Saudi Arabia is estimated Almarai in mentioned as 2003, in tons from10.5 drop to and calculation the per as 2008 in tons 8.0 to prospectus, FAPRI 2008 agriculture outlook. This could be mainly in decline The cows. old of number the in increase to due per cow milk production rate, due to the natural factor, will cause the local industry to increase the number of cattle. Thenumber of cattle in SaudiArabia is expected 160,000 – 140,000 to percent 5.7 of CAGR a at increase to in- – ways two in market local the help will This 2013. in crease actual production and maintain the production per cow rate and gradual reduction in the dependence on the imported raw milk, which is forecasted to come down at 71.4 percent in 2013 as compared to 74.1 per cent calculated in 2007 and 77.0 percent in 2004. 77.0 percent calculated in 2007 and cent cheese, and butter i.e. products, dairy fat-rich with ated which is mainly due to the geographical demographic factor, while the high consumption of milk, long life and laban, is mainly due to the weather factor. Since the demographic changes are rigid so and we do not believe ina change slowly, significant the responding forward. going pattern, consumption Sour 26 COVER FEATURE Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 by15 percent inconstant value terms. cast period average unit price is expected to fall further forethe Over percent.- 2 by falling drinks soft in price unit average the with 2011, in declined or stabilized either prices carbonates, in particularly 2010, in price retailers to increase penetration. their grocery small and large for locations new provided have population increasing the accommodate to areas new in opment devel- investment infrastructure addition,forplansIn ties as a result of consumption the social of soft drinks. opportuni- distribution increased in resulted 2011 in ing population enhances penetration growof- lifestyle Evolvingproducts.social fruit-based RTD companies invested in the development of healthy their concerns about possible side effects. Furthermore, overcomeconsumershelp to order in activities keting mar in heavily invested products functional of turers manufac- hand, other the On variants. low-calorie to switched carbonates of consumers Many nectars. and concentrates over preferred were juices percent 100 the while achieved 2011 in terms volume water total in growth strongest bottled still Hence, healthy. as perceived are that drinks soft purchase to consumers category contributed lifecycles also to growth. the extend to order in development product and bution oue osmto i epce t rs over rise to expected is consumption Volume unit in hikes After 2011. Averagein falls price unit Arabia Saudi in culture café the in growth Further driven increasingly has awareness health Rising - fective diversification towards other foodstuffs. management ofthe products, focus andef- ontimely theirsupply undisruptedoffordistributionchannels and marketing existing of utilization effective the on based mainly was companies the by achieved suc- cesses recent The brands. different further its to strengthening successful quite remained it Moreover, market. regional the in significant well as a local the in maintain position and achieved has industry its main to other export Gulf countries. and Yemen which relies on juices and dairy products as Jordancountries, GCC the in also butArabiaSaudi in only not name household are brands Major channels. non-traditional in particularly processes, distribution marketsinvestmentsthroughkey intended enhanceto export and local its fortifying and expanding rapidly ters of juices and beverages per year. The companies are its ther boost in the regionssales selling 800 million li- fur will companies drinks and food Gulf, the within ducing profit their margins. re- thereby competition, price to resort to tributors dis- and manufacturers force will drinks soft mature in competition However,increasing period. forecast the over rise to expected is drinks soft of sumption con - volume total expatriates, of number in increase an with coupled Arabia, Saudi in population young forecast toincrease anin Owing the expected period. Over the last 3 years, the dairy and soft drink soft and dairy the years, 3 last the Over trend consumer current the of advantage Taking margins reducing their profit price competition, thereby distributors to resort to force manufacturers and mature soft drinkswill increasing competition in is expected to However, rise. consumption of soft drinks expatriates, total volume increase in number of Arabia, coupled with an population in Saudi increase in the young Owing to an expected -
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Telephone E-mail 28 FOCUS Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 Kingdom to Steady See EconomyKingdom in2013-14 percent in2010. posted 5 the to compared weakness into relapse 3.2 percent and 3.5 percent, respectively; a growthal in 2012 and 2013 downwards to (IMF) had revised its projections for - glob Fund Monetary International The omies. coming seemingly high in emerging econ- - be are contagion of signs as rates, ment unemploy- high mediocre stubbornly and a growth in manifested advanced economies, world’s the befell that - ail ments same The issue. (SEP) Perspectives Economic Saudi previous our in shown trends dismal the of out break not did it as precipice the of edge the at remained Glo bal economic recovery in 2012 2012 in recovery economic percent year. this tor that is projected to register around 6 - sec public the as well as construction and manufacturing mainly sector, vate pri- the by driven record, on second highest the terms, real in percent 7.6 growbyto sector,oilexpected is which non- the by offset be largely will sector b/d. 400,000 However, this contraction nearly in the oil by decline will which production, oil in growthslower jected pro- the to mainly due 2013 in percent 3 to moderate to GDP real project we economy,yet Saudi the for year tional Saudi crude oil prices are expected expected are prices oil crude Saudi excep - another been had 2012 mainly concerned these days with price with days these concerned mainly is fronts,ofcouple a on full hands their have that banks central other to trary con- SAMA, en- Fortunately, tight vironment. fiscally a in burdens stimulus policy shouldered that advanced economies to compared predictability andstability of degree high exhibitinga back ofthe lower hydrocarbon exports. GDP,relatively than last smaller year on of percent 16.1 aroundat rise to pected ex- is surplus account current The lion. percentof GDP, substantiala at7.6 SR207 bil - surplus in be will account fiscal to average around $105/bbl in 2013. The Monetary policy in Saudi Arabia is Arabia Saudi in policy Monetary Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013
FOCUS 29 2014F 2013F 2012F 2011P Monetary policy in Saudi a high exhibiting is Arabia of stability and degree to predictability compared that economies advanced stimulus policyshouldered in a fiscally tight burdens Fortunately, environment. contrary other to SAMA, have banks that central their hands full on a is mainly of fronts, couple these days concerned stabilitywith price and money supply dynamics, Saudi to according Perspective Economic 2013-2014 report by Bank Commercial National 2013 and 2014 Projections 2013 and Our macroeconomic (Arab price oil crude projections average an on based are Light) of $105/bbl and an average daily MMBD 9.5 of level production oil crude 2010 cles in KSA 2009 , Contribution Business Cy or ct , Contribution or 2008 te ct oil Se Ra owth 2007 wth in Non- wth in Oil Se o o eal GDP Gr and NCB Y/Y Gr Y/Y Gr R MA 2006 ces: SA our 8% 6% 4% 2% 0% assert that the IMF’s World Economic Outlook WEO expectations are - overes the over deadlock a if especially timated, US debt ceiling materialized; unlikely possible. but S -2% -4% 10% Meanwhile, Meanwhile, uncertainty due to the inability to agree on fiscal plans in the US the in plans fiscal on agree to inability and mitigate the crisis in the Eurozone, will continue to act as a Thisglobal willeconomy. offset drag the un- on the precedented accommodative monetary policy implemented by Bank Central European the Reserve and the Federal (ECB) as well as new fiscal from initiatives Japan and China. Therefore, we stability stability and money supply dynamics. Since the Fed expectedisn’t to raise its target funds rate until 2015, SAMA is expected to maintain the repo and - re verse repo rates at 2 percent and 0.25 respectively. percent, Kingdom to See Steady Economy in 2013-14 in Kingdom Economy See Steady to 30 FOCUS Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 Sour Ke Spread, inBasisP Av Av Growth inCredittotheP Growth inBroadMoney(M3) USD/SAR Ex F Break-Even OilP Budget Balance/GDP Ov T T Expenditure O Ac Ac F Budgeted Expenditure Net F Cu Cu Net Unilateral Net F In Mer Mer Ex CPI Infl GDP/Capita, USD P P Real GDPGrowthR GDP atC GDP atC Av Av Real Sect otal Expenditure/GDP otal Revenues/GDP inancial Se iscal Se opulation GrowthR opulation, million y Macroec visibles erage 3MUSDDepositR erage 3MSARDepositR tual Expenditure tual Revenues ternal Se erage DailyCrudeOilP erage KSACrudeSpotP rr rr erall BudgetBalance c chandise Impor chandise es: Reuters ent A ent A Non- Oil Expor Non- Oil Sec ac oreign AssetswithSAMA,USDbillion a tor Income tion, urrent MarketP urrent MarketP ct oil Expor oil Sec ccount Balance/GDP ccount Balance,USDbillion Tr or or (C tor GDPGrowthR ade Balance change R ct ct Y/Y %Change Tr ts or Tr ver , SAMAandNCB or , USDbillion ade Balance onomic Indicators tor GDPGrowthR entr ansf rice , SARbillion oints run, % ts , USDbillion , SARbillion ate ts , USDbillion ers al Gov ate ate , USDbillion , SAIBOR-LIBOR , SARbillion , USDbillion , SARbillion , USDbillion rices rices rivate Sector roduc rice ate ate ernment) , A , USDbillion ate , USDbillion , SARbillion verage , ArabLight,USD/BBL tion, MMBD ate 14,147.9 1,412.6 10.7% 42.2% 36.1% 25.6% -0.6% -6.1% (27.7) (84.3) (86.4) 596.4 509.8 475.0 -7.8% 405.9 163.1 105.2 377.2 2009 0.6% 0.9% -86.6 5.6% 5.1% 3.4% 3.5% 0.1% 3.75 60.8 21.0 29.1 26.7 59.2 26.4 8.6 8.2 16,354.7 1,690.5 38.7% 43.9% 21.1% 14.8% (27.9) (87.0) (96.7) 653.9 741.6 540.0 441.0 215.2 153.7 450.8 2010 0.3% 0.7% 4.8% 5.0% 5.2% 5.3% 3.4% 5.5% 2.4% 4.6% 3.75 64.1 87.7 66.8 35.8 27.6 77.6 39.8 7.0 8.2 23,632.8 2,511.4 (119.1) 1117.8 2011P 11.0% 13.3% 11.6% 32.9% 44.5% 42.5% 23.6% 291.1 (29.4) (86.3) 826.7 580.0 535.9 158.5 317.6 244.7 670.6 108.1 0.3% 0.7% 5.0% 2.9% 7.8% 4.3% 8.5% 3.75 71.1 46.9 28.4 40.9 9.7 9.3 24,917.7 2,727.4 (128.2) 1239.5 2012P 16.4% 13.9% 14.2% 31.3% 45.4% 23.6%6 24.5% 386.5 (32.1) (89.7) 853.0 690.0 648.5 178.7 347.6 268.4 728.3 110.2 0.4% 0.9% 4.5% 3.0% 7.2% 5.5% 6.8% 3.75 67.0 48.9 29.2 55.2 8.6 9.9 24,127.9 2,720.2 (114.5) (135.2) 1076.6 2013F 18.8% 32.0% 39.6% 16.1% 206.5 (35.1) 870.1 820.0 -3.1% 713.4 117.1 324.6 231.6 726.3 105.0 0.4% 1.0% 6.1% 7.6%6 4.5% 3.0% 7.6%6 3.0% 3.75 72.8 11.0 42.2 30.1 60.0 9.5 .1% 24,700.2 2,868.2 (120.6)- (139.3) 1099.9 2014F 12.4% 32.2% 38.3% 14.7% 177.6 (38.3) 922.3 877.4 746.4 112.4 329.6 233.1 765.9 105.0 0.7% 1.2% 8.6% 5.1% 4.5% 3.0% 3.1% 5.2% 3.75 75.2 11.0 42.8 31.0 50.0 9.8 .2% .0% La 16.4% 13.9% 648.5 110.7 0.4% 0.9% 3.9% 3.75 49.0 9.1 t ------est Dec-12 Dec-12 Dec-12 Dec-12 12M12 12M12 Dec-12 12M12 1M13 1M13 Date - Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013
FOCUS 31
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an-05 an-05 J - cof being 2012 in commodities forming fee, natural gas and orange juice, which ended the year lower by 41.64 percent, - respec percent, 26.07 and percent, 30.70 three the of weight percent 12 The tively. commodities in the benchmark might have masked the improvement in the rest of commodities compared to 2011. cycle ailing has offset restocking China’s Chinese manufacturing, thus, - support with with an expected annual growth rate of 5.5 percent in 2013. conclude, - To how ever, uncertainty due to the inability to - miti and US in the fiscal plans on agree - willcon Eurozone, the in crisis the gate - econ global the on drag a as act to tinue Thisomy. willoffset the unprecedented - imple policymonetary accommodative mented by the Federal Reserve and the European Central Bank (ECB) as well as new fiscal initiatives fromJapan and China. Therefore, we assert IMF’s World Economic that Outlook WEO the expectations are overestimated, ceil- debt US espe- the over deadlock a if cially possible. but unlikely materialized; ing concerns as year, last decline annual ond emanating from a moderating Chinese economy and the sovereign-debt crisis in Europe limited the upside potential. The Thomson Commodity Reuters/Jeffries Index fell by CRB 3.4 percent, with the most significantunderper ed C oleum
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Global economic recovery in 2012 - re mained at the edge of the as precipice it did not break out of the dismal trends shown in our previous Saudi Economic Perspectives (SEP) issue. The sameail- ments that befell the world’s advanced economies, manifested in a mediocre growth and - stubbornly high unemploy ment rates, as signs of becoming contagion are seemingly high in ing - emerg economies, namely International China. Monetary The Fund had (IMF) revised its projections for growth global in 2012 and 2013 downwards to 3.2 percent and 3.5 percent, - respec compared weakness into relapse a tively; Burdens 2010. in posted percent 5 the to of the EU and US medium-term struc- tural challenges have weighed down on growth prospects for advanced - econo expected an to percent 1.4 leading mies, growth, 0.6 percent below been projected. Even previously though what had growth was strong in emerging - econo mies in early 2012, a deceleration was notable throughout the year, lowering annual growth rate expectations to 5.1 percent down from 6.3 percent in 2011. Stalling recovery in developed - econo mies will trade via economies likely emerging in growth suppress economic linkages below the 6 percent threshold, 2005
2000
1995
1990 1985
Annual % change) ( 1980
Global GDP Growth
1975 1970 ce: IMF 0% 5% our -5% 10% S (out of which (out 81 is percent exported) in 2013. Theincrease in revenues oil will with surpluses, twin of year another fuel the fiscaland current account balances 16.1 and percent 7.6 register to expected Real respectively. percent to GDP GDP, growth is expected to rise by 3 percent non- vibrant the by driven terms, real in oil sector that will offset the decline in oil production. Growth in non-oil sec- tors, particularly construction, - manu facturing and wholesale trade, will also remain robust this year, and retail mainly due to strong private and public investment and consumption spend- ing. Strengthening of domestic demand is reflected in a rise credit private in and sector the double-digit growth in merchandise imports. Headline figures in willSaudi Arabia for buoyant remain 2013 and 2014, based on crude oil price and production maintaining elevated levels. It should be that noted, however, - produc and prices oil crude our to risks tion forecasts remain on the high-side, particularly if geopolitical tensions - as sociated with the Iranian standoff es- calate further and/or if the unfolding tension between China and Japan over fiveislets in the East China Sea erupted an into armed conflict.The risks from a deadlock over the US debt ceiling due to partisan polarization can also impact growth. global economic negatively 32 FOCUS Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 cnme, codn t MC G in- G7 MSCI to advanced according economies, Additionally, respectively. percent, 52.6 and percent 10.5 25.7 percent, percent, 7.4 by rose Turkey and India Russia, Brazil, heavyweights, the as percent 15.1 gaining markets equity emerging with 2011, in percent -9.4 from the recovery a upturn, Y/Y percent 13.4 a recorded Index World Country turns. Theequities’ benchmark MSCI All re- of terms in commodities and bonds surpassed that equities for year vibrant a been has 2012 continue. to trend this expect we and 2012 of quarter third the since classes asset risky supported have over inflationary pressures. of late as risks to growth take precedence as course reversed have economies ing develop- that especially years, two past the to comparedimprove will modities trend.forward Looking into com2013, - upside the underpinned have policies unprecedentedmonetary and modative and precious base in accom the - metals, increase the not justify do policies fiscal tight the and fundamentals economic respectively.Although Y/Y percent, 9.4 and percent 7.1 gained silver and gold as well, as note positive a on closed als met- Preciousrespectively. percent, 2.6 and percent 4.4 by annually rising num ing metals, with base copper and alumi- 1,100 1,300 S USD billion -100 our 100 300 500 700 900 Accommodative monetary policies policies monetary Accommodative ce: IIF
2009 Po Nonbanks Emerging Mark rt fo lio In , Net v 2010 estment, Net Capital I n ows et Ec 2011 onomies 2012E Commercial Banks,Net Dir interest rates by a substantial 3.75 per 3.75 substantial a by rates interest dropped Brazil of Bank Central the and percent, 0.25 cut Chile of Bank Central the percent,interest 0.50 itsratesby cut India of Bank Reserve the percent, 0.56 (PBoC) lowered China lending interest rates of by Bank People’s accordingly; the China, easing in been have rates banks Central Hence, percent. 2.2 low surprisingly a registered rate inflation its inflationband, while in Australia,the within well percent, 4.5 at stood flation lowestin- Brazil,andrate in 2008, since in China, inflation fell to 2.5percent, the example; For inflation. subsiding given ing steam outweighed overheating risks, los- from fears after easing towards ing increase against 2011. fold 17 staggering a billion, $73 casted fore- a to rose inflows netinvestments’ portfolio economies’ emerging IIF, the Accordingmarketequities.emerging to canlargely explainsharp increase in the 2012 2H in starting aversion risk lower The equities. into more flowed funds as 2012, in respectively percent, -1.5 and percent 2.3 to percent 9.6 around from fell treasuries German and US the from returns as Indices, Bond Lynch Merrill America of Bank to according percent, 5.7 returned had globally bonds trast, con- In percent. 12.6 by increased dex, ec t In Most emerging markets are converg- v estment, Net 2013F S -70% -60% -50% -40% -30% -20% -10% 10% our 0% Jan-08 c e: T homson Reuters Nov-08 - Global EquityMark These efforts revolve around reducing around revolve efforts These continue2013. unabatedlyin will issues structural tackle to efforts economies, currently low interest rates. In advanced banks’ under firepower central of ficacy ef- the botched partially Eurozonehave the in crisis debt sovereign the and US, the in ceiling debt the raising over bate front. The fiscal cliff and the ongoing de- fiscal the on direction misaligned a by and lowered sovereign yields, it was met equities underpinned has ECB the and Reserve Federal US the from stimulus 2014. as well as 2013 in mark billion $100 the expected, investmentportfolio with crosslikelyto is assets risky and markets emerging to inflows capital of increase year.lastAn duringinterestrates cut to seen in emerging economies that started currently reversal policy the bycoupled policies adopted by advanced economies the back of the unprecedented monetary thatappetiterisk sustain on2013 in will year. the believe in later We effect ment positive announcethe - and first quarter the in long-term conducted operation refinancing the given 2011, in percent the for EUR plunging to 0.41 percent from 1.20 rates interbank with 2012, in ly in Europe, have exhibited relative ease Ostensibly,cent. mainmarkets,- money Sep-09 While the new monetary policy policy monetary new the While (J anuar y 2008=100) Jul-10 G7 Emerging Mark Wo rld Ma ets y-11
ets Ma r-12 Jan-13 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013
FOCUS 33 - - - - Jan-13 r Jan-12 Cove Jan-11 ard Demand Jan-10 We do believe that even though crude oil mar oil crude though even that believe do We rw kets have started the year on a positive stance, amid stance, positive a on year startedthe have kets by production lower and China in recovery of signs OPEC, oil lacks momentum for strong directional prices to remain above mark, $110/barrel as the to threats in supply the Middle East are balanced to by risks pertaining Europe’s downside demand debt crisis and the persistence of US fiscal uncer global forecasted previously than lower The tainties. economic growth combined with expanding non- put will in America, North especially output, OPEC takes if a crisis major except on oil prices, a ceiling such as of US a place, war and between break-up Iran, or of any from other a oil supplies disruption OPEC, In opinion, our country. producing oil major producer, a as swing Arabia Saudi particular in and will play a pivotal role in balancing the oil markets re will trend compliance the that expected is it and based forecast we Hence, year. this norm the main light Arabian the that balance market tight such on floor a at protected range-bound, remain will prices $105/bbl in 2013. of $80/bbl and averaging period of pessimism and as of period the pessimism once in a decade leadership transition was finalized.The non-OECD China, Asia, which particularly for accounted two years four the in demand incremental total of thirds in a in demand rise underpin likely would to 2011, economy second-largest the with year, current the of demand total 30 percent to generate expected growth this year. In 2012, China imported 217 mil- than more percent 6.8 oil, crude of tons metric lion 2011. South Korea oil demand was also up 4 per cent Y/Y last year, attributed partially to extremely Elsewhere, quarter. 4th the in winter long and cold flattened, have rates growth Y/Y although Japan, in on a high base. oil consumption remains - - - Jan-09 OECD Fo A ce: EI
Jan-08 Sour Days 65 60 55 50 45 40
140 120 100 80 60 40 20 0 USD/bbl Meanwhile, Meanwhile, the demand side had been sup 4Q13 tions ply in recent months, curbing output to a 15-month 15-month a to output curbing months, recent in ply of 9.1 MMBD. low a by that ported banks have played central critical role in September, with the ECB and the FED an- nouncing unlimited programs to mortgage-and former the in debt sovereign tressed purchase dis- the EIA, Accordingly, in the latter. securities backed range the in increases projected have OPEC and IEA of 0.8-1.0 MMBD for global oil oil global for demand in forecast its 2013. raised had IEA the Recently, MMBD 90.8 to MMBD 0.24 additional an by demand from demand higher of expectation citing 2013, for China. Ostensibly, oil markets seem to be more op as confidence economy Chinese the about timistic long a after expansionary turned recently indicators Administration (EIA) from predicts production Administration the Bakken shale formation in North Dakota, Eagle Ford formation in South Texas, and Permian Basin to in Texas West a record in bigger increase 2013. Additionally, in its December report, mated that OPEC the demand esti- for its lead can crude which 2013, will of half average first the in MMBD 29.07 by than more 1 to a in MMBD inventories buildup should the oil cartel maintain its December - produc world do that see OPEC and IEA EIA, The level. tion half first the in demand outstrip easily will supply oil of 2013, thus, acting as a drag on prices in the near in our opinion, the term. buildup - However, in inven standing cover demand forward OECD the and tory compliance enhance will level comfortable a such at to production their reduced that countries OPEC by Saudi low. 13-month a 2013, January in MMBD 30.53 Arabia has also been unilaterally decreasing its sup ojec Pr - - 4Q12 4Q11 elopments S , LH 4Q10 4Q09 TI, RHS orld Demand W W Crude Oil Price Dev 4Q08 D ce: EIA On On the oil side, supply is output to expected 4Q07
our S MMB 92 90 88 86 84 82 80 78 Oil… A Tight Market Balance in 2013 Market A Tight Oil… Crude oil had a fourth annual increase last year, al- bench two the with 2011, to compared meager beit marks, Brent and the Arabian light rising by 3.3 per cent and 0.3 percent, respectively. While the gains While respectively. and cent 0.3 percent, the 2011, in factors side supply by supported were market dynamics in 2012 were largely driven by uncertainsupply - and risks downside demand both Europe to pertaining dynamics growth notably, ties, OPEC. to relating factors production and China and if significant been have would trajectory upside The from emanated that risks downside demand for not seven-quar China’s and measures austerity Europe’s the front, inventory the On slowdown. economic ter in stocks oil crude when tight less look markets oil the since forward the OECD especially is assessed of at days cover 59.1 the demand end of year last Interestingly, average. five-year the than higher was benchmark a as irrelevant increasingly became WTI for global prices the and lost from its glut proxy status supply as it deepening wasa by lower dragged trans- to led that Midwest US the across boom shale portation bottlenecks, stemming from the limited capacitythe existing pipelines. of increase in 2013, according to the to (IEA) owing from Agency OPEC Energy growth International and non-OPEC producers. The production capac- ity of OPEC will expand by an estimated 0.7 MMBD Nigeria. and Angola, Iraq, from supply additional on rebuilds country the as surging, is Iraq in Production level highest its reaching output with industry oil its is OPEC outside countries from Supply 1979. since 54 of total a reach to MMBD, 0.8 by rise to expected MMBD in In 2013. the US, the Information Energy 34 FOCUS Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 since 2010. It is now upon national policy levels lowest their to percent 2.5 around by yields bond Italian and Spanish year 10- downwards the pressuring in cessful necesSRy.Accordingly, sucwas ECB - the deemed was support such if debt ereign sov- of quantities unlimited buying by intervene will bank central the which in Outright Monetary Transactions (OMT), also by announcing programs, such as the but percent, 0.75 to percent 0.25 by rate refinancing main the lowering by not only peripheries European for support in policy monetary its overextended has -0.4 percent in 2012. As a result, the ECB around at recession into back Area Euro the pushed that process disinflationary and painful protracted, a is deleveraging and imbalances fiscal of unwinding The growth. induce to economies European periphery of failure the given deepened potential near-term. inthe sequently halting any significantgrowth ityare weighingdown on demand, con - auster and consolidation fiscal drivers; growth anyreal utilize and locate to place fail in currently policies hardships, meant to alleviate the existing economic design by are efforts these as much as the steep recession’s aftermath. However, the weak financial system,which still suffers rejuvenating and deficits, budget fiscal overspending in order tocut down S 0% 1% 2% 3% 4% 5% 6% 7% our In the Eurozone, the crisis has further ce: Jan-00 T homson Reuters Jan-01
Jan-02 Ce FED
Jan-03 ntral BankP
Jan-04
Jan-05 ECB Jan-06 olic Jan-07 y Rates Jan-08 BOE
- Jan-09
necessitate the continued support from support continued the necessitate as mentioned, a possible downgrade will and,March starting place take will that sequesters the ceiling, debt the on bates de- political that believe do We AAA. from AA+ to 2011 August in back omy Poor’secon- world’slargest the and of downgrade Standard to similar 1H in 2013 US the to downgrades further considering are agencies rating credit atthroughJuneleast Accordingly,2013. spending consumer restrain relatively will deficit budget fiscal the reduce to rates oftax hiking atof endyearlast the currentpercent.rangeThe 0-0.25 the of remainat rate, will Fedfunds which the to change anticipatea notWe do gram. the purchasepromonth- asset a billion $85 ending before percent 6.5 of rate unemployment an targeting unlimited, was September in were which last The easing. quantitative of rounds three via supportive remain to had Fed the fore there - and measures, fiscal to comes it pared to its European counterparts when financial systems. vicious on-going cycle between ailing sovereigns and weak the break to able be willintegration. ECB thetaken,aresteps suchOnce fiscal towards path closer a and union banking a ensure to sures implement- mea and Mechanism(ESM) makerstoactivate European the Stability Jan-10
The US is behind the curve com- curve the behind is US The Jan-11
Jan-12
Jan-13 S -8% -7% -6% -5% -4% -3% -2% -1% (in %ofGDP) 0% our c e: IMF Advanced 2011 the normthe year. this be will euro stronger a and greenback monetary policy. Furthermore, a weaker h sugs got o 78 ecn in weakest2012, the since 1999. percent 7.8 of growth sluggish the 2013; the first stimulus since 2008,given in billion $192 to percent 50 by deficit new politburo agreed to expand its fiscal the China, In spending. deficit of result direct a as jobs new 600,000 around of generation the and percent 1.7 mated esti- previously the to compared 2013 in growth percent 2.5 a expects ment govern- Japanese The 2014. January by commence will that program purchase asset ended open an planning and cent per 2 percent to 1 from target inflation ment’s cue, afterespecially propelling its Japan will most likely follow the govern- of Bank months. few a in level 100 the economy, with the JPY/$ likely to surpass dependent export the support certainly will currencies most against (JPY) yen JapaneseObviously,plunging years. the recent in competitiveness in loss severe a suffered have which exports Japanese up boost should turn, in This, growth. economic real lift and deflation combat to spending government of worth lion ernment of Japan is planning a $117 bil- gov- central The 2013. in stimuli fiscal economy,Japan and are China planning ing fiscal consolidation acrossthe global Nevertheless, contrary to the prevail- F iscal Deficits 2012F Emerging 2013F Wo rl 2014F d - Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013
FOCUS 35 - - 2013F 2012P 2011 tion 2010 2009 - willre sector non-oil the in Growth 2008 due to higher compliance among OPEC OPEC among higherto due compliance oil members. revenues Accordingly, are expected to decline by 14.7 percent to around SR973 billion, which also takes in - ex decline a 6.4 percent account into that estimate we Moreover, volume. port 3.1 around by will GDP contract oil real in percent 2013, the figure firstnegative since 2009 when the Kingdom reduced to 9.22 from MMBD, 1 by production its 8.17 - Thepro MMBD. abovementioned on contingent be course, of will, jections the direction of the conflict, US-Iranian the resilience of global demand - condi tions and stability in the international environment. financial main above the 7 percent threshold in 2013. Real non-oil GDP in 2012 grew by around 7.2 percent, which is higher than the 10-year average of cent, largely 4.7 driven by per the stellar per formance of the non-oil private sector. Theprivate sector a contributed signifi - by growing to real GDP, 48 percent cant 7.5 percent, illustrating the vibrant role that private enterprises are assuming in the Saudi economy. The main drivers of private sector growth were the - con struction, manufacturing, and the retail sectors, which posted 10.3 percent, 8.3 percent and 8.3 percent annual growth, private the of vibrancy This respectively. 2007 Saudi Crude Oil Produc - 2006 es: OPEC and NCB c 9.50 9.00 8.50 8.00 7.50 7.00 MMBD Sour 10.00 2013F The oil sector will support economic economic support will sector oil The Going forward, we project real GDP project we forward, Going growth growth in nominal terms if prices sur pass those of last year and more than compensate for the contraction in oil production, however, the reduced - pro duction will weigh negatively on As GDP. real mentioned earlier, tightly bal- anced global oil markets still remains our baseline scenario for the near-term, which will ensure that oil prices remain elevated. Our forecast of $105/bbl will prices spot light for Arabian average the help keep total revenues above the SR1 trillion, SR1.08 registering mark, trillion the fourth highest on will production record, oil Saudi that projecting despite average 9.5 MMBD in 2013, marginally lower by 4.2 percent than output 2012’s growth of 3 percent for 2013 due mainly mainly due 2013 for percent 3 of growth to the projected contraction in oil - pro duction, which will decline by nearly 400,000 b/d. thisHowever, contraction in the oil sector will largely be offsetby the non-oil which sector, is expected to grow by 7.6 percent, the second highest on record, driven by the private sector, construction and manufacturing mainly as well as the public sector that is - pro jected to register around 6 percent this year. posted growth rates of 8.3 percent and respectively. 10.3 percent, P 2012F Oil Real GD
ntribution
2011P Co ic and m s e k 2010 ivat ublic ono oil Pr oil P c Non- Non- pment 2009 i E d Outloo u and NCB Real GDP Growth, a S MA evelo 2008 D ces: SA 0% 2% 4% 6% 8% I. Real Sector 2012 had been year exceptional another for the Saudi economy, yet ect real we GDP to - moderate proj to 3 percent in 2013. Last year, the Saudi economy continued its robust growth above the pre-crisis average level of with 3 real GDP percent, registering 6.8 percent annual growth, driven by the oil sector and non-oil sector. Accordingly, had this boosted the per Kingdom’s capita income to SR93,317, the highest on - re cord. The EU sanctions crude on Iran’s enabled July in commenced that exports the Kingdom as a swing producer maintain its 30-year high to daily - produc percent 7.2 by rose output oil Saudi tion. in 2012, averaging 9.92 million barrels per day, which propelled the oil sector GDP by 5.5 percent, the since fastest 2005. Theprivate pace sectorhad also maintained its significant contribution to real GDP at 48 percent, growing by 7.5 percent in constant prices, illustrates which the growing role that private enterprises are assuming in the Saudi economy. The main drivers private of sector growth had been the non-oil in- dustrial and construction sectors that -4% -2% Sour 10% 36 FOCUS Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 sitne rga kon s “Hafiz” as known program assistance unemployment The decrees. royal the by triggered were that measures permanent fiscal the from effects spillover continued the as well as billion total SR285 will that expenditure capital for this year’s government budget allocation will likely remain in place on the back of ity of economy. the capac- absorptive the enhance will that plans diversification horizontal and cal - verti the given demand, domestic with in our view, gain will momentum, along historical $48.9 billion last year and that, a reached that exports non-oil is Saudi corporate for drivers growth promising the of One threshold. billion SR200 the contracts struction that remained above awardedcon- of value the underpinned confidence business to boost The cent. per 8 and percent 13 of increase nual an- an represents which 2012, in banks from advances and loans incremental in respectively, billion, SR5.6 and lion bil- SR14.5 receiving credit, in pickup ing and construction benefitedfrom the manufactur in growth the Evidently, environment. financing improved the and confidence business enhanced the emanated sector royalfrom the decrees, 0% 2% 4% 6% 8% Sour ces: SA h aoeetoe bsns cycle business aforementioned The 2008 MA andNCB Non- M C Other Se C T ranspor onstruc ommunication anufac 2009 oil GDPGrowth, ct t and turing tion ors 2010 E R F R T Co inancial rade, Hotelsand lec eal EstateSer estaurants 2011 tricit ntribution y & , I - - nsurance and Wa 2012F vices te billion threshold, registering SR235 bil- SR200 SR235 registering threshold, billion the above remained contracts 2012, the value of awarded construction During confidence. strongbusinessand by marketprojects’ the supportedin activity buoyant are sectors two the for projections Our respectively. percent, 8.5 and percent 10.5 at growing 2013, in beneficiaries key the remain will ing the benefits of the myriad of projects coming on-stream. of myriad the of benefits the reap a sectors most as percent, 8.6 record to threshold percent 8 the sector crossing private non-oil the with 2013, in percent 7.6 averaging elevated, main re- to growth sector non-oil Weexpect consumed. be will received be will that money the of most cipientsthatimplies ginal propensity to consume of Hafiz re- mar high the reports, previous our in via the multiplier effect. As we reiterated workers continuewill to act as a catalyst public sector fortemporary jobs service civil regularproviding of result a as bill government’s wage the in billion SR10 than more by Additionally, increase the SR30 billion by the end of January 2013. around 2 million Saudis having received has with consumption, 2011 private December supported in started that r osrcin n manufactur and Construction 2013F -30% -20% -10% S 10% 20% our 0% c es: SA C Go Fo Gr Net Export MA onsumption Expenditur oss Fi r Real GDPGrowth,byExpenditure 2007 ver mation andNCB - - nment Fi x ed Capital s vious budgets. pre- of surpluses excess from financed be to need will that and delays facing Investigation Board (SCIB) that detailed 650 projects and Control Saudi the by report released recently the about concerned are we However, (MOF). Finance of Ministry the to according billion, SR137 estimated an at valued related contracts with the private sector approximatelyCAPEX- signed it2,000 whereby critical, is government the of role the Ostensibly, value. by contracts aluminumsmelter awarding highest the Ma’aden with sectors, power and tion transporta- oil, the by only surpassed sectors, all the across share 2012, largest fourth in billion SR17.8 reached petrochemicals, excluding sector, ing manufactur the in contracts awarded The 2011. in billion SR270 ofrecord cal lion, albeit falling short from the histori- piim ne (O) construction, (BOI), Index Optimism NCB’sin Business vari - surveyed sectors ous the among ahead, Looking ber. num- or size in whether projects enormity the of the given timeframes strict within execution ensures that structure has to be matched by diversificationstrong supervisory pursuing in adamancy nal 2008 e eiv ta te government’s the that believe We e 2009 R Expenditur Pr C eal GDP hange inIn ivate Fi n 2010 al Consumption e ventor y 2011P - Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013
FOCUS 37
an-13 an-13 J
-12 -12 Oct
Jul-12 Jul-12
Apr-12
an-12 an-12 J SAR/EUR
ted Inflation -11 -11 Oct
Jul-11 Jul-11
Apr-11
an-11 an-11 J eighted Dollar
W In our opinion, the In our opinion, monetary policy
-10 -10 Oct
rade
risks risks from imported inflation and - ris ing domestic credit. The slowly - recov ering global economy pressured - com modity prices lower as reflectedby the Thomson Reuters/Jefferies CRB Index 2012. during percent 3.4 by declined that Food UN the to according Furthermore, and Agriculture Organization (FAO), food prices decreased over the fourth - pricewit hikes offset to 2012 of quarter nessed mid-year. TheFood Price Index prices dairy while annually percent 7 fell were the only category to register a rise of 0.9 percent. More specifically, local food prices increased at an average of 4.4 percent last year in comparison to 2011’s 5.2 percent. the However, trade- weighted dollar dropped 0.5 during 2012 and is expected to percent be - pres of nature the Given 2013. in lower sured might inflation peg, thedollar imported pose the a economy. for Saudi challenge do believe that - the foodstuff catego We ry will hover around 5 percent for the of 2013. half first will not be responsive for food driven inflation unless upside risks erode the purchasing power of low income - class the es, an Meanwhile, unlikely scenario. water & fuel rent, renovation, of category SAR/GBP T Jul-10 Jul-10
-
Apr-10
change Rates and Impor change Rates
an-10 an-10 J Ex ce:Thomson Reuters 5% 0% -5% 25% 20% 15% 10% -10% Sour ec-12 Inflation registered an annual 4.5 ec-11D D el percent percent increase last year and will - like ly remain stable for 2013, with upside mation (GFCF) mation 14.9 registering percent 1.5 the than higher significantly 2011, in percent average rate posted during the period 1995-2004. Based on - the vibran and market cyprojects’ the in witnessed the near record construction contracts rewarded in 2012, FDI inflows are ex- pected to edge higher in 2012 and 2013 to around $20 billion and $25 billion, respectively. Investment Investment Report 2012, issued by the United Nations Conference on Trade and Development Kingdom was (UNCTAD), the largest FDI recipient the $16.4 totaling receipts with Asia, West in billion in 2011, surpassing Turkey and the UAE that posted $15.9 billion and $7.7 billion, respectively. Furthermore, the Doing World Bank’s Business 2013 report ranked the Kingdom 22nd out of 185 countries for ease of doing - busi ness. Even though the inflows declined substantially by 41.6 percent compared to $28.1 billion in 2010, we believe that FDI will to continue be one of the - driv ing forces behind higher spending investment in the Kingdom, share of FDI with in gross fixed capital the for Fu Dec-10 erall CPI her odstu and Beverage Ot Ov Renovation, Rent and Renovation, Rent Fo Dec-09 ers of Inflation Driv Dec-08 MA Foreign Foreign direct investment inflows ce: SA Dec-07 0% 2% 4% 6% 8% -2% Sour 10% 12% are are expected to have crossed the billion $20 mark in 2012. broad-based Implementing structural reforms recent years over has largely improved the Kingdom’s business environment and its attractiveness tal for inflows. foreign According to - capi the World trade & and hospitality, manufacturing were the only sectors to register index values similar to or above the - compos ite index for the non-hydrocarbon sec- tor in 1Q 2013, standing at 63, 57 and 55 points, respectively, which indicates expectations of further expansion on the back of higher volume of sales and - con the in levels Optimism orders. new among highest the were sector struction all sectors, with 50 percent of the firms expansion. business in invest to planning approving the Obviously, mortgage law back in July has impacted sentiments positively and will continue to do so as SAMA finalizes theregulations on real estate financingand leasing along with supervisory guidelines. In our opinion, the momentum of awarded - construc tion contracts coupled with - expansion ary business sentiment will ensue, thus, - man and both construction supporting forward. going ufacturing 38 FOCUS Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 Education: Building Human Capabilities and stable outlook for the cost of build- of cost the for outlook stable and approvedlaw the mortgage of codifying percent,belowtained8 attributed tothe be con- to expected is inflation Rental April2007. since growth slowestannual the year, the of end the by Y/Y percent 6.3 reaching deceleration, its continued amount budgeted for lastyear. significant increase of almost 21 percent above the around 25 percent of total budget allocations and a educationandworkforce training, heftysharea of on expenditures of billion SR204 around projects 2012, December in announced 2013, for budget government’s the Additionally, (2004-2008). plan amounts allocated during the eighth development increasean billion, percentSR731.5 52.4 of over the significant vocational allotted training,and a was technical as well as education higher education, general of comprised is which sector,education the (2010-2014), Plan Development five-year Ninth the During sector. the for allocations budgetary increasing rapidly the in reflected is adamancy government’s The exists. currently that mis- match market labor the mitigate will it since front employment the on help will skills Enhancing Saudis’ of set growth. balanced and sustainable support to capital human strengthening in cation edu- of role central the emphasized has the Kingdom years, of couple last the duringEvidently, tttoa dvlpet n h pbi education public the stitutional development in in- important most the opinion, our In resources. enhanceutilizationordertotheinrate human of citizens’ enrollment the increasing and teachers, country,improving the quality ofmale and female goals,eralnotably, eradicating illiteracy acrossthe - sev has (2004-2014) plan ten-year Education’s of ganizationalaspects. More specifically, the Ministry a system that covers all legislative, planning, and or restructuringpublictheeducation sectorthrough Corporation.TheMinistry Education of currentlyis (MOHE),andthe Technicaland Vocational Training Education(MOE), the Ministry ofHigher Education of Ministry the include agencies Thesesystem. late, and enforce laws pertaining to the educational oversee,regu- to together work which ganizations, or several are There medium-term. the in so main re will and infrastructure, educational country’s the development the of in player major a mains n h srcua fot te oenet re government the front, structural the On - - - - Fo Sour h hget osmr rc increases. price consumer highest the registering been hasAl-Madinah of city respec- the basis, regional a percent,On 2012. tively,in 1.1 and percent 1.7 percent, 3.7 of rates growth recording ready-mixed concrete, cement and iron, ing materials, with the average prices for beenplacedimportancetheone-learning of and has emphasis Greater (SEU). UniversityElectronic Saudi the of governmentby establishment the was cational enterprises. edu- maintain and operate to services supporting 2008, provide educational licensed and toTatweer was In (ICT). Technology Communication and requirementsthatsupports theInformationuseof educational improving the as wellvelopments as de technological and scientific recent most the to alterthe current educational programs inresponse that programtothe 2007.purposeisstartedTheofin (Tatweer) Project Development Education Public Abdul-Aziz Bin Abdullah King was sector Riy Ma T Jawf Baha Najran Jazan Nor Hail T Asir Eastern Region Qasim Madina abuk otal rec c adh Anotherimportant development inthe sector kk thern borders e: M Region ah ast DemandforSchoolBuildingsUnderNinthDev inistr y ofEducation,M T School buildings otal Demandfor 6,050 1,253 1,205 inistr 167 138 112 421 167 217 120 559 808 427 456 y ofEconom - Dev Ta y andPlannin rget Under9th elopment Plan ihy ucpil t saoal fluctu- seasonally to susceptible highly is rate Makkah’sinflation basis. annual cent,and percent,1.4 respectively on an per 2.9 percent, 4.4 percent, 5.2 posted while percent Jeddah, Riyadh, Dammam, and Makkah 11.2 reached rate tion Al-Madinah’s- infla December, During hlegs tl rqie otne atnin First attention. continued require still challenges of number a undertaken, reforms of myriad the enrolmentovertheeighth development planand penditure ofSR21.6billion. ex annual total a for thousand 120 about reached thesupervision of the Ministry of Higher Education lastendofyear, thenumber scholarships of under undergraduate and graduate studies abroad. By the ing full financial support to Saudi nationals pursuing provid- by shortages skill minimizing towards step Abdullah’s foreign scholarship program was a critical King implementation of the addition, In grams. pro undergraduate and graduate both offers that universitytheinKingdom dedicated toe-Learning tantcities that have universities. TheSEU is dis- the only to moving in difficulty have and areas remote theneed to provide education to those who live in 3,750 n pt o te eakbe nrae n school remarkable increase in the of spite In 807 110 249 130 353 512 268 277 749 88 67 66 74 g , NinthDevelo Surplus BudgetRev Projec elopment Plan p ts F ment Plan 1,351 inanc 216 127 146 107 255 32 72 38 44 57 83 88 86 ed from enue
- - - Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013
FOCUS 39 2014 olled in ah 374,155 759,456 1,664,329 1,249,838 1,259,391 kk Madina Ma inth Development Plan or by End of 2014 N ct g, her yadh 2009 Ot Eastern Region Ri 358,558 693,615 1,457,388 1,119,992 1,132,220 2013 budget does not provide oil price and production level assumptions, we believe that both revenues and expen- TheMinistry understated. of are ditures Finance estimates revenues and expen- ditures at SR829 billion and SR820 - bil of surplus a projecting respectively, lion, 121 contracts worth approximately SR11.6 billion for higher education sector. According to Meed Projects, there are and 2012 in 46 awarded were building that contracts billion worth SR6.7 roughly 2015. by completed be to expected and 2013, early education that stated also budget Saudi 2013’s The expenditures include establishing around 540 new schools for girls and boys in all with regions, an esti- 1,900 to addition in billion SR4 around of cost mated The that under construction. schools are currently billion SR3.2 it that allocate also will stated budget labs, computer and laboratories school establish to safety of requirements the increasing to addition in in at school buildings a cost of For SR800 million. higher education, the new budget includes alloca- allocations besides tions for the Saudi E-University for building campuses for the newly established universities including housing for faculty more than SR13.4 worthbillion. Finally, there is no denial that the growing Kingdom’s youthful population at for demand education an will create increasing higher only not require turn in will which stages, all but an capital expenditure, that strategy effective qualityencompasses proper of education. l Education Se of Economy and Plannin ra cast Number of Students Enr inistry re 0 Fo Gene e: M c our S Number of Students 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 emales) Under Under the 9th Plan, Development the MOE’s echnology T headline inflation. II. Fiscal External Balances and Oil prices will remain the supportive fiscal balance, of expected register to a surplus to GDP ratio of 7.6 though the government’s Even percent this year. and reducing and their share from the reducing total to around 22 percent in 2012 from 41 percent in 2008. Last challenge is raising the quality of education and ratio, which according raising the teacher/student from MOE ranged statistics to available the readily to compared ratios low as seen 1:13, to 1:7 between international standards. at rate enrolment percent 100 reach to is target main rates dropout the reducing as well as schools primary Ministry The of education. levels all for 1 to percent intermediate the in rates repetition decrease to aims to rate repetition the decrease and percent 3 to level secondarythe in percent By 5 2014,of end the level. it is projected that the total number of students en- rolled in public education (primary, intermediate, The 9th will reach 5.3 secondary) students. million school 3,750 implement to aims Plan Development of percent 62 around representing projects building reflects data latest The requirements. expected total that the Ministry of Finance has approved 393 con- tracts worth around SR5.1 billion for the implemen- the across projects development of different tation as as well sector education public the for Kingdom nnovation igher Education cience, H (males and f S and I - - - 9th Plan Allocations or Allocations ct ining a ublic emales) Tr hnical and c eneral Education dministration ocational nstitute of P I A Te V G (males and f 8th Plan Allocations Education Se inth Development Plan A, N 0 ce: SAM our S 200,000 400,000 600,000 800,000 SAR million ating ating land and rent prices that present a large weight in the index, city’s albeit prices remain on a positive trajectory. It is important to note that the robust growth in private credit in general and consumer loans in particular will - con stitute an upside risk to our forecast for and foremost, the fact that drop-out and repetition repetition and drop-out that fact the foremost, and rates remain elevated. According to the Ministry of Education, repeaters for classes in secondary) the intermediate, public (primary, sector education under percent 14.6 and percent 3 between ranged the 8th Development Plan, compared to 4.8 per cent and 21.4 percent under the 7th Development Development 7th the under percent 21.4 and cent the Plan. Clearly, range had decreased somewhat throughout the period; however, there is crucial need still to improve efficiency and a teaching methods. As a result, the Ministry has announced that it has adopted a system of periodic - qualifica carrywillout that years every five of tion teachers Thesecond periodically. tests proficiency standard as it is environment school is improving challenge level. attainment in factor increasing an important A good school environment requires adequate re sources, computer labs, classrooms equipped with e-learning equipment and most government importantlythe suit Accordingly, buildings. school able has allocated funds in this year’s budget for to the have We buildings. school 2,000 of rehabilitation the acknowledging on government the commend schools rented unsuitable of replacing importance 40 FOCUS Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 hr o nnol xot hv tkn a taken have exports non-oil of share growth, that especially the Middle East’s regional in deterioration further from ourprojectionto risk thatside arise can ucts that are oil related. There is a down- by-prod- other and petrochemicals for internationallowerpricesto due billion pace, $42 to percent 13.7 nearly be similar shrinking a maintain to also expected are exports non-oil Meanwhile, billion. $325 record near a 6.6 to by percent decline to revenues expect export oil we assumptions, production and price oil our on Based 2013. in tio ra- GDP to percent a 16.1 posting double-digit surplus, in be to projected from $67/bbl last year to $73/bbl. rise will budget the balance to required jected revenues, the break-even oil price lowerproexpendituresmarginallyand - elevated of backdrop this Against 2012. in billion SR270 project we billion, therefore, SR285 of figure budgeted the below actual up end will expenditures evidence, capital historical on Based rate. growth annual percent 2 just lion, current expenditures to reach SR600 bil- base from now onwards, thus, we expect fiscal measureswill maintain an elevated current expenditures, yet the permanent of pace upside the reduce certainly will transfers during 2012 and well into 2013 time one of fading-out The 1998. since lowestthe budget be overrun will figure however, this case, the historically been has as billion, SR870 reach to percent, 6.1 mere a at albeit expenditures, geted bud- exceed likely most will ernment tual level in2012. ac- above percent 4.9 is which billion, SR104 at forecasted revenues non-oil oil and billion with SR973 registering revenues billion, SR1,077 at expected This islargely due to elevated revenues, 2013. in GDP estimated of percent 7.6 or billion, SR207 of surplus budget project a we respectively, production, oil average for MMBD 9.5 and prices spot light Arabian average the for bbl $105/ of forecast our With year. this to for $69.3/bbl average an assumed have seems government the revenues, announced on Based billion. SR9 only The current account balance is also also is balance account current The gov- the side, expenditure the On a proposal to set up a Sovereign National Shoura Council, in November, to discuss embedded in oil prices has prompted the liquid assets. denominated $ in share largest the with imports, of months 63 than more cover to 2012 in billion $705 to up build will the end of December, and we expect they by billion $648.5 reach to percent 21 by grew assets these 2012, year.In this sets as- foreign net on favorably position reflect will external robust The 2012. in billion $178.7 GDP, the than smaller yet to relative percent year,16.1 this billion countsurplus to reach significanta $117 ac- current the expect we Accordingly, vehicles. motor and foodstuff by ported sup- billion, SR204 record Y/Y a to 2012 percent in 15.9 by accelerated (LCs) that Credit of Letters opened newly the of value the in surge the from dent - evi as demand, domestic robust to due largely is This value. record a is which billion, $135 to percent 5.5 by grow to billion previous inthe year. $397 with compared record, on largest second the 2013, in billion $367 to rise areforecasted toaggregate, exports total On economy. softening a by impacted be might 2012, in percent 13.0 to 2009 in percent 8 around from rising China of share the with years, two last the ing dur materialized that demand Chinese offsetting the Additionally, likely. less scenario a such renders decline the of intensity the yet 2012, in percent 36.1 to 2009 in percent 54.6 from dive nose Sour Go T Cu De Capital Non- Oil T otal Expenditure otal Revenue v iig wrns o te gyrations the of awareness Rising expected are they imports, for As rr c fi
ernment Rev es: SAMAandNCB cit/Surplus SAR billion ent Oil enue andExpenditureBalanc 1,034 1,118 2011 827 276 551 291 83 - 1,140 1,240 2012 853 264 589 387 Saudi Riyal. the cover to needed assets foreign ring bar assets, foreign net in trillion SR1.5 responsible morethan handlingof enormity the for solely body independent an require definitely will portfolio management active an good, country the served have markets money and credit the in turbulent times these at assets ity liquid - higher and risk lower seeking of strategy SAMA’s prudent though Even cyclicality. economic smooth to pluses sur budget invest and manage sionally profes- will proposed fund The Fund. itiue ars 1 lse companies, listed 18 across distributed billion SR290 with shareholders major Tadawul’stopped had PIF the October, of end the By budget. 2013’s in stated as billion, SR19.5 than more by Fund Fund and Saudi Industrial Development DevelopmentEstate Real the of sources re- andcapital the increased expectedly government the Accordingly, billion. $1.8 worth loans extending are (SIDF) and Saudi Industrial Development Fund (PIF) Fund Investment Public whereby is project, chemical pointSadara billion $20 the in case A 2009. pace March fastest since the 2012, in percentY/Y 16.4 recorded that growth credit vate pri- development, in surge the social complementing thus, support to projects and industrial finance to insti - tutions credit specialized by disbursed be will 2013 announcement, in billion MOF SR68.2 around the on Based development. balanced support to tions institu- credit specialized to funds cate 99 The government continues to allo- to continues government The e 2013 Budget 820 285 535 730 829 99 9 2013 Fo 1,077 207 104 870 270 600 973 rec ast - - Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013
FOCUS 41 e 2014F 2012 +329 bn A Jan-12 e 2013F Captial Expenditur 2011 +194 bn 2012F Jan-11 e 2011F 2010 +69 bn ernment Expenditur ent Expenditur Jan-10 2010 v rr ernment Deposits at SAM cal rectitude, which crucialprovides - re assurance to investors. Therecently re- the ranked that G20 the by report leased Kingdom first among its members in structural of fi- and the implementation nancial reforms supports Saudi Arabia’s positive economic outlook. Public do- mestic debt was reduced further from SR135.5 billion to SR98.85 billion 2012, amounting to 3.6 in percent relative in - our as previ was anticipated to GDP, believe ous report. that We government debt will remain below SR100 billion threshold, given the continued settle- ment of maturing Saudi Development Bonds (SDGBs). Government Cu v Go 2009 Go -133 bn and NCB MA 2009 MA e: SA Jan-09 0 c
e: SA c 0 800 600 400 200 our SAR billion 1,600 S 1,400 1,200 1,000 800 600 400 200 our 1,000 SAR billion S 2014F 2012 P a stable financial system bodedwell for and April In rating. credit Kingdom’s the May, Fitch and Standard & Poor’s - af firmed the long-term Kingdom’s rating stable a with AA- grade investment an at outlook and also maintained the - short term currencyforeign - rat issuer default ing at and These A-1+ F1+, respectively. decisions are obviously a confirmation of the strong government finances that volatility price oil withstood largely have opinion, our In uncertainties. global and - as increase in net foreign the continued sets, largely in relatively less risky and liquid instruments is a clear indication of commitment to the - fis government’s 2011 2013F lic Debt/GDP b lic Debt/GDP b Pu 2010 Pu 2012P
2009 nt Account Balance / GD e rr oss Domestic 2011 Gr Net Domestic Budget Balance / GDP Cu 2008 win Surpluses T 2010 Domestic Public Debt 2007 and NCB and NCB 2009 MA MA 2006 ce: SA ce: SA Robust Robust government finances, ample 0% 0% our our 10% 20% 30% 15% 30% -10% -60% -45% -30% S -15% S reflectingits commitment in providing equity financingas well. In September, the Saudi Credit and Saving Bank has started the process of financing SMEs whose costs will range between SR0.3 to 8 million. Alternative measures of fi- ground, gain to continue SMEs for nance with the around worth credit facilitating Loan “Kafala” Guarantee Program SR1.3 billion by the end of 3Q 2012 to 646 establishments, representing 24.5 percent of the aggregate beneficiaries since the inception of the program in 2006. January fiscalspace, elevated foreign assets and 42 FOCUS Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 i i crety t 93 a elh and healthy a 79.3, at currently is tio ra- loans-to-deposits the Furthermore, billion. SR133.4 reached have banking industry the of assets foreign net SAMA and with deposits total of percent represent quidityexcessreserves as 64.6 li- enoughprotected wellwith is system ensuresustainability. financial local The to ratios coverage and levels adequacy capital their increase to banks directing been obviously has SAMA effect. tiplier mul- the via near-term the in (M3) ply sup- money the up prop double-digitmight growth of year another cording re- by momentum its regained activity as mentioned earlier. The factthat credit contained,were prices consumer levels, cent Y/Y. Despite the increased liquidity per 17.2 of growth a posting year, the of end the towards regained was pace due to holy the month of Ramadan.The mid-year stagnated but strongly, 2012 off started (M0) base monetary ity.The stabil- exhibiting fronts interbank and liquidity the with pace, acceptable an verse repo at 0.25percent. keeping the repo at 2 percent and the re- SAMA with benchmarks, domestic the to change no of view our support will that factor important an is US the with policy monetary Saudi of nature step lock- The assets. percentofreserve total 68 around weighing securities income have served the country well, with fixed- financial the in times markets uncertain and higher liquidity instruments at risk these lower seeking of strategy prudent SAMA’s trillion. SR2.43 record a reach to billion SR421.5 by assets foreign net increasing in SAMA aided revenues of influx The percent. 4 below contained inflation with diminished, had liquidity especially that the need to mop up excess at settling SR138.7 billion by the end of December, 2012, April since declines bounded following back-to-back annual re- issuances bill Treasury of pace The 2011. in extent lesser a dur to and 2010 ing adopted stance proactive the to comparisonapproach in wait-and-see a maintainsbank central The system. cial finan- domestic the of supportive be to continue will policy SAMA’s monetary DevelopmentsIII. Monetary Monetary aggregates are growing at growing are aggregates Monetary - - oi Gop bns r wl cushioned well are banks Group, Al Mojil with difficulties recent the Despite counterparts. global many performing out- percent, 138.2 to higher edged tem sys- banking domestic the for ratio age cover NPL the Accordingly, 2011. in percent 2.2 from down loans, gross of loans (NPL) have declined to 2.0 percent level despite pickup the in lending. utilizationoptimumnothasreached the capacity however, base, deposit large a With levels. income brokerage higher as activity in the stock market supported ing fees continue to grow at double digits Y/Y.percent Additionally,16.7 - bank of increase an billion, SR143.4 worth 2012 of course the over sector private and lic Banks granted new credit facilitates to the pub - portfolio. loans the expanding by offset was environment rate interest low the as year last Y/Y percent 5.3 by Net accelerated income year. commission special last activities in banking growth core supported funding of cost and expenses, operating assets, banks’ of optimization The percent. 11 of rate growth annual an billion, SR35.1 gering net income during 2012 recorded a stag- banks’incorporated locally 12 the 2011, in rebound successful a Following haul. over banking Saudi’s of backbone the represent supervision and management risk prudent and capitalization equate ad- liquidity, High years. two past the over utilization capacity effective and measures precautionary with stability its anchored system banking Saudi The IV imported inflation. limitto expected is which war’looming, ‘currency new a with market currency the in struggles dollar the as um-term, - medi the in pressures inflationary ited lim- expect we years, three last the over tipliers have relatively been range bound mul- money As points. basis 100 below SAIBOR with subdued, (SAIBOR) rate the in market kept Saudi the interbank lending of liquidity levels sufficient the 13.9 percent Y/Y last year. Consequently, in money supply (M3) which accelerated rise at a stable by supported was This economy.Saudi the for range favorable . Financial Sector ot motnl, non-performing importantly, Most - - this yearthis and next. income non-interest and growth ume vol- by driven be to income net expect borrowers. On a medium-term note, we distressed from risks the withstand to in the 2H 2013, thus, limiting the up- the limiting thus, 2013, 2H the in back pull a exhibit might equities that likely is it that and soon too high too went have markets equity global that theme the to subscribe do we forward, Moving potential. Tadawul’s on a drag remain surely will which horizons, investment long-term outweigh to ues contin- trading speculative traders, of retail of share investors,percentrepresenting 90 over large the given hand, other the On investors. for portunities op- lucrative offering 2012, of end the by 12.75 of ratio (PE) price-to-earnings low relatively the given attractive main re- valuations stock Ostensibly, mark. billion SR100 the approaching billion, SR97.7 to rose income net cumulative market’s the as activities business ing grow- by supported been have corporate earnings Additionally, 2012. during times 5.62 to 2011 in 2.19 averageof an significantly oversubscriptionas increased fromrose IPOs for appetite vestor in- activity,market with line In billion. 2012 worth SR5.3 billion, up from SR1.7 by seven initial public offerings (IPO) in expanded has market the of depth the and 2011 during billion SR4.4 to pared valuestoroseSR7.7 billion traded com - daily average as percent 73.8 of growth a recorded activity year.Market this tle Tadawulthrot at - full run to expected is China, andEurozone, US, the in malcy nor of semblance a to return gradual a with butmarket, local negatively the on weighed springArab the as well as moil tur Global months. three within gains its of percent 90 almost Tadawul wiped as short-lived was performance the but percent, 23.6 by increased index the as April early in recorded was peak ket’s swayed stock prices either way. The easily mar which developments, economic global by influenced heavily be to ued However,Tadawulcontinappetite.- tor inveshealthy- and fundamentalsstrong of back the on 2012 duringpercent 6 of gain a recorded and contraction2011’s The equity market rebounded off rebounded market equity The - - - Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013
FOCUS 43 - 60.7 3.6% 6.7% 2.0% 2012 14.2% 24.5% 79.3% 29.2% 12.4% 17.6% -52.0% 289.0% 200.5% 138.2% -1334.6 54.0 5.4% 8.1% 2.4% 2011 11.6% 23.6% 73.5% 31.2% 11.5% 15.3% -41.9% 271.9% 188.2% 132.2% -1009.2 54.8 5.2% 9.9% 7.3% 3.0% 2010 14.8% 73.0% 33.0% 11.3% 15.5% -810.5 -48.8% 254.3% 178.8% 115.7% risks risks have been resilient amid a - rela tively moderate global economic - back drop, especially that oil prices remain elevated. The Kingdom has record amassed net foreign reserves by a very low coupled public debt level, which have given the government ample - fis cal space to other maneuver economies. Most of contrary the debt to is owed to two pension funds Organization for (General social Insurance and the Public Pension Agency), while the banks. commercial at held is remaining More the importantly, banking system is secured by ample and capital liquidity buffers. Banks have levels raised their NPL coverage ratio to 138.2 per cent and their capital adequacy levels are standing at 17.6 percent that is well 26 Figure Baselrequirements. III above below depicts key macro and banking sector vulnerability indicators of Saudi between 2012. 2008 until Arabia 56.4 5.6% 3.4% - -6.1% 2009 15.9% 10.0% 74.4% 32.9% 11.8% 14.8% 89.8% -768.9 -49.4% 251.5% 179.9% 52.3 9.1% 7.4% 1.4% 2008 32.5% 13.5% 27.7% 83.5% 28.4% 13.4% -846.0 -45.6% 249.4% 207.1% 152.4% 44.4 7.8% 1.8% 2007 12.2% 18.5% 24.2% 75.9% 31.3% 10.2% 17.5% -372.5 -17.3% 209.1% 169.3% 145.5% . Risks V The well established position Saudi economy will shield the of off any ex- ternal shocks that might arise from the US or the Eurozone. Systematic macro cent cent flatrate. Going forward, we expect 2013 to be another record setting as year Islamic instruments become a viable avenue for project financing in the Saudi market. ing infrastructure projects, and enable the enable and projects, infrastructure ing low currently from benefit to government Fransi Saudi Banque Furthermore, yields. and Saudi Electricity Company both - is sued Sukuk worth $1.25 billion each. On the foreign-currency front, the Islamic Development Bank issued a 5-year $ de- nominated Wakala Bel-Istithmar Sukuk in two tranches worth a billion. total The majority of of $1.3 issuances were denominated in SR with yields ranging from 6-month SAIBOR 4.2 to per SEC’s or Risk Indicators , SAMA and NCB ct vices ts tio Ra otal Assets tio rage tio rage ts of Goods and Ser otal Assets y Ra stemic Risks NPL Cove , in months) t Cove tio ts oan (NPL) Ra ublic Debt/GDP ccount Balance/GDP or Claims on the Government (SAR bn) or Claims on the Government Ra or Sy ublic Debt/GDP ct dequac ct ent A rr ing Se orming L Deposit or Income/Merchandise Impor or Income/Merchandise inancial statements of commercial banks Cu rf stemic Macro and Banking Se and Banking stemic Macro reign Assets/Impor reign Assets/M2 o- ct ocally Incorporated Banks) chandise Impor es: F erall Budget Balance/GDP erall Budget erall c Saudi Saudi Sukuk issuances in terms of inimum Risk Assets/T y Sy ier 1 Capital A oan-t 1. Macro Risks Ov Gross Domestic P Net Domestic P Net Bank Ov Net Fa Net Fo Net Fo Mer (1YR ahead impor L 2. Banking Se (12 L M Cash and Balances with SAMA/T T Non Pe Ke Sour sidepotentialthis yeara to Tadawul for growth. single-digit value and number have shake managed off theaftermath of to the financial crisis by setting a record Malaysia year. yet again topped the charts by issuing 62.2 percent of global amounted Sukuk, to which $90.7 a experienced Arabia Saudi value. billion, 2011’s doubling first its included that setting year record sovereign Sukuk issuance. The market Saudi recorded 15 $10.5 issuances billion, surpassing 2011’s level worth by four folds. The General Authority Civil for Aviation (GACA) issued the first sovereign 10-year Murabaha worth $4 billion to be mainly utilized for - redevel Jeddah. in airport Abdulaziz’s King oping many in important be will Sukuk GACA’s - pric a provide will it that especially facets ing benchmark for longer-tenor Sukuk, energize an alternative venue for - financ 44 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 PROJEcTs UPDATE SaudiSaudi Arabia Arabia Projects Projects Update Update
Award Start Completion Project City Sector Facility Budget Status Date Date Date Saudi Arabian General Investment Authority (SAGIA) Medical/Health Feasibility - P zer - Pharmaceutical Manufacturing Plant at King Jeddah Construction 400000000 Q3-2012 Q4-2011 Q4-2015 Facilities/Spa Study Abdullah Economic City (KAEC) Saudi Arabian Railways - North South Railway Project Various Infrastructure Railway 3000000000 EPC Q3-2009 Q2-2006 Q2-2013 (NSR) Saudi Aramco - Abqaiq Green eld Gas Fired Electricity Gas Fired Power Abqaiq Power 100000000 EPC ITB Q1-2013 Q2-2012 Q1-2016 and Steam Plant Station Saudi Aramco - Arabiyah and Hasbah Gas Field Gas Field Arabiyah Gas 3000000000 EPC Q1-2011 Q1-2008 Q3-2014 Development (Overview) Development
Saudi Aramco - BAPCO - New Arabia Pipeline Various Pipeline Oil 350000000 FEED Q3-2012 Q1-2002 Q4-2014
Floating Storage Saudi Aramco - Bulk Storage Terminal Shuaibah O shore and O oading 600000000 EPC ITB Q3-2012 Q1-2011 Q2-2014 (FSO) Saudi Aramco - Carbon Dioxide Injection Plant - Uthmaniyah Gas Carbon Dioxide 100000000 EPC Q2-2011 Q4-2009 Q4-2013 Uthmaniyah Field Saudi Aramco - Crisis and Disaster Management Center Makkah Construction O ce Buildings 30000000 EPC ITB Q3-2013 Q4-2012 Q1-2015 Saudi Aramco - DOW - Ras Tanura Gas Plant (Overview) Ras Tanura Gas Gas Field 4000000000 EPC ITB Q4-2013 Q3-2007 Q2-2017 Saudi Aramco - DOW - Ras Tanura Gas Plant - Ethylene Gas, Ras Tanura Gas Processing 500000000 EPC Q4-2011 Q3-2011 Q4-2013 Cracker and TDI Units Petrochemicals Saudi Aramco - Hasbah O shore Development Program Manifa Gas Gas Processing 1500000000 EPC Q1-2011 Q1-2009 Q3-2014 - Gas Processing Plant Saudi Aramco - Hawiyah Green eld Gas Fired Electricity Gas Fired Power Hawiyah Power 80000000 EPC ITB Q1-2013 Q2-2012 Q4-2015 and Steam Plant Station Saudi Aramco - Integrated Gasi cation Combined Cycle Jizan Power Power Plant 2400000000 FEED Q2-2013 Q1-2012 Q4-2016 (IGCC) Power Plant Petrochemicals, Saudi Aramco - Jizan Export Re nery (Overview) Jizan Re nery 7000000000 EPC Q4-2012 Q4-2006 Q4-2016 Re ning Saudi Aramco - Jizan Export Re nery - Crude Distillation Petrochemicals, Jizan Re nery 500000000 EPC Q4-2012 Q1-2007 Q4-2016 Unit/Vacuum Distillation Unit, Flare & Pipe Rack Complex Re ning Diesel Hydro Saudi Aramco - Jizan Export Re nery - Diesel Hydro- Jizan Re ning Desulphurisation 220000000 EPC Q4-2012 Q1-2007 Q1-2016 Treater Unit (DHDS) Saudi Aramco - Jizan Export Re nery - Fuel Gas Jizan Oil, Re ning Biofuels 500000000 EPC ITB Q4-2012 Q1-2007 Q4-2016 Saturation & Treatment Unit Saudi Aramco - Jizan Export Re nery - Hydrocracker Unit Jizan Re ning Hydrocracker 250000000 EPC Q4-2012 Q1-2007 Q1-2016 Saudi Aramco - Jizan Export Re nery - Marine Terminal O shore, Jizan Marine Terminal 500000000 EPC Q4-2012 Q1-2007 Q4-2016 Facilities Infrastructure Saudi Aramco - Jizan Export Re nery - Naphtha Jizan Re ning Hydrotreating 500000000 EPC Q4-2012 Q1-2007 Q4-2016 Hydrotreater Complex Saudi Aramco - Jizan Export Re nery - Power Plant Feasibility Jizan Power Power Plant 75000000 Q3-2014 Q1-2011 Q4-2016 Interconnection Study Saudi Aramco - Jizan Export Re nery - Sour Water Jizan Re ning Re nery 500000000 EPC Q4-2012 Q1-2012 Q4-2016 Stripper & Amine Regeneration Unit
Award Start Completion Project City Sector Facility Budget Status Date Date Date Saudi Aramco - Jizan Export Re nery - Tank Farms Jizan Re ning Oil Storage Tanks 1000000000 EPC Q4-2012 Q1-2007 Q4-2016 Saudi Aramco - Jizan Export Re nery - Utilities Package Jizan Re ning O sites & Utilities 1000000000 EPC Q4-2012 Q1-2012 Q4-2016 Theatre/ Saudi Aramco - King Abdulaziz Centre for Knowledge & Eastern Region Construction Entertainment/ 300000000 Construction Q2-2010 Q4-2008 Q3-2013 Culture Leisure Facilities Saudi Aramco - King Abdullah Petroleum Studies & Education/Training Riyadh Infrastructure 300000000 EPC Q1-2011 Q1-2009 Q4-2013 Research Centre (Kapsarc) Facilities Saudi Aramco - Manifa Field Development (Overview) Manifa Oil, Gas Oil Production 11000000000 EPC Q2-2008 Q1-2005 Q3-2014 Saudi Aramco - Midyan Gas Processing Plant Tabuk Gas Gas Processing 800000000 EPC ITB Q2-2013 Q2-2012 Q2-2015 Saudi Aramco - Ras Tanura Re nery - Aromatics Unit Ras Tanura Petrochemicals Aromatics 500000000 FEED Q3-2013 Q1-2011 Q2-2016 Saudi Aramco - Ras Tanura Re nery - Clean Fuels Package Ras Tanura Petrochemicals Aromatics 500000000 FEED Q3-2013 Q1-2011 Q2-2016 Saudi Aramco - Riyadh Re nery - Clean Transportation Riyadh Re ning Isomerisation 2500000000 EPC Q1-2013 Q2-2011 Q3-2016 Fuel Saudi Aramco - Safaniyah Oil Field (Phase 2) Safaniyah Oil Oil & Gas Field 500000000 EPC ITB Q2-2014 Q4-2012 Q3-2016 Feasibility Saudi Aramco - Shale Gas Production Unknown Gas Shale Gas Unknown Q1-2012 Q2-2016 Study Natural Gas Saudi Aramco - Shaybah NGL - Recovery Unit (Overview) Shaybah Gas 6000000000 EPC Q1-2011 Q2-2009 Q3-2014 Liquefaction (NGL) Saudi Aramco - Shaybah to Abqaiq Natural Gas Liquids Various Pipeline Multi Products 300000000 EPC Q4-2011 Q1-2011 Q4-2014 Pipeline Saudi Aramco - Upgrade of Waste Water Treatment Waste Water Jeddah Water 100000000 EPC Q3-2012 Q4-2006 Q2-2014 Facilities - Jeddah Re nery Treatment Saudi Aramco - Wasit Gas Development - Arabiyah Al Sharqiya O shore O shore Platform 100000000 Construction Q3-2012 Q3-2009 Q4-2013 O shore Facilities Saudi Aramco - Wasit Gas Development - Industrial Al Sharqiya Petrochemicals O sites & Utilities 100000000 EPC Q1-2011 Q1-2011 Q2-2013 Support Facilities Saudi Aramco - Wasit Gas Development - Onshore Al Sharqiya Gas Gas Processing 200000000 EPC Q1-2011 Q3-2009 Q2-2014 Facilities - Gas Processing Unit Saudi Aramco - Wasit Gas Development - Onshore Natural Gas Al Sharqiya Gas 150000000 EPC Q1-2011 Q3-2009 Q2-2014 Facilities - NGL Fractionation Plant Liquefaction (NGL) Saudi Aramco - Wasit Gas Development - Onshore Al Sharqiya Re ning Sulphur Recovery 250000000 EPC Q1-2011 Q3-2009 Q4-2014 Facilities - Sulphur Recovery Units Gas Field Saudi Aramco - Wasit Gas Field Development (Overview) Dammam Gas 6000000000 EPC Q1-2011 Q1-2008 Q1-2014 Development Saudi Aramco Total Re nery and Petrochemical Jubail Re ning Re nery 10000000000 EPC Q2-2009 Q1-2005 Q4-2013 Company (Satorp) - Jubail Export Re nery Oil Field Saudi Aramco - GES Plus Contracts Unknown Oil, Gas EPC ITB Q1-2010 Development Saudi Binladin Group - Saudi Oger - Jabal Omar Mixed-Use Makkah Construction 2700000000 Construction Q4-2010 Q4-2007 Q4-2014 Development Company - Real Estate Project Development
PROJEcTs UPDATE Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 45
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Development Project Estate Real - Company Development
Q4-2014 Q4-2007 Q4-2010 Construction 2700000000 Construction Makkah
Mixed-Use Mixed-Use Saudi Binladin Group - Saudi Oger - Jabal Omar Omar Jabal - Oger Saudi - Group Binladin Saudi
Development
Saudi Aramco - GES Plus Contracts Plus GES - Aramco Saudi Q1-2010 ITB EPC Gas Oil, Unknown
Oil Field Field Oil
Company (Satorp) - Jubail Export Re nery Export Jubail - (Satorp) Company
Q4-2013 Q1-2005 Q2-2009 EPC 10000000000 Re nery Re ning Jubail
Saudi Aramco Total Re nery and Petrochemical Petrochemical and Re nery Total Aramco Saudi
Development
Saudi Aramco - Wasit Gas Field Development (Overview) Development Field Gas Wasit - Aramco Saudi Q1-2014 Q1-2008 Q1-2011 EPC 6000000000 Gas Dammam
Gas Field Field Gas
Facilities - Sulphur Recovery Units Recovery Sulphur - Facilities
Q4-2014 Q3-2009 Q1-2011 EPC 250000000 Recovery Sulphur Re ning Sharqiya Al
Saudi Aramco - Wasit Gas Development - Onshore Onshore - Development Gas Wasit - Aramco Saudi
Liquefaction (NGL) Liquefaction Plant Fractionation NGL - Facilities
Q2-2014 Q3-2009 Q1-2011 EPC 150000000 Gas Sharqiya Al
Natural Gas Gas Natural Saudi Aramco - Wasit Gas Development - Onshore Onshore - Development Gas Wasit - Aramco Saudi
Facilities - Gas Processing Unit Processing Gas - Facilities
Q2-2014 Q3-2009 Q1-2011 EPC 200000000 Processing Gas Gas Sharqiya Al
Saudi Aramco - Wasit Gas Development - Onshore Onshore - Development Gas Wasit - Aramco Saudi
Support Facilities Support
Q2-2013 Q1-2011 Q1-2011 EPC 100000000 Utilities & O sites Petrochemicals Sharqiya Al
Saudi Aramco - Wasit Gas Development - Industrial Industrial - Development Gas Wasit - Aramco Saudi
O shore Facilities O shore
Q4-2013 Q3-2009 Q3-2012 Construction 100000000 Platform O shore O shore Sharqiya Al
Saudi Aramco - Wasit Gas Development - Arabiyah Arabiyah - Development Gas Wasit - Aramco Saudi
Treatment Re nery Jeddah - Facilities
Q2-2014 Q4-2006 Q3-2012 EPC 100000000 Water Jeddah
Waste Water Water Waste Saudi Aramco - Upgrade of Waste Water Treatment Treatment Water Waste of Upgrade - Aramco Saudi
Pipeline
Q4-2014 Q1-2011 Q4-2011 EPC 300000000 Products Multi Pipeline Various
Saudi Aramco - Shaybah to Abqaiq Natural Gas Liquids Liquids Gas Natural Abqaiq to Shaybah - Aramco Saudi
Liquefaction (NGL) Liquefaction
Saudi Aramco - Shaybah NGL - Recovery Unit (Overview) Unit Recovery - NGL Shaybah - Aramco Saudi Gas Shaybah Q3-2014 Q2-2009 Q1-2011 EPC 6000000000
Natural Gas Gas Natural
Study
Saudi Aramco - Shale Gas Production Gas Shale - Aramco Saudi Unknown Gas Shale Gas Unknown Q2-2016 Q1-2012
Feasibility Feasibility
Saudi Aramco - Safaniyah Oil Field (Phase 2) (Phase Field Oil Safaniyah - Aramco Saudi Q3-2016 Q4-2012 Q2-2014 ITB EPC 500000000 Field Gas & Oil Oil Safaniyah
Fuel
Q3-2016 Q2-2011 Q1-2013 EPC 2500000000 Isomerisation Re ning Riyadh
Saudi Aramco - Riyadh Re nery - Clean Transportation Transportation Clean - Re nery Riyadh - Aramco Saudi
Saudi Aramco - Ras Tanura Re nery - Clean Fuels Package Fuels Clean - Re nery Tanura Ras - Aramco Saudi Q2-2016 Q1-2011 Q3-2013 FEED 500000000 Aromatics Petrochemicals Tanura Ras
Saudi Aramco - Ras Tanura Re nery - Aromatics Unit Aromatics - Re nery Tanura Ras - Aramco Saudi Q2-2016 Q1-2011 Q3-2013 FEED 500000000 Aromatics Petrochemicals Tanura Ras
Saudi Aramco - Midyan Gas Processing Plant Processing Gas Midyan - Aramco Saudi Q2-2015 Q2-2012 Q2-2013 ITB EPC 800000000 Processing Gas Gas Tabuk
Saudi Aramco - Manifa Field Development (Overview) Development Field Manifa - Aramco Saudi Q3-2014 Q1-2005 Q2-2008 EPC 11000000000 Production Oil Gas Oil, Manifa
Research Centre (Kapsarc) Centre Research Facilities
Riyadh Infrastructure 300000000 EPC Q1-2011 Q1-2009 Q4-2013
Education/Training Education/Training Saudi Aramco - King Abdullah Petroleum Studies & & Studies Petroleum Abdullah King - Aramco Saudi
Leisure Facilities Leisure
Culture
Eastern Region Eastern Construction Entertainment/ 300000000 Construction Q2-2010 Q4-2008 Q3-2013
Saudi Aramco - King Abdulaziz Centre for Knowledge & & Knowledge for Centre Abdulaziz King - Aramco Saudi
Theatre/
Saudi Aramco - Jizan Export Re nery - Utilities Package Utilities - Re nery Export Jizan - Aramco Saudi O sites & Utilities & O sites Re ning Jizan EPC 1000000000 Q4-2012 Q4-2016 Q1-2012
Saudi Aramco - Jizan Export Re nery - Tank Farms Tank - Re nery Export Jizan - Aramco Saudi Jizan Re ning Oil Storage Tanks Storage Oil 1000000000 EPC Q4-2012 Q1-2007 Q4-2016
Date Date Date
Project City Sector Facility Budget Status
Award Award Start Start Completion Completion
Stripper & Amine Regeneration Unit Regeneration Amine & Stripper
Jizan Re ning Re nery 500000000 EPC Q4-2012 Q1-2012 Q4-2016
Saudi Aramco - Jizan Export Re nery - Sour Water Water Sour - Re nery Export Jizan - Aramco Saudi
Interconnection Study
Jizan Power Power Plant Power 75000000 Q3-2014 Q1-2011 Q4-2016
Feasibility Feasibility Saudi Aramco - Jizan Export Re nery - Power Plant Plant Power - Re nery Export Jizan - Aramco Saudi
Hydrotreater Complex Hydrotreater
Jizan Re ning Hydrotreating 500000000 EPC Q4-2012 Q1-2007 Q4-2016
Saudi Aramco - Jizan Export Re nery - Naphtha Naphtha - Re nery Export Jizan - Aramco Saudi
Facilities Infrastructure
Jizan Marine Terminal Marine 500000000 EPC Q4-2012 Q1-2007 Q4-2016
O shore, O shore, Saudi Aramco - Jizan Export Re nery - Marine Terminal Terminal Marine - Re nery Export Jizan - Aramco Saudi
Saudi Aramco - Jizan Export Re nery - Hydrocracker Unit Hydrocracker - Re nery Export Jizan - Aramco Saudi Jizan Re ning Hydrocracker 250000000 EPC Q4-2012 Q1-2007 Q1-2016
Saturation & Treatment Unit Treatment & Saturation
Jizan Oil, Re ning Oil, Biofuels 500000000 EPC ITB EPC Q4-2012 Q1-2007 Q4-2016
Saudi Aramco - Jizan Export Re nery - Fuel Gas Gas Fuel - Re nery Export Jizan - Aramco Saudi
(DHDS)
Treater Unit Treater
Re ning Jizan Desulphurisation Desulphurisation Q1-2016 Q1-2007 Q4-2012 EPC 220000000
Saudi Aramco - Jizan Export Re nery - Diesel Hydro- Diesel - Re nery Export Jizan - Aramco Saudi
Diesel Hydro Hydro Diesel
Unit/Vacuum Distillation Unit, Flare & Pipe Rack Complex Rack Pipe & Flare Unit, Distillation Unit/Vacuum Re ning
Jizan Q4-2016 Q1-2007 Q4-2012 EPC 500000000 Re nery
Petrochemicals, Petrochemicals, Saudi Aramco - Jizan Export Re nery - Crude Distillation Distillation Crude - Re nery Export Jizan - Aramco Saudi
Re ning
Saudi Aramco - Jizan Export Re nery (Overview) Re nery Export Jizan - Aramco Saudi Jizan Q4-2016 Q4-2006 Q4-2012 EPC 7000000000 Re nery
Petrochemicals, Petrochemicals,
(IGCC) Power Plant Power (IGCC)
Q4-2016 Q1-2012 Q2-2013 FEED 2400000000 Plant Power Power Jizan
Saudi Aramco - Integrated Gasi cation Combined Cycle Cycle Combined Gasi cation Integrated - Aramco Saudi
and Steam Plant Steam and Station
Power Hawiyah Q4-2015 Q2-2012 Q1-2013 ITB EPC 80000000
Gas Fired Power Power Fired Gas Saudi Aramco - Hawiyah Green eld Gas Fired Electricity Electricity Fired Gas Green eld Hawiyah - Aramco Saudi
- Gas Processing Plant Processing Gas -
Q3-2014 Q1-2009 Q1-2011 EPC 1500000000 Processing Gas Gas Manifa
Saudi Aramco - Hasbah O shore Development Program Program Development O shore Hasbah - Aramco Saudi
Petrochemicals Units TDI and Cracker
Q4-2013 Q3-2011 Q4-2011 EPC 500000000 Processing Gas Tanura Ras
Gas, Gas, Saudi Aramco - DOW - Ras Tanura Gas Plant - Ethylene Ethylene - Plant Gas Tanura Ras - DOW - Aramco Saudi
Saudi Aramco - DOW - Ras Tanura Gas Plant (Overview) Plant Gas Tanura Ras - DOW - Aramco Saudi Q2-2017 Q3-2007 Q4-2013 ITB EPC 4000000000 Field Gas Gas Tanura Ras
Saudi Aramco - Crisis and Disaster Management Center Management Disaster and Crisis - Aramco Saudi Q1-2015 Q4-2012 Q3-2013 ITB EPC 30000000 Buildings O ce Construction Makkah
Uthmaniyah Field Uthmaniyah
Q4-2013 Q4-2009 Q2-2011 EPC 100000000 Dioxide Carbon Gas Uthmaniyah
Saudi Aramco - Carbon Dioxide Injection Plant - - Plant Injection Dioxide Carbon - Aramco Saudi
(FSO)
Saudi Aramco - Bulk Storage Terminal Storage Bulk - Aramco Saudi Q2-2014 Q1-2011 Q3-2012 ITB EPC 600000000 O oading and O shore Shuaibah
Floating Storage Storage Floating
Saudi Aramco - BAPCO - New Arabia Pipeline Arabia New - BAPCO - Aramco Saudi Q4-2014 Q1-2002 Q3-2012 FEED 350000000 Oil Pipeline Various
Development (Overview) Development
Q3-2014 Q1-2008 Q1-2011 EPC 3000000000 Gas Arabiyah
Gas Field Field Gas Saudi Aramco - Arabiyah and Hasbah Gas Field Field Gas Hasbah and Arabiyah - Aramco Saudi
Station Plant Steam and
Q1-2016 Q2-2012 Q1-2013 ITB EPC 100000000 Power Abqaiq
Gas Fired Power Power Fired Gas Saudi Aramco - Abqaiq Green eld Gas Fired Electricity Electricity Fired Gas Green eld Abqaiq - Aramco Saudi
(NSR)
Q2-2013 Q2-2006 Q3-2009 EPC 3000000000 Railway Infrastructure Various
Saudi Arabian Railways - North South Railway Project Project Railway South North - Railways Arabian Saudi
Abdullah Economic City (KAEC) City Economic Abdullah
Study Facilities/Spa
Q4-2015 Q4-2011 Q3-2012 400000000 Construction Jeddah - P zer - Pharmaceutical Manufacturing Plant at King King at Plant Manufacturing Pharmaceutical - P zer -
Feasibility Feasibility Medical/Health
Saudi Arabian General Investment Authority (SAGIA) (SAGIA) Authority Investment General Arabian Saudi
Date Date Date
Status Budget Facility Sector City Project
Award Award Start Start Completion Completion Saudi Arabia Projects Update Projects Arabia Saudi 46 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 OIL IN PERSPECTIVE popular weekly column popular weekly ‘Energy Outlook’ for Gazette to andalsocontributes Pakistan’s Saudi Dawn andtheBBC. *The is writer Vice andenergy President Est.,eminentjournalist a analyst.Hewrites Al-Azzaz ofAl-Khobar-based the the cutbacks in production agreed upon and quota output oil OPEC the respect nounced that Venezuela would in future an- Araque Rodriguez Ali minister oil his 1999, March in meeting OPEC an oil producers. of interests the protecting and vancing in ad- crucial became relationship This Sauditime? Arabia first in forlanded the he when Chavezwelcome to side, his on in Riyadh with the entire Saudi leadership tarmac the atwheelchairs, on Fahd King markets.Howcouldoneforget ailing an the Saudi into strategy to well provide a fitted floor to the It oil arms. open with reciprocated Riyadh And workings. nal streamlineOPEC’sto as Arabia, so inter relationship Saudi mainly – producersoil major closer with fostering and ing forg- on worked strategically He that. all Caracas was leading the quota buster. quotas were being floutedall around. And at around $10 a barrel. OPEC production oscillating were prices oil 1998, late the in office to came he When markets. oil the altering in instrumental was Chavez significant manner.a in geo-politics ergy en- global the OPEC, touched influence er, within afew days, is another story. That 2002. pow- into back claw to managed in Chavez junta his and against Chavez coup short-lived a engineered Washington that today insist some that Washington. And this went to the extent, mensely popular too. was both loved and hated. Yet he was im- He controversial. was Chavez sonality. per colorful a lost has world energy the of Venezuela, leader socialist firebrand n the In n te eut wr eiet At evident. were results the And Chavez’s arrival on the scene changed Chavez’s half, a and decade a Over to nemesis, a anathema, was Chavez
dea th Chavez Revolution is Far from Over By Syed Husain* Rashid of Hugo Chavez, the the Chavez, Hugo of - - had a 3.5 percent share of global crude crude global of share percent 3.5 a had only Canada, in percent Saudi 11 and in Arabia percent 16.1 with compared percent of the world’s known oil reserves, 17.9 held that country the 2011, of end the At reserves. its develop to expertise required the of Caracas robbed majors tionof Chavez and his repulsion with oil revolu- ‘Bolivarian’ The country. the of him for ruining the energy infrastructure dent from his funeral, analysts also blame trodden masses of Venezuela, - as evi also its policies. Washingtoncontemptforof andsense a linked all by anti imperialistic – zeal with under Libya recently,– more Argentina and, Gaddafi Iran, Ecuador, Cuba, Bolivia, with relationships forge to him enabled currency, ideological his lution, revo- Bolivarian world, the of producer oil major fifth the ran he While nation. domi- decade-and-a-half-long Chavez’s pitfalls –most too realized. political moveitsforhad one agreed,the for currency - the trade.Indeed not every the producing countries to drop dollar as urged he Riyadh, in summit OPEC an During Movement. Non-Aligned the to OPEC likened He roots.anti-colonial its to back OPEC take to tried also Chavez cut of four percent. then, supporting a further OPEC output While Chavez was loved by the down- of feature central the been has Oil activism, geopolitical his With many insist. industry inthe demands, market the with pace keep to billionsofdollarsof need in disarrayand ofVenezuela infrastructure energy the in into exploration and production. This left insist. Very little investment made its way toprojects, ed andcronies’ ‘his some as – divert- was money oil revolution, the his finance to order In Arabia. Saudi of cent markets as compared to let’s say 13.2 per over –despite his death! some degree of confidence. with say now of could one service – Venezuelans the into go did Caracas, by Bolivarian money, oilearned the his all revolution.Not spread to bid a in ently appar – too countries other with deals similar did Chavez for Transport. diesel London cut-price receive to with Chavez deal a did also Mayor London as election upon Livingston Ken gift. this without survive cannot economy Cuban The free. fornot if prices, down knocked at and Venezuela from products oil and oil crude its of all, not if most,receives Cuba Cubans. the by exclusively nearly run are services secret the that And es. forc armed- and Venezuelanservice civil the in commentators)workingsome per as 32,000 to up goes figure (the Cubans than helping people the of Venezuela. pockets own their lining in ested intermorewere who cronies his among opinion the thatcorruption rampant was of are junta his and Chavez with contact The Chavez revolution is far from far is revolution Chavez The of thousands are there say, Reports direct in came who those of Some - - - Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 47 b) If “YES”, which particular information/article “YES”, b) If has helped you? like would you new topic suggest any 7. Please the magazine: add to us to ------of the the improvement suggestions for Your 8. publication: ------and designation name, your give 9. Please contact address: ------
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48 special report Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 Patronising Sector: Local Manufacturing by Helmy Gamil Abdul Wahed, Economic Consultant
Saudi Aramco’s Perspectives Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 special report 49 % % 30% 20% 20% 45% 20% 20% 22% rget (%) calization Ta
Lo 35 8 25 4 38 17 10 19 (%) 100 Distribution Saudi Saudi Aramco has a preference for Aramco Domiciliation Policy Domiciliation Aramco Thecore strategies Materials of in Supply Saudi Aramco are maximizing value concentrated added to stakeholders, on and value of expanding promoting local content, developing continuously - innova tive supply chain methodologies and work de- effective and professional a veloping force. purchase of products manufactured Saudi in Arabia in accordance ous with commercial - vari considerations such as price, quality, availability, marketability foreign- offering while transportation, and owned enterprises adequate opportunity, in conformity with customary practices, al and services expenditure of the national national the of expenditure services and al come. to in the years company ted Local 3.60 1.60 0.25 1.00 1.80 0.80 0.15 0.40 9.60 Expec curements $ billion ears Goods Stocked by National Companies National by Goods Stocked Pro Y ve Goods & Services Provided by Foreign Companies Foreign by Goods & Services Provided Fi xt Goods & Services Companies National from Originating Foreign Goods & Services Provided by National Companies National by Goods & Services Provided Foreign 8 5 5 4 2 12 43 $ billion Saudi Saudi Aramco is acutely aware of the ted Expenditure HIGHEST PREFERENCE LOWEST PREFERENCE LOWEST need to enhance its local company has content. visibly The undertaken various pragmatic and realistic initiatives to - pro mote local industries in order to increase their competitiveness both at national and international levels in line with the accession Kingdom’s to the World Trade Organization. Judging by the fast pace of adoption of the latest technology and im- of provement products by the local Saudi industries, it is expected that they will be - materi total the in share their raise to able to to increase the local content of their - na has raisedIndonesia tional oil companies. its local content to over 51 percent while - localtakingthe pro of target seta Nigeria These percent. 70 nearly to share curement are the relevant examples which could be Armco. Saudi by followed Expec tios for the Ne - Ra t3 ntent t4 Co e equipmen r the national oil com oil national the uids and inhibitors changers and valves
ted Local o, trical and transmitters , ex tural steel , security and fi , pumps and turbines ommodity Groups , elec C ety , drilling fl
s Expec tion and general supplies , vessels o’ i Aramc i
For instance, at least 6 NOCs’ volumes volumes NOCs’ 6 least at instance, For Several countries such as Indonesia olumns ompressors onstruc ipes and struc otal ud P C C Instruments Chemicals Drilling and producing equipmen Health, saf C T Aramc Sa
pany pany of Saudi Arabia, has noticeably in- creased the local content in its purchases of various kinds of materials, equipment ex- of short far falls still it services,but and pectation as to compared other countries’ National Oil Companies (NOCs). Saudi Aramco has set out a 22 percent target of expen- capital five-year its in localcontent $40 including billion $125 of budget diture billion for the purchase of materials. This goal of local by Saudi Aramco ispurchase do- the to compared as low conspicuously NOCs other many by procurement mestic the world. throughout in or theirindigenization of domiciliation procurement of products and have been found to servicesbe between nearly 80 percent and 45 percent, according to a TheBank. World the by surveyconducted average annual utilization of local - con tent of Ecopetrol (Colombia) has peaked by Statoil followed 79 at percent, around (Brazil) Petrobras percent, 77.3 (Norway) 75 percent, Petro (China) Kazmunaigaz 72 (Kazakhstan) percent, 67 percent Africa) SA (South 45.3 percent. Petro and and Nigeria have introduced new laws
Saudi Aramco’s Perspectives Aramco’s Saudi
Patronising Local Manufacturing Local Sector: Patronising 50 special report Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 (SR million) Oil andGasSe cal producers.cal lo- to opportunities industrial in increase valueofa with billion. $9.6 This means an locally supplied be will percent 22 about which five years, of next the in billion $43 worth procurementscommodities capital targetingpublished statistics, is Aramco recent to According materials. on spent be will billion $40 over which of projects, andinternational joint andequityventure domestic including billion, of $125 almost budget capital total a plans Aramco price preferences by only 5percent. given are ratios, Saudization the fulfilling not are who manufacturers, Saudi ratios. Saudization required applying are that they condition the on percent preference price 10 manufacturers Saudi gives Aramco purchases. such for compete to representingpercent7.6 of expenditure of oil and gas reached sector SR88.46 billion, the of (OPEX+CAPEX)expenditure nual sus implemented by CDSI, in 2010, the an- According to the aggregate economic cen- Expenditure inSaudi Arabia Sector’s and Gas Oil Annual Oil &Gassec T Ex T O Facts Aramco: about otal Ec otal OilandGassec ther M trac In the coming five years, Saudi Saudi years, five coming the In • • • • • • • tion ofCrudeP onomic Ac ining andQuarr $23.1 billion in material and service procurement spending awarded to to awarded spending procurement service and material in billion $23.1 Saudi nationalsform 87percent oftheSaudiAramcoworkforce (48647). 56066 employees from worldwide 77 countries. World’s ofnaturalgasliquids(NGL). top exporter 8th largest refiner inthe world. World’s naturalgasreserves. fourth-largest 13.3% oftheworld’s crudeoilproduction. local companies. to r’ s %ofthetotal ct tivities or etroleum andNaturalGas It tor em ’s ying AnnualExpenditureinKSA2010 the total employees in the private sector sector private the in employees total the of percent 11 about representing people 749,989 about employed sector facturing manu- The percent. 11 of rate growth a sector reachedthe manufacturing SR 279.5 of billion in 2012 achieving GDP The Capability Saudi Manufacturing Sector’s prove and promote capabilities. their im- to manufacturers to support tinuous commencingproduction, it provides con - After requirements. Aramco Saudi and international minimum meet facturers facility, manu- that ensure to the help offers Aramco of preparation the During products. specialized manufacturing in capabilities technical acquire to facturers manu- potential for support is there ity, - facil the establishing Before stages. the equipmentgasandoilof ing through all manufactur the for provided is Support L Aramco T expenditure of oil and gas sector. sentsabout 63percent of the total annual repreCAPEX - activities. economic the all ocal Manufacturersocal 853,859 32,527 OPEX 30,305 2,223 3.8 echnical Support for echnical 308,660 CAPEX 55,936 54,581 1,355 18.1 1,162,518 T 88,463 otal 84,885 3,578 7.6
- to the need for policies designed to ad- to designed policies for need the to addition In prices. nominal at land and exemptions tax and customs to access of lack also and obstacles; marketing and ing, technical, procedural, informational, regulatory,administrative,include- fund constraints Major industry. national of chain value the completing and sector, industrial the into integration and ages - link internal promoting in role a play to bid their toimpediments ofnumber a face still SMEs plan, development ninth employees.19 Accordingthan less the to ing sector’s establishments in KSA employ tified firmstified are inadequate. cer ISO the Kingdom, the In standards. ance with international quality and compli safety - reflect which 14000), ISO and 9000 (ISO acquired certificates ISO of Another relevant indicator countries. is the number other to compared low is es sourc - national from registration patent applicationsindustrial ofnumber forthe content. cal indicatesIndustrialthatdata technologi- high a with products those ness in production and especially export, competitive- their in role crucial a plays needs their to it adapt and technology assimilate to ability their Hence,nology. tech- of importers are countries oping devel - Most performance. industrial of competitiveness of determinant major a are capabilities technological Domestic Domiciliation inKSA Key Challenges Facing 12 percent. Saudization with 2010, reaching ratio in porting this sector. this porting sup- in government Saudi the by interest increased an reflecting 2012, till billion SR647 reached KSA in sector facturing percent and Province Eastern 23percent. Riyadh – Provincepercent,40 Province Makkah regions23 main three in based are Arabia Saudi in firms industrial total andber plastic products 12percent. - rub andpercent 14 products metal cated fabri- percent, 18 products mineral tallic concentrated on three activities – non me- is total Kingdom.the percentofAbout 44 About 96 percent of the manufactur the ofpercent About 96 Government spending on the manu- the on spending Government the of percent 86 about Regionwise, the in firms industrial 5991 are There I ndustrial - - Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013
special report 51 age er 79.00 77.30 75.00 72.00 67.00 45.30 Av ndustrial ndustrial I Cs in in Cs – – 79.00 47.21 67.00 69.90 2008 NO nternational nternational I can can grow under the auspices of the local demand of oil and gas whichcompanies, depends mainly on the willingness of oil companies to maximize their participa- tion in the local development This process. willingnessis not a giftfrom these companies. Local companies and local citizens have the right to benefittheir from country’s natural resources endowments. With the passing and of time, the natural resources may deplete. The right of the future generations is to find a diversified economy away from non- resources. renewable The Role of of Role The Domiciliation Local content ratio is measured by the percentage of expenditure goods and services on to total expenditure local on goods and services. - re Bank’s World cent estimations show that the Ecopetrol National Oil Company in Colombia has ratio, local content largest the average, on reaching 79 percent of its total - procure ments. Statoil in Norway came second, with their local content ratio reaching 77.3 percent. in Policies Domiciliation Recent Recent which recommendations many are There there that saying time to time from appear is a contradiction between localization policies and World Trade Organization obligations (TRIMS,GPA). But at same time the there is an increasing trend at the international level - towards enforc to have ing startlocalization policies. We thinking out-of-the-box, learning from experiences. various Domiciliation Policies Domiciliation 88.00 86.34 70.00 62.79 41.00 2007 - - 91.00 78.14 80.00 69.94 40.00 2006
58.00 73.25 82.11 30.37 2005 The backward linkages are the most There are many determinants which important important linkage in oil and gas supply chain because the local infant industries can can shape the extent of backward link - infrastruc- ages. ownership, They include local as such drivers policy and skills ture, that show forecasts Recent policy. content world demand for oilfield equipment is expected to increase 3.7 percent per - an num through 2016 to reach $106 billion. This means that many industrial - invest ment opportunities depend on the pur Companies Oil National of power chasing Companies Oil International and (NOCs) (IOCs). But benefits depend mainly on the capabilities of the local manufactur companies. ing World Bank ordefines - domiciliation indi World genization as the policy that has evolved from creating backward linkages by - sup through to the local economy input plying local of creation the technology, of transfer increasing and opportunities, employment control. and local ownership – –– –––– – - anufacturing 71.50 97.99 2004 86 percent is in 86 concentrated Riyadh,percent Makkah and represents about 11 percent of the value added of of added value the of percent 11 about represents 44 percent is concentrated on non metallic mineral 5991 manufacturing firms. 11 percent of the total employees in the private sector are concen- in the private sector are employees of the total 11 percent tio in Some NOCs hstan) manufacturing sector’s financing reached SR647 billion till 2012. manufacturing financing sector’s Ra azak NOCs way) Manufacturing value added: all economic activities. Number of firms: Industry Concentration: Eastern Province. Employment: products, fabricated and rubber and plastic products. metal products products, Concentration: Geographical on manufacturingtrated activities. Finance: ntent China) Co • • • • • • The world’s oil industry has long a There are many linkages that exist cal azmunaigaz (K Sector in KSA: Facts about M the Facts etrobras (Brazil) etro ( etro SA (South Africa) Ecopetrol (Colombia) Statoil (Nor P P K P history and it has come a long increasing its way procurement locally. Since in the discovery of oil at Spindletop in East Texas in 1901, major steps were under taken to create strong linkages with oil a cen- remains now Houston companies. ter of the oil industry even though East Texas oil fields were depleted ago. This decadesis becauseof thosestrong link- ages that enabled the local companies to grow under the auspices of the local de- mand, but now that these companies do not have local demand, they - are market ing their services and products all over have we and story real a is This world. the it. from lessons learn many to in the supply chain of oil and gas sector, one of them being the backward linkages. dress dress such there impediments, is also a for clusters industrial promoting for need SMEs that would integrate the stages of as well as product, particular a producing fields. in various SMEs for incubators for Lo 52 special report Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 71.2 percent of total. the lion was spent for local orservices, around expenditure. bil- $5.35 In2010, service tal es from firms, local percentor 73.31 of to- - sourced billion$4.41 also worthof servic sector The goods. on spending of percent 37.6 around or products local of worth billion $1.3 purchased sector the expenditure. 2011, In goods total sector’s the of percent 35.5 or products, local of worth billion $1.02 sourced sector gas and oil the 2012, September and January tween - be that claimed BPMigas percent. 51 to percent content35 requirements fromcal lo- increased BPMigas 2011, In workers. more absorb help to and contractors gas and oil of expenditure the from benefit content to ensure that domestic companies December2009 requiring the use of local in ruling a issued and BPMigas regulator oil gas upstream Gas, and Oil on Law 2001 the to follow-up a as Indonesia, In I Industry. NigerianPetroleum the in services and es tion of Nigerian human, material resourc- capabilities, through the deliberate utiliza- and capacity developmentof systematic a by economyNigerian the in created or to quantumcompositeadded of the value as suppliers. purchase their industrial needs from local and international oil companies [IOCs] to [NOCs] companies oil national [enforce] way with the passage of a bill to encourage ondependence importing. high a is there So, industries. related gas and oil for billion $6.3 than more worth goods to imported Nigeria 2010, according in WITS, and materials industrial and equipment on especially CAPEX on concentrated is spending high A locally. done be ordinarily could that purchases international through economy the of out goes amount this of billion $8 About Nigeria. in domiciled is amount that of percent 20 about only But fast. rising still is and billion, $10 ex- than more is penditure yearly sector’s gas and oil Nigerian Domiciliation Policies inN ndonesia The Nigerian bill defines local contentlocal The defines Nigerian bill The Nigerian government is evolving a igeria eily h floig Pooig of Promoting following: the pecially es- Strategy, Industrial National the of principles agreed the achieving wards industry. national of spread geographical desired the to contributing factors important most the of various one is areas administrative in projects industrial lishing factors of production. other andresourcesnatural abundanceof comparativethe fromadvantage accruing productivitythroughbythe gains, backed nies and acquiring competitive advantages compa - manufacturing of capabilities cal technologi- and R&D enhancingtowards directed be to need policies ny,industrial purchases of the Saudi national oil compa- the in content local enhance to order In Conclusion Required Glass Reinf Pr Steel Ropes Heat Ex C C Driliing Mud–Barite,Bentonite V High Lo Steel P Steel Plates, Utilities Modules/P Risers P Subsea Systems A T P Drilling Modules/P Te Umbilical Booms opside Module ipelines Systems iles alves ement (Hydraulic) ement (P ccommodation M otec rminal/Oil MovementSystems All efforts should be directed to- directed be should efforts All estab- for incentives more Offering w , Anchors V V oltages Cables tive P oltages Cables ipes , Storage changers or orced Epo Co aints Fl tland) , Buoys at Sheets,Sec ntent Description , T anks ack ack odule , Jackets xy ages , Pr ages Ra ( GRE) P essure tio intheNigerianBill tions , Bridges ipes V essels ,F lare quired by industry. the and developing the human resources re- relations global and regional enhancing development,industrialdeveloping and in balance regional account into taking capacity, export its and industry tional the competitiveness indicators of improving the na- environment, business ing NationalSystem ofInnovation, improv - their competitiveness, strengthening the improveproductivity their andenhance complexes,dustrial supportingto SMEs in- on based development on focusing technical content of industrial products, the promoting and knowledge- industries intensive developing value, high with added products on focusing and chain value the extending by industries gas and oil from revenue Kingdom, maximizing the of advantages parative com- the from benefit that industries NC % 100% 100% 100% 100% 60% 60% 60% 50% 60% 80% 60% 60% 45% 90% 50% 60% 70% 50% 80% 60% 75% 80% 80% T T T T T T T T T T T T T T T T Number Number V L L L onnage onnage onnage onnage onnage onnage onnage onnage onnage onnage onnage onnage onnage onnage onnage onnage Liters olume ength ength ength Unit Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 interview 53 rucks rucks T Another Another project is Azbil. It was - an suzu suzu iary of Mitsubishi Ltd., (MHI), has established MCC Heavy Saudi Industries, Arabia at Al Khobar. Theproject is - pro viding after-sale service activities in the Middle East region. The establishmentof the project in 2011 was aimed at further after-sale service enhancing strucMCC’s - ture in the country, for which more than 200 MHI compressor and mechanical been delivered. have turbines steam drive I the under up set projects joint the Among Saudi-Japanese Industrial Cooperation Force, Task Isuzu Truck Manufacturing Factory is prominent. It was established Dammam of City Industrial Second the in at a cost of $116 million with a target of 600 manufacturing units whichper year, would gradually increase to 25,000 units in the future. It is the firstplant to - pro Arabia. trucks finished in Saudi duce in nounced 2012. It is a manufacturing Mitsubishi Mitsubishi Heavy Industries Com- pressor pressor Corporation (MCC), a - subsid a joint project initially founded by Saudi Chemical. Sumitomo and Aramco Projects Mitsubishi Other major projects Rayon and are Mitsubishi Heavy Industries Mitsubishi Compressor, noted the Japanese - diplo (MRC) Company Rayon Mitsubishi mat. and Saudi Basic Industries Corporation have set up a joint venture to build and operate two plants – Methacrylate (MMA), one and the other for for Methyl Polymethylmethacrylate (PMMA) – at one of the manufacturing - affili SABIC’s will be the plant MMA The Jubail. in ates largest ever built, with a 250,000-metric- ton annual capacity. The PMMA plant will be based on MRC technology and will have an annual capacity of 40,000 metric tons. Commercial operations of these projects are expected to start year. next by Mr. Jiro Kodera Jiro Mr. - - companies companies are not only es-
Saudi Commerce and Economic .
Japanese Japanese companies have established ese n apa J Rabigh Phase-II Among the Saudi-Japanese recent - proj up set largest, the is Phase-II Rabighects, at a cost of $7 is billion. a It venture joint between Sumitomo Chemical Company Aramco Saudi and Chemical) (Sumitomo established for the world-class expansion petrochemical of complex Kingdom. the the of coast in west the on Rabigh Rabigh II, expected to begin operations in the firsthalf of 2016, will complement Saudi Aramco’s existing petrochemical investment portfolio especially in light of the Rabigh I petroleum refining and petrochemical production curcomplex, rently owned by Rabigh Refining Rabigh), (Petro Company Petrochemical and
Bases, Training Institutes KSA in Training Bases, Japanese Set Manufacturing Up tablishing tablishing their manufacturing bases in - techni developing also but Arabia, Saudi cal training institutes to prepare Saudis by disclosed was This markets. job the for to Ambassador Japanese Kodera, Jiro Mr. the Kingdom in an exclusive interview with the parts in recent years, said Mr. Kodera. They mainly Phase-II, include Mitsubishi Petro Heavy Industries Compressors, Rabigh Mitsubishi Rayon in- six addition, more In Project. Hitachi and underwaygot dustrial withhave projects significantinvestments automobile manufacturing, in metal processing, water and treatment IT areas related under the Saudi-Japanese Industrial Cooperation Task Force. Along with manufacturing bases, three training have beeninstitutes set up in cooperation with the Japanese companies. Theyinclude Saudi Automotive Japan High Higher Institute Institute for Plastic (SJAHI), Fabrication (HIPF) and (SEHAI). Institute Appliance Saudi Electric Home Review a number of major cooperation joint with ventures their in Saudi counter 54 Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 interview Kingdom. the to technologies related multimedia was Japanese transferring at This aimed basically million. $2 was investment initial The business. dissemination vice ser and contents mobile a is It Riyadh. in Holding Index is venture joint Japan Saudi- Another City. Dammam Industrial the Second in based is project The million. $100 of sales target with million $20 investment was initial The products. steel cast manufacturing of outline ness busi- a with 2009 in up set was Kubota and target of sales $33million. million $20 investmentof initial an with cable power underwater manufactures It 2009. April in announced was project The Force.Task Industrial Joint the der un- establishedprojectanother is Metals Systems/Marubeni J-Power Rabigh. in up set was project The million. $2.7 of investment initial an with desalination, membraneROing elements forseawater manufactur of plan business the with 2010 in announced was It project. joint gas industry. contributedevelopmentto ofSaudi& oil rehabilitation. will It need which plants existing to also but plants new only not to products valve its provide will Azbil Dammam. in 2013 by start to expected is project The 2015. by million $26.7 of investment of $1.9 million has target sales joint venture project with an approximate The valves. control of maintenance and nies. The Saudi Japan Automobile High High Automobile Japan Saudi The nies. in cooperation with the Japanese compa- established institutes training three the of activities the highlighted Kodera Mr. T raining Facilities nte SuiJpn on venture joint Saudi-Japan Another Saudi-Japanese a is Toyobo/Itochu - - set an exampleyoungrecruitingan men in set has Kingdom the in sector automobile the SJAHI, of establishment the With requirements. its to related directly that experience work and training technical ates by providing them with job-oriented a bridge between the industry and gradu- This was in line with the idea of building automobile technology and maintenance. skills of the Saudi youth the in the developdomains of to academy or institute an JAMA suggesting the idea of establishing contacted JADIK fact, this Considering automobile the of industry. needs ticated sophiscurrent- the meet not does which expertise, Saudi competent and skilled of shortage a has sector automobile the particularly, sector private the schools, ing from Saudi universities, institutes and growing number of Saudi youth graduat- competency. wellpractical as Despite the as know-how technical of terms in both constantskills, and update technology of requires which Kingdom the in sector set up in the wake of growing automobile Resources was SJAHI(HRDF). FundDevelopment Human and JADIK the by Thetraining cost at SJAHI isbeing borne (JADIK). Kingdom the in Distributors Japan Automobile Japanese and (JAMA) Inc., (METI), Industry Association Manufacturers’Automobile & Trade age of the Japanese Ministry of Economy, supportand patronsupervision, the has - It automobiles. Japanese in perspective andogy maintenance fieldwith a distinct ing an interest in the automobile technol- hav- graduates school high Saudi young viding job-oriented technical training for objectiveof prothe with 2002 Jeddahin - in established Kingdom the in institute nonprofitfirst the is It three. the among Institute (SJAHI) is an important institute turers around world. the manufac- best the from workshops the in machines training lines production 68 contains which million, SR250 was institute the of cost total The industry. for those who are already working in the processes.Short coursesareoffered also fabricationadvanced more in skills and knowledge their further to like would who those for courses advanced offers fabrication.plastics in The Institute also diploma a to leads that course semester a four- offers institute The trainees. for salaries and fees tuition provide panies (HRDF) and various Saudi plastics Fundcom - Development Saudi Resource The Human Malaysia. and Indonesia, Philippines, India, from industries tic grees with a long in experience the plas- de- engineering seniorby have who instructors conducted is training The Japan. in industry plastics prominent the from experience of years’ 30 than by Japanese the vised morewith experts super is process training The SHARQ. Company’s (SPDC), Japanese of partner Development Petrochemical Saudi the Petrochemical Company (SHARQ), and Corporation (TVTC), the SABIC Eastern Training Vocational and Technical the Resources, Minerals and Petroleum Ministry of the between cooperation in (HIPF) was established in Riyadh in 2007 the SJAHI, FabricationInstitutePlastics for Higher of success the Following Plastics Fabrication ganizationHome& Saudi isthe Electrics or training Saudi-Japanese newest The Home Appliances T and training. practical confidence skills, high gained have who raining - - interview Sa u d i Co m m e r c e a n d Ec o n o m i c Re v i e w /Iss u e 228/Ap r i l 2013 55 – Shamsul Huda – Shamsul The Japanese diplomat highlighted According According to Japanese Ministry of And also, when Japanese companies try companies Japanese when also, And enter to partner business Saudi a find to the market, sometimes Saudi - compa nies hesitate to disclose their - informa statement”. financial as such tion tourism attraction of his country. He urged Saudis to discover a new Japan, a country of history and traditions and hypermodern civilization. Currently, over 500 Saudi students are in studyingJapan. Japan has the highest world’s level of science education. He pointed out living environment in Japan - say ing that it is very open and familiar to people. Muslim Strong Relationships Relationships Strong Mr. Kodera said that Saudi Arabia and Japan currently enjoy very strong trade and commercial relationships. But wants he to transform these relationships from the simple multilayered economic trade relations. Saudi- exchanges been has relationships to economic Japanese mainly restricted to importing oil from cars exporting and Japan to Kingdom the and industrial products to Saudi Arabia would for a from Japan long period. “We like to focus on activities for involving infrastructure projects through contract, promoting investment and technology transfer in the field of water, renewable medical and transport. treatment energy, I believe our economic relations would activi- these through improved be further observed. he ties,” Finance, Saudi to $7,298 million amounted in 2012 while imports from Saudi exports during to the Japan, period, Japan $48,619 million. for accounted nvestment Climate Climate nvestment to to bring in the reliable and stable power generation by renewable les- much obtained Japan energy, nuclear energy. For sons from the Fukushima disaster and they could be shared with the world - nu Arabia. Saudi including community clear “I am confident thatJapan is capableof contributing to the development of safer technical vast its with technology nuclear said. he experience,” and knowledge I TheJapanese diplomatnoted favorable - pre currently environment investment un- also he But Kingdom. the in vailing derlined a number of problems facing Japanese companies in their attempt to enter the Saudi market. He elabo- rated: “I think the Saudi market tremendous has investment opportunities for many Japanese companies against the background of economy and its further needs for - devel fast growing opment. They work vigorously to ma- terialize good business. On the other hand, there are some difficultiesfor us to enter the Saudi market. One of the difficulties isrelated to regulationsand practices. For example, some Japanese companies have faced problems some like relevant regulations which not are clear and uniform. It is also ticed - no that the authority’s instructions notice. short at often very changed have would We like to consolidate our - rela tionships with SAGIA (Saudi Arabian General Investment Authority) that is the key partner for foreign companies. to is apparent related Another problem miss-matching of Saudi labors that are universities from graduates and needed and schools. Therole of Saudiwomen alsoshould as belabor force enhanced. - - - Renewable Energy Mr. Kodera expressed Japanese interest in developing Saudi renewable energy sector by offering experience and vanced technologies. experience ad- Japan’s can contribute to Saudi efforts Arabia’s Mr. Mr. Kodera focused on Japanese exper tise and technology saying that they are world-class. “Accuracy, efficiency, low malfunction and high-end products are advantage of Japan’s technology and ex- pertise in any he sectors,” said adding that this advantage is due to experts’ individual Japanese skill and team work. itself gives no benefitto the “Technology people unless engineers and technicians know how to make best use of it. What should be transferred to Saudi Arabia is not only technology itself but also expertise and knowledge to use it how theof the diplomat. noted training,” through Japanese ExpertiseJapanese Appliances Appliances Institute (SEHAI). It was es- tablished in 2009 with a view to gener ating ating new technical job in opportunities the fieldof electronics, office equipment, home appliances and air conditioner in- dustries. Saudi businessmen managing the electronics and home appliance sec- supported tors have the of establishment SEHAI. The businessmen recruit them as technicians upon their These graduation. companies manage and operate the institute, select and design the cur - equip necessary determine and riculum, ment, instruments The and Technical and Training Vocational laboratories. - busi the supported (TVTC) Corporation initiative and made a strategic nessmen’s partnership with them. Japanese experts the training. conduct instructors and 40 56 SaAUDI u d i CCoOMMER m m e r cCeE aAND n d EcCoONOMI n o m i cC ReEVIEW v i e w //IIssSSuUE e 228/228/ApPRIL r i l 20132013 newNEW productsPRODUCTS & technologTECHNOLOGYy Scanning feature, one can pre-define pre-define can one feature, Touch Scanning Smart Kodak’s and Technology of Processing Image Page Perfect advantage latest the the Taking duplex. all els, mod different 3 in come scanners The scans. 6000 to up of volume daily a with ppm 70 to up deliver They speeds. faster at same the do to designed are scanners series i2000 the scanner,anybut through possible is conversion copy) (digital copy ers. wizard, new database lookup, among oth improved new with SharePoint Microsoft tures like comprehensive integration with fea additional of host a has System Pro3.0 Capture Kodak new The efficiency. operational for panel screen touch with design component single unique a have They process. scanning complete the for interaction human least for designed are scanners series i5000 new The tionality. func touch smart and technology aging Page Perfect im Kodak with along nation illumi LED dual with time zerostart tures versatile fea- It ranges. speed different a for scanner is scanner series i2000 The new East. 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has launched its i2000 and i5000and i2000 its launched has ------which are ready to go as soon as you start lamps,LED dual efficient energy the have to known also are but performance faster touch. These scanners do not just provide single a with operations scan nine to up color stability. and consistency clarity, image improves also lamps these by provided lumination il LED The lamps. scanners previous like un time up warm needing not scan, the - - newNEW productsPRODUCTS & SaAUDI u d i CCoOMMER m m e r cCeE aAND n d EcCoONOMI n o m i cC ReEVIEW v i e w /IssSSuUE e 228/228/ApPRIL r i l 20132013 41 technologTECHNOLOGYy 57 - - Pro-Watch Pro-Watch Enterprise Edition: Global security system that ciently manage badge holder data and report on events across the organization. 24/7 business continuity plans for their security24/7 business continuity plans for system. merges multiple Pro-Watch Corporate Edition systems to effi into into the perfect choice for integrators and solution providers. 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Its advanced optical technology and intelligent software other by rejected otherwise are that fingerprints of capture allow for available Scanners Fingerprint other unlike also and scanners, registration, it doesn’t have any coating on its prism, a fact that service-related avoids registration. proper issues and ensures issued be will Number Identification Unique with Card Biometric of fingerprints 10 the all registering requires it As citizen. every to the person, Fingerprint Registration is the most important part of the process and a requires quality Scanner Fingerprint fast for and better registration. 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Pro-Watch equips organiza en and assets secure people, protect to tools right the with tions sure regulatory compliance by combining access digital control, intrusion and other functions one powerful into video, system. le to possible it makes partymanufacturers third and Honeywell Modular grows. system the as hardware installed existing verage to cost-effective and easy it make options software and hardware business needs. keep to up with growing expand a system with support for up to 32 doors on PW-series panels and Rapid Eye. Badging not included. ality with more options for medium-sized organizations with up to 64 doors or organizations requiring integrated processes or regulatory compliance. ganizations and campuses. Additional high availability options make this edition the optimal choice for organizations requiring 42 58 SaAUDI u d i CCoOMMER m m e r cCeE aAND n d EcCoONOMI n o m i cC ReEVIEW v i e w //IIssSSuUE e 228/228/ApPRIL r i l 20132013 CONTRACTS & TENDERS at Ratawi Gathering Station, scraper launcher, scraper Station, Gathering Ratawi at work modi cation includes also contract The testing. performance and up, start / commis sioning pre-commissioning, completion, mechanical pipeline, rigid submarine km 40 line, transmission crude 20”OD new a of tion construction/installa and transportation ing, engineering,procurement,design,test detail ment for theexistingtransmission line. replace as line transmission crude new a stall in to is which million), ($57.75 million SR217 worth project o shore an Group Lloyd Punj the awarded has Operations Joint Kha i Al in Kha i Punj Lloyd Wins O shore Project countries.two the of coasts the along runs rest the and ter pipeline, are of which 27 underwa kilometers of kilometers 61.5 via Bahrain to pumped been has oil crude Saudi b/d. 260,000 plies sup line existing the whilst (b/d) day per rels pipeline could deliver as much as 450,000 bar new Arabia. The Saudi from supplies oil more secure to aims Bahrain Bapco. to according 2015, by completion pipeline for scheduled is The project million. SR1,315 be to mated esti is cost project The Aramco. Saudi with Bapco’sre nery link would that pipeline new a for studies completed has it that nounced an has (Bapco) Company Petroleum Bahrain Pipeline Planned SR1.3bn New Saudi-Bahrain ing projects. Project Management Consultant for the the hous is Ltd. Arabia AECOM villas. 3,600 clude of 2014. end by occupation for ready be will villa The rst villas. 800 of construction the includes Housing Project at City,Jubail Industrial which Mutra ah the of phase rst the for is contract project for Maaden employees. The SR1 billion Azmeel Contracting & Construction for a new housing the to contract (EPC) construction has and procurement (Maaden) engineering, an Co. awarded Mining Arabian Saudi Azmeel for Housing Project Maaden Awards SR1bn Contract to The scope of work for the project entails entails project the for work of scope The h Mtaa Huig rjc wl in will Project Housing Mutra ah The C ONTRAC T
S
------signed three contracts worth a total of of total a worth contracts three recently signed (SEC) Company Electricity Saudi Contracts SR987m Electricity and OilGas. Rail Power, and Water (MEP), Plumbing and Electrical Mechanical, Contracting, General of sign, engineering and construction disciplines de integrated the in leader market regional major DataCentre inRiyadh. facility a and Centre Operations Centre, Cash bank’s the construct of to million SR290 approximately value combined a with Bank Rajhi Al by contracts separate three awarded been has (DSI) International Scull & Drake Contractor ContractBank Drake andScull Wins Al Rajhi Oil Company (KGOC). Gulf Kuwaiti and (AGOC) Limited Operations Company Gulf Aramco between venture sioning inSeptember, 2014. commis for scheduled is project The piping. and valves utilities, including facilities existing with tie-ins receiver, scraper receiver, scraper to landfall from Al-Kha i at section onshore and facilities new of installation for extension deck clamps, riser and riser piping, and valves utilities, including facilities existing with tie-ins ------Company:ity Listed here are someoftherecently signedmajorcontracts by Electric Saudi
Drake & Scull International PJSC (DSI) is a a is (DSI) PJSC International Scull & Drake joint a is (KJO) Operations Joint Al-Kha i Conduct survey,Conduct study, equipment,of materialssupply instal design, and +966-3-8144626 Tel.:Arabia, Saudi Systems Power CG Contact: months; 18 Duration: million; SR12 Engineering Company Ltd., Contact: Tel.: +966-3-8825200/112. Arabian Saudi Contact: months; 12 Duration: million; SR3.6 value: Contract lation: substation: completemobile one of installation and Supply SaudiAirconDuration: 4months;Contact: Company, Tel.: +966-3-5311000 worksmodi cation:forcivil & Thearchitectural 8428380 +966-3- Tel.:Ltd.; Maintenance and Industries Iscosa Contact: months; 23 ration: Construction of new AlKishl 132/33 kV s/s : s/s kV 132/33 AlKishl new of Construction Co .Ltd., Tel.: +966-3-8829394. Centre Materials Electrical ABB Contact: months; 36 Duration: million; SR434 value: Purchase contract for supply of gas insulated switchgears (GIS): switchgears insulated gas of supply for contract Purchase Co .Ltd., Tel.: +966-3-8829394. Centre Materials Electrical ABB Contact: months; 36 Duration: million; SR385 value: Purchase contract for supply of gas insulated switchgears (GIS): switchgears insulated gas of supply for contract Purchase
- - project. estate real the of development design and phase design schematic the for services cy consultan- and engineering provides Proger Italy’s scheme. the for architect the is (SOM) up to 250,000pilgrims. hosting of capable area hospitality a include for scheme.the (QPMC) will tract City Thakher con management project quality a for received bids has developer The Digest. Eco nomic East Middle UK-based reports pleted, com when towers 85 contain to scheduled is which Makkah, in project estate real large a build to plans with ahead moving is pany Com- Development Estate Real Thakher The Thacker Project City inMakkah tively. implementation is 29 and 23 months respec of period The Makkah. and Jeddah in cables central underground 380KV of installation the for calls million SR793 worth together contracts two Another months. 29 is project the of duration The Madinah. in transformer Al-Salam link to lines transmission kV 380 of rst contract worth SR194 million is for setting up The Madinah. and Jeddah Makkah, in grid power the strengthen to million SR987 Merril & Owings Skidmore, US-based Contract value: SR75 million; Du million; SR75 value: Contract Contract value: SR10 million; SR10 value: Contract – Davis Ouseph Thattil Contract value: Contract Contract Contract Contract Contract ------CONTRACTS & TENDERS SAUDIa u d i CCOMMERo m m e r Cc Ee ANDa n d ECc ONOMIo n o m i Cc REVIEWe v i e w /IISSss UEu e 228/228/APRILp r i l 20132013 43 59 ------#: #: #: #: 434/90; Tender Tender #: 434/87; Docu Tender #: 434/88; Document #: 434/93; Document price: Document 434/93; #: #: 434/94; Document price: #: 434/91; Document price: SR1,000; #: 434/89; Document price: SR2,000; Construction of berthConstruction Saudi Border Guards has invited bids for the construction of berthat Shoqaiq Center (30m) in Bish sector in Ji- zan Area: Tender #: 434/95; Document 2013. price: SR4,000; D/L: 29-Apr. encing of Border Guards property in Area: Tender 2013. 29-Apr. SR2,000; D/L: F Tender Tabouk: 2013. 29-Apr. SR3,500; D/L: Supply and installation of systems and programs of Maritime A airs: Tender 434/92; Document price: SR2,000; D/L: 27- 2013. Apr. Supply of comprehensive monitoring systems for the security gences and in - intelli the Southern regions: Ten der 2013. D/L: 27-Apr. including systems telecom of Expansion supply and installation of internal and external telephone networks for vari ous o ces and housing units Tabouk of Wa Al Maqna, at units (housing Division jha and Umluj sectors): Document price: SR1,500; D/L: 27-Apr. 2013. Document price: SR1,500; D/L: 27-Apr. Supply of prefabricated houses: Ten der 2013. D/L: 27-Apr. Maintenance of buildings and the fa cilities of the Border Guards Command in Makkah: Tender 2013. price: SR2,000; D/L: 27-Apr. of buildings and the Maintenance facil ities of the Border Guards Marine Insti tute in Makkah: Tender 2013. ment price: SR2,000; D/L: 22-Apr. Supply of spare parts for long-range thermal monitoring systems for northern and eastern regions: the 434/86; Document price: SR1,500; D/L: 22- 2013. Apr. Supply of spare parts for closed-range thermal monitoring systems for northern and eastern regions: the 434/85; Document price: SR1,500; D/L: 22- 2013. Apr.
------Ten Ten ursan F #: 434/99; #: 434/100; Docu Tender #: 434/96; Document434/96; #: lour Mills- Organiza #: 434/97; Document price: Document 434/97; #: MO) #: 434/98; Document price: SR500; branch branch in Al Jemoum: #: Tender 6/1434-1435; Document price: 2013. SR120,000; D/L: 28-Apr. capacity of 80 thousand metric Docu- 8/1434-1435; #: Tender tons: 14-May. D/L: SR100,000. price: ment 2013. Supply of fresh water for the Tender #: 12/1434- #: Tender materials: bulk 1435; Document price: SR120,000; 2013. D/L: 14-Apr. Expansion of silos in Assir to a Transportation Transportation of packed and #: 434/102; Document price: SR1,000; #: 434/101; Document price: SR2,000;
- - Grain Silos & F Grain F tion (GS - The The Grain Silos & Flour Mills - Organiza the following: bids for tion has invited quirements quirements for PCs and laptops: der D/L: 04-May 2013. Supply of spare parts and other re 103; Document price: SR200; D/L: 2013. 06-May Supply of night surveillance systems for the Border Guards Airports: Establishment Establishment of check point and res cue center in Duqm site Tender Area: Tabouk in Umluj in 2013. price: SR1,500; D/L: 29-Apr. of Treatment the internal and external drainages of Maqna housing Tabouk in Tender D/L: 04-May 2013. Supply and installation of - prefabricat ed buildings at Al Ashq and Al Mwasm Tender Jizan: in cated cated buildings at Ramin and Al islands in Jizan Area: ricated buildings in Madinah region: 2013. SR1,000; D/L: 29-Apr. der D/L: 04-May 2013. Supply of black jackets for the Marine Border Guards: Tender ment price: SR500; D/L: 04-May 2013. Supply and installation of prefabri Document price: SR500; D/L: 04-May 2013. prefab eight of installation and Supply
- - - #: #: #: 434/ #: 1496; S #: 1497; Docu Tender UARDS Tender G #: 1498; Document 1498; #: #: 1499; Document F FINANCE Y O ORDER B TENDER INISTR AUDI M S #: 434/107; Document price: SR1,000; SR1,000; price: Document 434/107; #: SR2,000; price: Document 434/106; #: SR1,000; price: Document 434/104; #: #: 1491; Document price: SR50,000; D/L: 20-Apr. 2013. D/L: 20-Apr. - Con of International Construction in Madinah Center ference bids invited has MinistryFinance The of for the construction of an International Conference Center in Madinah. - Ten der gistics for the Assir Region Command: Tender D/L: 06-May 2013. Construction of berth (40m) at Alhasi center in Umluj strip in Tabouk Area: Tender D/L: 06-May 2013. Supply of solutions for toxic detectors for the Directorate and border areas: Tender D/L: 06-May 2013. Running a bu et at the Border Guards Training Center in Najran: Construction of arms and ammunitions and arms of Construction depot and provision of warehouse lo price: SR50,000; D/L: 18-May 2013. Printing of Umm Al Qurra calendar for the years 1436, 1437 & 1438: Tender 13-Apr. D/L: SR3,000; price: Document 1495; 2013. price: SR25,000; D/L: 11-May 2013. Construction of the (Ph-2) at residential the Empty Quarter bordering city with Oman: Tender Renovation Renovation of 25 villas in the Al Hada Tender Hotel: Meridien Document price: SR15,000; D/L: 2013. 22-Apr. Renovation of 19 villas in Abha Inter continental Hotel: Tender 2013. ment price: SR20,000; D/L: 28-Apr. Supply of backup generators for the Al Hada Meridien Hotel: 60 44 SSAUDIa u d i C COMMERo m m e rCcEe AND a n d E ECcONOMIo n o mC i c R REVIEWe v i e w//IISSssUEu e 228/ 228/AAPRILp r i l 2013 2013 CONTRACTSCONTRACTS && TENDERS TENDERS Document price: SR4,000;D/L:20-Apr. price: Document 2013. road parallelQatartoborder: Tender new sector/the province/Salwa border eastern in roads of Construction road SR3,000;D/L:13-Apr.price: 2013. area border Tenderequipments: of Maintenance D/L: 13-Apr. 2013. Tender km): (24 Khali Al Rub in Shebeita strip air link to and sector Province/Batha Construction of roads in border Eastern 13-Apr. D/L: 2013. SR2,000; price: Document border: Khali Al Rub at Airport Shebeita at ILS/DME systems navigation a of installation and Supply D/L: 15-Apr. 2013. der connectors: and antennas (TAIT) type F) (VH communications wireless medium-range systems munications telecom the of parts spare of Supply SR500;D/L:15-Apr. price: Document 2013. Tender (TAIT): type manual medium- F) (VH for communications wireless range parts spare of Supply SR500; D/L:15-Apr. 2013. Tender 2050: of Barrett (HF) system wireless communication range long the substitute for (or systems) parts spare of Supply Apr. 2013. 15- D/L: SR4,000; price: Document 434/80; systems: frequency radio of maintenance and installation Supply, SR4,000;D/L:20-Apr.price: 2013. Tender Guards: der Bor the of units housing the and Jizan in command Guards Border the of ings Maintenance and cleaning of the build 22-Apr. 2013. #: D/L: SR1,500; price: Tender Document 434/84; 1434: year the for Guards Border the of clinic dental the and ics clin- general the for instruments and equipment medical of supply the for bids invited has Guards Border Saudi equipmentSupply ofmedical : 3/7 Dcmn pie SR1,000; price: Document 434/77; #: #: 434/74; Document price: SR3,000; price: Document 434/74; #: #: 434/79; Document price: price: Document 434/79; #: #: 434/81; Document Document 434/81; #: #: 434/73; Document Document 434/73; #: Tender Tender : 434/78; #: #: 434/75; #: #: 434/72; Ten #: - - - - - 2013. 15-Apr. D/L: 5023/5180. ext. Tel.:01-4976500 from: details More kitchen. and toilets Housing units should be of three rooms, hall, two telephones. and sewage ity, electric and water like and services public safety security, of the requirements meet should buildings The cility. fa parking car with and 700sqm area land 500sqm, than less not be should medi area building the the Kharj; Al in of gases cal factory the in engineers working of accommodation the for apartments residential modern Leasing price: 2013. SR2,000; D/L:29-April Document Services: Medical es iiay optl udr Armed under hospitals military the for medicines of supply Additional Apr. 2013. 20- D/L: SR500; price: Document 9/1434; works: carpentry of mainte nance the for materials of Supply Apr. 2013. 20- D/L: SR500; price: Document 8/1434; airconditioners: of mainte nance the for materials of Supply SR1,000; D/L:20-Apr. 2013. Tender years: ve for hospital the in shop gift a and hospital and compound housing the in supermarket a running for site Leasing SR500;D/L:20-Apr. price: Document 2013. Tender requirements: puter com and stationery o ce of Supply NORTHERN 2013. 13-Apr. D/L: SR5,000; price: Document 2041; origin #: TenderThumama: Al in horses Arabian for Center Abdulaziz King the of establishment the for bids invited has Agriculture of Ministry The origin horses King Abdulaziz Center for Arabian K H ING A OSPITAL T : RMED K E HALED D X #: 7/1434; Document price: price: Document 7/1434; #: IRECTORATE
T A FORCES . 2405 2682: REA EL M A .: 03 7871777 .: 03 7871777 ILITAR RMED M EDICAL Tender Y C
Tender FORCES : 6/1434; #: IT
Y F orc
#: #: #: #: ------
SR5,000; D/L:21-Apr. 2013. Tender City: Medical Military Sultan Prince the for center oncology of Development Apr. 2013. 14- D/L: SR1,000; price: Document 41/1434; Tender limbs: prosthetic for ment Supply of systems and laboratory equip SR5,000;D/L:21-Apr.price: 2013. patients: Tender long-stay for buildings of Construction D/L: 30-Apr. 2013. der F Armed the for system administrative Supply and installation of nancial and SR1,000;D/L:16-Apr.price: 2013. Tender pot: de maintenance a of Establishment 15-Apr. 2013. D/L: SR1,000; price: Document 35-18-1434; warehouse: a of Construction Apr. 2013. 14- D/L: SR2,000; price: Document 17-1434; F 23-Apr. 2013. D/L: SR3,000; price: Document 35-22-1434; warehouse: a of Construction SR4,000;D/L:21-Apr.ment price: 2013. Tendertools: trition nu and requirements o ce of Supply 20-Apr. 2013. der printers: and computers of Supply SR500;D/L:20-Apr. price: Document 2013. Tender works: mechanical of Supply of materials for the maintenance D/L: 16-Apr. 2013. Jizan: of University the at Humanities of Establishment Kharj: D/L:13-Apr. 2013. Al- city Medical University Abdulaziz bin Salman the for website of Creation orces Hospitals Southern Region: Southern Hospitals orces area: land new of encing M #: 35-20-1434; Document price: SR2,000; #: 11/1434; Document price: SR500; D/L: INISTR R A I Y RMED #: 27/07/1434; Document price: price: Document 27/07/1434; #: ADH S OUTHERN Y O M
: 51-44 Document 35-19-1434; #: FORCES F H ILITAR #: 27/12/1434; Document Document 27/12/1434; #: IGHER F cly f rs and Arts of aculty #: 35-21-1434; Docu 35-21-1434; #: R Y H P EGION ROGRAM E OSPITAL DUCATION Tender #: 10/1434; 10/1434; #: Tender Tender
#: 27/ 27/ #: #: 35- #: Ten Ten #: #: ------
CONTRACTSCONTRACTS && TENDERSTENDERS SSaAUDI u d i CCoOMMER m m e r cCeE aAND n d EEcCoONOMI n o m i cC RReEVIEW v i e w //IIssSSuUE e 228/228/AApPRIL r i l 20132013 45 61
- - - - #: #: #: #: - #: Tender Tender #: 152/1434/ #: 141/1434/1435; #: #: 132/1434/1435; ) and a carrier line carrier a and ) 3 Tender #: 126/1434/1435; Document #: 150/1434/1435; Document #: 156/1434/1435; Document price: Visual network Visual The Ministry of Water and Electricity has invited bids for the project to link the Ministry and its di erent Director ates ates with visual network: Tender 144/1434/1435; Document 2013. SR1,000; D/L: 29-Apr. price: in Al-Mandaq in Al-Baha Area: 145/1434/1435; Document price: SR1,500; 2013. D/L: 21-Apr. Construction of warehouse for JizanWater Directorate: Tender 1435; Document price: SR500; D/L: 20-Apr. 2013. Operation and maintenance of Wadi Baish dam in 137/1434/1435; Jizan Document price: Area: SR2,000; 2013. D/L: 16-Apr. Operation and maintenance of water puri cation plant in Rafha border region: northern Tender Operation and maintenance of mini wa mini of maintenance and Operation ter treatment plants all over the King dom: Tender 2013. price: D/L: 28-Apr. SR1,000; Operation and maintenance of IT en vironment of the Ministry: Tender Document price: SR1,500; 2013. D/L: 16-Apr. Supply of computer requirements for the Ain Zubaida Endowment: Tender Tender tions: 2013. price: SR1,000; D/L: 16-Apr. 155/1434/1435; Document price: SR1,000; 2013. D/L: 27-Apr. 130/1434/1435; Document price: SR1,000; 2013. D/L: 16-Apr. Supply of computer requirements and technical support for Oracle applica Transfer of the water from the strategic the strategic from of the water Transfer tank to Shahba tank in Al-Baha Area: Tender 2013. SR1,500; D/L: 22-Apr. Drinking water networks in Al-Mandaq Area: Al-Baha in Document price: SR1,500; 2013. D/L: 22-Apr. tanks water ground of two Construction 5,000m capacity (with - - - - - #: #:
#: 153/ #: 13781/ Tender Tender AND
Tender EALTH ATER F H Y MOWE Y F W #: 340011020006; Doc- #: 157/1434/1435; Docu - Y O #: 340011030028; Docu- Y O #: 13803/1434; Document INISTR LECTRICIT E M INISTR #: 340011030026; Document price: #: 340011040012; Document price: M #: 340011030027; Document price: Supply of 400 Ambulances The Ministry of Health has invited bids for the supply of (Petrol) with 400 advanced Ambulances settings: - Ten der SR10,000; D/L: 12-May 2013. Establishment Establishment of irrigation networks and construction of water tanks in the Al Aslih Municipality: Tender 23-Apr. D/L: SR3,000; price: Document 1434; 2013. Establishment of parks, gardens, squa- res, pedestrian in ways Al Aslih Munici pality: Tender 2013. price: SR4,000; D/L: 23-Apr. Establishment of a commercial ket mar in Al Aslih Municipality: 13804/1434; Document price: SR5,000; D/L: 2013. 23-Apr. Supply of medical gases for the years Tender 1435-1437: 2013. ument price: SR5,000; D/L: 28-Apr. Project of blindness control program: Tender 2013. SR1,000; D/L: 13-Apr. Information Information security program (Ph-1): Tender 2013. SR2,000; D/L: 10-Apr. Renewal of licenses for Microsoft pro grams: Tender 2013. ment price: SR2,000; D/L: 16-Apr. toring and follow-up systems: 149/1434/1435; Document price: SR1,500; 2013. D/L: 30-Apr. Operation and of maintenance drinking plants in and Najran treatment its water Tender provinces: 2013. ment price: SR1,000; D/L: 28-Apr. 1434/1435; Document price: SR2,000; D/L: 20-May 2013. Supply and installation of dam moni Water Water projects in Al Quful and neigh boring villages in Jizan:
- #: Y Tender #: 4340004; #: 1340028; OCATIONAL V #: 1340032; Docu - Tender aculty of Science aculty of Arts and AND UNICIPALIT F
aculty of Law at the F ORPORATION F #: 3340030; Document M C #: 4340005; Document price: ECHNICAL ADINAH #: 13576/1434; Document price: RAINING M T Construction of road intersections of road Construction The Madinah Municipality has invited bids for the construction of - intersec tions on main roads and streets (Ph-1) of Intersections roads. of asphalting and Madi- in road Aziz Abdul bin Naif Prince Document 13576/13559; #: Tender nah: 2013. price: SR250,000; D/L: 21-Apr. TVTC T Establishment Establishment of and Literature at Samtah University of 2013. Jizan: D/L: 17-Apr. Establishment of Baha: Al of University the at Humanities 2013. D/L: 20-Apr. Establishment of D/L: 21-Apr. 2013. of Hail: D/L: 21-Apr. University Health Public of School of Establishment University the at Information Health and 2013. of Hail: D/L: 22-Apr. SR4,000; D/L: 16-Apr. 2013. SR4,000; D/L: 16-Apr. Construction Construction of building for training in electronics at the technical college in Qatif: Tender Tender SR2,000; D/L: 23-Apr. 2013. SR2,000; D/L: 23-Apr. of Construction building for training in electronics at the Secondary Industrial Institute in Al Wajh: Document price: SR2,000; D/L: 21-Apr. 2013. Document price: SR2,000; D/L: 21-Apr. BackupTender project: 2013. ment price: SR1,000; D/L: 20-Apr. insti training the for vehicles of Supply Maintenance of Parks in Madinah: tutes tutes and administrative divisions for the scal year 1434: Tender 2013. Document price: SR500; D/L: 16-Apr. Cleaning of the technical college in Al- Nammas: Tender 2013. price: SR500; D/L: 14-Apr. Cleaning of the cal Institute in Secondary Hafr Al Baten: - Techni 3340024; Document price: SR500; D/L: 13- 2013. Apr. 62 46 SaAUDI u d i CoOMMER m m e r cCeE aAND n d EcCoONOMI n o m i cC ReEVIEW v i e w /IssSSuUE e 228/ApPRIL r i l 2013 CONTRACTS & TENDERS ument price: SR1,000; D/L: 12-May 2013. SR1,000; D/L: 12-May ument price: Tender (Ph-1): Municipality Askar Al of points entry of modi cation and Expansion 23-Apr. 2013. D/L: SR1,000; price: Document 1434/1435; Tender Area: Jizan in projects water the for works drilling Horizontal 27-Apr. D/L: 2013. SR1,000; price: Document Tenderregions: Border Northern in wells tube ve of Drilling D/L: 27-Apr. 2013. SR1,500; price: Document (Ph-5): 167/1434/1435; villages Baha Al in network water drinking of Completion 2013. SR1,500;D/L:05-May ment price: Tender Baha: Al in Building Directorate of Construction 2013. SR2,000; D/L:07-May Tender Jizan: in Aidabi Al in Hawroba in plant treatment sewage operation integrated the and of installation Supply, 2013. SR2,000; D/L:19-May Tender Baha: Al in (Ph-I) Aqeeq Al of city the for networks sewage of Establishment SR500;D/L:13-Apr.price: 2013. Jizan: Tender in Water of Directorate General of ing Maintenance and cleaning of the build SR1,500;D/L:15-Apr.ument price: 2013. area (Ph-1): Border ri cation plants in the Northern Operation and maintenance of mini-pu SR1,500; D/L:15-Apr. 2013. der Baha: Al in Almendq Asilh, Al han, Cey of villages the to water of Supply 164/1434/1435; Document price: price: 2013. SR2,000; D/L:27-May Document 164/1434/1435; Tender (Ph-2): city Baha Al in works net sewerage for - Electric bids invited and has ity Water of Ministry The Sewage network #: 143/1434/1435; Document price: price: Document 143/1434/1435; #: #: 160/1434/1435; Document price: price: Document 160/1434/1435; #: #: 160/1434/1435; Document price: price: Document 160/1434/1435; #: #: 019/015/001/0603/05/00/4; Doc 019/015/001/0603/05/00/4; #: N AJRAN Tender #: 151/1434/1435; Document Document 151/1434/1435; #: M : 6/4413; Docu 168/1434/1435; #: #: 134/1434/1435; - Doc UNICIPALIT #: 159/1434/1435; #: Tender Y : 158/ #: Ten #: - #: ------
04-May 2013. 04-May D/L: SR500; price: Document 0009/00/00/4; Tender(Ph-3): Kabash Al in slaughterhouses of Establishment D/L: 04-May 2013. D/L: 04-May SR1,000; price: Document 0007/00/00/4; Tender (Ph-3): Al Kabash in dunes sand the of Stabilization 05-May D/L: 2013. SR1,000; price: Document (Ph-I): Tender drainage water storm of construction and ooding of dangers o Warding 2013. 00/4; Document price: SR1,000; D/L: 06-May Tender (Ph-2): Establishment of feed market for sheep 2013. 06-May 0008/00/00/4; Document price: SR1,500; D/L: Tender(Ph-1): Askar Al in building municipal a of Establishment 2013. D/L: 07-May SR1,000; price: Document 0013/00/00/4; Tender (Ph-1): Askar in Al center cultural a of Establishment 2013. D/L: 07-May SR1,000; price: Document 0012/00/00/4; Al(Ph-1): in Askar networks computer of Establishment 2013. D/L: 07-May SR1,000; price: Document 0011/00/00/4; Tender (Ph-1): Askar Al in facilities municipal of Establishment 2013. SR3,000;D/L:11-May ment price: der roads: Municipality Askar Al of Asphalting,workslightingpaving and 2013. 11-May D/L: SR500; price: Document 00/4; Tender (Ph-1): Askar Al in sanitation Environmental 2013. 05-May D/L: SR1,000; price: Document 019/015/705/0013/00/00/4; #: Tender (Ph-2): Kabash Al in playgrounds and parks public of establishment the for The Najran Municipality has invited bids Establishment ofParks : 1/1/0/610/04 Docu 019/015/001/0601/05/00/4; #: #: 019/015/001/0602/04/00/4; : 019/015/708/0009/00/ #: 019/015/708/0014/00/ #: Tender : 019/015/705/ #: : 019/015/708/ #: 019/015/708/ #: #: 019/015/705/ #: #: 019/015/708/ #: #: 019/015/708/ 019/015/708/ #: Ten - - F D/L: 16-Apr. 2013. 601/0051/00/00/4; Document price: SR1,000; in ket livestockmar public a of Establishment 20-Apr. 2013. D/L: SR500; price: Document 0014/00/00/4; Tender (Ph-1): Hosainia Al in market public a of Establishment 20-Apr. 2013. 0011/00/00/4; Document price: SR1,000; D/L: (Ph-1): TenderHosainia Al in facilities municipal of Establishment SR500;D/L:21-Apr. price: Document 2013. (Ph-1): site Hosainia Al branches, its and municipality en the of of points try modi cation and Expansion 27-Apr. 2013. 0017/00/00/4; Document price: SR1,000; D/L: (Ph-3): Tender South Badr Al in sidewalks and lighting Asphalting, D/L: 15-Apr. 2013. SR500; price: Document 601/0048/00/00/4; washing bodies (Ph-2): Tender Hosainia Al (Ph-1): Tender in passages pedestrian and squares gardens, of Establishment SR2,000;D/L:22-Apr.ment price: 2013. der Apr. 2013. 27- D/L: SR1,000; price: Document 00/00/4; South (Ph-3): Tender Badr Al of villages between roads Link D/L: 28-Apr. 2013. SR500; price: Document 703/0029/00/00/4; (Ph-3): South Badr Al in squares municipal of Establishment 28-Apr. 2013. D/L: SR500; price: Document 0024/00/00/4; Tender (Ph-3): Badr Al in sidewalks and lighting Asphalting, encing and construction of a room for room a of construction and encing price: SR3,000;D/L:21-Apr.price: 2013. 019/015/001/0601/05/00/4; Document #: Tender (Ph-1): Hosainia Al in walks side and lighting asphalting, invited for bids has Municipality Najran The pavement works Asphalting, lighting & - Docu 019/015/001/0603/05/00/4; #: Y adamah (Ph-1): Tenderadamah #: 019/015/707/0015/00/00/4; #: 019/015/703/0007/ Tender : 019/015/703/ #: #: 019/015/707/ 019/015/707/ #: #: 019/015/703/ 019/015/703/ #: #: 019/015/707/ 019/015/707/ #: #: 019/015/ #: #: 019/015/ 019/015/ #: #: 019/015/ Ten - - - - CONTRACTSCONTRACTS && TENDERSTENDERS SSaAUDI u d i C CoOMMER m m e r cCe E a AND n d E EcCoONOMI n o m i cC R ReEVIEW v i e w //IIssSSuUE e 228/ 228/AApPRIL r i l 2013 2013 47 63
- - #: #: Y ahd In- F Tender Document #: 201; Docu- #: 203; Document UTHORIT A Tender #: 205; Document price: ORTS P AUDI #: 206; Document price: SR1,000; S Parks and irrigation networks irrigation and Parks Northern Border Region (Arrar) Munici- pality bids has establishment invited of parks and irrigation networks for trees in Arawdah Al Habas (Ph-4): Tender #: 202; Document price: SR1,000; D/L: 13- 2013. Apr. irst contract for the development of irst contract for the establishment of a of establishment the for contract irst F parking and sidewalks in Arawdah Al Habas: Tender 2013. SR1,000; D/L: 13-Apr. Establishment of a in Arawdah Al Habas slaughterhouse (Ph-2): Tender 204; Document price: SR1,000; D/L: 13-Apr. 2013. Drilling of wells and Arawdah in tanks ground construction and overhead of Al Habas (Ph-2): Asphalting, Asphalting, lighting and works in the municipality pavement and the vil- lages in Arawdah Al Habas: 207; Document price: SR1,000; D/L: 13-Apr. 2013. F livestock market in Arawdah Al Habas: Tender 2013. D/L: 13-Apr. dustrial Port in Jubail: Document price: 2013. SR10,000; D/L: 16-Apr. price: SR1,000; D/L: 13-Apr. 2013. price: SR1,000; D/L: 13-Apr. disposal and lling in of swamps Waste Arawdah Al Habas: Tender 2013. ment price: SR1,000; D/L: 13-Apr. of industrial security services Provision for the Jeddah Islamic Port: 2013. price: SR5,000; D/L: 08-Apr. Bid Extension: Supply tion and of four installa- pieces of equipment handling clinker for in Jubail Commercial 10-Apr. D/L: SR7,000; price: Document : Port 2013. Bid Extension: Construction of hous Dubain port dormitories and units ing : Document price: SR7,000; 2013. D/L: 13-Apr. Development and expansion of infra structure facilities for King
- - - - #: #: - #: Ten #: 209; #: 215; Tender Tender #: 208; Doc 208; #: #: 214; Docu- #: 213; Docu - Tender Tender #: 212; Document price: SR2,000; #: 241; Document price: SR2,000; #: 211; Document price: SR1,000; D/L: Establishment of Gardens Establishment Northern Border Region (Arrar) Munici - pality has invited bids for the develop 153; Document price: SR2,000; D/L: 13- 2013 Apr. ment of gardens in Arrar city:Tender an ways in Arawdah Al Habas: 210; Document price: SR1,000; D/L: 13-Apr. 2013. Warding o the dangers of and construction oodingof storm water - drain age in Arawdah Al Habas: der 2013. 13-Apr. Warding o the dangers of and construction oodingof storm water - drain age in the municipality and its villages: Tender 2013. D/L: 13-Apr. Development of squares and pedestri Document price: SR1,000; 2013. D/L: 13-Apr. Construction Construction of pedestrian bridges to the public utilities on the international highway at Shoabat Nessab: 216; Document price: SR1,000; D/L: 13-Apr. 2013. Establishment of a cultural center Shoabat in Nessab (Ph-2): Tender Document price: SR1,000; 2013. D/L: 13-Apr. Establishment of a municipal nursery in Shoabat Nessab: Tender 2013. ment price: SR1,000; D/L: 13-Apr. with squares municipal of Development plants and irrigation facilities in Shoa bat Nessab (Ph-4): 2013. D/L: 13-Apr. Establishment of gardens with market (Ph-1): Habas Al Arawdah in art and ment price: SR1,000; D/L: 13-Apr. 2013. ment price: SR1,000; D/L: 13-Apr. and ooding of dangers the o Warding construction of storm water drainage Tender Expansion and beauti cation of entry points of Arawdah Al Tender Habas municipalities: branch and its 2013. ument price: SR1,000; D/L: 13-Apr.
------RRAR A Y adamah (Ph-4): adamah #: 154; Document EGION Y R adamah Municipal- adamah #: 019/015/001/0602/ #: 019/015/001/0602/ #: 019/015/601/0050/ #: 019/015/601/0029/ Y #: 240; Document price: UNICIPALIT ORDER M B adamah and its related cen Tender Y #: 152; Document price: SR1,500; #: 019/015/601/0032/00/00/4; Docu 019/015/601/0032/00/00/4; #: adamah Municipality (Ph-3): Ten #: 019/015/601/0020/00/00/4; Docu Y Maintenance and cleaning Maintenance The Saudi Postal Corporation has in- vited bids for the maintenance and cleaning works of postal facilities in Riyadh, Makkah and the Eastern re gion: Tender #: 3/1434/1435; Docu- ment price: SR20,000; D/L: 2013. 15-Apr. ORTHERN illing up of swamps in swamps of up illing N Expansion and modi cation of entry points of ters ters (Ph-1): Tender 00/00/4; Document price: SR1,000; D/L: 15- 2013. Apr. Construction of a building in complex der 2013. ment price: SR1,000; D/L: 14-Apr. Establishment of public parks and rec in facilities reation ity (Ph-2): Tender D/L: 13-Apr. 2013. D/L: 13-Apr. 00/00/4; Document price: SR1,500; D/L: 14- 2013. Apr. F 2013. ment price: SR1,000; D/L: 14-Apr. Warding o the dangers of and construction ooding of storm water - drain age (Ph-IV): Tender 05/00/4; Document price: SR2,000; D/L: 13- 2013. Apr. Warding o the dangers of and construction ooding of storm water - drain age (Ph-V): Tender 05/00/4; Document price: SR2,000; D/L: 13- 2013. Apr. Expansion and beauti cation of entry points of Arrar and its branch munici palities: Tender 2013. SR2,000; D/L: 13-Apr. Expansion and modi cation of sides of Tender Arrar valleys: 2013. price: SR2,000; D/L: 13-Apr. Establishment of markets in Arrar city: Tender 64 48 SaAUDI u d i CoOMMER m m e r cCeE aAND n d EcCoONOMI n o m i cC ReEVIEW v i e w /IssSSuUE e 228/ApPRIL r i l 2013 CONTRACTS & TENDERS price: SR500;D/L:15-Apr.price: 2013. Tender Riyadh: press, printing MOI at systems AC tral cen- the of operation and Maintenance SR2,000;D/L:14-Apr.ment price: 2013. sourcestem2013: sysmanagement- informationand nical tech and scienti c of rules of Provision SR2,000;D/L:16-Apr.price: 2013. cals for 2013: chemi- of (rules) database of Provision Document price: SR3,000; D/L: 07-May 2013. SR3,000;D/L:07-May price: Document for Customs shades inspection (Jeddah Islamic Port): umbrella of Establishment SR7,000;D/L:27-Apr. price: Document 2013. Rental of container terminal at Duba Port: price: SR2,000;D/L:28-Apr.price: 2013. ing, Rabigh: Tender Engineering, of Civil Department the for requirements and equipment laboratory of Supply SR10,000;D/L:28-Apr.ment price: 2013. year 1434-1435: Tender ables for the consum and toolsmaterials, of Supply SR2,000;D/L:20-Apr.ument price: 2013. F the in No.115 building section paratory for the computer laboratories of the pre Re-bidding: Infrastructure requirements 20-Apr. D/L: 2013. SR2,000; price: Document Tender network: Education F SR2,000; D/L:13-Apr. 2013. Tender universityyearfordah the 1434-1435: Jed the for furniture o ce of Supply SR2,000; D/L:14-Apr. 2013. Tender dah: Jed of north Branch, Engineering of laboratories, Engineering cal - Electri of Department for equipment requirementslaboratory of Supply and aculty aculty of Science : KACST K KACST urnishing of the building of building the of urnishing K S ING CIENCE M #: 45968/D; Document price: price: Document 45968/D; #: A INISTR BDULAZIZ ING #: 42226/D; Document price: price: Document 42226/D; #: F Tender aculty aculty of Dentistry for the
AND A #: 1/53/34/21; Document Document 1/53/34/21; #: Y O BDULAZIZ Tender Tender F #: 44257/D; Document T aculty of Engineer of aculty F I #: 3/1434; Document ECHNOLOGY U NTERIOR #: 34479/D; Docu NIVERSIT #: 43083/D; - Doc #: 2/1434; Docu 2/1434; #: : 149100/D; #: C F IT aculty of aculty F Y F aculty aculty Y OR
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date for submitting bids for the publi the for bids submitting for date the extended has Municipality Makkah Document SR30,000;D/L:29-Apr.price: 2013. service: control Epidemic D/L: 28-Apr. 2013. paths (Part-III): Document price: SR20,000; foot - of maintenance and Renovation 27-Apr. 2013. D/L: SR10,000; price: Document Riyadh: Central in lights street of Maintenance 24-Apr. 2013. D/L: SR14,000; price: Document fruits: and the of laboratory for the testing of vegetables maintenance and Operation SR10,000;D/L:23-Apr.ument price: 2013. Watch and control of light systems: Doc D/L: 22-Apr. 2013. gency services: Document price: SR20,000; emer the for equipment of Operation SR12,000;D/L:21-Apr.ment price: 2013. Electricity conservation program: SR8,000;D/L:20-Apr. price: Document 2013. equipment: laboratory of Maintenance SR15,000;D/L:17-Apr. price: Document 2013. Maintenance of streets within Riyadh city: Apr. 2013. 16- D/L: SR10,000; price: Document Riyadh: of North in lights street of Maintenance 15-Apr. 2013. D/L: SR10,000; price: Document Riyadh: of South in lights street of Maintenance Apr. 2013. 14- D/L: SR20,000; price: Document paths: foot- of maintenance and Renovation D/L: 13-Apr. 2013. SR1,000; price: Document environment: healthy a for building administration Maintenance and cleaning of the public SR15,000;D/L:10-Apr.ument price: 2013. streets: south Riyadh the in ments pave of maintenance and Renovation 2013. SR1,000;D/L:05-May price: ernorate: Tender wireless of communication stations in Jeddah gov installation and Supply M R AKKAH I Y ADH M #: 1/53/34/19; Document Document 1/53/34/19; #: M UNICIPALIT UNICIPALIT Y Y - Docu - Doc - - - - -
tenders is a somewhat arbitrary process. tenders arbitrary isasomewhat the in descriptions and places the of some of names of version English the giving tion, transla in standards professional to maintain taken is care every While English. into translated been has which Arabic in is text original sources. The various is from collected tenders the for information The Note: SR9,000;D/L:22-Apr.ment price: 2013. Tender03-3414127/4163; facilities: necessary and utilities all and prayers with 450 of capacity buildings mosque center hood neighbor three and prayers, 320 of ity capac with buildings mosque center Jalmudah, neighborhood six Constructionof Ph-2: in centers Neighborhood SR9,000;D/L:20-Apr.ment price: 2013. from: 03-3414127/4163; Tender Details facilities : necessary and utilities with all and prayers 450 of capacity buildings center mosque - neighbor hood ve of Construction Jalmudah, Ph-3: in centers Neighborhood streets and irrigation networks: parks, of maintenance and Operation 2013. D/L: 11-May SR50,000; price: Document 001/002/019; Tender years: calendar three for Haram Makkah surrounding tunnels the for services Rehabilitation D/L: 10-Jul. 2013. tion of Makkah: instruc detailed with maps mensional three-di and electronic print, of cation 3/00/00/10/401/2/19; Document price: price: SR1,500; D/L:16-Apr. 2013. Document 3/00/00/10/401/2/19; bids is on 18-May 2013. bids ison18-May all for date Closing SR20,000. is region each for price document The regions. ve into divided been has project The regions. di erent of cleaning the for bids invited has Municipality Makkah Cleaning project Municipality Makkah R O J Y UBAIL AL C OMMISSION Document price: SR1,000;
AND – Davis Ouseph Thattil
YANBU #: 750-C01; Docu 750-C01; #: #: 750-C02; Docu #: 750-C02; : 4/00/00/0741/ #: eal from: Details F OR Tender
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