In The Name Of Allah, The Most Merciful, The Most Compassionate

Arriyadh by the Grace of God has been bestowed with numerous natural and human assets with which to prosper and develop. Like other cities the national capital receives the attention and support of the Custodian of the Two Holy Mosques, King Abdullah Bin Abdulaziz, may God bless him, and His Royal Highness, Prince Salman Bin Abdulaziz, the Crown Prince and Deputy Prime Minister and Deputy Crown Prince H.R.H. Mugrin Bin Abdulaziz. Through its strategic location and its political, administrative, economic and technological advantages, Arriyadh enjoys a strong and vigorous economy that makes it one of the region’s largest and fastest growing cities benefitting from stable free markets in a wide variety of sectors. Demographically Arriyadh is characterized by a youthful population that is dynamic, resourceful and educated, and forms an essential element driving its growth. The fruit of decades of progress and the attention and care devoted to the development of the capital is manifest in the numerous major projects already carried out and ongoing by both government and private sectors across Arriyadh. These combine to form a vital element in the continuous growth of various aspects of life and development. They help make Arriyadh such an attractive city for investment and encourage investment and entrepreneurship in many sectors. Today the capital is one of the most secure havens in the region for serious investors from all over the world. This report on the Investment Climate in Arriyadh that Arriyadh Development Authority publishes every year contains a wealth of up-to-date information and statistics. It details the nature of the city, the numerous opportunities that exist and the benefits and incentives that are available to investors. It provides a valuable resource for anyone interested in the future of the city and evaluating the exciting investment opportunities that are available in Arriyadh

H.R.H. Prince Turki Bin Abdullah Bin Abdulaziz Al-Saud Governor of Arriyadh Chairman of the High Commission for the Development of Arriyadh

With God’s grace and the nation’s leadership and support Arriyadh has become one of the world’s most attractive cities internationally for those investors seeking promising, safe and profitable investment opportunities. The capital is also a vibrant metropolis that offers security, developed infrastructure and an attractive quality of life. Our Government has taken good care of the city’s economy and its development and expansion with numerous programs, plans and projects throughout the city. They have created an ideal business environment and opened the doors for investment in a broad range of vital economic sectors for local, regional and international investors supported by attractive incentives and benefits. Arriyadh continues to strengthen its leading role through visionary strategic projects that are ongoing under the direction and leadership of H.R.H. Prince Turki Bin Abdullah Bin Abdulaziz Chairman of the High Commission for the Development of Arriyadh and Governor of Arriyadh. At the forefront of these exciting projects is King Abdulaziz Project for Public Transport in Arriyadh, the King Abdullah Financial District (KAFD) and the Information Technology and Communications Complex (ITCC). In addition there are significant projects in housing, social welfare development, power generation, technical, industrial and environmental areas. All of these are contributing to the overall planned development of the city, the life within it and its appeal to investors. To introduce the numerous investment opportunities available in the capital, Arriyadh Development Authority annually produces this Investment Climate Report. The report outlines procedures for local and foreign investors in addition to presenting all the many investment opportunities that are available through Arriyadh Development Authority and other government agencies as well as the private sector in various areas of the capital’s growing, vibrant and secure economy.

President of Arriyadh Development Authority President of Arriyadh Development Authority Member of the High Commission for the Development of Arriyadh Contents

Kingdom of Saudi Arabia: General Information 17

Basic Law 18

The Saudi Emblem 18

Membership in Political, Economic, Regional and International Organizations 18

The Kingdom’s Regions 18

Main Cities 18

Geographic Feature 18

Working Hours 19

Official Holidays 19

Currency 19

ARRIYADH CITY CONTINUOUS DEVELOPMENT AND PROMISING INVESTMENT OPPORTUNITIES 21

Theme One: the Importance of Arriyadh 22

Arriyadh is the Capital of the Kingdom of Saudi Arabia 22

Arriyadh is the Headquarter of Central Governmental Agencies 22

Arriyadh is the Location of Headquarters for Banks and Major Corporations 22

Arriyadh is the Largest Population Center in the Arabian Peninsula 22

Arriyadh is the Location of Central Gulf Bank 22

Other Aspects Relating to the Importance of Arriyadh 22

Composition of Population 22

Population Pyramid 23

Gender 24

Households 24

Labour Force 24 Cost of Living 24

Theme Two: Infrastructure in Arriyadh 25

Development of King Khaled International Airport (KKIA) 25

Ports and Railroads 27

Telecommunications, Communication and Information Technology 27

Post 28

Electricity 28

Water and Sanitary Waste 29

Theme Three: Economic and Service Sectors in Arriyadh 30

Industrial Sector 30

Agricultural Sector 31

Trade Sector 33

Construction and Building Sector (Contracting) 33

Real Estate Sector 34

Insurance Services Sector 34

Education Sector 34

Tourism Sector 37

Health Sector 37

Finance and Banking Services Sector 38

Telecommunications and Information Technology Sector 38 Theme Four: The High Commission for the Development of Arriyadh and its Role in the 40 Development of the City Introduction to the Commission 40

The Comprehensive Strategic Plan for Arriyadh 40 Sub-Centers 42

Development of the Eastern Sub-Center 44

Development of both Northern and Eastern Suburbs 44

High Committee for Environment Protection 45

Public Services Coordination Plan 45

Intersection Tunnel of Makkah Road with Salah Edden Al Ayoubi Road 45

Upgrade of Abu Baker Asseddik Road Project 45

The Comprehensive Plan of Public Transportation in Arriyadh 46

Theme Five: Riyadh Chamber of Commerce and Industry 54

The Chamber’s Role in the Enhancement of the Investment Climate 54

The Role of the Investment Center in the Chamber 54

The Role of the Chamber’s Other Centers and Departments 54

The Kingdom of Saudi Arabia and the Enhancement of Investment Climate 57

Theme One: Macro-Economic Indicators in the Kingdom 58

State Budget for the Fiscal Year 2014/2015 58

Future Vision of the Saudi Economy 58

Realized Standard Financial Surpluses 59

Gross Domestic Product (GDP) 59

Contribution of the most Important Economic Sectors 59

Balance of Payments 60

Foreign Trade Relations 60

The Volume and Development of Exports and Imports 61

Cost of Living Index 62 Wholesale Index 62

Per Capita Income 63

Labour Market Structure 63

Transport and Telecommunications Infrastructure 65

Major Producing Sectors 67

Performance of the Saudi Economy and Future Outlook 69

Theme Two: Policies and Measures Supporting Investment in the Kingdom 71

Economic Strategy and Privatization 71

The Privatized Sectors 72

Projects Supporting the Kingdom’s Transfer to a Knowledge-Based Economy 72

Economic Cities 73

Economic Freedom and the Enhancement of Investment Climate 75

The Kingdom and the World Trade Organization (WTO) 77

Saudi Arabia’s Capital Market 78

Real Estate Investment, Companies and Funds 79

Banking System Development 81

Theme Three: Rules of Investment in the Kingdom and Related Procedures 83

Labor Law, Nitaqat System and Hafez System 83

Nitaqat System 83

The Foreign Investment Act 83

Capital Market Law 84

Corporate Law 85

Commercial Register Law 85 Trade Agencies Law 86

Trademarks Law 86

Commercial Papers Regulations 87

Customs Law 87

Income Tax Law 87

Calibration and Standards Law 88

Cooperative Insurance Law 88

Social Insurance Law 88

General Environment Law 89

Intellectual Property Rights 89

Commercial Mortgage Law 89

Competition Law 90

Mining Investment Law 90

Electronic Transactions Law 90

Theme Four: Higher and Major Investment Authorities in the Kingdom 92

The Supreme Economic Council 92

The Supreme Council for Petroleum and Mineral Affairs 92

Saudi Arabian General Investment Authority (SAGIA) 93

The Saudi Commission for Tourism and Antiquities (SCTA) 93

Royal Commission for Jubail and Yanbu 93

The Capital Market Authority (CMA) 94

Communications and Information Technology Commission (CITC) 94

Saudi Industrial Property Authority (MODON) 94 National Anti-Corruption Commission 95

King Abdullah Nuclear and Renewable Energy City (K.A.CARE) 95

King Abdullah Institute for Nanotechnology (KAIN) 96

King Abdullah Petroleum Studies and Research Center (KAPSARC) 96

Saudi Aramco 96

Saudi Basic Industries Corporation (SABIC) 97

Saudi Arabian Mining Company (Ma’aden) 97

National Water Company (NWC) 98

Riyadh Techno Valley Project (RTV) 98

Theme Five: Financial Services and Credit Funds in the Kingdom 99

Saudi Industrial Development Fund (SIDF) 99

Agricultural Development Fund (Formerly Saudi Arabian Agricultural Bank) 99

Saudi Fund for Development (SFD) 99

The Public Investment Fund (PIF) 100

Real Estate Development Fund (REDF) 101

Human Resources Development Fund (HRDF) 101

The Centennial Fund 101

Saudi Credit Bank (SCB) 101

Saudi Commercial Banks and Branches of Foreign Banks 102

Theme Six: Ninth Development Plan and Investment Outlook in the Kingdom 104

Investment Opportunities in Arriyadh 107

Theme One: Investment Opportunities Offered by the Government and Other Agencies 109

The High Commission for the Development of Arriyadh 109 Arriyadh Sub-Centers 111

Parking in High Density Areas 112

Roads Projects and Available Opportunities 112

Investment opportunities within the program of developing Addiriyah Historic City 112

New Investment Opportunities in the New Suburbs 113

Saudi Commission for Tourism and Antiquities (SCTA) 113

Saudi Arabian General Investment Authority (SAGIA) 113

Saudi Industrial Property Authority (MODON) 114

Arriyadh Municipality 114

Public Pension Agency 114

General Organization for Social Insurance 114

King Saud University in Arriyadh 115

Princess Nora Bint Abdul Rahman University 115

Saudi Electricity Company 115

Theme Two: Investment Opportunities Offered by Other Parties 116

Saudi Aramco 116

Riyadh Chamber of Commerce and Industry 116

Riyadh Valley Company (RVC) 117

Theme Three: Investment Opportunities Resulting from Sectoral Studies 118

Transport and Roads Sector 121

Railways Projects 121

1- North – South Line: 121

2- Land Bridge Line (Railways) 122 3- GCC Train Project 123

Establishment of Passenger and Freight Stations in Arriyadh Region 125

The Industrial Sector 125

Water Sector 125

Sanitation Sector 125

Electricity Sector 126

Education Sector 126

Health Sector 126

Telecommunications Sector 127

Housing Sector 127

Social Welfare Sector 127

Tourism Sector 127

Insurance Sector 127

Media 128

Personal Services Sector 128

Statistical Tables 131

Statistical Tables 132

Web Addresses of Selected Organizations 138

This Report

The Investment Climate in Arriyadh Report represents one of the objectives of the High Commission for the Development of Arriyadh and the Riyadh Competitiveness Center to provide local and foreign businessmen and investors with guidelines and information on policies and procedures related to relevant agencies and the range of investment opportunities available in Arriyadh. The 2014 Report, as in the editions of previous years, comprises four parts: Part One provides background and general information on the Kingdom of Saudi Arabia. Part Two under the title Arriyadh City presents the importance and features of the city; infrastructure, economic and service sectors and the role of the High Commission for the Development of Arriyadh in the development of the capital. Part Three shows the role of the Kingdom in enhancing the investment climate, includes the macro-economic indicators in Saudi Arabia and outlines policies and procedures adopted by the Saudi Government to support investment in the Kingdom in general and Arriyadh in particular. It outlines key regulations and procedures, including the recent labour law related to investment, foreign investment and capital markets. It also covers main government agencies related to investment in the Kingdom and Arriyadh, including the Supreme Economic Council, Supreme Council for Petroleum and Minerals, General Investment Authority, Telecommunication and Information Technology Commission and the Saudi Commission for Tourism and Antiquities. It also includes the agencies which provide development funding and investment support such as the Saudi Industrial Development Fund, Real Estate Development Fund, Agricultural Development Fund, Saudi Fund for Development, Public Investment Fund as well as commercial banks. This part ends with a brief on the indicators and goals of the Ninth Development Plan and the investment strategy in the Kingdom. Part Four handles investment opportunities in Arriyadh provided by various public agencies such as the High Commission for the Development of Arriyadh, the Saudi Commission for Tourism and Antiquities and other agencies. It also includes information on investment opportunities in various private economic and service sectors and opportunities resulting from studies of sectors. The Investment Climate Report concludes with statistical tables of essential economic, service and social indicators in the Kingdom in general and Arriyadh in particular. This is accompanied by a list of websites and other useful information on the most important public and private organizations involved in investment, administrative and legal procedures.

Kingdom of Saudi Arabia: General Information 18 The High Commission for the Development of Arriyadh IMF Report, Article Four Article Consultations,(1) IMFReport, 2013/14 3. 2. 1. economic, regional andinternational organizations including: Arabia ofSaudi The isamemberofmany Kingdom political, International Organizations inPolitical,Membership Economic, Regionaland Language:Arabic Official Religion: Islam whereas thepalmtree symbolizes growth andprosperity. a palmtree. The two swords symbolize strength andjustice, two crossed Arabian swords; thespace above istopped with Arabia ofSaudi The ismadeupof emblemoftheKingdom The Emblem Saudi Megren binAbdulaziz Al-Saud. Prince PrimeRoyalSecond Deputy Highness His Minister: PrinceHighness binAbdulaziz Salman Al-Saud. Crown Prince PrimeRoyal andtheDeputy His Minister: Abdullah binAbdulaziz Al-Saud. Arabia: The Custodian of the Two Holy Mosques, King The and Prime King of Saudi of the Kingdom Minister process. were inthedecisionmaking alsoestablishedto participate municipal councils (half of whosemembers are elected) of relevance to theGovernment anditspolicies. Regional advice andtheCouncil to inmatters theKing ofMinisters of Islam. The Consultative Council was establishedto provide and the Council in accordance of Ministers with the teachings executive andlegislative powers are exercised by theKing The politicalsystem isbasedonabsolute monarchy. The the SunnaofProphet (peace beuponhim). and isbasedontheHolyQur’an constitution oftheKingdom lawapplying IslamicSharia initsjudicialsystem. The Arabia ofSaudi The isanArab Kingdom Islamiccountry, LawBasic The GulfCooperation Council (GCC) The Arab League The Organization ofIslamicConference (1) 14. 13. 12. 11. 10. 9. 8. 7. 6. 5. 4. Area: occupiesThe aboutfour-fifths Kingdom ofthe and Yemen andtheSultanate ofOmanto thesouth. and Qatar ontheeast;Kuwait, andJordan Iraq to thenorth onthewest;Sea theArabian Gulf, the United Arab Emirates of western isbordered Asia. It by part southernmost theRed Location: Arabia of Saudi The lies in the Kingdom Geographic Features • • • • • CitiesMain Capital: Arriyadh and 61classBgovernorates intheKingdom. consisting ofanumbergovernorates. There are 43classA consistsThe of 13 administrative Kingdom regions, each The Kingdom’s Regions largest oilcompany. Aramco, ofSaudi Dhahran: theheadquarters theworld’s port. an important Dammam: thecapitalofEastern Province, inoiland rich main gateway for pilgrims. andthe Jeddah: thecommercial port capital, animportant Islam’sMadinah: second holiestplace. Islam’sMakkah: holiestplace. (OAPEC) The Organization ofArab Petroleum Countries Exporting (OPEC) The Organization ofPetroleum Countries Exporting The Group of Twenty (G-20) FundThe InternationalMonetary (IMF) TheBank World The Greater Arab Free Trade Organization The Arab Investment Guarantee Corporation FundThe Arab Monetary The World Trade Organization (WTO) The United Nations (UN) The IslamicDevelopment Bank GDP of6.5%. ranked third withanaverage growth rate of stabilizing theglobaloilmarket. hasbeen It a significant role over recent years in the Group of Twenty (G-20) andhasplayed among ArabiaSaudi is the best performer Fund in2013/14shows that of Kingdom by theInternationalA report Monetary islands. low coastal plains, sand dunes and coral plateaus, volcanic lava fields, deep valleys, of variety topography including mountains, The Kingdom’s ischaracterized by territory a historic civilizations andthecradle ofIslam. major continents and is a center of many hemisphere between threethe northern ArabiaThe ofSaudi Kingdom issituated in (1)

( (1) Central ofStatistics Dept andInformation: (latest www.cdsi.gov.sa statistical reports) ( • • • official holidays are customary: theweekendsBesides (Friday andSaturday), thefollowing HolidaysOfficial • • • • • Working Hours high humidity. in winter. The coastal areas are generally characterized by andcold region, andhotinsummerdry theclimate isdry in thewestern and south-western highlands. thecentral In winter, withlow rainfall. However, theclimate ismoderate general, itiscontinental: summerandcold hotduring during to region of terrain. and is also dependent In on the type Climate: The climatevaries from oftheKingdom region respectively. oftheKingdom parts and northern andAn Nafud occupy thesouth-eastern Quarter the Empty sloping eastwards towards theArabian Gulf. of The deserts coastal plainparalleled by amountainous chaingradually geographical thewest areaIn isanarrow oftheKingdom. Terrain: There are ofterrain in the vast various types kilometers. Arabian Peninsula withatotal landarea of2,149,690square • ** * ) Holidays in the private sector vary from) Holidays onefirm to another. intheprivate vary sector Total Population Growth Population ofSaudi Rate (%) PopulationSaudi Population Growth (%) Rate ) Preliminary results ofGeneral Census ofPopulation andHousing, 2010/11–CDSI. National Day: 23 Eid Al-Adha: from the5thto 15thofDhulHijja. Eid Al-Fitr: to from 5thofShawal. the25thof Ramadan month range between 29and30days. thantheGregorian11 days shorter Year. The days oftheHijri 623. yearThe consists Hijri of12lunarmonths andis10or tocorresponding Madinah, to theGregorian year Makkah Prophet (peace Mohammed be upon him) emigrated from calendar. date ofthedayThis when isbasedasastarting The Calendar: prayer until 10or11p.m. nine a.mandcloseat midday prayer andreopen Asr after stores work hours, butmostlytheyopenbetween eight and Shops: There are nobindingregulations for commercial Private Sector: Varies depending oncompany andlocation. 9.30a.m.to 4.30p.m. Sector: (SundayBanking to Thursday). Thursday). Government 7.30a.m.to 2.30p.m. Sector: (Sunday- ahead ofGreenwich Mean Time (GMT /UTC). Official Time: The Kingdom’s officiallocaltimeisthree hours rd the Kingdom followsthe Kingdom theIslamicHijri ofSeptember Population intheKingdom2013/2014 (1) ( * ) ( * ) • • • • • • • divided into 100Halalas. are: Parts oftheRiyal Riyal, istheSaudi whichis unitoftheKingdom The currency Currency 11, Jeddah 12, and Dammam, Dhahran and Al Khobar 13). 11, Jeddah12,andDammam,Dhahran andAl Khobar International TelephoneCode: 00966+Area Code (Arriyadh Power Voltage: 110and220 Both Volts are used. system for allweights andmeasures. Weights andMeasures: adoptsthemetric The Kingdom rate isSR3.75=$1.00USDollar. Riyal oftheSaudi transfer currency inoroutoftheKingdom. The exchange Foreign Exchange Control: There on is norestriction (5%). items isfive percent onmostimported duty Customs Duty: Halalas. Coin 1Riyal, 50Halalas, Currency: 25Halalas, 10and5 Riyals, and500Riyals. 100Riyals, 200Riyals Paper 1Riyal, 5Riyals, Currency: 10Riyals, 20Riyals, 50 (1) 29,994,272 20,271,058 2.15 2.7 (**) (**) 19 Investment Climate in Arriyadh 2014

ARRIYADH CITY CONTINUOUS DEVELOPMENT AND PROMISING INVESTMENT OPPORTUNITIES 22 The High Commission for the Development of Arriyadh Saudi Real Estate Real Saudi Company. Cement Company, Development Arriyadh Company and Company,Mining Cable Saudi Company, Al Marai, Yamamah for Chemical Company, Saudi Glass Industries, Arabian Saudi AdvancedSaudi Company, Industries the National Company. companies, Tasnee, Co (GASCO), andIndustrial National Gas located inArriyadh. These includeSABIC,telecommunications The administrative oflarge companies are headquarters BankGroup Deutsche andothers.National Bank, Bahrain Muscat Bank, such asEmirates Kuwaiti Bank, Bank, of Arab andforeignArabian headquarters branch banks isalsotheSaudi Investment It BankandArab National Bank. Fransi,Banque Saudi SABB, SAMBA Financial Group, Saudi HollandiBank, Saudi Bank, Al Rajhi Bank, Al Inma Bank, commercial banks. Al Bilad These Bank, includeArriyadh accommodatesArriyadh ofmostSaudi theheadquarters Corporationsand Major Arriyadh for istheLocation Banks ofHeadquarters major state organizations. for Tourism andAntiquities, andother Customs Department Arabian GeneralInvestment Authority, Commission Saudi Science and Technology, Authority, Capital Market Saudi Agency, Arabian for AbdulazizSaudi City Monetary King isalsothelocation Press oftheSaudi It headquarters. Agency, aswell ascivilagenciesandtelecommunicationsheadquarters ministries, mostcentral governmental agencies, military is Arriyadh the location the Primeof the Royal Court, Ministry, Governmental Agencies Arriyadh ofCentral istheHeadquarter in 1902. beingrestored after it regained Abdulaziz by its glory King 1824itwas thesecond capital, In Saudi andthen Kingdom. isthepoliticalandadministrativeArriyadh capitalofthe Arabia Arriyadh istheCapital oftheKingdomSaudi isrepresented ofArriyadh The importance inmany factors: of Arriyadh the Importance Theme One: to reach 8.2millionin2029 one millionin1980to sixmilliontoday nearly andisexpected Peninsula. The population hasgrown ofArriyadh from almost isthelargestArriyadh population center intheArabian Arabian Peninsula Arriyadh istheLargest Population Center inthe (2) CommissionThe High for theDevelopment Population ofArriyadh: Estimates City, of Arriyadh 2004-2024 (1) CommissionThe High for theDevelopment Estimate ofArriyadh: ofPopulation, 2029. 2004-2010 population grew steadily at arate theperiod of 4%during isoneoftheworld’sArriyadh fastest growing citiesand its Composition ofPopulation (MODON). Authority Property and Communications Complex (ITCC) Industrial andSaudi such asRiyadh Techno Valley, theInformation Technology the Kingdom’s gate to anadvanced economy withprojects exchanging technology electronic andknowledge, aswell as It isalsoa centerlargest financialdistricts. for developing and Abdullah Financial plannedasoneoftheworld’s District mentioned aspects. The capital isalsothelocation ofKing isnotonlylimited ofArriyadh toThe thepreviously importance Arriyadh of Relating to theImportance Aspects Other andshows its financial importance competitive merit. the existencespeaking, of such a bank givesin Arriyadh it a ofmembers. stability Economically financial andmonetary their management andsetthemechanismsthat maintain the andmethodsof theforeign reserves supervise monetary as aneconomic assemblyfor theGCC states. willalso It oftheGulfCooperation policy Council (GCC)the monetary theexecutionJoint Central of GulfBankwhichwillsupervise ofthe to betheheadquarters hasbeenselected Arriyadh Arriyadh istheLocation ofCentral Bank Gulf In the early 1970s, theearly was nomore thepopulationIn ofthe city banks andlarge corporations. a competitive advantage of from beingtheheadquarters as gainssignificantArriyadh well as economic importance the Middle East. the Middle Arabian Peninsula andthoseof inparticular transit hubbetween thecountries ofthe Furthermore, asacentral itacts point and the Levant Arabia. and Iraq with Southern links theArabian and Sea, withtheRed Gulf crossroads of main communication routes; it in themiddleofitslandmass. isat the It to its geographical and strategic location ancient citiesoftheArabian Peninsula due Arriyadh occupies a prominent place among his rule. Dahham binDawwasmadeitthecenter of The nameArriyadh was noted in1745when advanced capitals. and oneoftheworld’s largest andmost Arriyadh istheKingdom’s largest city (2) . (1) . (2) CommissionThe High for theDevelopment ofArriyadh (1) CDSI,44thPopulation Composition, 2012/13. of residents characterized by qualitative features in the standard of living The other advantage population of Arriyadh growth is the recent that rate century increased to 16%. to similarcities. the1980s, decadeof In 1990sandtheearly increase hasnever beenlessthan 4%whichishighcompared advantage of this growthThe most important is the rate of and is responsibleof the city for the growth of other sectors. The increase inpopulation isstillthemostprominent feature than 50different languages. accommodatescity residents from many cultures withmore pattern oflife characterized by unifiedactivities. Today the than 100,000,mostlyofcommon andfollowing heritage a kilometer. and 42.3%female. Population is2,379persquare density million, 37.3% of thetotal. 57.7%ofthepopulation ismale 62.7% ofthetotal, population whilethenon-Saudi was 2.2 5,811,622. The population Saudi was 3.6millionrepresenting 2013/14 the overallIn population of reachedArriyadh 1,895,222 1,460,878 3,356,100 Males (2) (1) . 1,749,430 2,455,522 Females 706,092 Population inArriyadh Distribution City Occupied Residences 1,027,809 Non-Saudis Grand Total 3,644,652 5,811,622 2166970 Saudis Total There isasignificant difference ingender ratios between the Gender Those aged60andabove constitute 2.9%ofthepopulation. while theagegroup between 15and59comprises 64.7%. under-14 agegroup makesup32.4%ofthetotal population, and housing. According to statistics thepercentage ofthe contributes significantly to thedemand for goods, services 15-59 agegroup isrelatively closeto that ofothercitiesand population growth in Arriyadh. The rate of growth of the compared to other major world cities and implies a rapid The under-14 age group constitutes ahighpercentage programs inorder andprojects to increase jobopportunities. increased labourforce inthefuture andnecessitate economic wide dueto thegrowing numberofyouth. This willleadto an of thetotal, asshown below, thusthebaseofpyramid is Arriyadh. Those under15years ofageconstitute about34% Young ofthepopulation of peoplemakeupthemajority Population Pyramid Ministry ofEconomy andPlanning,(5) Ministry CDSI,Annual Statistical 47, 2010/12. Book (4) CommissionThe High for theDevelopment . ofArriyadh website:(3) Arriyadh www.arriyadh.com (5) Males (%) Males 67.4 57.7 52 (3) Females (%) 32.6 42.3 48 (4) 23 Investment Climate in Arriyadh 2014 24 The High Commission for the Development of Arriyadh

fall to about5.9individualsperfamilyin2024. size of6.2 individuals perfamily. This average to isexpected There are withanaverage 948,554householdsinArriyadh CDSI, Annual Statistical Book, (48),2012/2013. (4) CDSI,Annual Statistical Book, (3) CommissionThe High for andFuture theDevelopment Housing Reality ofArriyadh: City, inArriyadh 2009. (2) Ibid. (1) CommissionThe High for theDevelopment . ofArriyadh Information (CDSI) recentMost data ofStatistics oftheCentral and Department ForceLabour families in2004was 21%. compared to 67%in1996. The percentage ofextended an increase innumbersofnuclearfamilies–75%2004, relatives. The changing pattern householdsshows ofSaudi family,extended couples consisting andortheir ofmarried family, consisting ofonecouple andtheirchildren andthe households. There are ofhouseholds:thenuclear two types witnessed Arriyadh a noticeable increase in the number of Households females. whereas males represent non-Saudi 67% compared to 33% malesrepresentSaudi 52%compared to 48%females, Commissionby the High for the Development of Arriyadh, population. andnon-Saudi AccordingSaudi to studiesmade population compared to 42%females.

300000 150000

(1)

Saudi and non-Saudi malesrepresent andnon-Saudi Saudi 58% ofthe 200000 100000 Non- Saudi PopulationNon- Saudi Pyramid

Saudi PopulationSaudi Pyramid 100000

(4) 50000

shows that thelabourforce inArriyadh 0

(2)

0

100000

50000

200000 100000 Female Male Female

Male (3) 300000

150000 04-00 09-05 14-10 19-15 24-20 29-25 34-30 39-35 44-40 49-45 54-50 59-55 64-60 69-65 74-70 75+ 04-00 09-05 14-10 19-15 24-20 29-25 34-30 39-35 44-40 49-45 54-50 59-55 64-60 69-65 74-70 75+ or 36.28% labour force totalled 411,691 2,538,013or34.52%andSaudis constituting 34.75%ofthelabourforce. inthe Non-Saudis distributed between 2,820,372malesand129,331females 2013thelabourforceIn oftheprivate was 2,949,704, sector dollar exchange rates compared to othercurrencies. and othercommodities inworld andtheincrease markets of labour force,decrease of the skilled price increases for food for economic andsocialdevelopment, higheroilprices, a continuously increasing levels ofgovernmental expenditures There are several reasons for tthese increases: the 2011, 122.4in2012and126.72013 increased from 110.5 in 2009, 114.7 in 2010 to reach 119 in increase inthecost oflivingindex intheKingdom. The index The from period 2009to 2014witnessed a noticeable Cost ofLiving 2014 was 2,930,906 with2,270,888unemployed thenumberofemployed theKingdom in is 3,090,594.In SAMA, 47th Annual Report, 2011. (9) SAMA, 47thAnnual Report, (8) CDSI,Cost ofLivingGeneral Index. (7) CDSI,www.cdsi.gov.sa. ofLabor,(6) Ministry Annual Statistical 2012/2013 Book (5) CDSI,LaborForce Survey, 2012/14/15. commodities and services ofthat yearcommodities andservices or 4.5%whencompared to the1999baseyear including index increased 2012by during 2.9%compared to 2011, (6) . (8) . (7) . The cost ofliving (5) . (9) This tocontract is expected be completed in 2017, and will (3) CommissionThe High for theDevelopment ofArriyadh ofCivil(2) General Authority Aviation: www.gaca.gov.sa. Governorate(1) Arriyadh website: www.riyadh.gov.sa/RiyadhCity.asp. covers ofArriyadh, 225k north located 35kilometers the Custodian ofthe Two HolyMosques, in1984.KKIAis was inaugurated by thelateFahdairport King binAbdulaziz, intheKingdom. outside world andwithotherairports The withthe links Arriyadh International Airport Khaled King (KKIA) Development ofKingKhaledInternational Airport reflects reflects Arab andIslamicheritage their families. The oftheairport design andconstruction Accommodation staffand housesmore than2,000airport 18millionpassengersannually.and iscapableofserving 12 million an area of100,000 square meters andprovide of acapacity will terminal which includesestablishmentcover ofthefifth (Phase 1) International Airport Khaled of King dollar project the firstphaseofcurrent expansion four hundred million Data issued by of CivilGeneral Authority Aviation shows that 32% of total departures and arrivals Kingdom-wide andarrivals 32% oftotal departures in Arriyadh Infrastructure Theme Two: (2) domesticflight passengersannually constituting (1) . (3) . m 2 2013. The following tableshows KKIAflights 2012- for theperiod display system for operating allairlines at theAirport. flight willbelinkedto anddeparture thearrival service lounges.generation wireless facilities in all airport This wireless internet access inadditionto free (Wi-Fi) fourth The development also includes provision project offree zones separating themfrom theairsideareas. Phase 3includesexpansion ofterminals 1and2the and publicroads. aswell asthedevelopmentjetways andparking ofutilities of terminals 3and4inadditionto upgrading runways, aircraft Phase includesdevelopment 2oftheproject andexpansion for areas 3,000vehicles. andparking parking thenewhallswithterminals,double gates aircraft linking passengers. The alsoincludesestablishment project ofeight to 35 million increase of the the airport total annual capacity and facilities. related housing, to transportation, services strategy isalsoconcerned withissues social andcultural growth ofthecity. The environmental,construction, economic, theurban, all key affecting factors has developed astrategy to accommodate point ofthedevelopment process. This plan development ofArriyadh isthestarting The comprehensive strategic planfor the capital. intheSaudi headquarters companies to establishtheirregional have encouraged many international which haveprojects commenced in Arriyadh commercial activity. Recently, themajor intoturned thecity ahubofindustrialand Arriyadh’s advanced infrastructure has 25 Investment Climate in Arriyadh 2014 26 The High Commission for the Development of Arriyadh (1) General Authority ofCivil(1) General Authority Aviation, 2012/13. Statistics Statistical Dept, Book, Total (DomesticandInternational) International Domestic Domestic Private Flights International Transit Passengers Private Flights Total (DomesticandInternational) International Domestic Private Flights Total (DomesticandInternational) Kind ofFlightKind King Khaled International Airport FlightsKing KhaledInternational Airport 2012/2013 Total Total Total Passengers Traffic (Arrivals bythousands andDepartures) Air Cargo (Arrivals andMail by tons andDepartures) 135,757 274,342 263,886 116,078 221,028 55,410 60,668 19,679 15,485 14,836 42,858 10,456 7,428 7,408 2012 597 52 Flights (Arrivals andDepartures) (1) 150,383 315,177 305,944 133,241 265,751 62,074 71,167 17,142 17,751 17,009 40,193 8,721 8,288 9,233 2013 682 60 development andaccommodation oflarger numbers more than 300,000 containers for annually with capacity the Arriyadh. Arriyadh. development ofasecond railway between Dammamand in2009/11andrunsto 2025/26for the planned phasesstarts for from theperiod 2010/11to 2040/41. The firstofthree hasadoptedSGRO astrategic expansion planKingdom-wide carried exceededcarried 4,023,000tons latest data available, was about 1.19 million; and the cargo Eastern Province andvice versa in2012,according to the The numberofpassengerstravelling from to Arriyadh the new projects. private willcontribute sector to theimplementation ofthese operate between andJeddah and Makkah. Arriyadh The According to strategic plans oftheSGRO, newlineswill Saudi General Railroad Organization, General Railroad (4) Saudi 2012 Statistics. (3) Ibid. Organization: General Railroad (2) Saudi Strategic ExpansionPlan, www.saudirailways.org. Organization General Railroad (1) Saudi website: www.saudirailways.org. m Port area covers Dry Arriyadh anarea of918,639 Customs clearance Port andstorage takeplace inthisDry ofDammamPort. itanextension Port, making Dry Arriyadh to (SGRO) services provides passengersandgoodstransport 449 passengerline. The Organization General Railroad Saudi railroadAhsa) by a556kilometer for freight andarecently-built is linked Arriyadh to the Eastern Province (Dammam and Al Ports andRailroads Internet Services Internet Provided Services Mobile Landline Communications Mini-Satellite Telecom(Alphasat) Vehicle Tracking TelecomMobile Airplanes Via Internet Airplane Personal Mobile Telecom Via Satellite Telecommunications Center Services Services Message Short Interactive VoiceMessages Hosting Communications andEquipment Machines Joint Automatic Communication andControl Management Network Recharge Prepaid Telephone Cards Books Electronic 2 accommodating six stores, each of 6,480 m (2) Recorded Texts(700) Companies Licensed to Provide Telecommunication andITServices Total Licenses Service (4) . 2 . It can handle . It (3) . 2010 -2012 (1) . them beinghouseholdlinesinArriyadh landlines, with77.9%of 30%ofthetotal intheKingdom, show inArriyadh availability ofmoreservices than1,388,881 Latest statistics 2010and2012. information during technology services the companies licensed to provide telecommunication and Telecommunications Company. The following tableshows landline telecommunications companies; STC andAtheeb a Saudi-Kuwaiti Joint Stock Company inadditionto two a Saudi-UAE Joint Stock Company;andZainCompany, Telecom Company (STC), Company Etihad Itisalat (Mobily), by three telecommunicationsservices companies; Saudi landlines, mobiletelephones, internet anddata transmission aretelecommunications provided services through Communications Organization (Arabsat). Various of theArab Satellite istheheadquarters Arriyadh Information Technology Telecommunications, Communication and (7) Telecommunications andInformation Technology Authority, 2012. Annual Report (6) CommissionThe High for theDevelopment ofArriyadh (5) Telecommunications andInformation Technology Authority, aspertheAnnual Statistical 48,2012/13 Book representing 26%oftheKingdom’s users. representingsubscribers 32%and3,489,219 internet users, issued by CDSI. (7) 2010 313 137 56 18 44 11 14 2 3 2 2 1 3 0 6 0 4 5 5 (5) ondevelopment oftelecommunication Years 2011 210 105 26 17 25 10 2 3 2 1 0 2 7 0 5 0 3 2 0 (6) ; 632,459broadband 2012 292 127 40 19 64 15 2 3 2 0 0 2 6 0 7 0 4 1 0 27 Investment Climate in Arriyadh 2014 28 The High Commission for the Development of Arriyadh and international inArriyadh. express courier service FedEx,DHL, ARAMEX, UPSandotherswhichoffer domestic are alsoprovided services Mail by private companies suchas in alocation determined by thesubscriber. with the mail boxthrough to subscription placed this service 2006,SPChasofferedearly services homemaildelivery 2012/2013 for otherpurposes. There were in 2.15millionsubscribers 3.6 Megawatt or5% was accounted for by consumption 16% for commercial consumption and11.5Gigawatt/hours, 11.2 million, 17%for government consumption, 12.2 million, Megawatt/hours or about 8% was consumption, industrial totalled 38.9 millionMegawatt/hours orabout54%,5.7million 72,086 Gigawatt/hours. 2012domesticconsumption In Company sales in Electricity the CentralSaudi Region was (4) Ibid. (3) Ibid. andCogeneration Authority, Regulatory (2) Electricity 2012/13. Post(1) Saudi Corporation, asmentioned inthe Annual Statistical 48,CDSI,2012/13. Book increased by 2012to 9.4%during 240,288Gigawatt/hours. consumption inallregions oftheKingdom electricity CompanyPreliminary data by shows Electricity Saudi that Electricity boxessubscriber boxes and52,000postalagency including206,130 subscribers facilities for postalservices post offices, 30postalagencies, 166deposit boxes and88 2011 statistics was 106mainoffices, 45EMSoffices, seven The numberofpostofficesArriyadh in region, according to toprovide citizens. mailservices through investmentsthese services inpostalagencieswhich to customers. The private contributes sector to providing provided mailservices postal agencies. SPCalsosupervises (EMS), commercial mail,mail service promotional mail and includingparcel inArriyadh post, expresspostal services The Post Saudi provides Corporation of (SPC) alltypes Post million transmissionHitteen station at inArriyadh acost ofSR500 in Princess Nora University andtheestablishment ofthenew million to feed thecentral station andlinkitwiththenetwork establishment oflandtransmission linesat acost ofSR170 an investment ofSR450million.Projects alsoincludethe Nora University facilitiesrepresenting Bint Abdul Rahman system andprovisiontransport ofe power for Princess along withexpansion oftheexisting station for thepublic establishment ofthree transmission stations for electricity Prominent includethe inArriyadh projects electrical (4) Industrial . 5.76 (3) . Electricity Services Indicators intheCentral Services Electricity Region/Arriyadh 2013 Commercial 11.53 Number of Subscribers: 2.14million Number ofSubscribers: Generation Capacity (Megawatt) (1) Sold EnergySold (Gigawatt) . Since Other 3.6 (2) 14,538

(6) Ibid. andCogeneration Authority, Regulatory (5) Electricity 2012. (Central Energy during2013 Region)ofElectrical Growth of Sales by Saudi Electricity CompanyGrowth by Electricity ofSales Saudi Housing 38.92 2012 2011 2010 2009 2008 2007 Year Rate ofChangein2013= 6.5% Rate (Gigawatt hours) (6) Total Energy Sold Government 12.25 63,745.8 59,582.5 52,069.2 72,086 67,655 55,984 (5)

from 516,000,000m meters (1,980,000m 2010wastwo millioncubic RegionArriyadh during nearly and Electricity, theaverage dailywater consumption in According of to latest statistics byWater theMinistry consumption reached 694,000,000m (2) SAMA, 49,2012.As mentioned intheAnnual Statistical 48issuedby Book CDSI. (1) National Water Company, City BusinessUnitofArriyadh Water. tonetwork cope withthegeographical andpopulation will be implementedSolutions in order to expand the existing area willbecompletedthe urban city ofArriyadh by 2021. According waste serving to theguidingplan, the sanitary (2) waste coverage network sanitary was that 51%during year reachednetworks 97%ofthepopulation in2013,while total water supply. The extent ofcoverage ofwater supply source up40%ofthe wells isfrom making localartesian represents 60%oftotal water suppliedto thecity. The second from desalination plants inJubailontheArabian Gulf. This The firstisfrom desalinated seawater through specialpipes water isdeliveredDrinking from to thecity two mainsources. Water andSanitary Waste was 639,000,000 m 2011theconsumption337,600 to 381,900in2011/12.In m 3 in2010/11. The increased numberofsubscribers from 3 by 384,200subscribers, whilein2012 3 in2009/10to more than621,000,000 3 ). Annual consumption increased 3 by 394,100subscribers. (1) . cost ofSR9billion. andfinalstagewillbegin in2021withan expected the fourth will commence in 2015 at a total cost of SR 5.6 billion, and second stagebeganat atotal cost ofSR5.2billion,thethird be implemented according to available funds. 2010the In inside the second stage of the city’s area constructed will of SR3.3billion.Specialdesigns related to areas located areand 54 projects being implemented with a total cost prepared. are oftheseprojects Some beingcompleted, executivea cost ofSR5.2billion. Other contracts were also designs for2005 necessary thefirststage were prepared at to area alloftheconstructed waste In ofArriyadh. services Each stagewilltakefive years inorder to provide sanitary growth over ofthecity four stages, at acost ofSR25billion. 29 Investment Climate in Arriyadh 2014 30 The High Commission for the Development of Arriyadh Arriyadh, is Arriyadh, 451,000 total area oftheFirst City, Industrial which liesinthecenter of industrial city in Al-Kharj withatotal area inAl-Kharj city of100million industrial and of includes1,050 Arriyadh factories. Also there is the The firstphase ofthisis completed and2.5millionm 257 km² were Region, inArriyadh (1) 257km² whichisstillunderexecution. allocated City to theSudairIndustrial (MODON) Authority Property by Industrial theSaudi There Cities bothsupervised areinArriyadh, two Industrial inthesuccessplayed ofthecity. apart plants, haslikewise andmanufacturing number ofindustrial commercial sectors. The private sector, withitsgrowing in thevarious economic areas and suchastheindustrial development through ofthecity thepastthree decades These have factors played akeyrole inthepositive government credit andfinancialinstitutions. (SAMA), (CMA) Authority Capital Market inadditionto other country’s commercial Agency banks, Arabian Saudi Monetary become a financialhub, ofthe home to theheadquarters States countries. andotherneighbouring hasalso Arriyadh center ofalarge regional represented market by theGCC aswell asitsstrategicgoods andservices; location at the whichsustainthegrowth ofdemandforopportunities be explained by population growth andincreasing job than thoseofothercities. The strength ofitseconomy can iswitnessinggrowth Arriyadh Kingdom, rates higher As thepolitical, commercial andfinancialcapitalofthe Sector Industrial second, withanarea of19k Sectors inArriyadh Sectors Economic andService Theme Three: 2012/13 2009/10 2011/12 2010/11 Year m 2 and includes 50 factories, while the Number ofNew m Loans by SIDFfor Investors inArriyadh from 2009/10-2012/13 2 Projects lies on the southern outskirts outskirts liesonthesouthern 33 30 22 25 Number of(Expanded) Projects 14 12 10 16 2 (1) were were . The m 2 . million m developed. Work on the second phase of development of 3.3 (4) This tableisderived from theSIDFAnnual Report. (3) Tatweer Commission Magazine, High for theDevelopment Issue52,2008. ofArriyadh, www.modon.gov.sa. Authority: Property Industrial (2) Saudi parts oftheKingdom parts of thetotal applications received by from theAuthority all for theestablishment ofnewplants represented about75% Region.as inthewiderArriyadh The numberofapplications developed areas industrial inelsewhere inthe capitalaswell more plants. There isalsoanincreasing needto establishnew as a result areas of the industrial of the tocapacity establish demands to study, newdevelopments planandconstruct Data shows that MODONisreceiving alarge numberof Number ofLoans and 35%are underimplementation. programs, 65% of which were completed The Plan includes58executive strategic (10years)Short-term Medium-term (25years) Long-term from 2003). (50years starting Vision” anditisdividedinto three stages: This as Plan isalsoknown “Arriyadh Future • HousingStrategy • Environment Strategy • TransportationStrategy • Public UtilitiesStrategy Strategy• Public Services • Economic Development Strategy following: Strategic Plan ofArriyadh includethe City Components of the Comprehensive 2 47 42 32 41 isongoing (3) (2) . . % to Loans inthe Kingdom (4) 16 17 15 16

Value ofLoans 1,390 million 1,547 million 964 million 814 million SR million In the fiscal In year 2012 Ministry ofAgriculture: Annual Statistical (5) Ministry Yearbook estimated 25,2011/12.Some thepast numbersduring (4) Annual Statistical Yearbook ofAgriculture: 25, 2011/12,available onthewebsite www.moa. oftheMinistry ofAgriculture. (3) Ministry (2) Ibid. (1) SIDF, 2012/13. Annual Report, intheKingdom production pivotal ofagriculturalmakes thecity inthedistribution Governorate,Al-Kharj one of the largest agricultural regions; agricultural areas intheKingdom. This, anditsproximity to Region Arriyadh liesatproduction. thecenter ofthemain constituting 35% of the Kingdom’simportance agricultural The Region agriculturalinArriyadh isofmajor sector Agricultural Sector loans since itsestablishment upto 2012 projects.888 industrial This represents 36%oftheFund’s total Regionnumber ofSIDFloansinArriyadh was 1,270to finance 2011/12 thetotal During inArriyadh. sector the industrial DevelopmentThe Fund Industrial Saudi (SIDF)finances of production. Regionin Arriyadh was with1,319,619 tons 57,188hectares 2011/12,theareaIn assigned for ofvegetables theproduction producing about 200,593tons. Region slightly decreased 2011/12to during 39,345hectares The total arable ofgrains landand production inArriyadh loans oftheSIDFin2012. with avalue ofSR1,547millionor16%thetotal accredited comes infirstplace in ofnumberaccreditedterms loans, expanding projects. 14existing industrial Region Arriyadh and projects for 33newindustrial ofconstructing thepurpose accredited that loansduring year. These loanswere granted located Region in Arriyadh representing 35% of the years are numbers. changedto actual gov.sa Percentage/Kingdom (%) 34,876 Area 14 Area Year 2009/10 Estimate oftheAssigned Area ofGrains andProduction inArriyadh Region (2) SIDF financed 47 loans for projects Production (3) 176,974 . 14 243,414 2008 25 Estimate ofArable for Land allCrops inArriyadh (1) Region 2008/09-2011/12 . 2009/10 –2011/12(Hectare/Ton) 40,461 Area 11 % to theKingdom 2010/11 2008/09 211,796 Years 26 (4) Production (Hectares/Ton) 205,380 12 2009/10 245,140 31 39,345 Area 15 2011/12 (5) 2010/11 246,594 Production 31 200,593 14 31 Investment Climate in Arriyadh 2014 32 The High Commission for the Development of Arriyadh (3) Ibid. ofAgriculture, Annual(2) Ministry Statistical 25,2011/2012. Book (1) Ibid. about 7%oftheKingdom’s total production. producedin Arriyadh about8,186kgofhoneyrepresenting Apiaries than 84.9millionor16%ofthetotal inthe Kingdom. (traditional andspecialized) was moreThe number ofpoultry litres ofmilkor74%theKingdom’s total milkproduction. was farms more than1,247billion The of18dairy production of the total, and 298,630 cows representing 61% of the total. 12% oftheKingdom’s total. There were 142,524goats, 13% (traditional and specialized breeds) was 798,453 representing representing 42%oftheKingdom’s total. The numberofsheep 2011thereIn were Region 92,868camelsinArriyadh with anestimated of335,975tons. production The area assigned for was fruit production 53,143 hectares 1,946,817 tons. fodder was96,913 withanestimated hectares of production the same year,In the area assigned for of the production Estimate oftheAssigned Area of andProduction Vegetables inArriyadh Region2009/10–2011/12 52,556 48,708 75,656 Area Area Area 22 46 48 2009/10 2009/10 2009 Estimate oftheAssigned Area ofFodder andProduction inArriyadh Region Estimate oftheAssigned Area ofFruits andProduction inArriyadh Region Production Production Production 1,131,459 1,431,825 297,755 19 43 49 2009/10 –2011/12 2009/10 –2011/12 (1)(2)(3) 53,473 54,824 96,382 Area Area Area 24 51 53 % to the Kingdom % to theKingdom % to the Kingdom 2010/11 2010/11 Years Years Years 2010 (2) (3) (4) The Agricultural Development Fund, Annual Report. long-term loans loansand335 dividedbetween 36short-term the Kingdom a value ofSR183.3millionrepresenting 20%oftotal loansof 2012/2013 there In werein Arriyadh. projects 371loans with The Agricultural Development Fund finances agricultural (Hectare/Ton) (Hectare/Ton) Production Production Production 1,263,357 1,938,347 335,432 22 51 54 (4) . 53,148 57,188 96,913 Area Area Area 23 51 52 2011/12 2011/12 2011 (1) (Hectare/Ton) Production Production Production 1,319,619 1,946,817 335,975 21 50 53 State-of-the-art, well-designed buildings, well-designed and skyscrapers State-of-the-art, Ministry of Municipal and Rural ofMunicipal Affairs, StatisticalBook 63,2012. (5) Ministry (4) National Accounts Indicators, 2012/13, CDSI. (3) Ibid. (2) Ibid. (1) CDSI.Annual (48). Staistical Book featureremarkable inArriyadh 4.8% to the GDPat current prices anda building boomwas a growth past years. during contributed 2013/14 this sector In productive sectors. The has experienced significant sector ofinfrastructure andother development andsupport iscrucialto the The sector buildingandconstruction (Contracting)Construction andBuilding Sector contribution to theGDP of 8% indicated that growthactivity was 10.7%,witha ofthissector 2012/13. GDPresultsThe (by preliminary real price)of by type The Arabia inSaudi trade witnessedreal sector growth during Trade Sector 1,185,101, 30% of them in Arriyadh. 1,185,101, 30%oftheminArriyadh. by theendof2012/13was and licensed from theMinistry Total commercial companies operating intheKingdom • • for ofresidential construction andcommercial buildings year. 21,278buildinglicenses Region issuedinArriyadh were total inthesame of100,756 licenses issuedintheKingdom Total licenses issuedin2012numbered 24,084or23.9%ofthe Government-Social Buildings Mosques, Educational Buildings andMedical New Records 2012/13 During New Records 2011/12 During Accumulated Total upto 2010/11 New Records 2009/10 During New Records 2008/09 During New Records 2007/08 During Industrial andCommercialIndustrial Commercial andResidential throughout various regions. 27%ofthesewere inArriyadh. of establishing 44,528 commercial companies distributed issued commercial registrationsIndustry for thepurpose of CommerceMinistry thefiscal and During year 2012/13the wasArriyadh 354,958. 2012/2013,thenumberofcommercialBy companies in Type ofBuilding Total Total Accumulated upto 2012/13 Existing Commercial Companies inArriyadh 2007/08–2012/13 (1) (4) . . (2) Year Arriyadh RegionConstruction Licenses 2012 24,084 21,278 2,003 (5) 314 489 No. . (6) Ibid. EstateReal Development Fund. loansprovidedis alsosustainedby theconcessionary by the glass, andthere were 74licenses for newfactories. The sector producing buildingmaterials,factories china,ceramics and enhanced by theexistence ofmore than170licensed Arriyadh’s isfurther sector buildingandconstruction commercial buildings, and maintenance factories of facilities. includingbridges, oftheconstruction residentialsectors and companies operate inArriyadh. They cover allthesub- A large foreign numberofSaudi, andjoint construction inrecentin Arriyadh years. sophisticated malls constitute of new buildings the majority 100.0 88.3 8.3 (%) (6) 1.3 2.0 Number 354,958

44,528 29,899 24,167 21,226 21,840 20,985 (3)

100,756 90,480 1,568 7,971 737 No. To theKingdom % to Kingdom 27.9 30.3 30.3 31.9 30.6 30 27 23.9 42.6 31.2 25.1 23.5 (%) 33 Investment Climate in Arriyadh 2014 34 The High Commission for the Development of Arriyadh Ministry of Municipal and Rural ofMunicipal Affairs, StatisticalBook 63,2012. (3) Ministry (2) CDSI,Annual Statistical 48,2012/13. Book (1) Ibid. the Development theoverall ofArriyadh, numberofhousing According to thelatest Commission studyby theHigh for low-medium income population. ofaffordablein themarket housing for thelow income and an imbalance ofsupplyanddemandinthehousingmarket Despite of these developments, is Arriyadh still experiencing mostly allocated for families with high and average incomes. These willprovide projects more than105,000housing units, are beingimplemented by theprivate inthecity. sector large comprehensiveNine housingdevelopment projects anddevelopmenthousing projects ofhousing. also theprivate sector’s contribution to thedevelopment of meet therequirements oftherapid population growth and the publicplanningagenciesinpreparation ofplansto Estateloans oftheReal Development Fund, contribution of throughArriyadh theprograms ofgranting residential land, capabilities. Significant housingprojects were completed in standard residences for familiesaccording to theirfinancial focused ofproviding onthe necessity convenient, high- from thedirectives oftheFive-Year Plans. These planshave programsis dueto government emanating supporting hasneverthe city suffered any housingproblems. This rates) ofcountry between 1986and1996, the majority growing population rate ofmore than8%(higher andquantity. pointis aclearturning inquality Despite the of Arriyadh’sThe housing experience as a part development planned area 123,398 hectares. Unplanned land area constituted and the 50,241 hectares green andothers)was ofthetotal 60,419hectares area. Used land area in (residential,Arriyadh industrial, agricultural, Loans totalled SR23millionin 2012/2013. citizens’ private residences and50%ofinvestment loancosts. malls or residential buildings. The Fund finances 70% of grants residential loans to citizens and to investors to build by Estate theReal Developmentis supported Fund, which aswellprojects asgrowth sector. ofthehospitality This sector for and increasing housing projects commercial development This to isexpected grow by ongoinglocaldemand supported contribution to the GDPwas more than5.2%at current prices. 2013/2014 the real the period During estate sector’s Real Estate Sector % to theKingdom Degrees Number Number ofContractingNumber Companies by inArriyadh Rank 2012 First 128 74 (3) (2) Second 144 66 Third 207 Education according ofHigher to latest statistics by theMinistry 2012/13thenumberofstudents intheseuniversitiesIn and Princess Nora Bint Abdulrahman University. University, Saud King University Saud Ibn Muhammad Imam As for government highereducation, accommodates Arriyadh insurance expansion ofvehicleas well andhealth asthecompulsory ofinsurance,the importance favourable economic conditions billion in2011.Development was helpedby theawareness of premiums amounting to SR21.2billion compared to SR16.4 development in2012withgrowth ofabout14.4%andgross The insurance Saudi witnessedsignificant market Insurance Sector Services and demand vacant, indicating anoverall relative balance between supply wasunits inArriyadh 1,027,809units;ofwhich4.3%were Ministry of Higher Education, University Statistics, ofHigher www.mohe.gov.sa(8) Ministry ofEducation www.riyadhedu.gov.sa. inArriyadh: (7) General Department 49,2013/14. (6) SAMA, Annual Report (5) Ibid. (4) CommissionThe High for theDevelopment Population ofArriyadh: andFuture Reality City, inArriyadh classes, 29,398teachers and469,086 students in 2009,there were with18,301 1,441schoolsinArriyadh According ofEducation to latest statistics by theMinistry vocational training andhighereducation. forsectors both genders at all levels: schools, technical and Education isprovided inArriyadh by government andprivate Education Sector were licensed by theconcerned parties. and engineering insurance. Three new insurance companies including accidents, vehicles, insurance, marine, air, power stockSaudi market. These provide ofcover various kinds 2012 thereBy were 34 insurance companies listed on the Arab OpenUniversity, Branch; Arriyadh Al Yamamah Al Faisal PrinceArriyadh: SultanUniversity; Private University; Private Education comprises Higher five universities in Kingdom. staffinthe 29.6% oftotal 64,689faculty staffing19,166ofthefacultiesin theKingdom, representing 8.7 billionin2011 which grew by 16.2%,SR11.3billionin2012compared to SR SR 6.7billionin2011.53.3%was allocated to healthinsurance, growingmarket, by 14.1% to SR 9 billion in 2012 compared to General insurance made up about 42.5% of the insurance 95 2009. (5) (8) . was 329,676,24.3%oftotal 1,356,602students (4) . Fourth 154 362 (6) . (1)

Fifth 111 290 (7) . 1,131 Total 500 Ministry of Higher Education: Ibid. ofHigher (3) Ministry www.mohe.gov.sa. Education: Statistics ofHigher oftheMinistry: (2) Ministry ( ofEducation website: www.moe.gov.sa(1) Ministry Colleges. SciencesColleges,International Medical andINAYA Medical Al Farabi College, Al Dentistry Faisal Colleges, Al-Ghad Pharmacy, Al Maarefa College for Science and Technology, are and sixprivate colleges;Colleges Riyadh ofDentistry and Dar Al Uloom University.University; addition there In * ) Total to total females inthe kingdom. kindergarten

% to the Kingdom Arriyadh Kingdom Gender (2) Females Females Females Males Males Males Total Total Total Special Education Adult Education Kindergarten Intermediate Secondary Intermediate Primary Schools 10,715 13,565 44,069 Diploma Total 57,634 13,513 Statistical Summary of Male andFemale ofMale Statistical Summary Education intheKingdom2012/13 2,798 20.6 24.3 23.4 Statistical Summary of Higher Education ofHigher StudentsStatistical inArriyadh, Summary 2012/13 173,608 187,362 360,970 39,452 42,202 Bachelor Bachelor 81,654 Degree 24.3 21.1 22.6 New Education 10,156 12,879 23,035 4,423 4,132 Higher Higher 8,555 40.7 34.3 37.1 197,329 244,310 441,639 103,722 54,590 49,132 Total 24.9 22.3 23.5 Intermediate 118,958 153,119 26,343 34,161 Females Diploma 33,560 7,217 Females Females Females Females Females 21.1 22.1 Gender 21.9 Males Males Males Males Males Males Males Total Total Total Total Total Total Joint (*) 1,142,132 148,826 553,361 121,348 588,771 270,174 Bachelor Bachelor Degree 25.3 21.9 23.7 Enrolled Education 12,497 34,082 13,445 27,269 61,351 25,942 Higher Higher 45.8 39.4 42.3 No. ofSchools 15,611 29,959 12,581 14,348 7,323 4,313 2,508 1,849 6,253 6,328 1,385 3,522 3,801 2,180 2,133 1,265 1,687 1,356,602 821 584 161,136 650,201 706,401 168,540 329,676 Total 25.9 22.8 24.3 Intermediate 23,573 Diploma 30,670 5,682 7,097 1,645 7,327 24.1 23.2 23.9 106,908 210,121 117,107 103,213 Classes 45,189 29,969 57,539 59,568 21,600 23,589 15,868 14,101 6,438 6,076 5,342 1,768 4,187 4,670 1,889 Past YearGraduates (3) 101,691 39,894 14,952 61,797 17,486 Bachelor Bachelor 32,438 Degree 37.5 28.3 31.9 (1) Education 5,642 2,161 3,193 1,591 Higher Higher 8,835 3,752 38.3 49.8 42.5 2,277,413 4,446,936 2,306,755 1,122,352 2,169,523 1,168,178 1,138,577 Students 856,234 556,891 565,461 420,605 435,629 278,15 24,453 85,270 14,563 15,293 37,309 9,160 141,196 72,087 69,109 20,722 22,795 43,517 Total 33.0 28.7 30.8 35 Investment Climate in Arriyadh 2014 36 The High Commission for the Development of Arriyadh Riyadh College(4) Riyadh of Technology: www.tvtc.gov.sa (3) Technical and Vocational Corporation, 2012/13. Annual achievement Report, (2) Technical and Vocational Corporation, Annual Achievement 2012/2013. Report, ChamberofCommerce(1) Riyadh Economy, andIndustry, Riyadh Issue20,2012. 33 training institutes and33higherinstitutes institutes for females distributed between 22training centers, institutes and28higherinstitutes. There were also88 males distributed between 165training centers, 78training in 2012/13there were 271private training institutionsfor technically prepared to addition enter In thelabourmarket. are vocational training organisations and thegraduates are Technical and Vocational Training College for Girls. These Telecommunications andInformation College, andthe College and includes in Arriyadh Riyadh of Technology, Vocational Training andprivate (GOTEVOT) training centers through the General Organization for Technical Education and Technical Education and Vocational Training operates shown inthetablebelow: and appliedworkshops 2011/12as andsymposiaduring completed anumber ofpublicandprivate training courses The ofPublic Institute Administration (IPA) inArriyadh from the Technical Trainers College inArriyadh 2011/12thereIn were 2,524diplomaandbachelorgraduates accommodate more than3,650trainees. andHomeAppliances. Electronics Motors andSaudi These Plastics Fabrications, OGER Saudi Training Institute, General for Institute with theprivate suchastheHigher sector there are educational andtraining institutionsincooperation Trainees in Training Programs/Business Center Graduates from Public Preparatory Programs Graduates from Private Preparatory Programs Trainees inConferences, Symposia andMeetings Traineesin Workshops Trainees inthePrivate Training Programs Trainees inthePublic Training Programs Higher Institute Higher Training Institute Training Center Institute Total Training oftheInstitute ofPublic Activity Administrationin Arriyadh 2011/12 Item Arriyadh No. in 271 165 28 78 Private Training Institutes inArriyadh 2012/2013 (4) (3) . . In addition . In Total ofthe Kingdom Males 663 222 346 95 Arriadh /Kingdom development andisamajorenvironmental and project Abdullah International Gardens is also under King Arriyadh Commission by theHigh for theDevelopmentsupervised of of areas around Wadi Hanifa and Al-Thumamah Park, add to suchasthedevelopment ofArriyadh theattraction Road. Several are projects currently underway, whichwill and Al-Thumamah Road notably those on the Eastern Ring open orclosedrecreational centers spread allover thecity, by theprivate sector, suchastheprivate andpublic for is known Arriyadh many recreational undertaken projects butalsoworldwide.only inthecity buildingswhichare recognized not malls andstate-of-the-art entertainments. accommodatesArriyadh shopping stylish is equipped with recreation and children’s facilities and Center, Zoo. clubsandMalaz inadditionto sport The zoo center and Al-Watan Park Abdulaziz Historical within King parks, Park themostfamousofwhichisSalam at thecity squares, andgardens. parks hasanumberofpublic Arriyadh museums, publiclibraries,comprises historical artifacts, Center Abdulaziz Historical Ad-Diriyyah andKing which has severalcity historical sites, Fort, such as Al-Masmak recreational facilitiesfor citizens, residents andvisitors. The enjoysArriyadh several attractive tourism features including Tourism Sector Main CenterMain 40.9 29.5 35.1 47.7 32,151 (%) 5,426 900 609 300 881 900 Arriyadh Kingdom (%) Kingdom Arriyadh/ 88 33 33 22 (2) Ladies Branch 4,674 325 606 129 240 606 - No. inArriyadh Females 304 123 129 52 (1) Total oftheKingdom Arriadh/Kingdom 53,358 7,686 2,249 1,154 2,000 2,080 2,249 28.9 26.8 25.6 42.3 (%) (1) Tourism, Information andResearch Center, MAS, Tourism Statistics, 2011/12. 318,000 of SR 125million, is located and covers in Malaz an area of Abdullah Park,King under development at an estimated cost from different ofthe world. parts suit many tropical, winter andwet plants that willbebrought area interms ofcontrolling andsoilconditions to humidity to Arriyadh-Jeddah highway. Work to adapt the is underway around theworld.islocated to It thewest parallel ofArriyadh gardens with unique designs from various environments This housesseveral project modelsofworld andhistoric onthelevelKingdom ofpublicgardens projects. andpark will form asignificant achievement that distinguishesthe and Antiquities (SCTA), asfollows : accommodation Commission facilitiesoftheSaudi of Tourism new categorization (92 hotels before thecategorization) of had60hotels2011/12, Arriyadh distributed according to the classes to accommodate visitors to thecity. At theendof ahotels ofdifferentThe serves inArriyadh tourism sector government andprivate medicalfacilities. for medicaltreatment, since provides Arriyadh advanced Arriyadh’s universities, colleges come and institutions. Others all regions come to the capital for of studying in the purpose for conferenceopportunities tourism. Also, students from inhostinginternationalcity conferences whichoffer more government agenciesare located assiststhe inArriyadh and ofallministries that theheadquarters The fact Fair.International Book international ofwhichisthe exhibitions, themostimportant and international guests. also Arriyadh hosts important National andCulture, Heritage attended by national hoststhefamousannualJanadriyaFestivalArriyadh of for theinhabitants ofthecity. andrecreational asadditionalentertainment areasand serve These constitute projects goodinvestment opportunities forming landmark. akeyattractive andremarkable of thus Arriyadh and commemorative in the heart activities Faisal binFahd. The willprovide park recreational, educational former grounds, ofthestadiumPrince equestrian north Five Star Hotels Four Star Hotels Three Star Hotels Two Star Hotels % to theKingdom m 2 . onthe ofArriyadh The isinthecentral park part 8,105 Class Total Hotels inArriyadh 2011/2012 Hotels Number 60 16 11 14 19 6 6 (1) Number of Rooms 2,415 3,041 1,002 1,647 8105 5 5 sector. represent significant investment for theprivate opportunities municipalplazasandbotanicalgardens.quarters, All ofthese many future development inresidential suchasparks projects Commission for Tourism and Antiquities is implementing incollaboration RegionArriyadh Municipality withtheSaudi operation offices, 44licensed tourguidesand19museums alsohas331travel Arriyadh Kingdom. agencies, 44tourism was 276 providing 8%ofthetotal, 7,226apartments, inthe housing units prepared for rent until the end of 2011/12 According to recent classification, thenumberoffurnished and three dentistry centersand three dentistry center, acentral laboratory, amedicalrehabilitation center clinics, oneforensicanti-smoking center, apreventive health of 259. There are also 435 medical centers out of 2,259, 11 total Region46 hospitalsinArriyadh outofaKingdom-wide According ofHealth,there to are latest data by theMinistry East. facilitiesintheMiddle most modern FahdKing in is Arriyadh one of the largest City Medical and Care Units. for Insurance (GOSI) Social Health HospitalsandtheSchools EyeHospital, Khaled Hospital, King the General Organization oftheNational Guard, Forces City Medical theSecurity Welfare Hospital, Forces theArmed Hospital, Abdulaziz King Faisal SpecialistHospital, theGeneralPresidency for Youth other government agenciessuchasuniversity hospitals, King Additionally, there are other medical facilities affiliated with provide free treatment, for diagnosis citizens. andsurgery Care Centers spread throughout the city. These hospitals Convalescence Hospital. There are alsomany Health Primary Hospital, the DiseasesHospitalandthe TB andPulmonary Pediatrics Hospital, thePsychology HealthHospital, Al-Amal Hospital,Salman Al-Yamamah Hospital, Hospital, Al-Iman the Fahdas King City, Medical Center, Medical Arriyadh Prince ofHealthhospitalssuch housesanumberofMinistry Arriyadh other government agenciesandtheprivate sector. ofHealthentities, namelytheMinistry andArriyadh, Kingdom are offeredHealth services by three inthe majorsectors Health Sector Ministry of Health: Annual Statistical Book, 2012. ofHealth:Annual Statistical Book, (3) Ministry (2) Ibid. the increase of the services providedthe increase by oftheservices theprivate sector ofHealthrefers to thedata ofthe Ministry medical services, Regarding thecontribution oftheprivate to the sector ofHealth. Ministry The following table shows labor force employed by the website: www.mas.gov.sa email:[email protected] • • • (MAS) Tourism, Information andResearch Center For communication withtheCenter analyses.statistics anddocumentary andvisitorstourism withdata, sector investorspartners, and operators inthe oftheCenterObjectives includeproviding research intheKingdom. the formal reference oftourism data and The Center was established in 2002 to be (3) . (2) . 37 Investment Climate in Arriyadh 2014 38 The High Commission for the Development of Arriyadh (2) ofHealth,2012. This tableisderived from theAnnual Statistical oftheMinistry Book (1) Ibid strategicsector andinvestment opportunities. financial center whichopensthedoor for outstandingprivate strategic planaimsto beaprosperous commercial and sector. Arriyadh’s strategic vision of the comprehensive investment of the financial and banking in the activities Thus, fiscal isconsidered Arriyadh center animportant for economic weightBank), addingimportant to thecity. Bank, JP Morgan andDeutsche T.C BankandChina Bankasi B.N.B Bahrain Bank, National Bariba Bank, Muscat Bank, Bank, Emirates National Kuwaiti(International GulfBank, Bank, includingArab andforeignin theKingdom branch banks financial and to citizenscommercial and services residents Up to theendof2014,24commercial banksprovided local andforeign withactivities. financialfirms versatile whichwillaccommodateestablished inArriyadh different Abdullah Financial thatthe King (KAFD) isbeing District liesin establishment ofnewones. Another opportunity potential through theexpansion ofexisting banksorthe providingeconomic sectors considerable investment isoneofthemostimportant sector The finance andbanking Finance Sector Services andBanking upto inArriyadh to theendof2012. thehealth sector following tableshows thecontribution oftheprivate sector in general in andparticular.Arriyadh in the Kingdom The

Physicians Nurses Pharmacists Categories Assisting Medical Kingdom Kingdom Arriyadh % to Group Hospitals 23.4 137 32 Labor ForceLabor Employed ofHealth by andNationality 2012 Gender by theMinistry The Contribution ofthePrivate inArriyadh to 2012 theHealth Sector Sector 14,165 4,109 Gender 29.0 Beds Females Females Females Females Males Males Males Males Males Total Total Total Total Polyclinics 2,168 34.5 749 Nationality Private Clinics 23.7 198 47 Company Saudi 1,900 7,021 8,170 1,341 3,284 3,737 6,662 1,508 Clinics 32.7 467 559 295 172 98 32 Ministry ofEconomy andPlanning,(3) Ministry Eighth Development Plan, 2004-2008. Plan ofInformation Technology. This program program, whichisbasedontheNationalthe e-government communities hasbeenembodiedthrough knowledge-based The Kingdom’s orientation towards information and Technology Commission (CITC), inArriyadh. headquartered establishment oftheCommunication andInformation theprivatization andthe change after ofthesector inparticular,and inArriyadh hasexperienced fundamental The ingeneral, telecommunications intheKingdom sector communities.them into information andknowledge-based system communities ofmodern helpingtonervous transform of telecommunications andtheinternet have become the inothersectors.encourage productivity The infrastructure have ineconomic become growth keyfactors asthey developmentcommunity process. Information andknowledge Telecommunications andITplay adecisive role inthe Sector Telecommunications andInformation Technology investment inthetelecommunications and andITindustries of the Government’sAs part policies to encourage • • • • source ofrevenues. thetelecommunicationsMakes amajor andITsectors advanced levels ofITapplications Drives towards theeconomic andsocialsectors achieving deal withtelecommunication andITapplications. of citizensensures to possess adequate the majority skills Provides aneducational andtraining environment that members community available telecommunicationMakes to and IT services all Laboratories 32.5 80 26 Physiotherapy Centers 1,913 Non-Saudi 36.6 701 4,815 9,426 1,085 3,534 1,281 8,871 555 376 709 36 22 14 Optics CentersOptics 23.1 78 18 (2) Dental Centers (1) 6,947 1,973 28.4 16,447 (3) 12,608 6,715 9,255 4,875 1,840 3,839 7,038 2,217 Total 503 317 186 : Pharmacies 23.4 137 32 (1) CDSI,Annual Statistical 48,2012/13. Book • include: based city Signs indicating that hasbecome Arriyadh atechnology- foreign investment hi-tech companies. andlarge-scale and international levels. of willalsoassistintheattraction It firms to enterand industrial theopenmarket at the regional economic dimensionandprovide agateway to commercial investingowner andtheactual party. The ITCC willaddanew on landowned by thePublic Pension Agency, whichisthe Communications Complex (ITCC) onanarea of800,000m² announced plansto create aInformation Technology and ChamberofCommercethe Riyadh andIndustry, has for theDevelopment incollaboration ofArriyadh, with Commission theHigh e-commerce; applications, particularly motivate private companies to takeadvantage oftechnology telecommunications bills; passport, traffictelecommunications and aviation bills;passport, (paymentthe government ofelectricity, services water and Application ofITincommercial to meet banktransactions Population withtheEducational Satisfaction Population withHousing Satisfaction Population withMedical Satisfaction Per capitadailysolidwaste Kingdom Collection of Solid ofSolid Collection Waste Arriyadh Local Staff Management Per Capita HousingArea Housing WaterNetwork Population Satisfaction Per capitaGreen Space Transportation Type Item Housing Sanitation Land Price/Income Sewage TreatmentSewage Vehicles Property Consumed Water % Vacant Housing Road AccidentsRoad Airport Activity Airport Water Cost Trip Time Services Services Environment Management Indicators Local Management Indicators Transportation Indicator Infrastructure IndicatorsInfrastructure Landlines 1,439,442 4,801,824 30.0 92.8% Telecommunications inArriyadh 2012/13 Services 32% 12.8 10.5 12.5 2.49 274 100 319 4.3 4.4 0.6 22 75 43 23 66 69 62 51 97 Urban Indicators ofArriyadh in2013 Per thousandindividuals Liter/Individual/day A carperthousand One perthousand Kg/Individual/Day Of theKingdom Of m m Private Trips Riyal/100m individuals individuals 2 2

Minutes /Individual /individual % % % % % % % % % % 3 Not Available 53,012,322 Mobiles - 15.8 millionusersKingdom-wide, rate asubscription of25.7%. The numberofinternet userswas more than4.5millionoutof out of2.5millionKingdom-wide, rate asubscription of32.7%. ratesubscription of30%. There were 800,000broadband users than 1.4 million out of 4.8 million Kingdom-wide, witha was more tothe numberofsubscribers landlineservices Communications and Information Technology Commission, According to latest data for 2012/13provided by the • • • quality of services. ofservices. quality accountmarket for thegrowth andthe insubscribers The advantages of competition in the telecommunications spread, as well as competitive versatility of services pricing. witnessed great progress over recent years interms of ofmobiletelephone companiesThe have services expansion ofmobilephones.Rapid organizations. Application ofITinmostprivate andpublicsector accountservices, movement). Per 10thousandofthepopulation Per 100thousandofpopulation Per 100thousandofpopulation Per thousandofthepopulation Urban PopulationUrban Growth Unemployment Rate Population Density Student/section Student/section Student/section Household Size Annual Patents Population Land Area Year % % % % % % % % Broadband Services Broadband Services Socio-economic Development Indicators Socio-economic General Background Indicators Subscribers 2,540,907 830,244 32.7 (1) 13.19 2,379 3,115 191.4 26.1 25.7 28.2 51.3 72.3 44.9 55.5 22.1 253 185 3.6 5.7 6.2 2.2 29 26 7 4 1 Expected Childbearing Age Childbearing Expected No. ofStudents Per Section No. ofStudents Per Section No. ofStudents Per Section Students inPrivate Schools Internet Users Rented Public Schools Availability ofDoctors Availability ofMobile Crime Rate (murder) Rate Crime 15,809,563 Crime Rate (theft) Rate Crime 4,056,105 Individual/family Unemployment Individual/km Adult Illiteracy Adult Illiteracy (intermediate) Internet UsersInternet Hospital Beds Poor Families Labour Force (elementary) (secondary) 25.7 Phones Million Patent Km % % 2

2

39 Investment Climate in Arriyadh 2014 40 The High Commission for the Development of Arriyadh • • • • • • This hasthefollowing andcharacteristics: objectives oftheCity Outlook Element One: several keyelements asfollows: The Comprehensive Strategic Plan for comprisesArriyadh as isthecaseofArriyadh. those resulting growth, fromof city rapid growth,particularly facilitiesandingeneralmodern avoids thenegative aspects accommodates future requirements andbenefitsfrom doesthisinawayeconomic that It andsocialactivities. nature that organizes environmental, urban, anddirects and renewable organizational environment ofastrategic in theComprehensive Strategic symbolizes integrated Plan. It of thecomprehensive planninganddevelopment ofthecity Development are ofArriyadh reflected intheimplementation High of the Commission efforts Thefor the most remarkable The Comprehensive Strategic Planfor Arriyadh ofprojects.construction basic programs for implementation, coordination and is to setup comprehensive plansfor andestablish Arriyadh of life ofcitizens. The major responsibility of the Commission to contributethe level to ofservices thewelfare andquality environmental alsodevelops policiesthat improve It aspects. to develop ineconomic, thecity social, cultural, and urban The responsibility oftheCommission isto implement plans established by a resolution of the Council in 1974. of Ministers CommissionThe High for theDevelopment was ofArriyadh to theCommissionIntroduction A beautiful city with distinguished and stylish design with distinguishedandstylish A beautifulcity A financialand commercial center A center ofscientific andcultural enlightenment planning technology and environmentally successful structural environmentthe desert through theoptimumuseof oasiswithdevelopmentA modern inharmony with ofHumanity,A City Welfare andProsperity Introduce as theCapital Arriyadh oftheKingdom City its RoleintheDevelopment ofthe for theDevelopment ofArriyadh and Theme Four: The Commission High (1) CommissionThe High for theDevelopment Population ofArriyadh: Forecasts Study, City, Arriyadh 2004- • • • The Plan Structural covers ofArriyadh asfollows: allparts development.urban protection areas, openareas, of andboundaries directions specifiestheenvironmental ofpublicutilities.the network It businesscenters,activities, system, and transportation city Strategic Plan. The Plan oflanduse, definesdistribution major policies whichare incorporated intheComprehensive of theobjectives, strategiesaspects and different urban andfunctional Plan allurban reflects Structural ofArriyadh execution mechanismsasfollows: This consists ofseveral planswhichrepresent policy Element Two: Strategy oftheUrban Development Land Usage Plan is considered one of the most important PlansStructural for hubs. center.city There are Plans alsoStructural for areas urban and Plan of these plans is the Structural for the important Most related areas ofsignificant to certain spatial importance. Local Plans whichaimto Structural policiesandcontrols clarify 2024. of 5,691km² The ofthedevelopment boundaries protection withanarea development Urban stageuntil 2029,3,115km² development Urban stageuntil 2014,2,395km² Islamic art andculture. Islamic art integrating with social and cultural life and acenter for different elements ofnature ingeneral. and protecting humanlife, flora andfauna various developments by maintaining air quality environment andminimizingnegative of effects improvementand conservation, oftheurban the natural environment interms ofprotection account by Commission theHigh istheinterest in Furthermore, oneofthemainelements taken into norms, behavior andsocialreligious life. of domesticculture withitsreflected values, The second deals withtheintangible dimesion the focus onthespiritofarchitecture ingeneral. belongs to thesurrounding environment with the physical dimensioninthelocalculture which realms.two complementary The firstisbasedon Commission seeks the continuity ofculture in balanced andcreative mixture. The High modern technology in order to produce a material dimensions, whilst accommodating of this culture with all its moral, behavioural and for thecontinuityand heritagethrough support implementation ofvarious–modernity projects This appearsclearlyinpairing–duringthe inthedevelopment process.a maintributary and strengthening localculture considering it and material needs. also adheres to It preserving ideal environment for theirpsychological, social forand religious allagesandprovide aspects an in order to comprise commercial, recreational These are listed inthedevelopment strategy needs dependingonanalyticalfieldstudies. Commission’s implemented work touches human central pivot for development. Hence, the the principleofinterest ofcitizens asthe of Arriyadh Strategy The Commission assures The Commission High for theDevelopment (1) . enhance its role asafinancial, commercial andIT center. full advantage ofthecity’s competitive and characteristics the city’s income sources, limittheflight ofincome, take through thediversification oftheeconomic base, increase developmentAims to achieve abalanced socio-economic Element Four: Economic Development Strategy integrates withthecontinued growth urban ofArriyadh. of population growth andensures thesystem effectively requirements. takesinto consideration It theincreasing rate to accommodatetransportation existing andfuture The ofthisPlan objective isto provide safe and convenient Element Three: TransportationStrategy encouraging designs. distinguishedconstruction related to planninglicenses andbuildinglicenses and alsolistsproceduresIt andsteps required for regulations property, environment, issues. andurban heritage and otherconditions andprotection to of ensure privacy development standards to withrespect density, height These regulations set up rules and systems and recommend into specific zones inaccordance withtheLand Usage Plan. Regulations ofLandUse andDevelopment dividethecity and future useoflandupto 2021. Comprehensive Strategic Plan. This plandefinesthecurrent executive tools for theplansandpoliciesof ٣٧   —b˜~{D*  Strategic Comprehensive Sketch  making process.making private andresidents inthedecision- sector to participate and application ofdecentralization ofdecisionsto allow the of thecity. This willbeachieved through integrated planning existing systems to ensure well-coordinated future growth Aims to makeadministrative arrangements to develop Element Eight: Urban Management Strategy management. public utilitiesandapplytheconcept ofoptimumresource for thecurrent deficits, provide integrated networks for telephone, waste), provide water andsanitary solutions Aims to upgrade thestandards ofpublicutilities(electricity, Element Seven: Public Strategy Utility for allcategories ofthecommunity. improve the residential environment and provide basic needs to address and facilitate the increasing demand for housing; upmechanismsforSets development ofthehousingsector Element Six:Housing Strategy use ofresources to meettheneedsoffuture generations. environmental quality. alsoaimsto achieve It theoptimum ofthefuture,the city natural preserve resources andimprove Aims to achieve asustainableenvironment whileplanningfor Element Five: Environmental Strategy 41 Investment Climate in Arriyadh 2014 42 The High Commission for the Development of Arriyadh (1) CommissionThe High for theDevelopment Population ofArriyadh: Forecasts Study, City, Arriyadh 2004- • • • • • city. The are: andbenefitsofthisarchitectural objectives style a long-term vision for thedevelopment and planning of the representThe sub-centers aprogressive pattern urban and The oftheSub-Centers Objectives • • • • • • • • • The Future oftheSub-Centers Outlook k and services. activities Their area ranges between two and 2.5 the sub-centers. These areas areasurban ofvarious known centersvision ofurban whichare withArriyadh; connected The comprehensive strategy integrates ofArriyadh withthe Sub-Centers cultural andrecreational services. offices, companies, banks, shopping centers as wellassocial, government andadministrative centers, economic activities, willbeincludedinthesecenters,opportunities amongthem local culture of thepopulation. Public andprivate sector the city. At thesametime, thehighlevel theyreflect of centers to meetthecommercial andfinancialneeds of due to accommodation andprosperous ofactive business of higheconomic feasibility that provide jobopportunities recreational and commercial activities. They enjoy being areas attractive environment interms oflivingandengagement in inorder toand publictransportation provide asafe and usages. They are witheachotherviahighways connected centersbeing new multi-purpose and with various activities The isbasedontheir future outlookofthesesub-centers comprehensive civilservices. indiameter.circle ofabout20km The areas are provided with services. tourism andrecreational healthandeducational services, sector, includingbuildingmaterials, housing, transportation, significant investment available to the private opportunities reshape thefuture over 20years. ofthecity thenext There are The approval oftheComprehensive will Plan City ofArriyadh m 2024. Reduce traffictrips center. tothecity indifferentCreate ofthecity. newjobopportunities sectors distant from thecenter ofthecity. Provide for the newsub-regions and services activities towards decentralization. theorientation administration oftheurban Support thecurrent centerSupport ofthecity. Environmental considerations takeninto account. buildings. modern oflocalbuildingtraditionsA mixture andstylish Incubators ofspecialized educational institutions. An environment ofhigheconomic feasibility. Various forms ofentertainment. An atmosphere suitablefor ofbusiness. theconduct Safe andattractive environment for living. anduses. activities Multiple newcenters.Multi-purpose 2 and they serve from 600,000to andtheyserve onemillionpeopleina (1)

The sub-centers willbe preparedThe sub-centers to housemajoreducational The Educational andHealthFunctions by thesecenters.served pointattraction andadestination for thesector’s population areas, allofwhichare elements that makethesecenters an for familyrecreation, publicparks, playgrounds and green Furthermore, thesecenters willaccommodate variousplaces libraries, festivals, exhibitions. celebrations andartistic suchaspublic centers activities willincludemulti-cultural ofactivities. for thesekinds adequate opportunity These Thus, willprovide thecreation ofsuchsub-centers an center. the familiesthat live distant inneighbourhoods from thecity for pressing needs ofthepopulation particularly ofArriyadh, to different classes and strata is one of the of the society The creation ofcultural addressed andpromotional activities The Cultural andPromotional Function to achievethe sub-sites this. achieve administrative decentralization towards andlooking willbetargeted aimingto bysub-centers thedepartments police, civil defence, post, communications office, etc). The Regionof Arriyadh Governorate, municipality, subsidiary (abranchbranches andministries ofgovernment departments housesanewadministrativeEach newsub-center center and The Administrative Function squares. investment and revitalization ofthe city’s opportunities new motivation for ofinvestments, theattraction provision of new centers. The resulting economic feasibility isasignificant considered oftheplanningprocess abasicobjective ofthese The concentration initselfis oftheseeconomic activities venues. among others by exhibitions, hotels and entertainment comprises relatively large development represented projects offices,and marketing banks and companies. The center also areas to reach their needs. include Activities commercial the area andstop theinconvenience ofmoving to distant willbeaccessible forThese opportunities theresidents of center. that characterize thecity economic opportunities will inprovideArriyadh Each sub-center various broad The Economic Function following usesandfunctions: recreational services. willhousethe The newsub-centers and administrative centers aswell associal, cultural and offices,activities, companies, banks, malls, government sectors, includingtheaccommodation oftheeconomic These centers ofpublicandprivate willincludethefunctions The Functions oftheSub-Centers • • to theprocess development. ofurban Promote thecontribution ofthepublicandprivate sectors whenplanning these centers. andquality efficiency Improve environment theurban ingeneral through high- families, whilethecore willprovide area ofthesub-center housing unitswithdifferent sizes andlower density for large The residential areas willprovide around thesub-center of theresidents. will bedesigned inaway andsecurity that ensures privacy not beisolated from thesurrounding residential areas and buildings for leaseorownership. Thus, will thesub-centers the center, apartment offering ofgoodquality a variety residences for varioussocialclasseswhoprefer to live near willprovide hours,areas outofworking thenewsub-centers orderIn to avoid centers city ingeneral becoming abandoned The HousingFunction travelling to otherplaces inorder to obtaintheseservices. meeting the population needs and reduce the hardship of and surrounding neighbourhoods. This willcontribute to as well ashealthcenters theresidents to ofthecenters serve institutions suchastechnical institutes, specialized colleges Southern South WestSouth Western The Sector Al Naser Road Al NaserRoad South South West Road Ring Abdulaziz Street Prince bin Meshaal North Spatial Scope oftheSub-Centers ring ontheadoptedring map Following theborders ofthe ring ontheadoptedring map Following theborders ofthe Al Madinah StreetAl Madinah South sectors intheprocesssectors development. ofurban between thepublicand private mechanisms ofpartnership level ofthecity’s andenhance the economic performance inArriyadh. willraiseopportunities the These opportunities of thesecenters. This willprovide significant investment The private willcontribute sector to thedevelopment andeconomicurban environment. level.the city Uponcompletion, theywillform anattractive at and activities of multi-purposes skyscrapers high-density to makethemstandoutfrom thesurrounding area, with an integrated-services center. city are Skyscrapers permitted areas ofspecialdevelopment; eachwillrepresent amodelof that make themdifferent ofthecity. from theotherparts As areThe characterized by sub-centers a number of benefits of theSub-Centers Advantages andMotivations Related to theDevelopment meet theneedsofnewfamilies. housingthroughhigher density smallerresidential unitsto Directions Road fromRoad theSouth The oftheEastern Extension Wadi Hanifa Wadi Hanifa East Al HairRoad ring ontheadoptedring map Following theborders ofthe ring ontheadoptedring map Following theborders ofthe West 43 Investment Climate in Arriyadh 2014 44 The High Commission for the Development of Arriyadh • • • opportunities invarious sectors opportunities they willplay asignificant role inthecreation ofnewjob to the new areas.and population services Furthermore, jobs andhelpdistribute economic administrative activities, in terms ofarea, willprovide bothpublicand private sectors sub-centers. These, second center place the city after taking centralization to decentralization viatheestablishment offive transformation of future from planning of the city Strategic Plan for whichhasadopted Arriyadh the ismeant toThis realize sub-center theComprehensive for streets andhighways. station andbusstations. 30% oftotal landarea isallocated footpath. alsoaccommodatespedestrians It publictransport 10% oftheCenter’s area isallocated for parks, gardens and public library. Civil Affairs,Red Crescent, asocialandcultural center anda and Vice Prevention, Sub-Municipality, Departments, Security Sharia’ah theCommission of Departments, PromotionVirtue branches includingabranch ofthePrincipality oftheRegion, will accommodate agency anumber of government service will bebuiltonanarea of4,000square meters. The center private), acultural center andanadministrative center that mosques, 13schools, two hospitals(government and 50% oflanduseisallocated to publicusesincludingfour and 32storeys. than 12,500residential units. Buildingswillbebetween four offices, Itwill accommodate hotels). 44,000people, inmore residential, 20% commercial and 18% other uses (commercial, areproject thediversity oflanduse. This ismadeupof11% (1) CommissionThe High for theDevelopment ofArriyadh, Tatweer 66,2012. Magazine • • • • Standards oftheSub-Centers covering two millionm onanarea Abdullah Road withtheendofKing Road Sabah Jaber Al-Ahmad islocated Al- ofSheikh ontheintersection It approved inArriyadh. oftheEastern Sub-Center theproject CommissionThe High for the Development of has Arriyadh Development oftheEastern Sub-Center and 2.5k whether developed orspecialized. The centers’ appropriateness to thenearby activities scheme ofthecity Proximity to theendofhubsmentioned inthestructural Proximity to highways The space allotted for eachcenter ranges between 2k To belocated inthecenter ofeachsector 600,000 to onemillion. apopulation ofbetween to serve within aradius of10km Provide to theresidents service ofthesurrounding areas Field) withinthespatial scope. from thecenterbetween 20and25kms (Cairo ofthecity The location ofthesecenters withinanarea ranging m 2 . 2 . The mostprominent features ofthe (1) . m 2

and Durrat ProjectArriyadh of 10 k including establishment onDammam Road. oftwo bridges of isbeingdevelopedof Interior by theMinistry Transport the suburb. Recently, agovernment for project theMinistry and approval ofroad andpublicutilitieswithin networks This involves astudyofplanninganddevelopment process (3) Ibid (2) CommissionThe High for theDevelopment ofArriyadh, Tatweer 66,2012. Magazine 205 k Fahad Road,of King onanarea Ring of withtheNorth Road from theintersection 20km ofArriyadh, This islocated north Suburb The Northern Suburbs Development andEastern Northern ofboth The includesPrince suburb Park Salman onanarea of3.2k terms ofroad networks, housingandrest houses. planning anddevelopment process itselfin insidethesuburb Ring Road with North Ring Road onanarea Road of214k Ring withNorth Road Ring Located from ofEast theintersection 20km eastofArriyadh, The Eastern Suburb estate company. approved development of a residential area related to a real m 2 • • • Road: Construction controls Abdullah alongKing . Development inland planningincludesstudyofthe parking withamaximumfiveparking floorsheight. Provision ofunder- orabove-ground heightMaximum ofbuildingsissixfloors. (residential, commercial andoffice). Permission for usingdifferentkinds ofland m 2(2) . The Commission has m 2(3) . m 2

to aboutSR209billionover 17years The estimated costs for amounted provision ofsuchservices (2) Ibid (1) Ibid inandfollow to participate plan enablesvarious sectors with the comprehensive strategic plan of Arriyadh. The interms ofpolicies andprogramsof thecity that integrate oftheprocessmonitor development allaspects ofurban Observatory, whichaimsto Urban ofArriyadh structure initsfirstmeetingstatedArriyadh theorganizational Commission 2013theHigh forIn theDevelopment of Arriyadh Urban Observatory be 142k when the estimated land will future needs of public services coordinate until inArriyadh andprovide 2029 publicservices light ofthis,In theunified executive plan was adopted to which have ledto increasing demandonsuchservices. to keepup withthecity’s rapid populationgrowth andurban Development hasendeavored ofArriyadh to realize inorder the significantHigh tasksthat the Commission for the isoneof inArriyadh thelevel ofpublicservices Raising CoordinationPublic Services Plan of thecity zone investments andpark for residents part ofthesouthern ouflow of water discharged into Wadi Hanifa. These are open adapting Al JaberLakeswhichare thefinaldownstream to rehabilitate valley feeders of Wadi Hanifa in addition to Mahdiah Valleys withintheprogram oftheCommission theimplementation inOberand ofprojects undertaking Regarding theenvironment, Commission theHigh is CommitteeHigh for Environment Protection Arriyadh :www.ada.gov.saArriyadh the website Commission oftheHigh for theDevelopment of For more information on the executive plan document see • • • • • strategies. The planincludesfive keyelements: preparation ofthisplanincludingrecent programs andfuture have2007 to 2014. All concerned contributed parties to the adoptedArriyadh thefollowing executive planfor theperiod Committee 2007theHigher forIn Environment Protection in environment. which cannotberecycled andcanadversely effectthe levels to waste a minimum and reducing waste particularly achieve effective environmental by cuttingpollution quality aimsto maintainenvironment theurban It and inArriyadh Environment Protection inArriyadh,. approved in2006theformation Committee ofaHigher for Commissionplan theHigh for theDevelopment ofArriyadh light ofthestrategyIn techniques intheoverall strategic Environmental management Development ofnatural resources, openareas andwildlife Development ofwater resources ofwasteManagement Control ofpollution m (1) 2 . . (2) . • • • • • • • indicatorsUrban are dividedinto seven mainaxes asfollows: committee inadditionto work teams andtechnical units. council, executive consists observatory ofurban observatory futureand predicts conditions andthegeneral trend. Urban clear imageofthecurrent situation, evaluates performance topic andgivessummarizes allinformation aboutaparticular evaluation. up performance The index isamodelthat (3) Ibid overpass. designed to match the innovative architectural shape of the Bin Abdulaziz Road, in addition to three bridges pedestrians vehicle overpass Saud betweenandImam Abu BakerRoad the north. The includesbuildinga firstphaseoftheproject withPrincee Abdullah Road King BinAbdulaziz Salman to with theintersection this road from extending thefarnorth, The isto ofthisproject improve purpose level of transport Upgrade ofAbu Baker Asseddik RoadProject willbeprovided services ofnetwork variety Also special lanesare allocated for above turns thetunnel. A the entrances andexits above oftheintersection thetunnel. toward and south. More lanes will be introduced the north at roads for willbeconstructed ineach direction transport a 750-meter long tunnelwiththree lanesandthree service addition meters In in lengthwithsixlanesineachdirection. works across of Abu is1,500 BakerRoad Air Base. Riyadh It integratesvital project withimplementation ofextension Edden withSalah AlRoad Ayoubi district. inAl Malaz This approved implementation tunnelofMakkah ofintersection CommissionThe High for theDevelopment ofArriyadh Edden Al Ayoubi Road Intersection Tunnel RoadwithSalah ofMakkah g-Local Indicators Management f-Environment Indicators Management HousingIndicators e-Appropriate Indicators d-Infrastructure c-Transport Indicators Development Indicators b-Socio-economic Backgrounda-General Indicators Chairman ofProjects andPlanning Center development. criteria forquality bestrecent practice policies, execution standards and andprovidecity solutions, performance diagnose theenvironmental reality ofthe andaccurateinto smart information, to staff willbeable to transform suchdata better data processing. Thus, qualified accommodate data basesfor up-to-date The Commission endeavours to inthecity.including 18publicparties for Environment Protection inArriyadh, the formation Committee oftheHigher with environmental issues, involved in concernedwhich are orindirectly directly of Arriyadh hassought to getallparties, The Commission High for theDevelopment (3) . 45 Investment Climate in Arriyadh 2014 46 The High Commission for the Development of Arriyadh • • • • • (2012-2016) isnow beingimplemented. Keyelements inthis: Plan (2007-2011)have beencompleted andthe Third Plan First Five-Year Plan (2001-2006)andtheSecondFive-Year (1) Ibid. headed by H.R.H.theGovernor thePresident ofArriyadh, of Development ACommittee ofArriyadh. has beensetup with studies prepared Commission by the High for A Cabinet approved Resolution inaccordance theproject metro system andanintegrated multi-level busnetwork. Transportation Project includestwo inArriyadh elements; a inArriyadh. public transportation Abdulaziz PublicThe King The Commission has prepared acomprehensive plan of in Arriyadh The Comprehensive PlanofPublic Transportation andencourageeconomic development urban activities between different ofthecity. parts They willenhance the new elements to andmovement facilitate transportation of upgradingpurpose the existing netwroks and introducing programs to develop future for road inthecity networks the Commission’s oftheHigh These are vitalprojects part Completion of 7 km ofDerab Road Completion of7km a total lengthof5km. Road with DevelopmentKing Abdullah ofthefirstphase passing by Air Basewithalengthof11km. Riyadh Completion ofextension of Abu Baker andOruba Road Road oftheSecond EastRing Completion of27km oftheNorth-WestCompletion Road of13km Ring (1) . • • • • follows: were andthetracksof 175km are selected distributed as system in Six Arriyadh. main axestransport with a total length The metro ofthepublic constitutes network thebackbone 1- The Metro Project asfollows:The consists network oftwo mainparts for willalsobeselected thebusproject. A numberofconsortia complexity oftheproject. dueto toproject thescaleand more thanoneconsortium has awarded project of the public transportation the metro committee responsible for implementationThe supervisory the process ofimplementation oftheproject. on theirdemonstrated technical andfinancial competence in international specialized companies were approved based 146 companies appliedto thebusproject.Four of consortia consistingapplied to of themetro project. 17conosortia consisting of391companies from38 consortia 50countries technical intheproject. experience are participating Specialized and qualified global companies with world-class Transport ofFinance andMinister asmembers. andRuralMinister ofMunicipal Affairs of the Minister and Commissionthe High for theDevelopment with ofArriyadh, Road. 29.2 km. Line Four: The Yellow InternationalAirport Line. Khaled King Line Three: The Orange Line. Road. Madinah 40.4km. Line Two: The Line. Abdullah Red Road. 25.3km. King Line One: The Blue Line. Olaya – Batha – Al Hair Road. 38 km. main station will provide several services supporting public main station willprovide supporting several services and contributes system. to success ofpublictransport The routes. This represents point anattraction for passengers areashigh density at ofmetro theintersection andbuses of thelines, theyare characterized by beinglocated in The includesfour project mainstations at theintersection StationsMain consumption required for airconditioning andlighting. power technology that willsave about20%ofelectricity will accommodate commercial stores, andsolar parking Stations willalsoincludedata systems for andsome thetrips features, passengerfacilitiesincludinginternet connection. All stations are andprovided air-conditioned withsafety Abdulaziz PublicKing Transportation Project inArriyadh. architectural concepts which represents of the the identity Stations have been designed according to uniform correspond to thecolor ofeachthesixlines. metrothe Arriyadh trains. The will color ofthecarriages tomanufacturers prepares themefor onedistinctive all analysis teams have studiedsuggested designs from the CommissionSpecialists intheHigh incooperation with passengers. families, andcommunications andwifiwillbe available for includingcarraiges forwill bevariousclassesofcarriages operation to thehigheststandard andresolution. There central control rooms ofhighspecifications that enable automatically (driverless) whilemonitoring operation from technology andadopted thesystem ofrunningthetrain The metro hasbeendesigned network according to latest • • Hassan binHusseinStreet. 29.5km. Line Six: The Purple Line. Abdulrahman –Sheikh binOuf Line Five: The Green Line. Abdulaziz Road. 12.9km. King 47 Investment Climate in Arriyadh 2014 48 The High Commission for the Development of Arriyadh Abdulrahman Line. -HassanBinHusseinAli BinOuf Road Line and this station: Olaya-Batha Aiport Line, Khaled King (1) CommissionThe High for theDevelopment ofArriyadh, Tatweer 67,2013/14. Magazine Bin Abdulrahman onanarea of196,000m Batha Line, Al Munnawarah Madinah Street andPrince Saad Metro Station: at ofOlaya-Qasr Alhokm theintersection engineering andarchitectural designs for theproject. in designing themainstations andpropose innovative specialized instation design were calledto participate architectural competition in whicharchitectural practices CommissionThe High for Development organized ofArriyadh offices.points andcustomers service areas, includingcarsparking ticketssale transportation King FahadKing onanarea Road of8,150m Abdullah FinancialKing Metro Station: located District at designing thestation. m onanarea Abdullah Road Batha of1,100 hub withKing Olaya Metro Station: located at ofOlaya- theintersection Design Company isresponsible for designing thestation. City. ofArriyadh Ground intheheart SnohettaArchitectural Total Development (km) Length ofDeep Tunnels (km) Length of Ordinary Length ofOrdinary Tunnels (km) Length Above Ground (km) Stations Total Length (km) Main StationsMain Generation Plants Passenger Stations Centers Operation andMaintenance Parking 2 . Gerber Architekten. Gerber from Germany isresponsible for Item Olaya Road Track One 16.2 15.9 Major ComponentsMajor oftheMetro Tracks inArriyah 1.1 4.8 38 24 22 1 1 2 3 2 . Three linesmeetat 2 besideEidPrayer King AbdullahKing Track Two Road 25.3 2.9 5.4 17 15 13 0 1 1 2 0 Madinah Road Madinah Track Three Western Metro Station: located onanarea of 12,500 m designing thisstation. Zaha HadidArchitects, company, aBritish isresponsible for passengers andutilitiesthrough provision offacilitieswith The provides project requirements safety andsecurity for Security, andOperation Safety System for operation, maintenance, stations andmonitoring centers. maintenance, offices foremployees and workers responsible including workshops, warehouses required for periodic The includes seven project housingandmaintenance centers Housing andMaintenance Center forcapacity between 200and600cars. areas willbeprovidedA total of21parking eachwitha Public Car Parking station. Studies HouseCompany isresponsible for designing this area of1,000cars. withacapacity Architecturalhas aparking Abdullatif Street. The station handlesmetro andbuses Line meets with bus routesMadinah Bin at Mohammed the central vegetable in Swaidi market Quarter. Here the 40.4 26.1 6.3 21 18 0 8 1 2 3 4 Airport Road Airport Track Four 29.2 27.1 2.1 0 0 8 0 0 8 1 0 (1)

King AbdulazizKing Track Five Road 12.9 12.9 12 12 0 0 0 0 0 1 0 Hussein Road Hassan bin Track Six 29.5 21.1 8.4 0 0 7 0 0 7 0 0 2 , at 49 Investment Climate in Arriyadh 2014 50 The High Commission for the Development of Arriyadh for operation trial receipt. andproject preparatory work andcoordination, followed by four months preceded by eight months for preparation ofdesigns and The will be implemented project over four years (48 months) • • • • • • • • MetroArriyadh Stations Contracts were signed that withawarded willexecute parties Execution Consortia bynetwork landcablesof83km. extending stations of380K/V. The stations willbelinkedwiththe power andtheexpansion ofeight stations existing inthecity Megavolt ampere (MVA) Power willbesuppliedvia12main The requirement project ofpower isestimated at 568 Five monitoring andoperation centers willbeestablished. systems andfire fighting systems. advanced monitoring systems withcameras, publicwarning ANM Consortium. Station and Alhokm Kasr West Station were awarded to were awarded to BACS Consor€tium. Abdullah Financial stationsBoth of(King andOlaya) District Value US$2.17billion. awardedHassan BinHusseinRoad) to FAST Consortium. Line Six:Purple Line(Abdulrahman -Sheikh Road BinOuf FAST Consortium. Value US$2.66billion. Line Five: awarded GreenAbdulaziz Road) Line(King to awardedRoad) to FAST Consortium. Value US$3.06billion. Line Four: Yellow International Airport Khaled Line(King Value US$5.21billion. Abdulrahman awarded Road) to NewMobility. Arriyadh Line Three: –Prince Road Orange Line(Madinah Bin Saad Consortium. Value US$2.88billion. Line Two: awarded Abdullah Road) Line(King Red to BACS Consortium. Value: US$6.56billion. Line One: The BlueLine(Olaya -Batha) awarded to BACS special route stations, regular busandfeeder stations. multi levels. These stations are themainstations, busstations, tospecially designed fitthenetwork’s inspace andfunctions The contains project four categories ofstations whichare Stations The consists busproject of: • • • • levels: Accordingly, thebusroute willbedividedinto network four wastage andtimelostonroads networks environmentReducing pollution,energy consumption vehiclesReducing movement onstreets androads neighborhoods employment centersLinking withcommercial centers and city Integration planandfuture withtheurban expansion ofthe Integration withtrain network andprinciples: various criteria quarters. These routes have according beenselected to for ofthecity’s passengersintheneighbourhoods in and Arriyadh representsnetwork means a major transport forThe themetro isthemainfeeder Busnetwork tributary 2- BusProject that effectively transport passengers thatto andfrom effectively stations. transport ensures coverage of buses of neighbouhoods with a network that dependingonvariouscriteria ofthecity most quarters residential areas over and cover a total length of 600 km consisting of18routes withatotal lengthof450km Levelc- Three: regular residential busroutes areas, linking with67stations. length of83km areas andconsist of two mainroutes inthecity withatotal Levelb- Two: circular busroutes highdensity whichserve main routes over with103stations. atotal lengthof96km a- Level One:buslineswithspecialroutes consisting offour d- Level Four: busfeeder routes: theseoperate within areas. additionto 18regularIn busroutes withintheresidential BinAbdulrahmanMohammed Road. Hamzah BinAbdulmuttaleb Street andPrince -Derab Road to Prince BinAbdulrahman Saud theFirst Road. Area from extending Road theSecondIndustrial Old Al-Kharj asfollows:of busroutes is145km This isconccntrated inthesouthofArriyadh. The total length First Stage The willbedividedinto busproject three stages: Bus Project Stages the passengers. and the center of safety and security and manages services, drivers through communication system between the vehicle all vehicles and monitors them;communication withbuses enables the effective andsafeIt control and operation of operations center system for inArriyadh. thewholetransport This impliesimplementation project ofcontrol and Control andOperations Center areas is25. public carparking each is between 200 and 600 vehicles. The total number of Four areas have carsparking beenprovided, of thecapacity Public Parking network. buses throughout alllinesandroutes of thepublictransport convenient ticketing system for passengers of trains and This includessettingupanintegrated project and Ticketing System for Public Transport Project timing.trip monitoring to give safe andupdated data to passengerson This system ofbusoperation aimsto and raise efficiency System ofBus Tracking andPassengers Information achieving two essential axes: future development projects. This hasworked project on Environment rehabilitation of Wadi Hanifa is the base of any Wadi Hanifa Rehabilitation Program are 12routes for regular buses. additionto busroutesIn withintheresidential centers, there BinAbdulaziz Road. Saud -Imam Abdulaziz Road -King Road Prince BinAbdulrahman Eddeen Saad -Salah Alayoubi Road Alayoubi Road. Eddeen - Salah Abdulaziz Road -King Abdulaziz Road Prince Turki BinAbdulaziz theFirst Bin Saud -Imam Road Buses. Road Ring Shafi’ Street Bin Alwaleed StreetKhaled to extending the south to Imam Prince Abdulrahman Saud BinMegren Road. from extending Abdulaziz Eddeento Road Salah Road King Buses withSpecialRoutes: withatotal ofArriyadh lengthof175km. north This covers theremaining busroutes andislocated inthe Third Stage are 12routes for regular buses. additionto busroutesIn withintheresidential centers, there to Air Base. theRiyadh neartheentranceAbdulrahman Abdulaziz Road to Road King EddeenSalah Alayoubi from extending Road Prince Bin Saad Abdulaziz Road. to King National Security) JaberAlsobah (near from extending Road Sheikh Khurais length of127km. This isconcentrated withatotal inthemiddleofArriyadh Second Stage 51 Investment Climate in Arriyadh 2014 52 The High Commission for the Development of Arriyadh A 43 km road withawidthbewtween sixandninemetersA 43km has along thevalley hasbeenallocated for publicutilities. utilities have beenconverted to overhead linesandanarea requirements of asensitive andfragile environment. Electric surrounding the Wadi andimproving themto meetthe The alsoincludesrealignment project ofpublicutilities ofincreasingthe purpose water flow and oxygenation. a plant for ofwater treatment withanarea of 100,000 to of has Arriyadh been selected accommodatethe south part the Wadi. The bottom of the Wadi adjacent to FieldAlgeria in due to its low cost and it being compatible with the nature of The hasadopted project anatural system for water treatment flow and remove bouldersandrubble. Flood control through ofdamsto regulate construction water Torrential storm water flowing inthe Wadi in rainy seasons meter deep Permanentkm long, water sixmeters runoff57 wideandone three different levels; infrastructure andfacilitities. Water drains have beenlaidat residentsthe city by paving roads and providing necessary Rehabilitation ofthewadi to beoneoftheopenareas for Second Axis services. realignmentincludes the necessary offacilities and existing in the valley and provide living environment. a flourishing It free andremove allobstaclespreventing natural drainage environment. The isto objective makethewadi pollution- rain, ofthenatural floodandpermanent water to bepart Work on preserving Wadi Hanifa as a runoff facility for First Axis m 2 for palm trees and 9,500shrubshave beenplanted inthe Wadi. walkways have beensuppliedwith245lights. More than520 Footpaths of892mhave andpedestrian beenlaid.Roads that canaccommodateroadside parking 800cars. localroadis thedamlake.overlooking provided A6km with trees andnative plants andtheestablishment ofacorniche measures includereplantingOther thearea withtrees, palm signage and improvedservice traffic flow as roads. wellas establishment of local illuminated roads provided with guiding called Atiqa. Development includeswork adaptingstreams, fromextends west to theeastand meets Wadi Hanifainanarea Wadi of It Arriyadh. Namar is located part in the southern Wadi NamarDevelopment Project creates investment opportunities. of various component areas and natural resources and state ofnatural ecological balance. The plantakesadvantage at the rehabilitation ofitsnatural returning functions, itto a The comprehensive development planof Wadi Hanifaaims footpaths,including pedestrian seating andparking. The alsoincludesestablishment project ofopenparks regreening inthe project Wadi. the Wadi. 50,000shrubshave ofthe alsobennplanted aspart in the Wadi, with2,000trees moved to thelower stretch of trees and 7,000 palm trees 30,000 havedesert been planted Wadi ofpaved and7.4km walkwaysf. footpathsinpedestrian themostbeautifulareas alongthe toside parks accommodate more of than2,000cars, 47km withthechannel,the intersection 2,500lamppostsinstalled, to Road. Mansoura have 22bridges north at beenconstructed been establishednearthe Wadi, from extending Diriyah in the the dambasinhave beenprovided withstone seats for hikers. plants. 30sites overlooking anddesert shrubs ofvariouskinds Wadi Laban has been planted with 100 palm trees, 1,500 distinctive design as well as making optimumuseoflandin designdistinctive aswell asmaking This development plays project asignificant role, hasa research andstudycenter. anda buildingto become anational publiclibrary library Fahad Library, itsboard oftrustees decidedto expand the toDue increase andarchives ofbookcollections at King King Fahad ExpansionProject Library covereing anarea of2,800m with stones will be in constructed addition to footpaths and isilluminated by oflandscapedpaths 16 lights. 4.3km areasprovided that accommodates withparking 328cars landscaping, road seating andestablishment ofa3.8km roads, measures includeestablishment ofservice Other the traffic flowfarmers. forhikersand on thefloodplain,establishingilluminated roads to improve includes cleaning the Wadi and dam basin from waste, worl meets Wadi Hanifainanarea calledQurashyyah. The project Wadi from Labanextends west to theeastand ofthecity Wadi Development Laban Project Namar Lakearea covers 200thousandm planted withpalmtress andprovided with WCs. thelakehasbeen corniche overlooking The two kilometer to downstream in Wadi Hanifa. toconstructed facilitate from smoothwaterflow NamarDam channel ,eight meters wideand1.5meter deephasbeen 170 meters wide and is 20 meters deep.km, A 3,100 meter 2 . 2 withalengthof2 3.3 millionbooks. from 600,000booksto 2.4millionbooksandlaterlibrary to The is to of this project of the purpose raise the capacity for 170vehicles. parking addition to external 16,000 square meters accommodating upto 350cars, in for staffandvisitors willbe parking overtwo floors covering meters allocated to bea public square. Underground car To there isanarea ofthelibrary of20,000 square thenorth an underground area. parking the total area willbe 87,000 squarelibrary meters including square meters. Uponcompletion ofestablishment ofthe terms offunctions. The isabout21,000 total area ofthelibrary 53 Investment Climate in Arriyadh 2014 54 The High Commission for the Development of Arriyadh branches (2) Branches: Wadi Aldawaser, Al Dawadmi, Shaqra, Afif,Muzahemiah, HotaBaniRemah, Sajer (Nafi, Tamim, ofCommerce, Areas,(1) Branches: 1stand2ndIndustrial Alnaseem, Alshifa, theMinistry theInvestment in theChamber. seeks to contribute It to thedevelopment The Investment Center isoneoftheoperating departments The RoleoftheInvestment Center intheChamber convince thegovernment to reform sector regulations. these objectively, suggests alternative proposals andseeks to the development criticizes circumstances It intheKingdom. regulations andresolutions that might beinadequate to helpsdiscoverIt andassessthenegative ofold impact the private to understand andwork sector accordingly. systems andprocedures inforce. deploys themand recruits It studying theresults andpositive ofapplication of factors the investmentThe Chamber also supports climate by stock companies. more investment andencourages theestablishment ofjoint the development ofArriyadh’s economy andsociety, attracts increase thecompetitive inaway capacity that contributes to withcomparativeeconomic sectors advantages. This helpsto economic issuesto encourage theprivate to invest sector in prepares studies andresearch and provides on consultancy of investment andrelated also feasible It opportunities. to benefit from anddetermine newareasopportunities doesthisby identifying theavailable It Arriyadh. investment theinvestmentThe Chamberseeksto support climate in Investment Climate The Chamber’s RoleintheEnhancement ofthe The Chamberhas10internal branches investment to Region. Arriyadh improving theinvestment environment more andattracting private to invest sector ofcompetitive insectors advantage, goals. oftheseare encouragingThe mostimportant the interests oftheprivate through sector achievingvarious established in1961to maintain, protect anddevelop the (RCCI)The ChamberofCommerce Riyadh was andIndustry for variouseconomic andvocational oftheChamber. sectors The Chamberalsocomprises more committees than30sector Economic Forum. independent management withintheChamberandRiyadh exhibitions andanotherfor bothrelated localproducts to Chamber, two independent centers for conferences and Alslel, Aljash offices). Authority, National Products, Al Badeea’a andAl Khaleej. of Commerce andIndustry Chamber Riyadh Theme Five: (2) , awomen’s branch independent from the (1) , 11 external , 11external investment andArriyadh intheKingdom in additionto thepromotional campaigns for foreign databases targeted by thebusinessmenandresearchers, for differentopportunities It alsoprepares economic sectors. climate anddevelopment requirements andinvestment The Center prepares andpublishesstudiesontheinvestment investment. and answers members’ aboutissuesofrelevance inquiries to raises theawareness ofthebasicsinvestment activities also promotes theadvantages granted to foreign investment, national investment joined with foreign products capital. It preparesopportunities, relative databases andpromotes of the main pillarsof investment activity. monitors related It onthereality andfoundationsreports ofthedevelopment domestic capital. The Center alsoprepares studiesand competitiveness to foreign attract investments and inparticular.in Arriyadh endeavours It to increase its of theinvestment ingeneral and climate andactivity More than 40 departments andcenters.(4) More than40departments (3) For more information on theachievements oftheCenter andreferences ofthe investment opportunities, community.the Saudi which itaddresses arange ofeconomic andsocialissuesof The Forum holdsaconference two years, once every during Chamber’s board ofdirectors andothers. through a board of trustees that consists of a number of the relates toChamberofCommerce theRiyadh andIndustry EconomicRiyadh Forum isabodythat administratively EconomicRiyadh Forum andCenters Departments Departments The RoleoftheChamber’s Centers Other and world. invarious countries around the andexportation importation opportunities. They themwithregard alsodirect to guide businessmenandinvestors to variousinvestment They provide data relevant to and theeconomic sectors administrative, training, consulting and research services. investment climate Region inArriyadh through several Economic Forum play the asignificant role insupporting see the website of the Riyadh Chamber of Commerce and Industry: www.riyadhchamber.comsee thewebsite ChamberofCommerce oftheRiyadh andIndustry: • • • • • • for variousactivities reasons: occupies aprivilegedpositionintheeconomic The Chamber ofCommerce Riyadh andIndustry committees, associations andcenters. growing business of charities and related • The Chamber’s the role active insupporting activities. in visitingtheChamber to beintroduced to its and businessowners’ delegates are interested • Visiting dignitaries, government delegations their effects. Chamber’s role to follow upthesevariables and thenationalchanges affecting economy, andthe • Succession ofglobaleconomic developments and implementation ofdevelopment programs. • The increasing role oftheprivate inthe sector entities inArriyadh • Availability ofthelargest numberofcommercial make centers. itcloseto decision-making location inthepoliticalandeconomic• Its capital (4) of the Chamber and Riyadh oftheChamberandRiyadh (3) . years) since 2003. sessionwas heldinJanuary,The sixth 2014. EconomicRiyadh Forumtwo hasheldfive sessions(every oftheForumSessions economic development. a Think Tank towards abetter contribution to sustainable follows different methodologies of basedontheprinciple It also andscientific approach.depending onapractical centerintellectual that discussesnational economic issues EconomicRiyadh Forum seeksto beastrategic and The Forum’s Strategic Objective rectangular shape from north to south. shapefromrectangular north The area oftheCenter is189,000square meters ina extended Road. ontheEastRing International Airport Khaled Prince Center, Social Salman 15 minutes away from King located Abdullah closeto binAbdulaziz Road the onKing economic events. isanindependent administrative It body international commercial fairs, conventions andvarious was establishedtofacilities. beaplace It for localand This ChamberofCommerce isoneofRiyadh andIndustry’s InternationalRiyadh Conventions &ExhibitionsCenter The seventh round isbeingprepared. (1) For more information on thestudiesandsymposiaofForum’s 5thround andotherrounds pleasevisit www.riyadhef.com (1) foreign commercial andinvestment opportunities. issues that help business women explore more domestic and development orother oftheirleading andtechnical skills responsibility oforganizing many events that contribute to membership intheChamber. Also, the ithasundertaken procedures, ratification and ofthe transaction renewal of hasinitiated businessrelatingThe Section to subscription economy ingeneral economy andArriyadh inparticular. anddevelopinside andoutsidetheKingdom national business women’s from meettheircounterparts activities, council which aimsto discusseconomic issuesrelated to succeeded intheformationSection ofawomen’s executive about 7,800commercial, activities. and service industrial The inthe subscribers Women’s andtheyare engagedin Section intheKingdom. of total activity There are about3,000 records ofbusinesswomen hasreached inArriyadh 34% since thevolume ofcommercial particularly business section, andobstaclesfacingthedevelopmentstudy risks ofwomen’s as well aswomen’s zones. industrial aimsto The Section woman andherprivacy. provides It specialcommercial malls andinvestmentsSaudi fitthe opportunities that particularly women inArriyadh. The Chamberhelpscreate more job and legislative businessenvironment available to allbusiness staff, possible toimprove isallefforts to exert the regulatory whichisrunby national qualified The taskofthisSection, commenced work inanindependentSection building. theirdevelopmentIn 2004,theLadies efforts. to support business women’s andendeavours inArriyadh section The Chamberisinterested to inproviding the services Section Ladies influential economies.world aspirations economy of the Saudi of being one of the of conventions in line with the and exhibitions industry The Center’s visionisembodiedintheestablishment 55 Investment Climate in Arriyadh 2014

The Kingdom of Saudi Arabia and the Enhancement of Investment Climate 58 The High Commission for the Development of Arriyadh Ministry ofFinance: according(2) Ministry 2012. to SAMA 48thAnnual Report, ofFinance: ofFinance statement(1) Ministry for oftheMinistry thefiscal year 2014/15. from 2013/14allocations resources accounted for about SR61billion,an5.7%increase - Water, industry, andothereconomic agriculture services billion, a2.5%increase from 2013/14allocations. accounted services for SR66.5 andtransport - Infrastructure from 2012/13allocations. accounted services - Municipal for SR39billion,a9%increase development, about18%increase from 2013/14allocations. andsocial - SR108billionfor health,healthservices accounted for SR210billion,25%ofthefinancialallocations. education, highereducation andemployment training) ofhumanresources- Sectors development (general public expenditures were estimated at SR855billion. - Public revenues were estimated at SR 855billion,while and consequently opens thedoorfor more jobopportunities. This promotes continuing growth, long-term development largest share ofthestate budget for thefiscal year 2014/2015. resources for development whichaccounted projects for the The State continued to ofits allocate thebiggestproportion State Budgetfor theFiscal Year 2014/2015 Subsidies Specialized Government Credit Institutions General Management, Facilities andGeneral Items Defence andNational Security Services Municipal DevelopmentInfrastructure DevelopmentHealth andSocial Economic Resources Development Transport andCommunications Human Resources Development Kingdom Macro-Economic Indicators inthe Theme One: (1) . Distribution ofEstimatedDistribution State BudgetAllocations 2013/2014 Total Item allocations. an increase by SR 105 billion or 12.8% from 2013/2014 expendituresActual are to expected reach SR925billion, allocations. 90%ofwhichare petroleum revenues. fiscal year 2013/2014,anincrease by 36%from estimated are to expected reach SR1,131billionby theendof state budgetfor thefiscal revenuesyear 2014/2015,actual According ofFinance to astatement by theMinistry Ministry ofFinance: ofFinance statement(3) Ministry for oftheMinistry thefiscal year 2013/2014. effective instruments which macrocontribute precautionary Euro Zone dueto crisis itsrobust publicfinance controls and The economy Saudi affected didnotappeardirectly by the balances. inbothpublicfinances expected and and surpluses external growth rate to expected remain highledby theprivate sector that future economy of the Saudi prospects are strong, with Fund consultations 2012/13showed ontheFourth Article of the issuedby experts Areport oftheKingdom. policy FundThe International Monetary commends thefinancial Future Vision Economy oftheSaudi world. owns about 25% of oil It reserves in the ArabiaSaudi accounts for 25%ofArab GDP. dollars in2118. income to isexpected reach $33,500US growing countries. Average individual Africa (MENA) awell asoneofthefastest economies EastandNorth intheMiddle isalsooneofthelargest ofthe20 It systems stimulating investment. seventh intheworld amongthebesttax freedom worldwide; itstaxsystem isranked ArabiaSaudi is ranked in financial fourth in annual worldof the Kingdom rankings. evidence isthe successive achievements at global, regional andlocallevels. Best toreacting different economic variables The economy Saudi flexible in isvery Million Riyal Million 820,000 119,948 251,325 203,174 47,502 14,950 31,729 11,702 70,938 46,696 22,063 (2) 100.0 14.6 30.6 24.8 5.8 1.8 3.9 1.4 8.7 5.7 2.7 % (3) onthe 1,323.9 billionin2013/14. prices, itdecreased from SR1,376.6billionin2012/13to SR decreased 2013/14 the oil sector byIn 3.83% by current In 2012/13GDPgrewIn by fixed prices to SR1,272.4 billion was SR2,727.4billion. increase by 1.54%from theprevious year 2012whentheGDP SR 2,794.7billionby current prices by theend of2013,an According to estimates by to CDSI,GDPisexpected reach Gross (GDP) DomesticProduct open accounts setfor by thispurpose SAMA. for thesebudgetsisestimated at SR46billion,financed by theendoffiscal By year 2012/13theamount of expenses by revenues surplus from previous budgets. being financed by anadditionalprogram whichisfinanced billion in2013,alarge numberofdevelopment are projects additionto expenses includedinthestateIn budgetofSR925 Realized Standard Financial Surpluses (4) CDSI,National Accounts Indicator, 2013/14. (3) Ibid. ofFinance(2) Statement ontheState oftheMinistry Budget, 2014. No.(1) Qatari report 271/12issuedfrom IMF. growth. represents akeyelement to maintain thecurrent rate of citizens to takeupcreated jobs. An increase inproductivity initiatives aimingto ensure sufficient numberofqualified to citizens inlinewithcurrentmore jobopportunities continueInitiatives labourmarket oftheSaudi to provide prices. oftheeconomyto thestability oil intheface offluctuating an increase by 9.4%from theprevious year. GDP of the private was 102.9 billion by sector current prices, by current prices, anincrease by 1.56%. 2013/14GDPofthegovernmentIn was SR419.9billion sector increase of3.8% from theprevious year. 1000000 1200000 1400000 Million SR Million 200000 400000 600000 800000 0 (1)

Government Sector GDP by Current Prices 2013 /2014 Private Sector (4) 2012 /2013 (2)

Oil Sector (3) , an GDP by current prices andgrew by 2.73%. Electricity, contributed gasandwater 1.1%to the activity by 12.68%. contributed sector 4.8% andgrewBuilding and construction reducedas thissector by 3.92%. to theGDPwas 45.1% activities) other miningandquarrying (includingcrudeoil, natural gasand mining andquarrying grew byactivity 4.74%by current prices. The contribution of by current prices (includingoilrefining)Industrial was 10.1%. 2013/2014. to theGDP The contribution activity ofindustrial realized sector apositiveGDP ofthenon-oil growth during Furthermore, contributing to alleconomic the activities positive growth. gross achieved sector for domesticproduct thenon-oil contributing 2013/14 most economicto activities the In Sectors Contribution Economic ofthemostImportant (8) CDSI,Preliminary Data, 2011/12. (7) Ibid. (6) Ibid. (5) CDSI,National Accounts, 2013/14. and restaurant whichcontinue to develop. services of thissector, retail, inconstruction, wholesale particularly in 2013/2014. These indicators show the increasing efficiency growth of36.8%by current prices and58.7%by fixed prices expanding thebaseofnational economy andledto aGDP in theprivate sector. These rates ledto diversifying and reforms inrealizing positive hadanimpact rates ofgrowth Constantly adopted procedures andresolutions oneconomic and fisheries. insurance andreal estate; and3.65%for agriculture, forestry and retail, restaurants andhotels; 11.14%for finance services, 9.76%for thewholesale activity; building andconstruction 2.73%foractivities; electricity, gasandwater; 12.68%for 8.79% for telecommunications, andstorage transport wasindustries estimated at 4.74%. This was madeupby Social Services Social Estate Services Finance, Insurance andReal Activity Industrial Agricultural Activity Electricity, Water andGas Building andConstruction andQuarrying Mining Contribution ofEconomic to Activities theGDPfor Activity 2013/2014 (by current prices) (5) The real growth inthemanufacturing 1,260,012 258,334 282,977 133,539 49,699 51,636 30,898 (million Riyals, excluding fees) import Value (7)

(7)

10.10 45.10 1.80 1.80 1.10 9.20 4.80 % (6) 59 Investment Climate in Arriyadh 2014 60 The High Commission for the Development of Arriyadh According estimates to by preliminary SAMA, Ministry ofFinance: statement(2) Ministry oftheState Budget, 2012/13. (1) Ibid. theperiod.highest deficitduring in 2012/2013,whilethecurrent transfers item witnessedthe items realized andservice commodity thehighestsurplus transfers abroad to SR107.5billion. The current balance of is alsodueto the3.7%increase ofnetcurrent ofthesurplus andcommodities to SR690billion. It ofservices the surplus year, anincrease of4%. That increase isdueto in a3.3%rise SR 617.8 billion compared to SR 594.5 billion in the previous forKingdom thefiscal year 2013/2014 realized of asurplus The current account ofthebalance ofpayments inthe Current Account Balance ofPayments addition to thegrowth imports. ofcommodity The current the decrease in ofpetroleum andnon-petroleum exports it decreased by 13%from theprevious year. This isdueto of trade willrealize ofSR802billionin2013/2014, asurplus 2010/2011 2009/2010 2008/2009 2007/2008 2012/2013 2011/2012 Year (*) Surplus oftheCurrent Account to theGDP(millionRiyals) (1)

Current Account 496,208 349,985 617,864 595,545 250,320 78,580 (2) thebalance opening upto theworld economy, thepercentage of As anindicatorimports. to thehighdegree oftheKingdom year dueto and theincrease ofthevalue oftotal exports increased from to over SR2trillion SR1.9trillion theprevious 2013/2014 shows that trade thecommodity oftheKingdom data onforeignThe preliminary trade for thefiscal year Foreign TradeRelations 23.2% ofGDPcompared to 27.5%intheprevious year of witnessedasurplus andimports) commodities exports of the balance of payments and (which illustrates services theendoffiscal By year 2012/2013,thecurrent account The SurplusandDeficit previous year. of SR 486.8 billion, a decreasea surplus by 21.2% from the account of the balance of payments to is expected realize ( ofFinance, 48,2012,statement(4) SAMA, oftheMinistry 2013/14. Annual Report 48,2012. (3) SAMA, Annual Report * ) Preliminary Figures. 1,412,596 1,786,143 1,442,572 2,727,400 2,163,094 1,679,109 GDP (4) 27.8 24.3 23.2 27.5 14.9 5.6 % (3) . ( (3) Ibid. ( (2) Ibid. 48,2012. (1) SAMA, Annual Report 6.1% compared to SR1,191.1billionintheprevious year. wasproducts SR12,635 billion in 2012/13, an increase of The value oftheKingdom’s includingrefined oilexports represent oftheKingdom. 86.8%ofthetotal exports billion intheprevious year, anincrease by 6.7%.Oilexports 2012/2013comparedSR 1,454.5billionduring to SR1,367.6 was value oftheKingdom exports andservice commodity payments. data ofCDSIshowsThe preliminary that thetotal thecurrent account impact will directly ofthebalance of any quantities changeintheprice ofoilanditsproduction and themostinfluential balance ofpayments item. Hence, of the Kingdom’s export Oil is the most important commodities Imports The Volume andDevelopment and ofExports 76.4% compared to 74.1%inthepastyear foreigncommodity trade was to theGDPofKingdom ** * ) Including re-export. ) Including Building Materials Petrochemicals Exports Non-Oil Refined Products Crude Oil Oil Exports Appliances Machinery, Equipment andElectrical Agricultural, Animal andFood Products Food Products Other Commodities Other Chemicals and Metal ProductsChemicals andMetal Textiles andClothing Metals andRelatedMetals Products Transport Equipment Wood Products andJewellery Other Commodities Other ) Preliminary data. Total Item Total Item ( ** ) Kingdom Imports (CIF) AccordingKingdom Imports to Components Main 2008/2009 (1) 400,736 . 99,027 63,202 56,748 13,387 49,524 73,628 35,857 2009/2010 9,363 Kingdom’s Commodity Exports 726,174 114,684 533,177 611,490 52,967 78,313 42,820 10,159 8,738 (**) 2009/2010 493,449 131,988 75,033 69,795 16,938 66,225 14,331 77,141 41,998 Years 2010/2011 924,417 117,608 710,024 806,809 72,556 96,785 27,130 8,136 9,786 (2) 2010/2011 583,473 154,062 103,544 81,249 79,492 18,065 80,376 16,936 49,749 2011/2012 ( ** 1,367,619 1,068,658 1,191,051 ) 114,680 122,393 176,568 38,951 10,332 12,605 (3) Annual Change Rate 2010/2011 18.2 16.7 13.9 21.4 18.2 34.2 18.5 8.3 6.7 (Million Riyals) (Million (million Riyals) 2012/2013 1,454,507 1,144,638 1,263,555 124,184 120,796 190,952 43,379 10,536 12,853 61 Investment Climate in Arriyadh 2014 62 The High Commission for the Development of Arriyadh (2) Ibid. (1) CDSI,National Accounts Indicators, 2013/14. compared to theprevious year level. to isexpected have It increased by 3.68%in2013/14 economic indicator to measure theinflation at theeconomy isakey sector The oftheGDPnon-oil deflation factor RateInflation Kingdom’s and consequently on general price levels. imports pressuresincrease ontheprices ofthe inflationary ofthe contributedrates to againstothercurrenciesthe partially local prices. Furthermore, thedecrease ofUSdollarexchange world affected oilprices hasindirectly thegeneral level of numerous infrastructure projects. Also theincrease inthe offinancing onanexpansion policy embarking Kingdom affected the general level 2013/14 of with prices the during The increase ingovernment expenditures hasgreatly andabaseyear of2006/07. services methodology using abasked of commodities, the new 3.35% compared to the previous year, in accordance with living index for the whole population has increased by Preliminary estimates of2013/14show that thecost of General Index Cost ofLivingIndex of 18.2%. compared to SR493.5billionintheprevious year, anincrease was SR583.4billion 2012/13 thevalue imports ofcommodity of 8.1%compared to SR176.6billionintheprevious year.In were SR190.9billion in2012/13,anincrease exports Non-oil General Index Beverages andCigarettes Livestock andFoodstuff Animal Fats Oils andBotanical FuelsMineral andRelated Materials Materials ExceptRaw Fuels Chemical Fuels andRelated Materials Versatile Categories Manufactured and Machinery Transport Equipment Materials CommoditiesManufactured Categorized by Other Commodities Other Item (2) . (1) Annual Average ofthe Wholesale Index Proportional Proportional Weights % 31.9 10.1 13.4 26.2 100 1.2 0.4 0.3 9.8 6.4 0.3 2011/2012 174.1 152.6 184.8 151.4 147.9 211.5 142.5 188.6 145.5 288.6 Wholesale Index (5) Ibid. (4) Ibid. 49,2013. (3) SAMA, Annual Report increases among themajorgroups of the index. The group the previous year. This isanincrease of2.5%. This isdueto 2012/13reachedduring 156.4points compared to 152.6in to the value of the total items. The wholesale general index some items related to weapons) andtheirvalue compared international ofthetypical trade categories (excludingparts a samplecontaining 160 items distributed over ten major includes prices soldinthewholesalemarkets. It and service This index measures theaverage ofchangesincommodities General Index (4) 132 Other Services andCommodities Services Other Restaurants andHotels Education Recreation Communications Transportation CareMedical Home Furnishing Kinds Residence, Water, Fuel andOther Electricity Clothes andShoes Tobacco Food andBeverages General Index The Cost ofLivingIndex (for thewholepopulation) 2012/2013 178.6 156.4 184.8 151.6 149.3 217.4 136.2 144.1 217.7 151.8 310.9 Item (5) during 2013/14 2011/2012 12.5 3.4 4.3 0.9 7.3 4.4 3.1 7.9 10 23 0 Annual Change % (3) Average (1988 =100) 2012/2013 117.7 126.7 112.3 106.1 111.1 109.0 122.3 153.6 104.7 152.4 140.2 126.5 93.7 15.4 2.6 2.5 2.8 0.0 0.1 0.9 3.2 1.1 7.7 4.3 ( ( 49,2013. (1) SAMA, Annual Report • • following: The results oftheLabourForce for 2013/14show Survey the Total Local andForeign Employment MarketLabour Structure the individual’s share ofGDPto SR93,177. figures show 2013/2014 preliminary adecreaseIn of1.2%in Per Capita Income food 2.6%. products: equipment: 3.2%, raw materials except fuel:2.8%followed by andtransport machinery fourth, commodities: 4.3%.Ranking commodities: 7.7%;andthegroup ofversatile manufactured increase of 15.4%, this is followed by the group of other of chemicalfuelsandrelated materials realized thehighest ** * ) Amended Data. Per Capita share oftheGDP(Riyals) Population (million) GDP (by current prices /million Riyals) ) Preliminary data. Total employed was 10.7 million, representing 94.5% of the million. Total labourforce was more intheKingdom than11.4 Item Per Capita Average Income 2,510,650 88,497 28.37 2012 • • • • The total labourforce non-Saudi was sixmillion representing 11.2%. million males representing 88.8% and 673,528 females representing 53%ofthetotal labourforce with5.4 labour force. 41.9% and361,141 females representing 58.1%ofthetotal reached 622,533;12%dividedbetween 261,392males, and 727,495females representing 15%. Total unemployed the total labourforce with3,989,632malesrepresenting 85% Total employed was Saudis 4,717,127 representing 88%of 80% and1.1millionfemales representing 20%. of total labourforce with4.2millionmalesrepresenting labourforceSaudi (aged15andabove) was 5.3million;49.7% 57.8%. representing 42.2%and365,300females representing the total labourforce dividedbetween 267,300males Total unemployed was 632,600representing 5.5%of 13% ofthetotal. the total labourforce and1.4millionfemales representing total labour force with 9.3 million males representing 87% of (1) 2,752,334 2013 29.195 94,274 ( * ) 2,794,772.2 29.994272 2014 93,177 ( ** ) 63 Investment Climate in Arriyadh 2014 64 The High Commission for the Development of Arriyadh Ministry of Civil Service, 2014/15Statistics. ofCivil Service, (2) Ministry ofCivil Affairs, Annual StatisticsBook 2014/15 Statistics. (1) Ministry (rankof salaries 15)isSR24,750. range in employee of salaries scales), while the highest range inthegovernment isSR3,945(minimum working sector The minimumrange ofaverage for Saudis monthly salary • • EmploymentPublic Sectors Nationality to Total Nationality Gender toGender Total (%) Number and 37,443females, 51%. employment,sector dividedbetween 36,062males, 49% is73,505,representingsector 6%oftotal government inthegovernmentThe working numberofnon-Saudis 719,693 malesand432,868females. total employment is94%,1,152,561 distributed between percentage inthegovernment to working ofSaudis sector employees was 1,226,000. inthepublicsector The andnon-Saudi theendof2014numberSaudi By 719,693 Males Nationality Gender Females 432,868 (1) Saudis 918,793 Males 10.8 81.0 Employment oftheGovernment 2014 Sector Private Employment 2010/11 Sector Females 215,840 Saudi 19.0 2.5 1,152,561 Total 1,134,633 Government Sector 100.0 Total 13.4 Total 226,066 7,244,206 Most recentMost ofLabor figures providedMinistry by the Private Employment Sector Ministry ofLabour,(4) Ministry 2010/11. Annual Statistical Book, ofLabour,(3) Ministry 2010/11Statistics, SAMA, 49,2013. 17.8% for thewholesaletrade sector, 1.5millionworkers. 47.3% for four buildingandconstruction, millionworkers. was asfollows:economic activity 2012/13private employmentIn sector distributed by females 1million. malesmadeup7.2million,whilenon-Saudi Non-Saudi 0.9 million,whilefemales accounted for 0.2million. Saudis, were whilenon-Saudis maleswere 7.30million.Saudi number ofemployees intheprivate was 1.1million sector 2010/11 the employment is about 13.4%. In of this sector intheprivate to total sector working number ofSaudis wasnon-Saudis) approximately 8.9millionin2012/13, The that the numberofprivate employees sector and (Saudis Males 85.4 98.5 36,062 Males Non-Saudi Females 108,694 1.3 1.5 (4) 7,352,900 (2) 100.0 Total 86.6 Non-Saudis Females 37,443 8,162,999 Males 96.2 96.2 Females 324,534 Total 3.8 3.8 73,505 Total 8,487,533 (3) 100.0 100.0 Total show (2) Ibid. (1) SAMA, 49,2013. development. Advanced networks, aswell as several modern haveRailways in the Kingdom experienced remarkable Railways roadways are underconstruction. roads, of existing two-way roads and2,708km 3,664km highways, are two-way roads, 1,182 km one-way 13,515 km aswellKingdom asinternational borders. are 1,158km main regions linking of the until 2012/13 was 22,226 km safe.remarkably The total lengthofroads underconstruction The Arabia ofSaudi road is in theKingdom network Roads Transport and Telecommunications Infrastructure 0.5% for electricity, gas and water sector, 0.4 million workers sector, industries 9.8% for manufacturing 0.8millionworkers. Unpaved Agricultural Roads Paved Branch Roads Paved Roads Minor Paved Highways Total Paved Roads Total Roads Item Total Length ofRoadsintheKingdom2011/2012 Distance 195,975 136,832 59,143 34,610 14,956 9,577 (1) . project. King Abdulaziz Airport inJeddahisbeingexpanded Abdulaziz Airport project. King inJazanandAl Abdullah Airport ofKing project Taif Airport are beingestablished in Yanbu andAl Ula,inadditionto the ground equipment andsystems. Today, integrated airports the Kingdom. These are equippedwiththemostadvanced acrossincluding four international and23domesticairports comprises 27airports, intheKingdom network The airport andAir Airports Transport 700,000 carrying eight milliontons offreight by700,000 carrying 2014/2015 to is expected via the Land Bridge exceedtransported million tons ofgoodstransported. The numberofcontainers with the Eastern Province 2013/2014 along with 4.33 during 1.173 thousandpassengersusedtherailway Arriyadh linking Railways the operatingSaudi In field of the Organization, Saudi Railways(4) Saudi Organization, www.saudirailways.org. 2011. (3) SAMA, 47thAnnual Report, carriages ofdifferentcarriages types andsizes. equipped asamedicalcarriage. There are also1,860freight carriages, 13for luggageandpower generation andone Qafela classwith2,096seats. addition there In are ninedining with 585 seats, 10Al-Taleaa class with 714 seats and 27 Al- passengers withthefollowing class classes:13Al-Rihab Organization is59 diesellocomotives for and 75carriages The current supply of rolling stock Railways of the Saudi Jeddah lines. aswell project; Land Bridge asJeddahto Jazanand Yanbu to Railwayline);anotherAl old Hijaz Taif, Mushayt, Abha Khamis Company ispreparing astudyto and linkMadinah Tabuk (the willlinkDammamwithJubail.Land Bridge The Railway Saudi a numberofcitiesalongtheroute. railway Another 120km withJeddahpassing Arriyadh linking LandBridge 950 km time (in2010)at 35%ofitscapacity. Another isthe project in the Kingdom. This was railway operated Hajj service during elements intheprocess ofexpansion oftherailway network Project Rail (HHR)isoneoftheessentialHaramain Highspeed line. North-South order to runa2,400-km The ofthe project Railways Organization (SAR)withacapitalofSR1billionin is theRoyal Decree Number26of2006to establishSaudi passenger andfreight noteworthy Particularly services. speed trains have operations, started leading to improved passenger stations, were developed. Moreover, high- To Total Paved % Roads 58.5 16.2 25.3 100 - - (3) Rate (%) (3)

To TotalRoads 30.2 69.8 17.7 100 4.9 7.6 (4) . 65 Investment Climate in Arriyadh 2014 66 The High Commission for the Development of Arriyadh Saudi Ports Authority,(2) Saudi 2012/2013Statistics from the Authority’s website www.ports.gov.sa. ofCivil(1) General Authority Aviation Statistics, 2013/14. were handled goods andexported imported 187.7 milliontons ofnon-oil standard containers were handledandatotal ofmore than andarrivals, 6.6million than 1.5millionpassengerdepartures of goods are delivered annually. 2012/13 there In were more in theEastern Province. Through large amounts theseports, Al-Zour inRas project inadditionto anewseaport Kingdom There are inthe eight commercial seaports andindustrial Seaports carried. airfreight a total of565,631civilaviation flights, with1.059,000 tons of Company). 2013/2014,68millionpassengerstravelled In on ArabianSaudi andNAS(National Airlines Air Services There passengers: are companies airline two serving Saudi in two stagesat acost ofSR27billionfor thefirststage. show thenumberofmainpostaloffices was539and210 Post Saudi mail services. statistics in 2011 mobile and surface agencies (private offices) inaddition tomail boxes and main postoffices, branches, express mail centers andpostal Postal are spread services allover through theKingdom Postal Services Passengers Containers Goods/weight ton (2) Item . (1) Operating intheKingdom,2009/10-2012/13 Movement oftheSeaports 142.3 million 1.1 million 4.4 million 2009/10 154.02 million 1.2 million 5.3 million 2010/11 million, a47.6%spread ofthepopulation. while thenumberofbroadband reached subscriptions 14.27 The numberofmobiletelephone was 51million, subscribers million lines. 3.3million(75%)oftheseare householdlines. stoodtelephone at linesintheKingdom approximately 4.7 land theendof2013/14,totalBy numberofworking Telephone Lines 94,197 boxes for agencies. 470 accommodating 625,980 boxes for and subscribers Countries is24.9%andfor third world countries 21%. The higher thantheworld average of 28.7%. The average ofArab the endof2013/14,a55%spread rate. This spread rate is establishment to oftheAuthority about16.5millionby the past eight years, from one million users at the time of shows thegrowth during ofinternet usersintheKingdom The data issuedby theCommunications andITAuthority Internet Network additionto 541depositboxes,In them located inArriyadh. offices) establishedprivate by the was 59, with 30 of sector express mailoffices. Thenumberofpostalagencies(private Saudi Ports Authority,(5) Saudi 2012/2013Statistics from the Authority’s website www.ports.gov.sa. (4) Communications andITAuthority, 2013/14. Annual Report, Post(3) Saudi Statistics, 2011asstated inSAMA 48thAnnual Report. 162.5 million 1.4 million 5.7 million 2011/12 (3) subscribers hallsreached subscribers (5) (4) 187.7 million 1.5 million 6.6 million 2012/13 (2) Ibid. (1) Ibid. 6.5 millionsheep(traditional andotherbreeds), 10.7million (not includingfree ranging camels). There were anestimated The numberofcamelsin2011/12was 219,900thousand of3,651,000tons.with production area allocated for fodders isestimated at 187,000 hectares of1,609,000tons. capacity withaproduction hectares The of2,647,000tons.production Fruits estimated area is229,181 under vegetable cultivation was witha 111,168hectares with1,418,000tons260,312 hectares production. The area was 788,000 hectares. The estimated area for grain crops was of Agriculture 2012/2013,thearable landarea for 2011/2012 According to theStatistical Yearbook issuedby theMinistry productive animal, botanicalandfishingsectors. sector. This strategy achieved alevel ofself-reliance inthe aims to encourage investmentinternl and external in this agricultural sector. The strategy ofagricultural development privateBoth are and public sectors greatly interested in the Agriculture ProducingMajor Sectors compared to 292at theendof2012/13. theendof2013/14totalBy issuedlicences were 309 whileitcalledoffsomeother licences.services competition by issuingnewlicences for anumberofversatile The Communications andITcontinuedAuthority to promote advanced countries whichstandsat 71%. Kingdom’s spread rate islessthantheaverage spread rate of (2) (1) representing 45.6%ofthetotal. workers in theagriculture was 492,653; with216,606Saudis was 1.7billionlitres, andhoney119,000kg. The total The Kingdom’s ofraw production milkthrough 27projects poultry. 252,000 horses, 527.7millionbirds (traditional andspecial)in goats, 486,500 cows (traditional and other breeds) and Ministry ofAgriculture, 25thAnnual(3) Ministry Statistical Yearbook, estimated 2012/13.Some figures have been changed to actual realizedchanged to actual figures. (3) 67 Investment Climate in Arriyadh 2014 68 The High Commission for the Development of Arriyadh Kingdom was 1,185,101 Kingdom The accumulated number of commercial companies in the Trade Saudi Commission(4) Saudi for Tourism andAntiquities, MAS Center, Tourism Statistics, 2011/12. ofCommerce andIndustry.(3) Statistics oftheMinistry (2) Annual Statistical Yearbook 48,2013 ofCommerce andIndustry, database, industrial (1) Ministry statistics variousindustrial from thewebsite of 862,700 employees andworkers finance ofSR958.4billion. These plants employ more than of 2014,thenumberoperating plants is6,599withatotal upto thefirstquarter ofCommerce andIndustry Ministry beginning of2020.According to statistics issuedfrom the to the GDP to reachcontribution of industry 20% by the until 2020. the Kingdom This strategy aimsto raise the which draws upthefeatures in ofthefuture ofindustry are represented through the national strategy for industries The achievements intheKingdom sector oftheindustrial Industry furnished residencesfurnished providing atotal of85,687apartments 157,430 (according to newcategorization). There were 2,026 star hotels). The total numberofrooms inthesehotels was hotels, 44four-star hotels, hotels, 649two- 179three-star was 951 fromthe Kingdom the various classes (79 five-star Antiquities showed that number of operating hotels in Data issuedby Commission theSaudi of Tourism and spending SR4,595million. million. Visitors to tourists festivals reached 10,34million, 39.9 millionandthat theyspent 448,566nights andSR84,563 shows that numberoftourists by theendof 2011/12was Data by Commission the Saudi for Tourism and Antiquities regionally. implementation oftourism development plansnationally or and tourism investments, andmeasure theeffectiveness of resultingthe economic from impact development, activities for citizens. Data andstatistics are keyelements to measure contribution to theGDPandprovide ofjobs various kinds The state seeksto develop to thetourism increase sector its Tourism 3,214 of registered of2014 reached trade inthefirstquarter marks of2013was 6,897,whilethenumber quarter of thefourth commercial agencies registered by the end in the Kingdom Networks peakloads(1000M/W) Networks Length (thousandcircular Demands ofSubscribers km) Length (thousandcircular Network ofDistribution km) Length of Transmission (thousandcircular Networks km) Available Generation (thousandMW) Capacity Annually Produced Power (thousandGW/Hour) Residential Complexes Provided with Power (by thousand) Annual ShareIndividual's ofPower (thousandKW/Hour) (million) Number ofSubscribers the Ministry: www.mci.gov.sa.the Ministry: (3) . (2) by theendof2012. The numberof (1) . Item Electricity Services andInfrastructure 2012/13 Services Electricity (4) . increase of6.3%. increased to more services than6.7million,an electrical rose to 66,081MW/hours. The to numberofsubscribers peak loadrose to 52,000MW/hours. Also generating capacity 2012/13to during 240,293GW/hours.Kingdom Electricity inthe show anincrease inconsumption ofelectricity The latest statistics of the Ministry of The latest statistics of the Ministry Water and Electricity Ministry of Water(7) Ministry andElectricity, CDSI,Power (Aspirations intheKingdom andAchievements), 2013. of Water(6) Ministry Statistics, 2012/13. andElectricity of Water(5) Ministry 2012/13. andElectricity, Annual Report, 2012/2013 was 997.2millionm The Kingdom’s ofdesalinated production water during Water andElectricity and11.7%to theprivate sector sector.the non-oil Contribution to oftourism GDPreached sector 3.1%,7.2%to electrical capacity of587.1thousandm capacity electrical Value 12.5 216 222 272 8.1 6.7 52 52 54

(7) Average Annual Growth Rate (%) 3 with a daily production withadailyproduction 3(5) . 7.6 5.4 5.8 4.8 6.3 6.6 4.2 3.2 6.3 (6)

Ministry ofEconomy andPlanning,(2) Ministry long-term strategy. ofEconomy andPlanning, www.mep.gov.sa.(1) Ministry long-term strategy: in the coming years to 2023/2024 requires the duplication tolikely rise therank ofdevelopmentally advanced countries countries.classified asoneoftheupper/middle-income The development beingcurrently leadingto theKingdom and significant improvement inallindicators ofhuman population growth accompanied with the growth of income for regional Arab integration. also comes at a time of high It the competitiveness ofthenational economy andstriving for citizens, achievingsustainable development, enhancing raising livingstandards, improving oflife thegeneral quality faces the challenges of when the Kingdom set in a period The current long–term strategy economy oftheSaudi is Long–Term Strategy Economy oftheSaudi (1) Outlook Performance Economy oftheSaudi andFuture 2004/2005 -2023/2024 2019/2020 -2023/2024 2014/2015 -2018/2019 2009/2010 -2013/2014 Expectations oftheGDPandAverageExpectations Per Capita Income 2023/2024 2018/2019 2013/2014 Years Average Annual Growth Rate (%)

energy andfinancial resources. the competitiveness that emanates from theabundance of inorder ofproduction offactors to strengthenproductivity level ofcompetencies inusingeconomic resources to raise among regions. There isalsoarequirement to raise the them productively andachieve balanced development addition there isaneedto develop humanresources, employ revenues to productive assetsandefficient humancapital.In resources inorder to allow agradual conversion oftheoil of the economic public base and strengthening of non-oil sustainable developmentRealizing requires adiversification of therelatively highpopulation growth. improvement ofthehumandevelopment indicators inlight of the average of per capita share in the GDP and the GDP (billionRiyals) 2,542.5 1,674.7 1,189.1 6.6 8.7 7.1 5.8 (2) Income (thousandRiyals) Average Per Capita 98.5 71.8 4.2 6.4 4.8 3.5 57 69 Investment Climate in Arriyadh 2014 70 The High Commission for the Development of Arriyadh ( ( ( ( ofEconomy andPlanning,(1) Ministry Macro Economy Expectations. the endofstrategy period. an average rate ofgrowth of5.2%to reach 21.6%ofGDPby increase willbe accompanied with by anincrease inimports of 6%to 31.6%ofGDPby theendof2024.However, that contribute with an annual rate to the increase of exports increase from 15.4 % to 30.7%. This investment flow will thus, the private investment contributions to the GDP will growth rate ofgeneral investment to isexpected reach 4%, average of10.3%for thestrategy period. The average annual expenditures will be from private investment with an annual isnoted thatperiod. mostofthegrowth It ininvestment toexpected increase from 20.5% to thesame 33.9%during the contribution ofinvestment expenditures to theGDPis compared to 5.3%onlyfor consumable expenditure. Thus, grow by anannualaverage thestrategy of9.3%during period The investment expenditure at fixed prices is to expected GDP is6.6%for ofthelong-term strategy. theperiod of population, therequired annualgrowth average ofthe 4.2% for thestrategy lightgrowth period. oftheexpected In end of2024at current prices, withanannualrate ofgrowth of double from SR43,300by theendof2004to SR98,500by the The average percapitaincome to isexpected more than theKingdom’spreserve heritage. of citizens andtheprotection ofsocialandreligious values to for the provision necessary to of the welfare all other services education andtraining andexcellent healthcare inaddition andefficient be characterized withhighquality systems of citizens who are able to work. This national economy will providing rewarding for employment all opportunities prosperous, andwillbebasedonsustainabledevelopment 2023/2024,thenationalBy economy and willbethriving the population to isexpected reach 29.86million. population thestrategy is0.87%during 2023/2024 period. In The annual growth expected and non-Saudi of Saudi in thefollowing: The fundamental axes ofthelong-term strategy are shown **** *** ** percentage.*) Rounded Imports Fees Imports Oil Sector Agriculture andForests Public Sector Private Sector Sector Services Industry Industry ProductiveNon-Oil Sectors ) Including petrochemicals,) Including industries, refining alsobuilding, andothermanufacturing construction, services with the deduction of banking services. ofbanking withthededuction services andmining. electricity ) Including trade, telecommunications,) Including transport, insurance, finance services, real estates and group ) Excluding banking services fees. services ) Excluding banking ( ** ) ( **** ( *** Item GDP ) ) Development of Targeted GDPby Fixed Prices 1999(billionRiyals) (1) 2003/2004 135.06 178.25 374.16 195.91 140.24 714.9 196.7 38.01 8.98 2008/2009 895.17 162.89 225.05 234.22 492.71 258.49 189.82 14.52 44.4 2013/2014 1,189.05 180.91 262.49 322.25 731.27 409.02 271.93 14.38 50.32 3.2 millionwithanaverage annualdecrease of2%. 6.2%. Foreign to labourisexpected decrease by 4.7millionto strategy to period 15millionby theend, anannualaverage of average of 2.8%, from 8.55 million by the beginning of the The total labourforce to isexpected grow by anannual period. toexpected increase from 10.3% to thestrategy 30%during The contribution ofwomen to thenational labourforce is unemployment. of reducing foreign labourandalsoreducing therate of strategy to period 56.3%by theenddueto the policy toexpected increase from 36.9% by the beginning of the The average contribution ofthenational labourforce is sector. a targeted annualrate ofgrowth of4.1%for thegovernment annual average of 8.1% private rate sector of growth against the strategy to period 69.3% at the end of the period, an will increase at fixed prices from 52.3% at thebeginning of role oftheprivate whereby sector itscontribution to theGDP beginning ofthat period. This increase the reflects expected end ofthestrategy period, compared with72.5%at the to is expected contributesector 82.1% to the GDP by the tois expected decrease from 27.5%to 17.9%. The non-oil thestrategyof 4.3%during period, butitsshare oftheGDP toThe is expected grow oil sector with an annual average 27.4% to 41.9%. consequently itscontribution to theGDPwillincrease from to achieve an annual average rate of growth of 8.8% and from 19.6%to isexpected 24,9%.Also thetourism sector contributionsannual rate to theGDPwillincrease of7.8%.Its Hence, to isexpected grow sector the industrial with an and itsshare oftheGDPwillincrease from 24.9%to 27.4%. productive withanaverage sectors rate ofgrowth of7.15%, The strategy’s is the development objective of non-oil 2018/2019 1,674.74 1,097.19 224.34 335.60 445.15 652.04 388.64 17.61 56.51 2023/2024 2,542.54 1,066.16 1,762.18 300.22 455.28 696.02 633.21 24.86 65.81 (1) Annual Average Rate ofGrowth During theStrategyDuring Period 6.6 4.1 4.3 5.2 7.1 8.8 7.8 8.1 2.5

( * ) In the Sixth Five-Year the Sixth In Plan, the Government focused on the implemented by theprivate sector. would notberesponsible that for could be economic activity more sothat economicthe government tasksintheKingdom out ofopeningthedoorto theprivate to carry sector policy private sector. has also ensured continuous It adoption of the of transferring someofthepublicsector’s to the properties offinance markets to the processand theextentofadequacy plan hastakeninto account thestatus economy oftheSaudi the private for andpublicsectors development projects. The procedures andincentives between includingco-finance private to increase sector investments viaseveral regulative privatization byPlans encouraging has supported the The Government, through theFive-Year Development various goalsofdevelopment. contributedoor for to theprivate to realize further sector the The oftheFourth objective Five-Year Plan was to openthe andfundingoftheprivateto government sector. support and various commercial in addition activities importation the private to sector increase investment in the field of sole source ofincome. The Third Five-Year Plan encouraged onpetroleum andreducedproduction asa dependency strong private that greatly sector contributes to thenational sector. and encouragement adopted constant of a It support was interested and encouraging the private insupporting to thedevelopment process. The SecondFive-Year Plan private to andcontribution increase sector its productivity Plan. The general goaloftheFirst Plan was to encourage the from theFirst Five-Year Plan through toFive-Year theNinth Government encouragement oftheprivate isclear sector funding isinaccordance withnational development plans. to economic development anditsrole intheinvestment and sector. The expansion ofthecontribution oftheprivate sector toincluding transferring this economic activities selected economy. doesthisby following It thebestavailable means private andexpand itscontribution sector to thenational 60 dated 6/8/1997,to constantly increase theshare ofthe ArabiaSaudi according Number Resolution to theMinisterial Privatization hasbeenprepared of policy intheKingdom Economic Strategy andPrivatization Kingdom InvestmentSupporting inthe Theme Two: Policies and Measures the coming years. door for more governmental privatization procedures during optimal useofresources. The investment climate opensthe contribution for of the private to the economic sector activity revenues away from petroleum andto increase sector the Government’s desire to diversify independent sources of Development Plan. The maingoalofprivatization isthe Privatization isoneoftheessential axes for theSeventh a keyrole ineconomic development. prepare theprivate to replace sector to play thepublicsector many measures practical to financially andadministratively achieve development goals. The Government undertook from arises governmentsector confidence to inthissector Seventh Development Plan. oftheprivate The importance The private represents sector oneofthemajoraxes ofthe orientation towards privatization asastrategic choice. all fieldsandassigned akey role to theprivate andan sector encouraged afreeIt economy, expandedbasein production Trade Islamicvalues. alsoensured Organization. preserving It of economic globalization andtheaccession to the World economic developments and comply with the requirements on long-term strategic basesandgoalsthat align withworld on ambitiousandoptimisticfuture depended perspectives. It The Seventh Five-Year Development Plan was prepared based • • • focusingprivatization on: policy Five-Year of the Sixth that the priority Plan is interest in the Number 142 of 17/10/1992 shows Resolution The Ministerial providedthe economic level by ofservices thegovernment. productive and administrative and improvement efficiency of of market mechanisms.of market investment andincrease intheeffectiveness ofthesystem Constant provision oftheproper environment for comprehensive studiesofeachcase. governmentselected assetsinjoint stock companies after Privatization through thegradual saleof ofproperty private sector. granting more leasingandmanagement contracts to the problems aswell astheprivatization through ofproduction funds to finance that publicprojects experience funding Privatization offundingthrough provision ofprivate development. sustainable, comprehensive and balanced contributesit actively to realizing desired, business entities and grow GDP. Consequently, increase formationjob opportunities, rates of to create sectors baseofnon-oil new production a key role indiversification oftheeconomy’s improvement ofinvestment climate to play achieved through resource investment and and quality.productivity This has been for the purpose of improving performance, institutions and companiessome public sector private akey sector role through privatizing The State showed its willingness to give the development.”socio-economic private sector’s contribution to the process of was ofitsobjectives 1999). One “to promote the Developmentgoals ofthe Sixth Plan (1995- development. was at It thetop ofthegeneral strategic choice to achieve socio-economic Privatization was the Government’s policy 71 Investment Climate in Arriyadh 2014 72 The High Commission for the Development of Arriyadh Ministry ofEconomy Development andPlanning: Ninth Plan,(2) Ministry 2010/11-2014/15. ofEconomy andPlanning: Eighth Development(1) Ministry Plan • • • • • • • restructured andprivatized: was issued to identify a list of facilities that shall be Number. Resolution The Ministerial 219, dated 11/11/2002 The Privatized Sectors between theprivate andpublicsectors” partnership investments (national andforeign) aswell asareas of development. alsocallsonexpanding areas ofprivate It the private intheeconomic, sector socialandenvironmental 2014/2015) specifies the ninth goal“to emphasize the role of The Five-Year Ninth Development Plan (2010/2011- transparency. ofpublicassetswithinaframe ofcompetitivenesssector and into consideration increasing theownership by theprivate whiletaking privatization ofmore publicfacilitiesandservices This is through preparation of an adequate climate and the private to thesocialandeconomic sector development. Development Plan includedincreasing thecontribution of The goalsandstrategic foundations oftheEighth Five-Year andemploymentquality ofcitizens. results inreducing thecost, andimproving theperformance achievements that willprovidesocio-economic beneficial stipulates openingthedoorfor theprivate for sector more development process. The third strategic foundation the contribution oftheprivate to thesocio-economic sector 58 of12/7/1999,intheeighth goalstipulate theincrease of Development Plan according Resolution to theMinisterial The general goals andstrategic foundations oftheSeventh and grain inports. andreceipt services Ports Authority.Saudi Privatization of terminals for freight residences waste to network. thewater andsanitary waste all andconncting ofwater and sanitary and services waterwith theprivate intheprovision sector ofdrinking Privatization waste sector. of water andsanitary Partnership medicinesandvaccinations.of veterinary laboratories and operation ofanimalsandmanufacturing purposes. Establishment of hospitals and veterinary Operation waste and maintenance for agriculture ofsanitary to establishlaboratoriessector for diagnostics. veterinary Privatization ofagriculture License theprivate services. silos from millsto into becollected apubliccompany. options to beacommercial company orseparation ofall Grains Silos and Flour Organization. Mills Conversion privatized by private investors. sector aimedto beprivatizedin sectors into companies to be intosectors commercial units. Transfer ofthestrategic units ArabianSaudi Airlines. Conversion ofnon-fundamental services. distribution generating,in implementing electrical transmission and Company. Electricity Saudi Private contribution sector subscription. investors. Stocks of the holding company offered for public Related minor companies disclosedfor private sector joint stock holding company owned by thegovernment. The Saline Water Conversion Company. Conversion to a (1) (2) . • • • • • • • • • • • • (4) Ibid. 46,2010. (3) SAMA, Annual Report approvedmajor projects by thegovernment, those economy Development intheNinth Plan. These included the way for theestablishment ofaknowledge-based Development Plan by theprivate andpublicsectors, paved The that projects have beenexecuted intheEighth EconomyKnowledge-Based theKingdom’sProjects Supporting Transfer to a that needs. meetthelabourmarket special needs in addition to rehabilitation centers and crafts Private investment sector inprivate centers for individualof to andcomputer children.writing skills for teaching of reading, adult teaching and pre-school and Quran keepingassociations. Openingspecialinstitutes Private investment sector programs incharity andprojects the private sector. Investment schools abroad inSaudi andoperating themby suppliesofeducational technology.manufacturing private infemale sector vocational education andtraining, Increasetheshare ofthe management ofkindergartens. Investment intheeducational process. Establishment and buildings. education. Establishment andmaintenance ofeducational investmenttransport, inschoolcanteens andprivate benefitting from all waste paperandschoolbooks, school Privatization Leasing ofeducational services. land, andtraffic.of transport andlight Leasingheavy equipment. operation ofabattoirs, andservices publicutilitiesmarkets Privatization Establishment and ofmunicipalservices. Hotel. International Airport Khaled of thethree free andKing international markets airports, of development of pilgrim facilities, commercial operation with theprivate orindependently suchasproject sector ofCivilGeneral Authority Aviation (GACA) in association andprivatization ofthe ofmanyRestructuring services many sector branch companies inthepostservices PostSaudi into Authority aholdingcompany that owns of promotional postto theprivate sector. Converting the (NAQEL). Assigning mailservices theservices and surface between the private and the company sector of mobile investment of ofprojects Wasel andthepartnership Service, Privatization Post of Saudi Private services. Authority sector and government. to commercial entities to bedividedbetween individuals Privatization centers andgymsby converting ofsports them private employment offices. chambers of commerce and industry. Licence to open withtheprivate through sector bysector partnership Privatization intheprivate employment ofSaudi services be offered for publicsubscription. Privatization Company. Arabian ofSaudi Mining Shares to more than25specialized insurance companies insurance system. Preparation of hospitals and licensing Privatization Cooperative of health services. health the disabled. for private dailycare centers for andprovision ofservices such asthe issue oflicencesprivatization ofsocial services Privatization Strategic ofsocialservices. of project (3) . (4) . 12 millionm coast Sea aton the Red a cost of SR 10 billion on an area of and wholeworld. The University was establishedin Thule scientific and learning communication with the Arab, Islamic who are globally distinguished which make ita beacon of KAUST isprovided withthebestscientists andexperts the bestscientific centers for creativity andinnovation. tois expected beoneofthefuture andoneof pilotprojects 23/6/2006 by the Custodian of the Two Holy Mosques. KAUST and Technology commenced thedeclaration after in (KAUST) Work Abdullah University ofScience ofKing ontheproject AbdullahKing University ofScience and Technology more balanced development. geographical areas to cover all regions for of theKingdom dimension along with expansionand intellectual of the diversification oftheeconomy anddeepenthe technological centersnew industrial that contribute in sectors to the These are projects interested in the establishment of ofbudgetrevenues.surplus mentioned intheinvestment planandthosefinanced by the of theimplementation ofthenational strategy for science adopted by theCouncil in2002. ofMinisters The firststage the four stagesfor theexecution ofthat national policy Planning represents andallconcerned parties, oneof ofEconomy incooperation and withtheMinistry (KACST) prepared for Abdulaziz byCity King Science and Technology science and technology 2006/2007 - 2010/2011 that was The first stage for the execution of ofthenational policy Technology Execution oftheFirst Five-Year Plan ofScience and and invited dignatories. inaugurating the University attended by many world leaders thedeclaration23/9/2009 after Abdullah by King KAUST commenced research andacademicwork on and information technology andwater desalination. including nano technology, biotechnology, communications students. KAUST isprovided withadvanced technologies Colleges. canaccommodate It about10,000maleandfemale Medicine, Computer, Communications andEngineering and theprivate sector”. cooperation withothergreat research universities basis ofmeritandexcellence, collaboration and and technologists; andthat itfosters, onthe trains future generations ofscientists, engineers great institutionsofresearch; that iteducates and that thisnew University becomes oneoftheworld’s benefit allthepeopleof It is world. my desire and the people of the Kingdom and shall serve be a beacon for peace, hope, and reconciliation “As a new ’House of Wisdom’, the University shall 2 . The University comprises Sciences, Pharmacy, King AbdullahKing binAbdulaziz Al Saud they represent aleadershipmodelinthebuildingofmodern Four oftheseeconomic citieshave beeninaugurated and for businesswomen. the commercial zones, inadditionto technology incubators incubators for theestablishment ofnew companies within standards, various venture capitalprograms, specialnew programs to spread andapplyinternational andquality programs(financial andmarketing) to facilitate exports, technology-transfer programs, cooperative business with large companies, training andrehabilitation programs, programs for research, development, innovation andlinkage transfer centers. The isthecreation purpose ofcooperative and businessaswell ascenters ofexcellence andtechnology institutions, conferences halls, incubators oftechnologies and technologicaland innovation, service financial support facilities for scientific research and technological advance are appliedhigher education institutions, resources and additiontheremedium andhightech sectors. industrial In commercial zones clusters comprise ofindustrial in The components intellectual in the globally modern Economic Cities national, regional andinternational events. inlight ofthechallengesandnew oftheKingdom security economic development thecomprehensive andpreserve technology andinnovation inorder thesocio- to serve works to fulfil the most advanced achievements of science, for citizens, expansion ofthescope ofinvestment that of thenational economy, provision ofnewjobopportunities technological development andinnovation, diversification is theacceleration ofthepace ofscientific research and The outcome oftheexecution andprograms oftheseprojects five years isestimated at SR7.89billion. private institutions. sector The total budget for the coming ofvariousrelative incooperation andparticipation parties programs to and162projects beexecuted by 30government and technology includeseight majorprograms, 26minor 73 Investment Climate in Arriyadh 2014 74 The High Commission for the Development of Arriyadh port willreach seven millioncontainersport andsixthousand SR five billionprovided by 2020.King Abdullah of The capacity toexpected reach SR13billionfor three thenext years with The value ofinvestments that willbeprovided is to thecity • m • 55 millionm City. Industrial covers closeto Sea Rabigh the Red It about Abdullah Economic islocatedKing City onthecoast of AbdullahKing Economic City all fieldsoflifeKingdom. inthe pillars ofsustainabledevelopment andstimulate growth in previously mentioned the elements in order to support training andfinancialassembliesare integrated alongwith commercial zones. thesecities, In theindustrial, educational, • • new jobopportunities. Investment (SAGIA), Authority willprovide thecity 500,000 According to theestimates Arabian oftheSaudi General and shore educational resorts, area andfinancialpeninsula. assembly area,industrial residential facilities area, port, execution stages. accommodatesThe city sixareas: the are multi-purpose. in2005andrequireThey started many remarkable levels.remarkable creative capacities that economy willhelp lead the Saudi to The “Education Area” willbeacenter for talent Saudi and hotels and exhibition andconference centers. This Peninsula alsoincludeslarge numbersofbusiness whose target istheglobalandregional financialinstitutions. The “Financial Peninsula” willassign 500,000m small, medium and large. and assigned to companies, meet allneedsoftheindustrial The Area”“Industrial willbeestablishedon eight millionm thiscontext, thefollowingIn shallbetakeninto account: 2 . Construction works in King Abdullah Economic works. Construction inKing City 2 . This area hasbeenincreased to 168million 2 for offices 2

over 156millionm Abdullah binAbdulazizMosques, inHailextends King cornerstone was laid by theCustodian ofthe Two Holy Prince AbdulazizEconomic binMussaed City, whose Prince Abdulaziz binMussaedEconomic inHail City city.industrial local companies have signed contracts to invest inthe residential unitsunderdevelopment. 70international and to ninemillion m extends overextends 4.8millionm to capitalandinvestment attract to theregion. The city intheKingdom industries basedonknowledge-based kind Economic ’Knowledge project City’ the first of its in Madinah, Two Abdullah bin Holy AbdulazizMosques, called the King industries. based onknowledge-based The Custodian ofthe cultural andnationalfor landmark economic development to industries bea comprises knowledge-based It Madinah. The aimsto project intheeastof establishaneconomic city Knowledge EconomicMadinah City and residences. materials, industrial, miningandrecreational centers service centers, logistical, commercial, educational, agricultural food financedevelopmental services, elements such as transport the execution oftheseinvestments. willinclude The city over ten years. The private willberesponsible sector for City to be the fourth economic to city.City bethefourth is The capitalofthiscity Abdulaziz announced theestablishment ofJazanEconomic The Custodian of the Two Abdullah Holy bin Mosques, King Jazan Economic City billion andto provide about20,000newjobopportunities. 2 . SAGIA investment expects to reach SR25 2 withtotal investments ofSR30billion 2 . The area constructed extends • • • • • • example ofsometheseprojects: economy andinformation community. The following isan accelerated supporting progress oftheknowledge-based an environment that and motivates economic activity of governmentof raising bodies, theefficiency creating for inallgovernment thepurpose departments e-dealings onexpanding theapplication of isworking The Kingdom Application ofGovernment Dealings(Yesser) Electronic investment opportunities. improvement oftheinvestment climate addsto viable program ofeconomic development andtheconstant additionthecommitmentIn ofthegovernment to afixed and availability ofnatural resources andstrategic location. rate thatreal ofthepopulation, attract factors investment the availability oftheeconomic potential, thehighgrowth economically feasible investment dueto opportunities the plan of the economic cities. accommodatesThe Kingdom economic citiesin Tabuk andtheEastern Province of aspart Studies have for beenconducted theestablishment oftwo Economic Cities in Tabuk andtheEastern Province creating jobopportunities. andindirect about500,000direct investments uponcompletion oftheinfrastructure ofthecity, SR 100billionofindustrial, commercial andresidential SAGIA JazanEconomic to more expects City attract than limestone, dolomite, marble, basalt, gypsumandsilicasand. minerals existing in this regionThe most important are salt, that showed that Jazanarea resources. isfullofindustrial region. The resulted establishment ofthiscity from studies company willbeassigned to limited income residents ofthis SR 15billion.Free stock ofSR375millionfrom theownership Other projects whichare projects consideredOther essential insupporting of stores andinventory systems aswell asarchive systems. administrative communication systems and management bodies such as the financial systems, personnel systems, and specifications ofthemodularsystems ingovernment Systems.Modular The isunifyingtherequirements purpose generated CDs. program the e-Government “Yesser” orthrough easily ontheinternetelectronically through thewebsite of the government bodies and related information centers inorder to communicate directory an electronic with Government Agencies Directory. The isto purpose prepare government project. safely sent and automatically read. This is a government-to- to be These forms ore-filed canbeprinted orbar-coded amonggovernmentapplication bodies. ofthee-forms forms.Electronic The isthe ofthis project purpose government and increase sector thelevel oftransparency. dealings ofcitizens, residents andprivate withthe sector e-website that aimsof a unified toconstruction facilitate the National Portal depends onthe The e-Government Saudi status andelectronic quo.characteristics andgovernmentthe businesssector andtheirmajor sector provided government to services important individuals, Assessing aimsto government identify themost services Ministry ofEconomy andPlanning,(1) Ministry Development Ninth Plan 2010/11–2014/15. networks totheoutsideefficient world. transportation of oilandgas, andthus low energy prices, aswell ashighly economic advantages to investors suchasplentiful supplies The unique geographic features provide oftheKingdom clear competitive countries strategic whichattract investments. to is striving The become Kingdom one of the world’s top ten Enhancement oftheInvestment Environment • • • • • is reflected through the following basicprinciples economic Arabia ofSaudi freedomThe that supports policy Investment Climate Economic Freedom andtheEnhancement of components of theinformation community” economy andenhancement ofthe knowledge-based Plan whoseeighth stated is objective orientation toward“the to Development implementplans ofthesesectors theNinth development ofprograms oftheoperational andprojects will beadopted inthisdomain. This willberealized through indicators that of these sectors measure the performance be efficiently executed. shallbe identifiedPriorities and national policiesandgoalsadopted by shall allsectors andinformation-basedbased onaknowledge community, the context of full transformationIn of the existing economy • • • • • • • • • • Monetary reforms. Monetary Encouragement ofexports. Privatization andenhancement oftheprivate sector’s role. Encouragement offoreign investment andcapitalinflow. and private levels. sector changesandeconomic adaptationstructural at government economicDomestic reform whichspansrestructuring, report). are projects of this mentioned in various sections (These Abdullah FinancialKing inArriyadh District Abdullah Initiative forKing Arabic-Digital Content Abdullah ProgramKing for Education Development Abdullah ProgramKing for Scholarships University) Saud Corridor Knowledge (King Riyadh Science Park (KSSP) Riyadh Techno University Saud and King Valley (RTV) national strategy for industry. The areas ofthe new industrial projects according to the Commission for theDevelopment ofArriyadh). Riyadh Technology (the High and Information City Authority). Technology Property zone Industrial inDammam(Saudi based economy include: the foundations oftheKingdom’s transfer into aknowledge- Investment of2010issuedby UNCTAD. Report World. The was Kingdom ranked eighth inthe World was rankedIt Middle Eastandthe Arab firstinthe GeneralBank Index of the Ease of Doing Business. ArabiaSaudi was ranked eleventh inthe2011 World (1) . 75 Investment Climate in Arriyadh 2014 76 The High Commission for the Development of Arriyadh See: www.modon.gov.sa(1) See: • • encourage andpromote investment sector: intheindustrial The Government Arabia ofSaudi offers many incentives to Incentives Investment for Sector Industrial index and49%inthefreedom of investment index. 99.6% inthefiscalfreedom index, 74.4%inthelaborfreedom has achieved 84.6%intheoverall businessfreedom index, According to Foundation theHeritage Arabia Saudi Index, been relatively modest. has sector of therecent onthebanking globalfinancialcrisis economic growth hasslowed inrecent years, buttheimpact is competitive, and the overall tax burden is low. Overall become more streamlined and efficient. The tax regime overall environment regulatory for businessformation has fiscal, andbusiness freedoms. indicated thatThe the report that Arabian the Saudi well economy in trade, performs The Foundation Heritage at thebeginning reported of2010 • • • freedom andimprove theinvestment climate Following are theprocedures economic that support • • surplus: procedures would leadto anefficient useofthefinancial resulted from record highoilprices. The following setof ArabiaSaudi enjoys large whichhave financial surpluses Surpluses Finance Investment Mega Projects through Financial climate. efficiencies willbeachieved through an attractive investment andacommitment to greateropportunities economic clusters, industrial dynamictraining routes, state-of-the-art The newcommunications infrastructure, newtransportation stimulant to sustainabledevelopment. education andITwillconstitute aninevitableandvital such as health care, industries Focus on knowledge-based reach. of 250 million consumershuge markets all within three hours Arabian based railways will provide and airways access to hubbetween theeastandwest. Saudi transportation ArabiaSaudi hassetupplansto become alogistics and economies. andwater are allvitaltoelectricity andglobal theSaudi of crudeoil, ofpetrochemicals, basicindustries minerals, related industries. This recognizes that theproduction to become theglobalcapitalofenergyseeking andenergy- To takeadvantage ofitsnatural resources, Arabia Saudi is Investment opportunities inindustrial, residential,Investment opportunities areas. persquare at oneRiyal meter intheindustrial Rental starts stable countries in terms of currency) stable countries interms ofcurrency) Arabia (Saudi isoneoftheworld’sCurrency stability most Generous financialincentives Advance environment regulatory Engaging theprivate ininvestment sector management. surpluses. A binding national plan for anefficient use offinancial (1) raw materials, energy andhuman resources. additionthereIn are otherassumptionsrelated to markets, level? competitive climate at theinternational oftheKingdom global conditions? Will clusters industrial create sustainable economy? Is this experience productive in light of the recent clusters these industrial Do contribute to diversification of and studieswhichhave raised a number ofassumptions: through categoriesindustrial intheKingdom careful analysis hasdevelopedThat for maincriteria policy identifying meet aspirations of the state andinvestors. required for the establishment of competitive to projects competitive advantages such as energy and raw materials categories haveIndustrial in areas been selected of enhance theKingdom’s resources. economy, through development oftheseclusters which fornew industries ofdiversification thepurpose Saudi of clustersof industrial to develop and promote a number of adopted theprogram intheKingdom The policy industrial ClustersIndustrial • • • • • • • • • • • • services by BOTservices system. indevelopmentInvestment andoperating opportunities for(ready) factories rental. ofinvestmentThe possibility by establishment ofmodel tariffs andindustrial electrical Supported Affordable land. andindustrial services as roads andelectricity. The State’s commitment to such provision ofmainservices Tax-free andequipment. machinery Tax-free raw materials. project. Financial facilitiesandloansupto 50%oftotal cost ofany complexes). security, government shoppingmalls, services, apartment (water,development ofotherservices cities, industrial smart Integrated infrastructure alongwithcontinuous Proximity to domesticandinternational markets. meters). (total existing andfuture area industrial isbillionsquare Availability ofmultipleareas inallregions oftheKingdom website. applicationsubmitting theelectronic ontheAuthority’s from period thedate of oflandiswithinashort Delivery commercial, andtechnical areas. service prices start from persquare oneRiyal prices meter. start atEnergy 12.5halalaperlitre, costs start andland cubic meter. atallotted SR 1.7 per for industrial purposes starts at 12halala/kilowatt,cost whilecost starts ofwater encouraging to industrialinvestment. Electricity water, energy) intheindustrialcitiesare highly (electricity,Land prices andinfrastructure services and by-laws that organize organic agriculture inaccordance after the second Arab country Tunisia insettingregulations organic agriculture is also significantSaudi and Arabia is education andagricultural Development extension. of work andrequirementssupporting marketing, ofproduction, alsoenhances theroleIt ofcooperative associations in andbeekeepingprojects.fish farming) andvariousagricultural,farmers (including livestock, fisheries to more thanSR21billionto provide appropriate loansto Agricultural Investment Fund anditscapitalwas increased the nameofAgricultural Bankwas converted into the special care to the agricultural locally. sector On this basis Agricultural investment is also embodied in paying policy stable prices offood materials at asustainablebasis. This willconsequently prevent any future food andkeep crisis intheKingdom. security wheat, barley, soy beansandlivestock inorder to ensure food strategic stock ofessential commodities includingrice, accordance withastrategy whichendeavours to supply living for citizens andrealizes food security. This isdonein food involves crisis. It appropriate procedures, ensures good Investment Abroad through a vision that addresses the in theinitiative Abdullah for ofKing Agricultural Saudi The recent oftheagricultural investment policy isreflected Agricultural Investment Policy • • • • • program ofdevelopment clusters: ofindustrial Five categories industrial have within the been selected Construction Vehicles Packaging plasticindustry Hardware equipment andelectronic manufacturing Metal the entire Arab World billion, whichrepresents 25.8%ofthetotal investments in among Arab countries, investment attracting $47 worth for theyear inquestion,where was ranked first theKingdom is quitemarket evident as affirmed by the UNCTAD’s report legislation.modern Flow of foreign investment to the Saudi to flow toWTO memberswhoprovide free and markets to studies by UNCTAD, most international investments tend favourable conditions to investment attract flows. According The execution oftheinvestment agreement willcreate access to globalmarkets. will haveAdditionally better andservices products Saudi eventually creates for nationals. moreSaudi job opportunities to more attracting domesticandforeign investment and economyof theSaudi intheglobaleconomy, contributes The Kingdom’s accession to the enhancesWTO theintegration EconomySaudi oftheKingdom’sThe Impact Accession to WTO onthe (WTO) The Kingdomandthe World Trade Organization Report ontheInvestment Climate intheArab(1) Report World, 2013/14. Other positive outcomesOther related to issuesofanti-dumping, The issueandmodification of economicvarious regulations. firms. insurance companies, andestablishment offinancialservices The increase inthenumberoflocalbanks, cooperative seenin: clearly Positive outcomes oftheKingdom’s accession to areWTO International Federation ofOrganic Agricultural Movement. with circumstances andconditions ofthe oftheKingdom (1) . 77 Investment Climate in Arriyadh 2014 78 The High Commission for the Development of Arriyadh (3) Ibid. 2011. (2) SAMA, 47thAnnual Report, (1) From ofDr. theinterview Fawzi Alalami, previous president team oftheSaudi for negotiation in WTO, www. requirement. Paragraphs 14 12 andEofArticle C of Article the RulesofCorporate Government to make itamandatory Financing IXof amendedparagraph Rules. It EofArticle CMA and Counter-Terrorist issued Anti-Money Laundering 25and30of theListingRules. and amendedarticles implementation ofregulations by theadditionofnew terms, CMAthe capitalmarket. amendedtheterms usedinthe update therules, regulations andbylaws whichregulate The (CMA) Authority Capital Market continues and to enact Development oftheStock Market Arabia’sSaudi Capital Market systems» andmonitorinternational financial standards that supervise shallbemaintained strongsector enoughby application of rapidly move to othercountries, thusfinancialandbanking a significant challenge. may of anyFinancial crisis country trade,of liberalization may offinancialservices represent freedom, economic globalization, that includesconvention approach and policies oftrade liberalization andeconomic At the time global developments reconcile Arabia’s with Saudi trade. financial services faces inlight of lawsWTO andthecontinued liberalization of addition to the challenge In and financial sector banking “the developing countries» of of economic andtrade protectionism againstexports inglobalmarkets, inlightquality ofthegrowing trends low cost production and improvement products ofSaudi entails following mechanismsresulting bestproduction in inthedomesticandinternationalproducts markets. That ”was challenged to increase competitiveness of national After the Kingdom’s accession to WTO, economy the Saudi WTO The Latest Update ontheKingdom’s inthe Membership for example: the Kingdom’s obligationsfrom arising itsaccession to WTO, Concerned government bodiesstillwork onimplementing for exports localSaudi opening to world and the imposition of lower markets tariffs becameamemberofthe Kingdom until nowWTO dueto increased by 20%annuallysince exports the non-oil Saudi largest world economies. jointheGroup of deservedly Twenty whichincludesthe isrankedThe 18thinterms ofGDPvalue Kingdom to value and16thinimports. world export offoreignterms ofattraction investment, ranked 12thin isrankedThe eighth amongworld Kingdom countries in economies inthebusinessenvironment. isranked being67thamongworldThe 11thafter Kingdom fees for national products. toThe negotiate ability withmemberstates inorder to calloff Commission ofCommercial Disputes intheOrganization. measuressubsidies andcountervailing through the aleqt.com. (3) . (1) (2) . . • • • • • • • • • show thefollowing: Statistics Stock of the Saudi Exchange (TADAWUL), 2014 have requirement. beenamendedasamandatory (5) SAMA, Economic Developments through the3rd of2012. (4) SAMA, TADAWUL Website: www.tadawul.com,sa executed andtheirvalue 2011/12. during The following two tablesshow numberoftransactions until (February 2014) According to latest data available Stock ontheSaudi Market billion for 28,967,694transactions. 52.501 million. The value market of the shares was SR 1,369 The total value of28.967mlliontraded shares stood at SR Number oftraded corporations was 161. Change level was -1,734.35point at 25.5%. The closedat market 8,535.6points. The market’s lowest point was 6,860.01. The market’s highestpoint was 8,561.84. The openedupwith6,801.22points. market education center. The CMA hasalsolaunchedanonlineinvestors’ • • • • • • including: the CMA hasissuedanumberofbooklets oftheinvestor As part awarenesse-mail. program citizens and provides answers by phone, faxand inquiries and complaints from the media and interpret thenews andthedecisions. alsoreceives It The CMA publishesinformation to explain and access to information. website to ensure that investors have convenient and decisionsissuedby theCMA council onits The Capital Market Authority (CMA) publishesnews Financial Investments andStock Markets litigation ofsecuritiesdisputes The to Guide the trader with regard to the ofInvestmentGlossary Terms How to filea complaint Investor’s to Guide Retirees toA Guide Young Investors (5) . (4) (2) TADAWULWebsite. 2012/14Statistics. Authority: (1) Capital Market applicants for housingreached 960,397.620,889ofthemare ofHousingshowed that numberof Statistics by theMinistry The Demandfor Housing are specialized inreal estate investment anddevelopment. their services. They are managed by theprivate and sector enjoy the confidence ofdifferent groups benefiting from are joint Saudi stock companies, whichare welland known estate bureaus andreal estate companies. ofthelatter Some The real real estate comprises two main sub-sectors: sector buildingmaterials andcontracting sectors. particularly with approximately oftheeconomy, 80-100sub-sectors The real estate hasforward andbackward links sector contributes 7.2%to theGDP. Global Investment House estimates that thereal estate sector rate of7%until theendof2012. The by studyconducted The real maintained agrowth estate intheKingdom sector Real Estate Investment, Companies andFunds Hotels and TourismHotels andPressMedia Transportation Real EstateReal Development Building andConstruction InvestmentIndustrial Companies Multi-investment Insurance Communications andIT Industry Agriculture andFood Services Energy andUtility Retail Cement Petrochemicals Services andFinancialBanking 2011/2012 2009/10 2010/11 2012/13 2013/14 Year Sector Total No. ofShares Transactions 28,967,694 57,416 33,526 48,723 83,282 52,502 2,270,406 1,391,109 1,808,681 8,311,470 1,430,805 2,269,124 2,555,669 2,358,155 2,462,284 1,407,098 695,378 378,676 672,497 821,993 134,349 Indicators oftheStock Market 2009/10–2013/14 (%) of Total(%) Value of Traded Shares Traded Shares 2013/14 by Sectors 100.00 28.69 2.40 1.31 2.32 7.84 4.80 6.24 2.84 4.94 7.83 0.46 8.82 8.14 8.50 4.86 (million Riyals) 1,264,012 1,098,837 1,929,318 1,369,665 759,184 52,501,945,771 11,053,991,087 Traded Shares 1,252,719,118 2,252,829,799 2,005,153,228 1,717,246,022 6,395,682,186 5,874,188,372 2,785,443,829 2,032,184,533 3,195,023,017 6,017,852,661 6,433,494,997 536,636,585 285,520,275 663,980,062 Ministry ofEconomy andPlanning,(3) Ministry Development Ninth Plan 2010/11-2014/15. government representing sector 59%,entreprenuers made the private representing sector 21%,and366,301from the and 33,935 females representing 5.5%. 130,119 are from eligible applicants dividedbetween 586,954males94.5%, Annual Average Development of theNinth Plan Total Development HousingUnitsoftheNinth Plan Unitsto ofHousing EaseInflation Lease.10% Reserve Housing UnitsRequired for Replacement ofOldHouses. Five-Year Plan Housing Unitsfor thedemandbrought forward from theEighth New HousingUnits(Non-Saudis) New HousingUnits(Saudis) Market Shares ValueMarket (billion Riyals) (%) of Total(%) 1,196 1,325 1,271 1,400 1,752 100.00 21.05 12.18 11.19 11.46 12.25 1.02 0.54 2.39 4.29 3.82 3.27 1.26 5.31 3.87 6.09 Demand for the Housing During (2) Ninth Development Plan (Thousand units) (Thousand Values of Traded Shares (SR) (1) 1,369,665,791,887.90 147,941,052,585.65 266,838,366,919.45 196,355,844,692.05 132,758,178,038.75 33,371,986,181.95 13,386,648,704.20 33,555,031,057.60 54,670,531,740.65 79,878,738,582.65 33,736,844,613.30 90,017,089,898.65 93,286,583,492.10 98,379,057,541.30 85,882,253,944.20 9,607,583,895.40 Transactions Number of 36,458,326 19,536,143 25,546,933 42,105,048 28,967,697 (3) Indicator 6,121.76 6,620.75 6,417.73 6,801.22 General (%) of Total(%) 8,535.6 100.00 10.80 19.48 14.34 2.44 0.98 2.45 3.99 5.83 2.46 6.57 0.70 6.81 7.18 6.27 9.69 1,250 250 110 200 800 70 70

79 Investment Climate in Arriyadh 2014 80 The High Commission for the Development of Arriyadh males and6.2%females representing 20%oftheKingdom’s total madeupof93.8% Total eligible applicants Region inArriyadh was 122,747 47.2% andtheover-40s 31.16%. those between 25and2921.59%,the30to 39age-group Applicants intheunder-24 agegroup represented 1%,and other professions. 0.7%, 38,937retirees representing 6.3%and66,915from up 14,546 representing 2.3%, 4,070 students representing The Emergence ofJoint Stock Estate Real Companies sector are tosector expected build80%ofthenewhouses Housing Authority, Estate theReal Fund andtheprivate housing atthePlan 1.25millionunitsduring term. The Public The Development Ninth Plan estimates thedemand for (4) Aworksheet presented by thePresident Estate oftheReal Commission intheCouncil Chambers ofSaudi ofEconomy andPlanning,(3) Ministry Development Ninth Plan 2010/11 - 2014/15. (2) Dr. Adnan years: for Al-Shiha, twenty HousingDemand www.psclg.org.sa thenext ofHousing, 2014. (1) Ministry Abdullah EconomicKing City. company, and Asir Company has teamed up with Emaar in recently announced itsintention to establishareal estate to establish real estate divisions. As an example Savola Group, in non-realcompanies working estate have sectors decided companies are already inplace, whilesomeotherlarge farseven So joint stock oftheKingdom. real estatehistory companies inamove that isconsidered thelargest inthe Several real estate companies to shifted publicjoint stock abreast developments ofmarket andchanges. develop their business systems andmechanisms to keep ofsome existing tocompanies theefforts to professionally public andclosedjoint stock real estate companies, inaddition The real estate haswitnessedthelaunchofvarious sector hectares athectares theendof2025 The demandfor residential areas to isexpected reach 24,143 well ofhousingsuchasindependent duplexes. asothertypes The cumulative as villasisontherise numbersofmodern decreasing isincreasing. while thedemand for apartments to thestudy, thenumberoftraditional housingunitsis atthe sameperiod about1.1millionhousingunits. According The studyestimated thenumberofdwellings to berebuilt in average annualincrease ofabout145,000units. of 20 years a period 2.9 million during from 2005 to 2025, an tofor isexpected grow newhousingunitsintheKingdom to FaisalPlanning at King University revealed that thedemand andRegional ofUrban bystudy conducted theDepartment The demandfor housingisgrowing significantly. A recent during theFirstduring InternationalConference ontheDevelopment Estate andReal Investment, Syria. 2013. exceeds SR82billion in three years from 2011to estimated at estate SR484billion.Real investment ofnew housingunitsoverconstruction ten years is units per year. The funding required to finance the for housingof2.62 millionunitsto 2020,262,000 The Council Chambers estimates of Saudi a demand (1) . (2) . (3) . (4) a paid-upcapitalofaboutSRtwo billion(US$533million)as billion (US$533million)inaddition to United Company with another real estate company with apaid-upcapitalofSRtwo a missionto develop real estate invariousforms. Tarabuh is with apaidupcapitalofSRfive billion(US$1.3billion)with real estateOther companies include Yamama Estate Real tourism buildingsofhighandinnovative quality. and commercial, administrative, industrial, recreational and work on the development of real estate projects, residential development ofthereal estate Arabia inSaudi and sector is to launchreal estate giants whichwillcontribute to the have acapitalofSR17billion(US$4.3billion). The objective billion (US$7.2billion). The largest ofthefive companies will The total capital of the five companies will be around SR 27 meeting the requirements Authority. of the Capital Market launched and offered to the public and investors upon was announced that fiveIt real estate companies will be ofthestock to partners. eventually selective sellportions division withover SR700millionofcapital. SAVOLA will on thestock announced market establishingareal estate Savola Group Joint whichisaSaudi Stock Company listed 8 billion). withatotal investmentin theKingdom ofSR30billion(US$ City asthefirstSmart EconomicKnowledge inMadinah City SR 9.1billion(US$ 2.4 billion). This iscurrently building the EconomicKnowledge Company, City whichhasacapitalof special economic areas. and land andinfrastructure in addition to other land in (US$ 2.3billion).Emaroperates inreal estate development Emar Economic City, withapaid-upcapitalofSR8.5billion ofcommercialconstruction andresidential buildings. buying andowning real estate, land, general contracting and capital ofSR10.8billion(US$2.9billion). This in isactive Estate Real DevelopmentDar Al Company Arkan witha located to thewest oftheHolyMosque. for anddevelopment theconstruction of JabalOmararea SR 6.7billion(US$1.79billion). The Company isresponsible The JabalOmarCompany operates withapaid-upcapitalof eventually besoldoutorleased. buildings, office and residential buildingswhichwill anddevelopmentconstruction offacilitiesandcommercial capital ofSR1billion(US$266million).ADCO works onthe DevelopmentArriyadh Company (ADCO) withapaid-up Mosque. focuses onthedevelopment ofthearea around theHoly paid-up capitalofSR1,488billion(US$396.8million).Makkah andDevelopment Construction Company witha Makkah capital ofSR1.5billion(US$400million). Taiba Development andInvestment Company withapaid-up million (US$160million). Estate Real Saudi Company withapaid-upcapitalofSR600 real estate sector: Eight companies listed in the capital market work in the service sectors. service They employ technology intheservice The commercial Saudi banksare at theforefront of and effectiveness of regulations. that isrecognised internationally for ofservice thequality system Arabia ofSaudi banking The hasamodern Kingdom intheKingdom The Quality Level Services ofBanking SystemBanking Development EstateReal by Alrajhi Finance. Estate Real FundAl-Qasr by French theSaudi BankandAlrajhi Financial Company, Fund KASB of Taiba Estate Real Company, Funds by SAMBA,Estate theGlobalReal Fund by Riyadh Aqar Fund Estate whichisowned theReal by Albilad Bank, Examples of the recently established real estate funds are: financial companies licensed by the Market Capital Authority. by commercial andother banksoperating intheKingdom, Several real estate investment fundswere recently launched anddisclosurewith thetransparency requirements. funds to protect theshareholders andto ensure compliance to theapproval oftheCMA. The CMA monitors thereal estate onrealCommerce estate joint stock fundsprior andIndustry regulations of stipulated theapproval oftheMinistry of offering real estate investments to thepublic. The new 220 dated 26/9/2005whichsetsuptheterms andconditions funds basedontheCouncil Number Resolution ofMinisters organizes, regulates andcontrols real estate investment The (CMA) Authority Capital Market which hasissuedadraft The Emergence Estate ofReal Funds billion (US$266million). Development Company withapaid-upcapitalofSRone jointa Saudi stock company,Real Estate andfinallytheLine providing debitandcredit transactions. services these institutions, includingafullrange ofsupport or outside the Kingdom. The to connected is directly network international institutions suchas Visa andMasterCard inside aswell. services of banking includesupport These services entire Payments Saudi Network. The provides network other to provide for the highest levels users of the of support SPAN andATM whichputmore networks burden onbanks year on year. Bank clients are increasingly relying on the of operations cards, andnetwork POSandATM isgrowing objective. Forachieved itsprimary example, thetotal number isobvious that payment theelectronic It hasfully network sector.in thebanking retain customers and attract in light of the tough competition to services software. Banksstrive to provide state-of-the-art aswell astheimprovementtelephone services ofbanking over the years, driven by the evolution of communication and operations are banking steady experiencing Electronic growth of internet banking. government fees, bills, utility trading ofshares andprovision transactions, inadditionto thepaymentmost banking of have expandedservices inthepast20years to include cash withdrawals andmoneytransfer. The banking electronic through ofwhichare bankbranches, themostimportant for individualswhichwere service previouslybanking made for Agency theprovision Arabian ofelectronic Monetary Payments (SPAN) Network undertheauspices ofSaudi The year 1990/1991 witnessed the inauguration of the Saudi systems intheworldbanking inthefieldof technology. itoneofthemostsophisticated commercial making services, applications ofadvanced technologies inthefieldofbanking of itscustomers, andinvest hugesumsofmoneyfor the 81 Investment Climate in Arriyadh 2014 82 The High Commission for the Development of Arriyadh (1) SAMA, Economic Developments, 2012. • • • • • • • Performance Sector Indicators oftheBanking • • • Arabia:Saudi The following national and foreign banks arein working The NumberofNational andForeign Banks (SR 1.6billion)to SR209.9billion.Capital rate andreserves Capital ofcommercial andreserves banksdeclinedby 0.76% SR 146.3billion. 83.4 billion.Netassetsdeclinedby 4.3%(SR6.6billion)to commercial banks increased by 6.3% (SR 4.9 billion) to SR (SR 1.7billion)to SR229.5billion. Total foreign liabilitiesof Total foreign assetsofcommercial banksdeclinedby 0.7% by 3.9%(SR 36.5billion)to SR973.2 billion. Total bank credit provided increased by economic activity credit increased by 8%(SR18.1billion) to SR243.5 billion. 4.4% (SR7.4billion)to SR173.7billion.Also long-term bank to bankcredit SR555.9billion.Medium-term increased by bankcredit increasedShort-term by 2%(SR10.9billion) banks depositswas 18.2%. of thegovernment to andsemi-government total sector 6.2% (SR14.1billion)to reach SR214.5billion. Total liabilities government decreased andsemi-government sector by 81.8% whiletotalliabilities ofcommercial banksofthe banks oftheprivate to total sector banksdepositswas (SR 31.9 billion) to SR 965.3 billion. Liabilities of commercial commercial banksoftheprivate increased sector by 3.4% amounted 100.3% oftotal banksdeposits. Total liabilitiesof commercial banksfor bothgovernment andprivate sectors by 1.6%(SR18.2billion)to SR1,182.9billion.Liabilitiesof and private (bankcredit sectors andinvestments) increased Total liabilitiesofcommercial banksfor bothgovernment increased by 16.6%(SR27.5billion)to SR193.1billion. quasi-moneydeposits billion) to SR293.8billion.Other billion. Time andsaving depositsdippedby 4.9%(SR15.1 of depositsunderdemandby 1%(SR6.9billion)to SR692.9 a review ofdeposit components shows by type anincrease Total bankdepositsto total moneysupply(M3)was 90.1%. SR 1,179.8billion. Total bankdepositsincreased by 1.7%(SR19.3billion),to of2014. quarter illustratesThe report economic developments inthe first inSAMA.Economic Research andStatistics Department recent years according to latest data issuedfrom General hasachieved sector goodgrowthThe banking rates in mother banks. These banks are branches and representatives of the China Bank). Bank ofPakistan, State BankofIndia, T.C and Ziraat Bankasi BNPParibas,Bank, National Bank, JPMorgan andDeutsche Kuwait, Muscat, Emirates Bahrain National Bank, Dubai National Bankof GulfInternationalBank, Arabia, namely; Eleven Arab andforeign branch banksare present inSaudi Investmentand Saudi Bank. Arab NationalAl Bank Jazeera, Bank, Hollandi, Inma Saudi SAMBA, SABB,Bank, Fransi, Saudi Albilad, Riyadh, Al Rajhi, Twelve national banks which are National Commercial (1) • • • were issuedwithatotal value ofSR40.4billion. cheques value ofSR138.2billion.217.2thousandcertified company chequesissuedwas about1.4 million with atotal million at atotal and value ofSR178.7billion. Individual house(outgoingin clearing andincoming) was about1.6 was more than90.1thousand, whilethenumberofcheques from localbanks15.3million. The numberofPOSterminals of ATMs was 12,431andthetotal numberofcards issued million withtotal salesofSR31.1billion. The total number Total executed transactions through POSreached SR60.2 network. 157.5 billionwithinbanksandtheSaudi reached SR328.3millionwithtotal cashwithdrawals ofSR banks SR12,220.6billion. Total executed ATM transactions payments SR986.9 billionandtotal payments between Total scheduled payments SR332.1 billion, total customers SARIE Service. Total payments reached SR12,875.4 billion. messages containing about14.7millionmoneytransfer via (SARIE)was SR13,211.7 billion through 1.6million Service Total value ExpressArabian of Saudi Interbank Riyal 1,649.4 billion,anincrease of1.8%(SR29.9billion). Total assetsandliabilitiesofcommercial banksstood at SR 1,676 branches with a growth rate of 0.4%(seven branches). number ofcommercial increased banksintheKingdom to Profits ofthe commercial banks were SR7.9billion. The of commercial banksto total banksdeposits was 17.8%. Ministry ofLabourwebsite: www.emol.gov.sa(1) Ministry in theyellow band. The is to objective make Saudization an Saudization rate, andgives longer timeto categorized firms with the deals firmly red band that is of low the Ministry bands are rewarded beingthehighestinSaudization while excellent, green, yellow andred. excellent Both andgreen and categorize of firms them intothe performance bands: of Labor toThis assess is a system adopted by the Ministry Nitaqat System ofLaborwebsite at: www.mol.gov.saMinistry For more information onthelaborlaw, pleasevisitthe • • Advantages • • • • • • • Key provisions and reissued by Royal Decree R/51dated 27/9/2005. Workmen Law. The recent adopted labor law was amended by Royal Decree R/21dated 15/11/1969as theLaborand the private (non-governmental) sector. was firstissued It The LaborLaw governs worker andemployer relations in to theLaborLawIntroduction Law,Labor Nitaqat System andHafez System Ensure that workers are notexploited by employers rights Educate the workers of their duties, responsibilities and relevant penalties. ofwork environmentlabor disputes andinspection andthe additionthereIn are provisions relating to settlement of environments. of women, juveniles and work in mines and other similar upthepoliciesandproceduresSet for theemployment health andsocialservices. of work hazards accidents, andindustrial work and injuries upthesafety policiesandproceduresSet for theprevention conditions andcircumstances.working upthepoliciesandproceduresSet oflaborrelations and procedures andemployers’ responsibilities. upthetraining andrehabilitationSet policiesand uptheemploymentSet policiesofnon-Saudis. employment andrecruitment agencies). Organize therecruitment processes (recruitment units, the KingdomandRelated Procedures Theme Three: RulesofInvestment in (1) bands andat thesametimekeeptheirexpatriate employees. Saudization rates andsomove to thegreen orexcellent and encourage red andyellow enterprises to realize higher will contribute employment to reducing additionalimported and presence. and utilizesmarket from their expertise This expatriates from red and yellow enterprises within the labour their businessdevelopment; facilitates contracting with which are willing to hire Saudis, by issuing new visas for within the firms excellentsupport and green categories ofLabourworksThrough to System Nitaqat theMinistry their banding. medium rate of Saudization, are given some time to improve categorized in the yellow band, considered to have realized a of the total number ofenterprises.one fifth Enterprises rate andthoseclassifiedinthe red banddoesnot exceed (green and excellent), of low Saudization while the minority encourage. Halfofthemhave realized goodSaudization rates Enterprises have beencategorized inaway to stimulate and be fairwhenevaluating theirperformance. inorderof enterprises whichare to similarinsize andactivity of five sizes with225classes. Eachclass consists ofanumber The system into market dividestheSaudi eachis 45activities, withothers. comparison oftheirperformance Saudis. Recording theseassessment ofenterprises enables excellent categories are classifiedthebestinemploying are classified weak inthissystem, in whilefirms green and to hireefforts Saudis. inthe Firms yellow and red bands or enterprises into four categories inaccordance withtheir citizensSaudi anditmainlydepends on categorizing firms SystemNitaqat ismeant to stimulate enterprises to employ out by enterprises. essential feature ofexcellence andcompetition that issought 10/4/2000. Investment was Act issuedby theRoyal Decree R/1dated authorized underthisAct. capital intheactivities The Foreign the foreign investor for inthe Kingdom theemployment of The Foreign to Investment authority istheregulatory Act The Foreign Investment Act East and North Africa (MENA).East andNorth and the largest free market in the Middle world interms ofregistration ofproperty The isconsidered Kingdom thefirstin reserves, and25%oftotal Arab GDP. profits.It accounts for 25%of world oil income andcompany taxes are 20%ofnet investment. There are notaxes onindividual the bestworldwide interms ofstimulating investment.direct taxregime Its isoneof the mostattractive countries for foreign ArabiaThe ofSaudi Kingdom isoneof 83 Investment Climate in Arriyadh 2014 84 The High Commission for the Development of Arriyadh made by thelicensed activity. the sale of investments or liquidation or the profits of projects Seventh: The foreign investor may retransfer hisshare from enjoyed by anational project. shall enjoy alltheprivileges, incentives andguarantees Sixth: application submissiondate. (SAGIA) days shallprocess from the licenses withinthirty Fifth: owned by aforeign investor. jointly owned by national andforeign investors orwholly Fourth: of foreign investors. guarantees, terms andconditions oflicensing andobligations investment policies, procedures, scope, incentives, Third: • • • • • • • • • national enterprises according to thefollowing terms: shall enjoy benefits, incentives andguarantees enjoyed by to be applied to all foreign investment enterprises. These Second: exceptactivities thoseexcluded. permanentlyortemporarily,Kingdom, inallinvestment First: To license any investment offoreign capitalinthe Key Provisions years reaps inwhichthe entity profits. years andnotto calculate themat taxreconciliation for the forward thelossesrealizedBring by to theentity thecoming Development Fund.Industrial To loansaccording obtainindustrial to theprovisions ofthe employees isrelated to thelicensed entity. The sponsorshipoftheforeign investor and hisnon-Saudi others. Freedom ofmovement and of shares among partners the project. amounts required for any contractual obligations related to obligations. The investor has alsotherightto transfer any tothe entity theoutsideanddisposalofitinany otherlegal share orfrom theliquidationorprofits surplus realized by Retransfer oftheforeign investor’s share from thesaleofhis compensation. exceptwhole orinpart for publicinterest andagainstfair exceptin part by ajudicialresolution orto expropriate in to isnotpermissible confiscateIt investments inwholeor investments signed by theKingdom. taxation andagreements ofpromotion andprotection of The benefitsensuingfrom agreements of avoiding double as issuedby Royal Decree R/15in2000. orinvestmentownership ofproperties oftheseproperties orfor residenceactivity ortheresidence ofnon-Saudis To own real for thelicensed estates conducting necessary 1961. law issuedbyof National Industries Royal Decree R/50in The incentives stipulated intheProtection andPromotion A project licensedA project undertheforeign investment act the Saudi Arabianthe Saudi General Investment Authority The executive bylaws whichconstrue theforeign It is permissible that ispermissible foreignIt investments might be Identification ofbenefits, incentives andguarantees Key Provisions and bylaws that regulate Capital theSaudi Market. investments. The law includesasetofregulations, provisions and administrative framework for the capital market dated 31/7/2003. The Law provides alegalandinstitutional The Law Capital was Market issued by Royal Decree R/30 Capital Market Law sagia.gov.sa ArabianOr theSaudi GeneralInvestment at: Authority www. website: www.commerce.gov.saand Industry ofCommerceFor information please visittheMinistry further entity. workforceSaudi shallbeagainstthelicensed investment Eleventh: 20%. Tenth: incentives andguarantees granted to national investments. Ninth: investment projects. Eighth: cadres. development oftechnically qualifiednational new technologies, aswell ascontributing to the to innovation theKingdom, andapplication of oftechnologydevelopment transfer andsupport economy. This is achieved through technical the national economy towards aknowledge-based foreign investments play asignificant role inshifting Development Strategy is to ensure that direct Among thekey oftheKingdom’s objectives Corporate profitsto amaximumcapof taxissubject Foreign investors are allowed to own 100%ofthe Foreign investments enjoy thefullprivileges, The sponsorshipofforeign investor andhisnon- principles applicable in the Kingdom with respect to withrespect the applicablein the Kingdom principles Enlighten and educate foreign investors on the rules and various kinds. governingprinciples theestablishment ofcompanies of Enlighten andeducate businessmenontherulesand Advantages oftheCorporate Law • • • • Key Provisions ofCorporate Law law iscurrently undergoing several amendments. been issuedby Royal Decree R/6dated 21/7/1965. Corporate the process Arabia.of doing business in Saudi The law has Corporate Law istheframework whichgoverns andguides Corporate Law cma.org.sa For information pleasevisittheCMA website: further www. • • Advantages oftheLaw • • • • • • • • provisions ofthelaw. Identify legalprocedures andpenaltiesonviolators ofthe offices. throughthe Kingdom affiliates, agencies or representative Enforce corporate law onforeign companies operating in themechanismsofmergersDefine andliquidation. and declaration steps. liability, joint jointventure, stock, etc), andtheirlicensing by shares, partnership,limited partnership liability limited ofcompaniesIdentify (limited thetypes liability, simple treatment andprotection ofthedealers. to andtheprovisionwith respect securities offairandequal andinvestorsmarket to ensure disclosure andtransparency The law strengthens confidence and attractiveness of the and committees represented inCMA to settlethedisputes. monitoring role through thecreation ofnewinstitutions role andthe by clearly separating thesupervisory functions anddeterminesof thefinancialmarket, theirpowers and andoperationalinstitutions, entities regulatory, supervisory spellsoutthestructures, clearly It the capitalmarket. The law provides alegalandinstitutionalframework for Penalties andviolations handlingprocedures. uptheproxy,Set purchase andsalesprocedures. companies’ information for thebenefitoftraders. upproceduresSet that prevent oflisted fraud andleakage updisclosureSet procedures. investment andfundswhichare runby portfolios banks. Organize the financial brokerage business as well as the the Kingdom. relatedout transactions to traded depositofsecurities in whichisauthorized to carry intheKingdom sole agency CenterThe Deposit establishment oftheSecurities asthe is incorporated asajoint stock company. which Capital underthenameofSaudi Market the Kingdom The establishment for ofamarket trading in ofsecurities by LaborLaw. theSaudi The CMA personnelandemployment terms are governed The establishment (CMA). Authority oftheCapital Market Advantages • • • • • Key Provisions andFeatures • • Definition Commercial Register Law and Industry website: www.mci.gov.saand Industry For ofCommerce more information pleasevisittheMinistry • • • • • • • Amendments Expected Important Most establishment ofcompanies orjoint ventures. articles oftheCommercial Registration.articles Penalties takenagainsttheviolators oftheprovisions ofthe Terms of cancellation ofregistration. the date ofopening. registration intheCommercial Register within30days from arein theKingdom required by theC.R. Law to applyfor Foreign companies licensed to openabranch oroffice same appliesfor thebranches ofthecompany. days by from apublicnotary. validation ofitsarticles The shall obtain a Commercialthe Kingdom Register within 30 The law also stipulates that all companies incorporated in whether itisamainoffice ora branch office oranagency. to obtainaCommercial Register from thenearest center of possessingacommercial to entity submitanapplication the date ofopening acommercial entity, orfrom thedate 100,000 ormore isrequired to register within30days from According to thislaw, merchant whosecapitalisSR every 18/7/1996. 21/4/1996 andtheCouncil resolution ofMinisters 36dated The C.R.Law was issuedby Royal Decree R/1dated branches). of merchant, ofactivity, type and capital, headquarters (trade name, intheKingdom name any businessactivity provisions governing theregistration ofownership of The Commercial Register (C.R.) Law is a set of rules and articles out of 233 and adds 24 new articles. outof233andadds24newarticles. articles general, ofthenewcorporateIn thedraft law deletes 43 the company’s orothers. financialpositionfrom partners and ormisleadingfinancialstatementshiding or reports senior management andboard false membersfor making The impositionofsevere penaltiesoncorporate executives, to thecorporate law. charge ofinvestigations where there are claimsofviolations The Bureau ofInvestigation andProsecution shallbein disputes from arising the application ofthecorporate law. The Board ofGrievances to and adjudicate inallcivilactions panel ofexperts. through appointment of one or more representatives or a the company’s ofassociation. articles This shalltakeplace enforcement ofcorporate law, theexecutive bylaw and to control andmonitor thecompanies regarding the shallhave ofCommerce theright andIndustry Ministry in thefinancialmarket to oneentity. responsibility ofalllisted companies Assign thesupervisory Company.Liability Allow to asinglepersonorlegalentity establishaLimited 85 Investment Climate in Arriyadh 2014 86 The High Commission for the Development of Arriyadh (1) A commercial agent isthe one who enters into a contract with a producer to distribute the goods and • Key Provisions R/21 dated 5/2/1984. The Saudi Trademarks Law was issuedby theRoyal Decree licensing contracts, joint trademarks andrelevant fees. and placing a lien on trademarks,mortgaging as well as publicizing, renewing, cancelling, transferring theownership, The Trademarks Law setsouttheprocedures for registering, Trademarks Law govern thecommercial agencies The Trade Agencies Law is a set of rules and regulations that Introduction Trade Agencies Law www.mci.gov.saCommerce andIndustry: For more of information visitthewebsite oftheMinistry • • • of Commerce and Industry at: www.mci.gov.saof Commerce andIndustry For more information pleasevisitthewebsite oftheMinistry • • • Advantages • • • • Key Provisions R/32 dated 24/6/1980. amendments thelatest ofwhichwas issuedby Royal Decree Decree R/11dated to several 22/7/1962 and was subject The Saudi Trade Agencies Law was issuedby Royal services oftheproducer againstanagreedservices commission orprofit margin. thetrademark isowned by theowner ofthe which willcarry oranaturalprojects resource orto evidence that theitem or forestsagricultural products orhandicraft utilization if theyare suitableto differentiate industrial, commercial, sign orcombination ofsigns are considered astrademarks signatures, words, letters, numbers, pictures, stamps or any According to thislaw, any distinguishednamesor and any associated rights. The commercial agent shallbeprovided withallobligations The Law shallbecontinuously amendedanddeveloped. regulations oftheLaw. isassigned to ofCommerce issue andIndustry The Ministry and obligations. The law enlightens thecommercial agents oftheirrights ofamendments.series The law isundergoing continuous improvements through the executive bylaws. issues of Commerce andIndustry Mandate oftheMinistry laws andregulations. The law outlinespenaltiesassociated withviolations ofthe The law states theobligations ofthecommercial agent. as well aslicense termination procedure. The law outlinesthelicensing procedures for trade agents Saudis. of such companies and their authorized signatories must be owned by Saudis, andallmembers oftheboard ofdirectors assuming therole ofthe Trade Agencies mustbefully a Commercial Register, that thecapitalofcompanies The law stipulates that the Trade Agent with mustbeSaudi (1) . • • • Advantages • • • • • • • required. to issue the executive bylaws andissueamendments as The law ofCommerce authorizes theMinister andIndustry obligations andresponsibilities. Enlighten thosewishing to register trademarks oftheir that provide reciprocal treatment. exhibitions whichare hosted orcountries by theKingdom trademarks ofitems presented innational and international including the procedures protection of of temporary The executive bylaw that construes thelaw isinplace, law. penalties associated with violating the provisions of this Penalties associated withfraudulent trademarks andother Fees required for theregistration oftrademarks. The consequences for theregistration oftrademarks. as atrademark. The conditions that determine what cannotbe registered on trademarks. transferring the ownership, andplacing a lien mortgaging Procedures for registering, renewing, canceling, requesting renewal. for ten years and may to be extended upon a similar period The rightsoftheowner oftheregistered trademark continue which have reciprocal relations withtheKingdom. works,trade orhandicraft foreign nationals ofcountries residing whohave intheKingdom to permission undertake register trademarks: naturalized orlegalSaudis, foreigners According to thelaw, thefollowing groups are allowed to or trading orasevidence ofproviding aservice. trade for mark thesakeofprocessing, purifying, inventing accordance withtherates prescribed inthetariff.It facilitates goodsisin which definesthecustoms dutiesonimported and itsstability. toharmful society The economic objective offensive or to publicmorality Muslim faithor to the contrary demonstrated by preventing ofcontraband that is theentry intheKingdom ofthecustomsobjectives policy The Customs Law embodies the religious and security Advantages • • • • It shouldbenoted that theKingdom’s(1) It accession to theConvention onthe World Customs Organization • Key Provisions was issuedby Royal Decree R/9dated 5/7/1973. goods for the welfareimported ofcitizens. The Customs Law cancellation of customs or reduction duties on many These are governing asetofprovisions the andarticles Customs Law www.mci.gov.saof Commerce andIndustry: For more information pleasevisitthewebsite oftheMinistry • • Advantages • • • • • Key Provisions by Royal Decree R/45dated 13/7/1989. issued by Royal Decree R/37dated 24/3/1964andamended checks) intheKingdom. The Commercial Paper was Act of dealingwithcommercial notes and papers(promissory These are asetofrulesandprovisions governing theprocess Introduction Commercial Papers Regulations www.mci.gov.saof Commerce andIndustry: For more information pleasevisitthewebsite oftheMinistry exported goods exported ofzones designated and Directory for depositingimported ofunloadinggoodsinthe customs zones Directory precious goods particularly to ofgoodswhichare provisions subject Directory duties provided theyare re-exported goodsfree of ofimported entry oftemporary Directory tariffs between the countries ofthe Arab League League countries to facilitate trade and transit trade standard since 1953, in addition to scale of making made undertheRoyal Decree R/68dated Arabia 3/2/1973.Saudi hasalsoheldanagreement withtheArab Harmonized System was in1990,andmembershipoftheCustoms Cooperation Council inBrusselswas Tariff laws applied Saudi by the Customs of non-compliance. with dealing with commercial papers and the consequence Enlighten dealerswith therights andobligations associated the law whichwillbeamendedasrequired isinplace. An executive bylaw to construe theterms andconditions of obligations of commercial note or check) paper (promissory The penaltiesassociated withnon-fulfillment ofthe note. ofthecheckorpromissory distortion matters related to of multiple copies production and holderand rights theofcheckorpromissory Define acceptance andfulfillment ofobligations andthetimeframe. note andcheck List theconditions ofthepromissory notes.endorsement ofchecksandpromissory List theprocedures associated withthecirculation and data for theiracceptance. note andthechecknecessary thepromissory Define (1) . dated 7/3/2004 The newIncome Tax Law was issuedby Royal Decree R/1 citizens.Saudi owned by andnon-Saudis, for theSaudis inadditionto Zakat the process taxes ofcollecting from companies andbanks The Income Tax Law is a set of rules and provisions governing Introduction Income TaxLaw www.customs.gov.sa For more information Customs pleasevisittheSaudi website: goods. imported customs dutiesorimposeslow customs dutiesonsome goals, aimsto exempt essential consumer commodities from procedures,export protects national industries, andsocial (2) The taxlaws oldIncome were issuedby Royal Decree 17/2/28/3321dated 2/11/1950. • • • • Key Provisions allowances, research anddevelopment anddepreciations. that are notallowed baddebts, asdeductibles, reserves, business are allowed as well as expensesas deductions) or accrued, to and normal running the that are necessary Determination ofbusinessexpenses (allexpenses, paid incidental income less taxexempted income anddonations. including capital gains and any in the Kingdom, out activity andofanytype form ofpayment resulted from carrying Taxable income includesallincome, profits, gainsofany upthetaxbaseandrates Set intheKingdom. gas, oilandhydrocarbons.. work inthe fieldofinvestment ofnatural andproduction to taxfromsubject asource andthosewho intheKingdom, establishment, thenon-resident whohasotherincome throughnon-resident apermanent activity whopractices the intheKingdom, resident whoisengagedinanactivity capital company non-Saudi onshares partners, ofnon-Saudi The following to are income tax:theresident allsubject (2) . 87 Investment Climate in Arriyadh 2014 88 The High Commission for the Development of Arriyadh • Key Provisions dated 5/8/1965. R/29 on27/1/1964andwas amendedby Royal Decree R/3 Saudi Weights andMeasures Law was issuedby Royal Decree size and area) and their application in the Kingdom. The the adoptionofstandard decimalunits(length,weight, This law is composed of a set of rules and provisions governing Calibration andStandards Law • • • • • • • • • • are: economic development. ofthesemerits The mostimportant investment and strengthen the role of the private in sector favorable investment foreign climate attract in the Kingdom, The new tax law has many advantages which aim to create a Merits • (length: meter anditsunits;weight: anditsunits; kilograms thestandardDetermine decimalunitsintheKingdom gov.sa and Income of Zakat Department Tax website: www.dzit. For more information onthetaxsystem pleasevisitthe Grievance Board forKingdom thefirsttimein therightoftaxpayerImplementing to appealto the tax declarations) measures to prevent taxevasion andirregular provision of Enhancement (clear ofthemechanismtaxcollection andtaxpayers.department Clear identificationrights oftheanddutiestax taxforEndorsement ofdeduction thefirsttime Adoption ofself-allocation approach Adoption ofgroup andaccelerated assetsdepreciation forward lossesfor anunlimited numberofyearsCarrying Adoption ofmoderate taxrates andtransparency Clarity investment tax. companies, capitalandfinance companies andnatural gas for determining the tax base and taxrulesonpersonal therulesoftaxaccounting,Define andadditionalrules sama.gov.sa For information please visit SAMA further website: www. • • Advantages • • • • Key Provisions andFeatures dated 1/8/2003. The Insurance Law Saudi was issuedperRoyal Decree R/32 insurance, caraccidents, aviation andgoodsetc. insurance whichincludeshealthinsurance, market fire The law framework aimsat settingaregulatory for thelocal Cooperative Insurance Law 25/3/2001. Decree R/33of29/11/2000andbecame effective on R/22 dated 15/11/1969. The Law was amendedby Royal Insurance LawThe Social Saudi was issuedby Royal Decree subscriptions. that settheframework for socialinsurance enrolment and Insurance LawThe Social isasetofrulesandregulations Saudi InsuranceSocial Law Trade website: www.mci.gov.sa andIndustry For of more information onthislaw pleasevisittheMinistry • • Advantages • • consulting bureaus andinsurance auditingbureaus. provided by specialized companies, brokers, agents, improvementAchieve further ofinsurance services sector. Enhance competition intheinsurance andreinsurance customers andinvestors inthissector. andprotect ensure ofinsurance thequality services standardsSetting andadministrative requirements to Kingdom. of the insurance and reinsurance in the business activity (SAMA) Agency willbeincharge Arabian Saudi Monetary business ofinsurance companies intheKingdom. upthepoliciesandproceduresSet whichregulate the a cooperative insurance basis. License insurance companies to operate on in the Kingdom products duetoproducts failure to comply. law national highlights thenegative onthequality impact which shouldconform to theinternational standards. The to of adhering the standard units Explain the importance and puttingtheseunitsonsuchgoodsorpackages. ofcompliance withthemeasurementimportance system andproducersEnlighten exporters ofthe importers, Violators willbepenalized asstated inthislaw. goods orpackages. or exhibiting goods for sale, shall put theseunitsonsuch orproducinggoods to theKingdom goodsin The law stipulates that allcompanies andfirms, importing international standard units. and itsunits). These unitsare linkedto thecorresponding liquid volume: liter anditsunits;space: themeter been issuedby Royal Decree R/11dated 18/12/1989. rightsintheKingdom. property intellectual The Law has This isasetofrulesandprovisions for theprotection of Rights Property Intellectual • • • • • • • • Key Provisions Law was issuedby Royal Decree R/34dated 16/10/2001. planning intheindustrial, agricultural fields. andurban This ofthecomprehensiveplanning anintegral part development of natural resources. alsoaimsto makeenvironmental It andthedevelopmentconservation, andrational utilization the environment against pollution, ensure public health; This Law isasetofrulesandregulations that aimto protect General Environment Law the GOSIwebsite: www.gosi.com.sa For more information aboutthesocialinsurance system visit will provide financialsupport. study findingsandinthecaseoffiscaldeficit, the government at least. The GOSIpremiums willbeassessedinlight ofthe of GOSIandeachbranch ofinsurance three once years every The Law callsfor adetailedreview ofthefinancialperformance Advantages • • • • Key Provisions andFeatures Meteorology andEnvironment at: www.pme.gov.sa For information please visit thePresidency of further protection standards. Links loan provisions to that projects adhere to environment Encourages efforts. national voluntary protection andimprovement. thesenseofresponsibility towardsDeepens environmental Enhances environmental awareness Advantages oftheLaw Identify violations, accountabilities andpenalties. torespect environmental protection. Define responsibilities, obligations andaccountability with andfinancialfinancial structure resources. (GOSI) isincharge ofthesocial insurance, inadditionto the thisLawBy theGeneralOrganization for Insurance Social insurance. that areThe excluded Law liststheparties from social basis, onlyworkers onallSaudi irrespective ofgender. or nationality. The pensionbranch isapplied, onobligatory basis, on all workers,obligatory irrespective of gender, age The occupational hazards branch isapplied, onan only). Saudis employee contributes 9% and the employer 9% applied to of retirement oranddeath (18%ofthe wage where the Pensions, where the system provides compensation incase pays 2% of the worker’s wage irrespective of nationality). of work andoccupational injuries diseases(theemployer occupational hazards whichprovide compensation incase Establish thesocialinsurance divisionswhichare • • • Key Provisions commercial debtfor thedebtor. ofanycommercial moneyto mortgage betransferred as which aimsto thepoliciesandmeasures clarify related to isasetofrulesandregulationsR/75, dated 1/1/2004. It The Law Commercial was issuedby Royal Mortgage Decree Commercial Law Mortgage of Information website at: www.ifo.gov.sa For more information aboutthislaw, pleasevisittheMinistry • • • Advantages • • • • • Key Provisions andFeatures from theapplication ofthis law. The Board ofGrievance shalladjudicate indisputes arising procedures. andtheassociated debtrecovery upthemortgage Setting the commercial mortgage. standardsSetting andobligations associated withproving materials protected by thislaw. Contributes ofauthors to theprotection andsecurity andpenaltiestakenagainstthem. ofthisaction seriousness rightsofthe Enlightens violators property ofintellectual towith respect production. intellectual Enlightens theauthorofhisobligations andresponsibilities rights. Penalties associated withviolating property theintellectual rights. The obligations ofauthorsundertheprotection oftheir Terms andscope ofcopyright protection andterm. transfer ofownership. Procedures relating to theprotection ofcopyright andthe Procedures related to copyrighted materials. 89 Investment Climate in Arriyadh 2014 90 The High Commission for the Development of Arriyadh duties andpenaltiesassociated withtheprovision of and investment incentives andexemption from customs and financialprovisions related rentalto fees andsurface licenses inadditionto theprovisions ofother law articles, with regard winning to rightsandobligations oftheparties The terms andconditions of exploitation andinvestment licenses andtheassociated rights andobligations. The general terms ofexplorations withregard to issuingof and obligations oflicensees. The general provisions ofsurveying,explorations, therights the processing ofapplications, acceptance etc. andrejection, conditions to bemetby theapplicant andtheprocedures for The Law outlines the general licensing provisions, the exclusions. incharge oftheLaw,agency thelicensing process and specify that publicownership ofmines, thegovernment InvestmentThe Mining Law includesgeneral provisions that Key Provisions dated 4/10/2004. InvestmentThe Mining Law was issuedby Royal Decree R/47 bidding for exploration andmininglicenses. which regulate theprocedures andrequirements for public This isasetofgeneral andspecialterms andconditions InvestmentMining Law at: www.mci.gov.sa ofCommerce andIndustry Ministry For more information theCompetition Law please visitthe • • • Advantages oftheLaw • • • • Key Provisions andFeatures was issuedby RoyalIt Decree R/25,dated 22/6/2004. combat that monopolisticpractices affectlawful competition. This Law aimsto protect andencourage faircompetition and Competition Law and Industry website at: www.mci.gov.saand Industry ofCommerceFor information please visittheMinistry further oftheirrights andobligations. mortgagor Enlightens thecreditor and the against the mortgage, Advantages oftheLaw competition. Eliminates that legitimate practices would impact Provides freedom ofprices. andtransparency andthetradingEstablishes the rulesofmarket ofgoods. violations. upthefineswhichwillbeimposedineventSet of Council shallbeestablished. An independent council namedtheCompetition Protection competition amongbusinessinstitutions. Enforce the terms and conditions that monitor and control owned state companies. except markets Saudi publiccorporations and wholly- Provisions of this Law in shall apply to all firms working Industry www.mci.gov.saIndustry ofCommerceplease visitthewebsite and oftheMinistry For more information onthecontent ofalllaws regulations 2013thereIn were atotal numberof36laws. signatures, and prevention of any attempts to abuse or fraud. and istopurpose eliminate allobstaclesfacinge-transactions ofthislaw areMerits reflected inasetof regulations whose Advantages medicine, education payments. andfinancialelectronic are included in many government procedures, trade, domesticallyandinternationally.e-records The e-transactions confidential transactions, and easyelectronic signatures and creates It framework. united legalrulesfor theuseofsafe, andsignaturestransactions andorganize themwithinalegal The Electronic Transactions Law aimsto adjustelectronic Key Provisions Kingdom. inthe Certification and regulations relating to theNational Center for Electronic inadditionto many rules ande-authentication, e-signature regulate theprocedures suchas transactions ofelectronic This isasetofgeneral and specialterms andconditions which TransactionsLawElectronic gov.sa for Resources: Mining www.dmmr. Ministry visit theDeputy For information Investment ontheMining Law further please licenses. that should becompleted to obtainamininginvestment Provides investors withthepolicies, procedures andforms Advantages oftheLaw the government orarbitration. inaccurate information or delay to pay the amounts due to No. 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 1 2 3 4 6 5 9 8 7 The Commercial System ofAnti-Dumping Saudi Industrial Property Authority Law Authority Property Industrial Saudi Functions of the Ministry ofCommerceFunctions Regulation oftheMinistry Chemicals Import and Management Law andManagement Chemicals Import Commercial Papers Law System ofCommercial Anti-Fraud System ofAnti-Incognito Province Israel System System ofProtection andEncouraging National Industries Trade Agencies Law Metrology System Arabian ofSaudi Organization for Standardization and System Engineers ofSaudi Organization Competition Law System Property Intellectual Calibration andStandards Law System ofPrecious andGems Metal Private Laboratories Law Commercial Law Court Legal Accounts System System ofHotels andResidential Units System ofChamberCommerce andIndustry Trade Law Marks Professional Companies System Corporate Law Common Trade Policy for theGulfCorporation Council Commercial Register Law LawCommercial Mortgage Commercial Law Books Common System Organization ofIndustrial Protective Law Compromise ofBankruptcy Law ofArbitration System ofRetail Trade NamesLaw Commercial Data Law Foreign Investment Law System inPublic ofDeposits Stores Item Royal Decree andAmendments R/6,22/7/1965 Ministerial Resolution 235,12/11/2001 Resolution Ministerial Ministerial Resolution 66,2/12/1954 Resolution Ministerial Royal Decree R/28,23/11/1962 Royal Decree R/12,20/11/1991 Royal Decree R/15,20/11/1999 Royal Decree R/30,13/6/2006 Royal Decree R/38,12/7/2006 Royal Decree R/37,25/2/1964 Royal Decree R/22,22/6/2004 Royal Decree R/50,28/5/1962 Royal Decree R/11,22/7/1962 Royal Decree R/25,22/6/2004 Royal Decree R/29,28/1/1964 Royal Decree R/42,24/4/1983 Royal Decree R/27,23/4/1975 Royal Decree R/201,4/9/2006 Royal Decree R/75,19/7/1959 Royal Decree R/61,21/7/1989 Royal Decree R/16,25/1/1996 Royal Decree R/34,16/4/2012 Royal Decree R/11,2/3/1984 Royal Decree R/10,7/5/1972 Royal Decree R/36,1/9/2002 Royal Decree R/21,7/8/2002 Royal Decree R/3,21/4/2002 Royal Decree R/2,23/3/1970 Royal Decree R/6,18/3/1980 Royal Decree R/21,7/8/2002 Royal Decree R/4,28/8/1991 Royal Decree R/1,13/1/2004 Royal Decree R/20,2/5/2006 Royal Decree R/6,20/4/2000 Royal Decree R/29,6/6/2006 Ministerial Resolution 57 Resolution Ministerial Royal Decree R/15 Party 91 Investment Climate in Arriyadh 2014 92 The High Commission for the Development of Arriyadh Coordination amongGovernment agencies. andappropriate uptheeconomic options.Set policy The Authorities Main oftheCouncil are addition to the Governor of SAMA. Planning, Water and two State in Ministers and Electricity Petroleum Resources, andMineral Finance, Economy and ofLabor, Ministries Includes Commerce andIndustry, oftheCouncilMembership Mosques, withHRHtheCrown Prince as Vice Chairman. Economic Council ischaired by theCustodian ofthe Two Holy to itsresponsibilities practice andauthorities. The Supreme works and tasks needed to enable the Council of Ministers isconcerned with It intheKingdom. economic authority The Supreme Economic Council represents thehighest Introduction The Supreme Economic Council Kingdom Investment Authorities inthe Theme Four: andMajor Higher Affairs The Supreme Council for Petroleum andMineral • The Council’s andResponsibilities Role Abdullah binAbdulaziz. oftheCustodianchairmanship ofthe Two King HolyMosques was formed byIt Royal Decree D/212 on 3/1/2000, under the charge intheKingdom. ofthepetroleum and mineral policy The Supreme Council for Petroleum Affairs andMineral isin please visitwww.sec.gov.sa For more information on the Supreme Economic Council regulationsDrafting andrulesrelated to economic affairs. policy, theState. drafting Studying thegeneral frame ofthedevelopment plan,fiscal Council resolutions ofMinisters regarding economic affairs Following implementation andrelated upeconomic policy The Council’s include andfunctions authorities other merits. addition to the united and window service systemservice for theAuthority’s clients, in the website [email protected] andaself- for investors through its business center on The Authority provides services electronic investment intheKingdom. body that oversees national and foreign Authority. This isthehighestgovernment Arabianis theSaudi General Investment Kingdom. ofthem The mostimportant relating to investmentparties in the There are many government andprivate • • • • andFunctionsRoles was establishedin2000 Kingdom, highest government bodyresponsible for investment inthe The Arabian Saudi General Investment (SAGIA), Authority the Introduction (SAGIA) ArabianSaudi General Investment Authority (2) SAGIA Mission SAGIA Vision (1) and Mineral Affairs please see: www.scpma.gov.sa Affairsand Mineral pleasesee: For more information ontheSupreme Council of Petroleum • • • • • • • authority packages (investor packages mediapackages packages, authority as thelicensing process manualandspecialized investment SAGIA provides oftools to avariety guidetheinvestor such and West.East source ofenergy intheworld, andamajorhubbetween elements ofstrengthasthemostimportant of theKingdom rapid andsteady economic growth advantage ofthe taking toSAGIA sufficient attract isseeking investment toachieve investors. andprovidingof transparency relevant information to which impedeinvestment increasing activities, thedegree This includesidentification andelimination of constraints countries. climate to makeitmore competitive relative to other SAGIA endeavours to review and improve the investment global economic cities and new society environment, and knowledge-based by 2010through thecreation ofahealthy business world interms ofthecompetitive investment environment isplaced amongthetopthe Kingdom ten countries inthe Saudi Aramco.Saudi Assume theresponsibilities oftheSupreme Council of Follow upimplementation ofpetroleum andgas strategies. gas andminerals. ofinternational drafts Review agreements ofpetroleum, Aramco. ofSaudi upthegeneral policy Set Kingdom. products. upprice policiesofenergy Set inthe products quantities theproduction ofoil,Decide gasandother intheKingdom products hydrocarbon products. upprice policiesofenergy Set quantities theproduction ofoil,Decide gasandother hydrocarbons. Set uppoliciesandstrategiesSet ofoil, gasandother • Communicator • Facilitator • Think Tank seriously theNCC hasthree objectives: With achieving competitive visionconsistently and highest levels ofcompetitiveness. is therefore committed to to pushtheKingdom the and evaluate competitiveness and intheKingdom, NCC is an independent body established to monitor National Competitiveness Center (NCC) (1) It has been the key objective of SAGIA has been the key objective that It (2) . gov.sa For more information pleasevisitSAGIA website: www.sagia. • gov.sa For information pleasevisitSCTA’s further website: www.scta. cultural oftheKingdom. heritage andpromoteheritage oftheelements ofthe knowledge and studythem.Also develop museumsandarchitectural museums, itwillstrengthen to protect itsability ruins, explore With regard to SCTA’s missiontowards antiquities and through theprovision ofclearpoliciesfor theindustry. in the Kingdom sustainable and successful tourism industry The SCTA iscommitted to facilitate thedevelopment ofa achieve thevision andmissionoftourism intheKingdom. to with various stakeholders and partners close partnership The SCTA is the stimulating center for works in tourism. It SCTA’s Role, Functions andAuthorities eliminate any impediments. and promoting it, enhance therole and oftourism sector care by organizing, oftourism in theKingdom developing of 9on17/4/2000withtheobjective Resolution Ministers Thois isagovernment institutionformed by Council of Introduction (SCTA) The Commission Saudi for Tourism andAntiquities governed by aboard ofdirectors responsible for preparation are located headquarters inArriyadh. Its The Commission is This is a government commission that was established in 1975. Royal Commission for Jubailand Yanbu setting up a business and obtaining support. setting upabusinessandobtainingsupport. copyright, patents etc) andinformation onthecosts of information onlaws related to investment (trademarks, over investment, financingprocedures andagencies, responsibilitiestax), government agencieswithpartial include investment incentives (regulatory, financial, on theinvestment climate intheKingdom. These SAGIA provides investors withinformation anddata and thegeneral package). awareness. its achievements inthefieldofenvironmental Yanbu Directorate ofhonor withacertificate for Protection. 1998,theArab In League presented received theArab Cities Award for Environmental Environment. 1995,theJubailDirectorate In Organization ofthe Protection of theMarine the environment from theKuwait-based Regional an award inrecognition ofitswork onbehalfof 1988,theRoyalIn Commission was presented with in various fields: of efforts received many international prizes inrecognition The Royal Commission for Jubailand Yanbu has International andRegionalRecognition: 93 Investment Climate in Arriyadh 2014 94 The High Commission for the Development of Arriyadh • andLevelRoles, Responsibility ofAuthority isafinanciallyautonomousprices. body. It at affordableinformation intheKingdom technology services entrusted withproviding communication highquality and 133dated Decision Ministers 21/7/2003. The Commission is This isagovernment institutionformed by theCouncil of Introduction Commission (CITC) Communications andInformation Technology cma.org.sa For more information pleasevisittheCMA website: www. • • • • • andFunctionsRoles oftheCMA Decree R/30 dated 1/8/2003. and traders ofsecurities. The CMA was founded by theRoyal companies listed aswell inthemarket asprotecting investors for adequate ensuring disclosure for andtransparency the to enhance trustandconfidence init. CMA isalso responsible order to create a sound investment climate and in the market enforcement oftheprovisions Law oftheCapital in Market as issuingrules, regulations anddirectives required for regulation anddevelopment aswell ofthecapitalmarket Council ofMinisters. The CMA isresponsible for supervision, to directly of the the Chairman reporting government agency The CMA isanadministratively andfinancially autonomous The Capital Market Authority (CMA) Jubail and Yanbu website: www.rcjy.gov.sa For information pleasevisittheRoyal Commission further for • • • • • Role, andLevel Responsibility ofAuthority for thedevelopment ofJubailand Yanbu regions. industrial of implementing physical andsocialinfrastructure required Cities. The Commission was entrusted withtheresponsibility general directorates located inJubailand Yanbu Industrial of policiesandmanaging theirimplementation, through two rights. competition, andsafeguard publicinterest andstakeholder Provide appropriate andfairenvironment to promote under CMA. Regulate of entities and working monitor the activities ofsecurities. transactions Develop appropriate measures to to reduce pertaining risks ofsecurities. transactions in and transparency fairness,Maintain efficiency involvingpractices fraud, deceit andcheating. Protect investors and the public from unfair and unsound parties. appropriate standards andtechniques for allconcerned Regulate and develop andpromote thecapitalmarket supply offeedstock neededby suchindustries andservices To coordinate withotherrelated agenciesto facilitate To encourage private to invest sectors inthetwo cities. andcapabilities.upgrade theirskills To urge to theseindustries employ nationals Saudi and needed for theseindustries. To planandmaintain variousinfrastructure andservices light to industries utilize theKingdom’s natural resources. To encourage thedevelopment ofbasic, downstream and • Role, andLevel Responsibility ofAuthority citiesin2005. industrial ofCommerce determined themissionsof the Ministry According to theCouncil ofMinisters’ 265,2004; Resolution Council ofMinisters’ 235on13/11/2001. Resolution The basiclegislation to was setuptheAuthority endorsed by operation onacompetitive basis. and theprivate isresponsible sector for financing and andcontrol isincharge ofplanning,sectors. It supervision This is jointly managed by the private and government Introduction Authority (MODON) Property Industrial Saudi citc.gov.sa For information please visittheCITC further website: www. • • • • • (MODON) isrepresented intheplanningofindustrial Authority Property The Industrial of the Saudi main objective environment. of professional inapositive working performance Develop humanresources to thehigheststandards technology andcommunications. awarenessRaise andpromote theuseofinformation and information technology sector. Enforce policies, plansandprograms to develop thetelecom technology sector. investments inthetelecommunications andinformation upanappropriateSet environment to encourage licensed to provide thoseservices. ofcompanies andmonitor theperformance services Protect theinterests ofuserstelecommunications For information pleasevisit:www.modon.gov.sa further • • • • • • • • • • intellectuals andinnovativeintellectuals projects. intheseareas to technology, attract services andsupport technology zones, for instance, by providing additional Encouraging the establishment and growth of modern amicable manner. Cities, andbetween tenants, or beneficiaries residents inan the developers and operators Industrial ofthe Specified to resolveSeeking thedisputes that may between arise implementation ofallprovisions andinstructions. and operation contract, oroneofthem,andensure the to ensure theircommitment to theterms ofdevelopment ofdevelopers andoperators theperformance Monitoring relevant authorities. Cities in Industrial coordinationin theSpecified withthe Taking measures to protect necessary theenvironment regulations andexecutive bylaws. Cities inaccordanceIndustrial of thespecified withthis Granting oflicenses to thedevelopers andoperators manage, operate andmaintain cities. theindustrial Encouraging theprivate to develop, construct, sector Cities.Industrial Specified and the requiredof services facilities to the limits of the Coordinating withtherelevant for authorities theprovision bylaws. Cities inaccordance withthisregulation anditsexecutive of landowned byIndustrial the private asSpecified sector government landto cities, establish industrial and adoption Proposing the allocation of the appropriate locations of cities.the specifiedindustrial development, management, maintenance andoperation of Establishing rules and procedures related to the construction Cities Development Strategy. Industrial Implementing to includebutnotlimited to thefollowing functions: ofthesecities management, maintenance andsupervision cities andencouraging development, theconstruction, bylaws oftheAuthority. in accordance withtheprovisions andexecutive the Authority includingtherequirements and zones) without the approval and licenses from (industrialcitiesandtechnology industrial city not allowed to establish,develop andoperate an Authority itis Property Industrial of theSaudi accordanceIn 16 and18ofthebylaws withArticles • • • • Private Cities Industrial the Second Industrial City,the Second Industrial Riyadh). (Arriyadh, City • Al-Obaikan adjacent to Phase IIIof (Arriyadh, to Road Al-Kharj). Eastern Ring • Arabian Water andEnergy Development City Arriyadh City). Second Industrial • Al-Fanar (Arriyadh, City adjacent to Phase IIIof (Arriyadh City • Al-Ojaimi –Al-Kharj Road). (K.A.CARE) King Abdullah NuclearandRenewable Energy City administrative corruption. related to offinancialand thepublicaswell asallaspects entrusted withfollowing upexecution oftasksandorders The Commission’s taskincludesallgovernment is sectors. It andFunctionRole society, individuals, institutionsandthefuture generation. combat corruption and eliminate it andits severe on impact Decree D/65on18/3/2011to protect publicmoneyand Custodian ofthe Two HolyMosques. Founded by aRoyal This isagovernment related institutiondirectly to the Introduction National Anti-Corruption Commission • • • isentrustedThe city withthefollowing: improving oflife thequality intheKingdom. peaceful purposes, thereby raising thestandard oflivingand relatedindustries to nuclearand renewable energy for dependingonscience,in theKingdom, research and aimstoThe contribute city to sustainable development andAuthoritiesRole Abdullah NuclearandRenewable Energyname King City. established by theRoyal Decree D/35on17/4/2010by the A government ofscience) that institution(acity was conferences. Organize localconferences ininternational andparticipate scientific research centersKingdom inthisdomain. inthe Identify andcoordinate ofcompanies and activities andtechnology.activities andsponsorresearch andscientificSupport development is excluded….” Commission includesallgovernment sectors, none maintenance andoperation date. Tasks ofthe all approved projects, contracts, execution period, to theCommissionand otherbodiesshallreport “….. All ministries, institutions, government parties King AbdullahKing binAbdulaziz 95 Investment Climate in Arriyadh 2014 96 The High Commission for the Development of Arriyadh • • • • The Institutefocuses onthefollowing andactivities functions • • • • • • • Institute website:(1) Institute www.nano.ksu.edu.sa developed by Aramco. Saudi are inArriyadh. headquarters Its environment andfuture policies. This Center hasbeen This isascientific center that researches inpetroleum, power, Introduction Center (KAPSARC) King Abdullah Petroleum Studies andResearch The hasthefollowing Institute mainobjectives andFunctionsRole economy. ofcontributionpurpose to buildaknowledge-based between universities andvariousrelated for sectors the technologies andbuildpartnerships andbasedindustries The isto missionoftheInstitute develop Nanoresearch, University inArriyadh. Saud located inRiyadh Techno-Valley withinthecampusofKing A scientific research center that cares of Nanotechnology, Introduction King Abdullah Institute for Nanotechnology (KAIN) For information pleasevisit:www.energy.gov.sa further • • • • Nano technologies related to economic fields. and industrial Education andtraining in various Nanotechnology fields. andsimulation ofNanomaterials.Modelling environment ofNanomaterials. andmanufacturing telecommunications, medicine, pharmacology, food, field ofenergy, water desalination andtreatment, Research, development inthe andappliedactivities level andNano sciences andtechnologies. awarenessRaise onthescientific socialandeducational local research institutions. field ofNanosciences and research with universities and Develop a strategy ofcooperation andcoordination inthe colleges. Promote andresearch Nanoprojects inuniversities and research inthedomainofNanosciences andtechnologies. Prepare infrastructure required for development and sciences and technologies. Develop academic programs in universities linked to Nano domain. Attract scientists andresearchers whoare talented inNano technologies. inthedomainofNano Develop and qualifylocalexpertise radioactive waste. business andworks ofnuclearenergy usesandany related bodyonall and observatory isalsoasupervisory It agreements signed orthat willbesigned by theKingdom. commitments andfulfilment ofallnuclearand renewable concerned withnational istheonlyparty The city information sources. research suchas laboratories, means of communication and accommodatesThe city all requirements ofscientific majors. Work to develop scientific Saudi competencies intheir own medical, industrial, agricultural andminingareas. scientific baseinpower generation, desalinated water, and renewable energy inorder to buildtechnology anda andnationalIdentify policiesinthefieldofnuclear priorities (1) : following andprograms activities of the CenterResearch functions are reflected through the petroleum. basis oftheKingdom’s leadingrole inthefieldofenergy and and policiesbothdomesticallyinternationally onthe and ideas related to energy, environment as well as strategies The Center aspires to beaplace for exchange ofexperience andKeyRole Functions Aramco. The Company’s are inDhahran. headquarters Governmentthe Saudi andfrom that date asSaudi was known in Aramco andin1980 thecompany becamewhollyowned by ArabianSaudi Government interest acquired 25%participation California Arabian Standard OilCompany (Casoc). 1974the In Arabiain 1933,whenSaudi granted anoilconcession to The Arabian OilCompany American (Aramco) was established AramcoSaudi King Abdullah Petroleum(2) King Studies www.kapsarc.org andResearch Center (KAPSARC): • • • • • Environment andCarbon Management Energy andEnvironment Technologies andEconomiesMarkets of World Energy andEnergy Efficiency Productivity. Activities. Development ofLocal andEconomic Energy Sector value to hydrocarbon resources. that willcontributesector to providing additional developmentimportant inthisbooming economic isanpetrochemical It industriesintheKingdom. This represents hugeproject anew era of andotherrelatedin service industries. forcreating private opportunities localinvestment nationals. isalsoconsistent It of withtheobjective provide for Saudi increased jobopportunities foreign investment to expand itseconomy and oftheKingdom’s ispart project strategy to attract industrial development in the Kingdom. The for more diversified downstream conversion industrialization Arabia inSaudi andisaplatform Petro for increased presents Rabigh anopportunity (2) : saudiaramco.com For information pleasevisitAramco further website: www. Saudi Aramco(1) Saudi in75 Years: www.saudi aramco.com • andKeyRole Functions listed Stock inthe Saudi Exchange (TADAWUL). and othercountries oftheGulfCooperation Council. SABICis remaining 30% are heldby private investors Arabia inSaudi Arabian Government owns 70% of its shares, and the SABIC isapubliccompany basedinArriyadh. The Saudi high addedvalue economically andenvironmentally. resourcescarbon to into be turned of products industrial an ambitious strategy for the investment of plentiful hydro andminerals.wasfertilizers establishedin1976basedon It petrochemical industries, polymers, specialized products, SABIC is one of the world’s leading companies in manufacturing Corporation Industries Basic Saudi (SABIC) • • • andKeyRole Functions the forefront ofproducing iron East. andsteel intheMiddle offertilizers, polymers,exporters andchemicalsisin companies, andisoneofthelargest producers and SABIC isoneoftheten largest globalpetrochemical resources withinthecompany andtheKingdom private growth, sector andthedevelopment ofhuman and related industries. Aramco Saudi promotes actively added value through ofprojects therefining, distribution hydrocarbon resources to increase oftheKingdom the fuels. The company ensures theoptimumexploitation of of more environmentally andenergy friendly efficient alsofocuses ofoil. on thedevelopment It of extraction investment inresearch anddevelopment to improve rates company. The company continues to increase its of crudeoil, hasbecome anintegrated globalpetroleum Aramco,Saudi once famous purely as a giant producer United Arab Emirates. Philippines, Korea, South Singapore, theUSA,Egypt and offices and companies inChina,Japan,theNetherlands, the the world, aswell asaffiliated companies, joint ventures and AramcoSaudi operates thesecond-largest tankerfleetin provision ofgovernment earnings. revenues andexport contributes significantly to the growth ofGDPandthe AramcoSaudi isapillarofthenational economy, and (1) . • • Partnerships • • andKeyRole Functions issues. human resources, health,safety, environmental andsocial mining company, whilemaintaining theutmostconcern for missionisto beaprofitable,Its publicly owned, international Arabia’sof Saudi mineral resources. March 1997for offacilitating thepurpose thedevelopment Ma’aden was formed joint asaSaudi stock company on23 ArabianSaudi Company Mining (Ma’aden) For more information onSABICpleasevisit:www.sabic.com • • • the projects. execution theproject and during andoperational phasesof design phases of thephosphate and aluminum projects experience giving inputandknow-how intheengineering technical,the benefit of their and operationalworld-class Through existing agreements SABICandAlcoa eachprovide its own board andmanagement. tosubsidiaries facilitate andeachhas strategic partnerships Ma’aden’s businessunits operate through separate class partnerships. through strategicminerals industry national andworld- Ma’aden plansto become aglobal player intheminingand Kingdom’s economy. a catalyst for thedevelopment anddiversification ofthe and expansion aswell asfuture endeavours andbecoming through existing mega-projects third industry pillar of Saudi Ma’aden focuses ondeveloping asthe theminingsector processes, legal, andauditing. human resources, thedevelopment ofmanufacturing unitssuchasresearchsupportive andtechnology, finance, Products, Fertilizers addition there and Metals. In are other Units: Basic Chemicals, Intermediates, Polymers, Specialized SABIC runsitsoperations through sixStrategic Business national income intheKingdom. SABIC isakeycontributor to development industrial and the world markets. which enhance SABIC’sand technical services presence in coupled withthehighestprofessional andquality quantity SABIC enjoys inboth anabundant capacity production 97 Investment Climate in Arriyadh 2014 98 The High Commission for the Development of Arriyadh Resolution of King Saud University’s Saud ofKing (1) Resolution Board Number1to approve Riyadh Techno Valley Project and Co. thiscontext, Riyadh In Techno Valley andRiyadh Valley Holding economy.of knowledge-based provision of high-income jobs that contribute to the creation through companies establishment and ofknowledge outcomes ofresearches for resettlement oftechnology, endeavours to anddevelop attract innovation andinvest Riyadh Techno Valley investment isaknowledge center that Objectives Riyadh Techno Valley Project (RTV) to develop andgrow. (Company website: www.nwc.com.sa). through ofa effectivecommercial able performance facility while focusing oncustomers confidence andcommunity inthedomainofwater andsanitation, services world-class to aneconomic visionthat provides seamlessandreliable strategic organizational management. That isaccording business models, regional expansion andexecution of qualification and cost) process, identification ofbest of businessunits, local expansion, improvement of(quality, through developing newprojects, andpursuitindependency NWC aspires to have aleadingrole community intheSaudi andKeyRole Functions the state represented by Public Investment Fund. theseinto andturning ajointsector venture totally owned by of subterraneanthe sector water, potable water distribution stated8/27 dated theapproval 4/9/2006.It onrestructuring andthedecree ofthe Supreme Economic CouncilMinistry execution after inthe oftheprivatization policy Electricity of 5 on21/1/2008, emanating fromWater theMinistry and A joint stock company founded resolution by theMinisterial National Water Company (NWC) maaden.com.sa For information pleasevisit Ma’aden further website: www. • • • • • • • outthefollowing strategicto carry objectives: establishment of Riyadh establishment of Riyadh Valley HoldingCo. markets.industrial commercial and building andconstruction, transportation theaerospace,Alcoa serves automotive, packaging, oftheindustry.growing inallmajoraspects participation aluminum and alumina combined, through and its active aluminum,fabricated and management ofprimary York Stock Exchange. istheworld leaderintheproduction It SABIC andAlcoa company isanAmerican listed ontheNew Partner Companies ofjoint reflected.sale andmarketing products to withrespect the willalsoprovideThe expertise partners innovators andgeniuses. Discover, andforeign and adopt Saudi attract talented and development. and international investment specialized firms in research Create astimulating andattractive environment for national and development centers locallyandinternationally. Promote cooperation between theUniversity andresearch economy andachieve sustainabledevelopment. Transfer anddevelop the national technology to serve (1) were foundedUniversityaiming inArriyadh Saud inKing www.rtv.com.sa For information onRiyadh further Techno Valley pleasevisit: • • • • • • and outsidethe Techno Valley. for students andgraduatesopportunities by 2020within commercial experts. These willprovide about 5,000 job andindirectly,directly about3,000researchers and12,000 research are projects invested andinplace to employ, Tens ofcompanies and local, regional and international economically invested. systems efficiently contribute to to be researches industry industrial, commercialwhere andtechnological up-to-date technologies, andpaves theway for society modern urban investment of inthefieldofindustries researches and isahuge industries. It development ofknowledge-based Riyadh Techno Valley for is aunique new project the Enhance competitiveness ofnational economy. Develop theUniversity’s resources for financialstability. them inlinewithdevelopment plans. arenas. Developbased industry labourforce andemploy Provide inknowledge- distinguishedjobopportunities education andrequirements oflabormarket. university students to harmonize between outputsofthe ofall Enhance andskills theutilization ofknowledge development environment inthe Techno Valley. based economy and enhance research and development, andthework to buildsustainable- qualified competencies inthefieldof research and scientific oasis, basedonprovision ofhighly forinfrastructure thesuccess necessary ofany Riyadh Techno Valley seeksto establishan Riyadh TechnoRiyadh Valley Foundations Saudi Industrial Development Fund: Industrial (1) Saudi 2012/13. Annual Report, Fund till2012/13: The following tableshows cumulative loansprovided by the • • • • • • Projects Financed by SIDF government agencies. industrial development programs incollaboration withrelvant of realizing goals andpoliciesoftheKingdom’s industrial government body established in 1973 with thepurpose DevelopmentThe Fund Industrial Saudi (SIDF)isa Development Industrial Saudi Fund (SIDF) funds are thefollowing: the Kingdom. ofthesedevelopmentThe mostimportant funds in with Arriyadh branches throughout the regions of to investorsfinancial services through several government The Arabia Government ofSaudi offers oftheKingdom Other Industries Other Industries BuildingMaterial Other Cement Industries Consumer Products Industries Engineering Industries Chemical Industries Building materials industries Cement industries Consumer industries products Engineering industries Chemical industries sector,industrial suchas SIDF provides fundingforofthe anumberofactivities Cumulative Loans Provided by SIDFupto 2012/13 in theKingdom Financial andCredit Funds Services Theme Five: Sector Total (1) Loan Amount 105,415 11,222 10,213 17,773 21,706 41,881 2,620 (million Riyals) 100.0 10.6 16.9 20.6 39.7 (%) 2.5 9.7 (1) 31,162 million,82.5%ofwhichwere collected. Total loansprovided by theFund since inception reached SR 924 million;0.9%. The rate ofpayments was SR662million. 2012/13total loansprovidedDuring by theFund was SR • • • • • Funded Projects achieving sustainableagricultural development. provides loansandcredit facilitiesfor soft of theobjective renamed to theAgricultural Development Fund. The Fund 2009thebankwas inallregions In activities oftheKingdom. specializes in providing finance for agriculturalvarious A government financing institution established in 1963 Arabian Agricultural Bank) Agricultural Development Fund (Formerly Saudi gov.sa informationDetailed is available at SIDF website: www.sidf. Ministry ofAgriculture, 2012/13. Annual(2) Ministry Statistical Book, It began with a capital of SR SFD is financially independent. exports. non-oil development projects,help financingpriority and support loans to governments of developing countries with a view to operation in1975. and started The isto objective provide soft The Fund Saudi for Development was established in 1974 FundSaudi for Development (SFD) Bank) pleasevisit:www.adf.gov.sa Fund Arabian asthe Saudi (formerly Agricultural known For information ontheAgricultural further Development Agricultural storage projects. andmarketing projects. Livestock, poultry, breeding fish, shrimp and fishing Projects that are smallandmediumenterprises. Agricultural cooperative associations projects. water-saving techniques. Projects that technologies usemodern andresettlement of • • • • • rules to SIDF’s policiespertaining Main lending companies having industriallicenses. institutions andnational andforeign Loans willbeprovided to individuals, shall notexceed 15years. The terms ofloansprovided by theFund documents. submission ofsupporting progress project with theactual and Loan disbursements shallbeinaccordance costs finance notlessthan25%oftheirprojects’ The Fund stipulates projects’ owners commercial production of one year haspassedsince thestart capital, provided that notmore than incorporation expenses andworking up to 50%ofthecosts of fixed assets, The Fund finances industrialprojects (2) 99 Investment Climate in Arriyadh 2014 100 The High Commission for the Development of Arriyadh For information onSFDplease visit:www.sfd.gov.sa further ( Fund(1) Saudi for Development: Ibid. • • • Funded projects 10 billionwhichhasgrown to SR31billionover theyears. * ) The reason that thenumber ofloansagreements exceed andprograms thenumberofprojects isdueto the Benefiting Benefiting Countries fact that receive someprojects fact more thanone loan. until 2011/12. The following countries tableshows numberofbeneficiary Finance andguarantee ofexports Development Projects • • • • • • Service Credit InsuranceRules ofExport andGuarantee • • • The loanreceiving shallconfirm country and Rules ofFinancing Development Projects Loan amount shallbepaidandrecovered in The loan amount for should notexceed aproject The total amounts ofloansgranted to any The shallbeof national commodity and services SFD may finance up to 100%ofthe value of The ortheU.S. Riyal useoftheSaudi dollarinall The program guarantees meetsthenecessary of the project thatof theproject willbefinanced. prove to SFD the economic and social feasibility Saudi Riyals.Saudi of theproject. 5% of the SFD’s capital and 50% of the total cost country shallnotexceedcountry 10%oftheSFDcapital. services to be exported shallbenolessthan25%. to beexported services projects. to goodsandThe national value-added and ofservices agricultural goodsandexports in the oil sector,products and industrial and industries, includingsecondary manufacturing of unsettledexports. guarantee willbeupto 90%ofthevalue services years. The percentage ofcredit insurance and funding ranges between oneyear andtwelve and politicalrisks associated. The terms of the nature of the process and the commercial and ofexports dependingonthetype exports operations oftheprogram. parties. of process,the type risksand legal status of the to safeguard therights oftheSFDaccording to 80

Number 492 Projects Cumulative Contributions ofSFDfrom 1974/75to 2012/13 39,025.63 Amount Number (billion Riyals) (billion Riyals) 26 Programs For information pleasevisit:www.mof.gov.sa further increase of5.1%from thepastyear Total contributions ofthefundreached SR65.4billion,an local firms, Arab andjoint, was SR3.2billion. 39.7% to SR9.3billion. Total paidcontributions ofthefundto Total disbursement ofloansdecreased 2010/11by during 20.7% from theprevious year. the endof the sameyear to SR50.9billion, an increase of wasthe sameperiod SR60.3billion,bringing total loansby loans reached SR 8,740million.Repayment ofloansduring of fiscal 2011/12the year 2012/2013 was SR193.42billion.In The total amount ofloanscommitted by PIFupto theend • • • • • Projects Financed by PIF resources orboth. because of insufficient experience or inadequate capital cannot beimplemented by theprivate aloneeither sector significant for thedevelopment ofthenational economy and which are of a commercial nature andare strategically PIF was toto productive provide projects financingsupport PIF was establishedin1971. The ofestablishing purpose The Public Investment Fund (PIF) SAMA: 47th Annual Report, 2011. (2) SAMA: 47thAnnual Report, Electricity, water andrailways projects. Fertilizer andpetrochemical factories. Iron andsteel factories. Crude oilandpetroleum pipelines. distribution products petroleum storage products tanks. Oil refineries, lubricant refining and processing and Amount 737.61 (1) Number 518 Projects &Programs (*) 39,763.24 Amount (2) . Signed Loans Agreements 535 (*) SAMA, 49th Annual Report, 2013. (1) SAMA, 49thAnnual Report, • • • Financed Projects loans. onthenumberofprovided500,000, andensure noimpact of the housing loan provided by REDF from SR 300,000 to SR A Royal Decree D/64issuedon18/3/2011raised theceiling and commercial purposes. theirownthem construct homesaswell asfor investment in 1974to provide loansto citizens andinstitutions to help The Estate Real Development Fund (REDF) was established Real Estate Development Fund (REDF) For information pleasevisit:www.redf.gov.sa further No. ofOrders Spent Amounts Residential Units No. ofLoans of theKingdom Total loansgranted since inception till2011/12inallregions projects. Loans to invest inreal estate, residential andcommercial Housing loans. to REDF. that will be usedfor mustbesubmitted theproject REDF whichever is less. A copy of the deed of land the totalcost project asestimated by theowner or million. However, the loanshallnotexceed 50%of The upperceiling oftheinvestment loanisSR10 • • • • disbursed asfollows: Payments against individuals’ loans will be 15% after the mortgage theentire building. themortgage 15% after internal andexternal flooring. thecompletion35% after ofthework oflaying the skeleton. thecompletion 40% after ofthebuildingstructure of contract. 10% following oflandandsignature themortgage (1) : 2,273,990 18,588,490,492 840,769 700,641 Individuals’ Loans Investment loans hrdf.org.sa For information onHRDFprograms further pleasevisit:www. • • • • • • Projects Financed by HRDF nation withsocial, benefits. economic andsecurity female), to realize thestrategic ofproviding objective the qualified and well-trainedSaudi youth (bothmaleand HRDF isaneffective tool that contributes towards providing founded in2000withbranches allover theKingdom. HRDF isafinancialanddevelopment government body, Human Resources Development Fund (HRDF) (3) Fund website: www.tcf.org.sa (2) Plan to train 12.000jobseekersby theendof2012. • Projects Funded by SCB 2006. SCBhas26branches throughout theKingdom. citizens. SCBwas establishedin1971andlater amendedin Government Arabia ofSaudi intheprovision ofloansto The Bankis considered to beoneofthecornerstones of the CreditSaudi (SCB) Bank the Fund’s website: www.tcf.org.sa More information on the Centennial Fund can be found on • • • • entrepreneurs through The Centennial Fund provides to young services Fund. Arabiaof Saudi from whichittakesitsname The Centennial of theKingdom’s foundation Abdulaziz, by thefounder King businesses. The Fund was established in honor of 100 years youth ofboth genders to establishtheirown commercial foundation. The Fund aimsat rendering assistance to Saudi by theRoyal Decree private D/190,1998asaSaudi charity The Centennial Fund isanon-profit organization established The Centennial Fund telecommunications andIT, etc. women, requirements attrition,labormarket inthefieldof researchConducting onemployment, employment of students. Providing career guidance andadvice to jobseekersand program) requirements basedonthelabormarket Training and qualifying professional cadres 12/12 (Maher establishments. Training that endswithemployment intheprivate sectors experience. and training endingwithacquiring skills On-the-job are providedHRDF services through anumberofprograms: SCB supports projects undertaken by smalland emerging undertaken projects SCB supports relations, facilitiesanddiscounts whenpurchasing supplies. insurance, computer andpublic marketing services, and suchastraining, services services banking Support centers ofSAGIAservice throughout the Kingdom. Facilitate government procedures through comprehensive owner. Counseling by providing advisorsorguidesto eachproject interest-free loansfrom SR200,000to SR500,000. Partial ortotal fundingto entrepreneurs intheform of (3) (2) . 101 Investment Climate in Arriyadh 2014 102 The High Commission for the Development of Arriyadh • • • • • • • • • (3) Ibid. (2) Ibid. (1) CDSI,48thAnnual Report. in additionto procedures takenby SAMA to boostbank to ongoing government spending on development projects ofthecapitalmarkets.the globalfluctuations This was due has achieved sector robustThe growth banking rates despite Activity Statistics ofBanking (licenced butdidnotcommence work yet). and State andChinaBankfor BankofIndia Industry Trade addition to otherlicensed banks; National BankofPakistan, BNP Paribas, Bank, JPMorgan, Deutsche T.C. in Ziraat Bankasi, Kuwait, Muscat, Emirates Bahrain National Bank, Bank, Dubai EmiratesGulf International Bank, NBD, National Bankof result, 12Arab andforeign banksare present Arabia; inSaudi and foreign banksto As openbranches a intheKingdom. Kingdom haveRecent financial policiesofthe allowed Arab Branches ofArab andForeign Banks was 1,768. Albilad, Inma, Aljazjra Bank. The total numberofbranches Samba, Investment Saudi Al Rajhi, Hollandi Bank, Bank, Saudi Fransi Bank(SABB), British Saudi Arab National Bank, Bank, Saudi banks: NationalSaudi Commercial Bank, Riyadh Bank, commercial banksoperating intheKingdom. This includes12 theendoffiscal By year 2013/2014 there were 24 Banks Saudi Banks CommercialSaudi andBranches Banks ofForeign the Bank’s website: www.scb.gov.sa More information canbefound Credit ontheSaudi on Bank, million in2010/2011. for theyear 2011/12were SR154.17million,and4,396 fiscal year 2012/13 reached SR 6,588million. Total loans Total loansprovided by theBanksince inception upto the program.Small enterprises sponsoring Taxi andschoolbusprojects. handicrafts). Professional (technical, projects professional and requirements). (marriage, projects houserepair,Social andotherfamily medical). (educationalSmall projects program, industrial, services, The HadafProgram ofsmallenterprises. for thesupport oftheSCB, namely: policy enterprises, owned projects by individualswithinthesocial • • • enterprises. of small andemerging projects in supporting 38 governmental andcivilagenciesinterested The Credit Saudi coordinates Bank withover not exceeding 48months. The taxiloanispaidbackinmonthly installments loan isSR200,000. The maximumamount ofaprofessional project (1) (3) (2) managing theirfinancial resources. of commercialbanks as well as the performance banks in liquidity, improve management risk systems of commercial ( (4) SAMA. www.sama.gov.sa.(statistics 2014/2015). ofthefirstquarter * ) Assets figures and total are different due to roundingfigures tothe nearest million riyal. Other Liabilities Other Liabilities ofthePrivate Sector Foreign Assets Bank Reserves Other Liabilities Other Capital andReserves Foreign Liabilities Bank Deposits Consolidated Financial Position ofCommercial Banks in theKingdomby theEndof2013/14 Total ofLiabilities Total Assets Description (*)

Liabilities Assets (million Riyals) 1,893,283 1,893,282 1,123,645 1,401,980 358,580 210,691 200,366 155,351 261,547 74,405 Value (5) end ofthefiscal year 2013/2014. has grown to SR 332.1 billion by in the second the quarter The numberofconsumer loansgranted by commercial banks • • • thefiscal during year 2013/14: activity The following data shows development ofcommercial bank range of integrated, services andhigh-tech modern banking the national economy toAbility serve through providing a full • • • • • billion. offoreignDeposits declinedby 6.3%to currency SR74.4 billion. Private depositsincreased sector by 11.2%to SR140.19 Assets grew by 9.2%to SR1,893.2billion. phoneapplications. andsmart internetbanking, services technologies,advanced banking including telephone expansion ofoperation andapplication of Remarkable by 8.4% Capital grew andreserves by 7.6%,whileprofits declined by 9.2%anddepositsby 11.2% Promotion offinancialpositionsandincrease of total assets Increase ofgeneral activities year 2013/14through thefollowing: Commercial banksshowed inthefiscal goodperformance (1) Ibid. over theprevious year’s profits ofSR33.5billion. amounted to SR35.6billion,agrowth ofSR2.2billion,6.5%, The total profits ofthesebanks by theendof reference year Others Vehicles andMachinery EstateReal Description Credit Cards Consumer Loans to and Individuals Total Credit Cards Loans 2013/2014 (million Riyals) Value 332,043 222,086 65,069 44,888 8,406 (1) 103 Investment Climate in Arriyadh 2014 104 The High Commission for the Development of Arriyadh especially theyears of theEighth Development Plan. momentum that plans experienced over the past decade, and accelerate the development process, and enhance the Government’sthe Plan the reflects determination to continue countries oftheworld, thedevelopment program adopted by spitecrisis. of the burden In created by on all the crisis economy hasbeengoingthrough afinancialandeconomic As a backdrop to Development theNinth Plan the global 2014/2015. Developmentof theNinth Plan for 2010/2011- period (1) was preparedThis by Report thebeginning of2014. isbeingpreparedThis report five after years Thirteenth Objective Thirteenth Twelfth Objective Eleventh Objective Tenth Objective Objective Ninth Eighth Objective Seventh Objective Objective Sixth Fifth objective Fourth objective Third objective Second objective First objective Kingdom Plan andInvestment inthe Outlook Theme Six:Ninth Development The General oftheNinth Development Objectives Plan2010/2011-2014/2015 and organizing them. To develop ofsmallandmediumenterprises to thesector increase theircontribution to GDP, andcreate frameworks for nurturing countries.friendly To strengthen economic integration withGulfCooperation Council andArab states anddevelop relations withIslamicand developmental activities. work towards institutionsinadvancing their civil-society entrenching andaccountability transparency andsupport To continue socioeconomic andinstitutionalreform, develop regulations andimproving aimedat raising performance, efficiency environmental systems within thecontext ofsustainabledevelopment To develop, andensure conserve rational utilization ofnatural resources, water, particularly protect theenvironment anddevelop investments (domesticandforeign) andpublic-private partnerships. To enhance therole oftheprivate insocioeconomic andenvironmental sector development andexpand domainsofprivate To move economy towards andconsolidate thebasisofaninformation aknowledge-based society. economy andenhance itscompetitiveness andmaximize thereturn oncompetitive advantages. To diversify theeconomic basehorizontally andvertically, expand theabsorptive andproductive capacitiesofthenational To raise thestandard oflivingandimprove oflife thequality ofallcitizens. andprovide andexpertise, appropriateskills healthcare services. To enhance humandevelopment, expand therange ofoptionsopento individualsto enablethemto acquire anduseknowledge, To achieve balanced development amongregions andenhance theirrole oftheKingdom insocialandeconomic development. To achieve sustainableeconomic andsocialdevelopment by accelerating therate ofeconomic growth andsocialwelfare. of religious rites easilyandconveniently. To continue to develop theHolyPlaces, andimprove provided to ensure to theservices performance HajjandUmrah performers and consolidate theArab oftheKingdom. andIslamicidentity To safeguard Islamicteachings andvalues, enhance andsecurity, national unity guarantee humanrights, maintain socialstability (1) oftheexecution • • • • fiveNinthDevelopment themesof the Plan: sustainable development inthelongrun.Following are the in thecoming years, aswell aslaying thefoundations for comprehensive, balanced andaccelerated development themes, whichconstitute anintegrated framework for a The Development Ninth Plan isbasedonfive main Ministry ofEconomy Development andPlanning: Ninth Plan,(2) Ministry 2010/11–2014/15. Balanced regional development. developmentStructural economy. oftheSaudi of employment. Develop national humanresources andincrease oftherates oflifequality for citizens. to improve the efforts Maintain the standard ofliving and health development sector. (education andtraining) andalsosocial for of human resources the sector development of that amountThe was allotted biggest portion expenditure oftheEighth Development Plan. of 67%from theallocation for development has beenallotted for thisplan,anincrease from 2010/2011to 2014/2015.SR1,444billion The Development Ninth Plan covers theperiod future visionofalong-runstrategic planning. context of the developmental courses and the indicative planningoftheprivate inthe sector planning of the government and the sector decades. This approach combines directive endeavoured to follow during the past four development approach that Arabia Saudi has The Development Ninth Plan isintegral to the (2) and tourism andantiquities, trade, industry, agriculture and andtheissuesofenvironment sector of theconstruction of theinfrastructure ofthesociety. They includedevelopment of living, andthedevelopment ofregions andvariousaspects of workforce population andthelabormarket, andstandard the reality andthefuture ofinvestment issues intheKingdom, comprehensive andbalanced development. They alsocover and therole oftheprivate intheachievement sector ofa administrative development institutions ofpublic sector the national economy theinstitutionaland intheKingdom, The plan includes 36 chapters. They of define thestructure water resources, and environmental protection. private sectors, development ofnatural resources, especially inbothpublicand and productivity economic efficiency technical andinformation technology development, raising economic reform andprivatization program, promoting of infrastructure, accelerating thepace ofinstitutionaland Additional features includeexpansion andmaintenance • 2- Special Services Sector.2- SpecialServices 1-5 BuildingandConstruction 1-4 Electricity, and Gas Water industries. manufacturing 1-3-3 Other 1-3-2 Petrochemicals. 1-3-1 OilRefining 1-3 Manufacturing Mining, Quarrying 1-2 Non-Oil, 1-1 Agriculture, Forestry andFishing 1- Productive Sectors. 2-3 Finance, Insurance, Estate BusinessandReal Services. 2-2 Transportation andCommunication 2-1 Trade, Restaurants andHotels. 2-3-1 Real Estate2-3-1 Real Services 2-4 Community andPersonal Services 2-3-2 Finance, Insurance andBusiness Services Construction ofNon-Residential Buildings Construction ofResidential Buildings Construction 3- Government Services Machinery, Equipment and Transportation Saudi products inthedomesticandoverseas products Saudi markets. Enhance thecompetitiveness ofthenational economy and Total Investment by Capital Category Goods Sectors andCapital Category Goods Sectors Total Private Non-Oil Sector b- Crude &Natural Oil b- Gas a- Non-Oil Sectors a- Non-Oil Total Investments Targeted Investment intheNinth Development Plan ( (1) Ibid. judiciary, HajjandUmrah. and municipalaffairs, culture, media, the religious services, technology, oilandnatural gas, mineral resources, transport and sanitation, electricity, communications andinformation science, technology andinnovation, health,education, water family andhousing, andhumanresource development, issuesof financial services, youth anddevelopment, women, * ) Values are rounded to thenearest decimalnumber, andat fixed prices of 1998/1999. (billion Riyals) • • • • • • • • Enhance competitive potentials. Development ofhumanresources. economy. thedirective ofknowledge-based Support Diversity oftheeconomic base. Balanced development amongregions. Improve thestandard oflife. oflivingandquality 2010/2011 –2014/2015 Plan Directives General Frameworks Development oftheNinth Value 1,680.8 1,357.4 1,762.7 1,762.7 1,095.8 594.2 179.9 163.1 272.4 534.0 763.1 395.1 335.9 485.3 181.6 323.4 81.9 22.8 98.5 22.8 85.5 72.9 40.8 59.2 3.6 ( * ) Proportional Proportional Distribution ( 1 100.0 100.0 95.4 77.0 33.7 10.2 15.5 30.3 43.3 22.4 19.1 27.5 10.3 18.3 62.2 ) 4.6 1.3 5.6 9.3 1.3 0.2 4.9 4.1 2.3 3.4 Average Annual Growth Rate ofthePlan (%) 10.5 11.8 10.4 10.4 23.7 15.3 12.2 22.4 14.0 20.4 17.0 16.1 29.2 16.2 16.1 10.1 12.0 7.9 8.0 3.0 7.7 8.2 6.6 2.7 5.2 105 Investment Climate in Arriyadh 2014

Investment Opportunities in Arriyadh 108 The High Commission for the Development of Arriyadh within no more than one month, information electronic exemption procedures to ensure faster transactions environment. These includethesimplification ofcustoms procedures have beendeveloped to improve theinvestment major investment agencies. Administrative andlegal Arabia ofSaudi andthelocation ofall of theKingdom that it is the administrativeamong them the fact capital Arriyadh’s enhanced by othermerits, positionisfurther financial center.world-class to becomecenters East.a is Arriyadh looking in the Middle investments commercial andoneofthemostimportant isastrategicArriyadh center for national andforeign (1) SAGIA: 2005-2010Strategy. published by the World Bank included in the Business Competitiveness‘Doing Report’ oneoftheworld’sKingdom top ten competitive countries Plan implemented through SAGIA the aimsat making Embassiesabroad.Saudi The Kingdom’s Strategic Investment Arabian General Investment (SAGIA) Authority establishedin Arabia,businessmen visitingSaudi andoffices Saudi ofthe procedures have beensimplified,for allowing easierentry Development Fund. Industrial of theSaudi addition,visa In Development financingandservices to subsidize export projects,sharing facilitiesprovided by Fund theSaudi for (1) . total costs projects region. inArriyadh areprojects delayed and8.3%are interms of stalledprojects 75.9% is the rate 3% of under construction, ofprojects Completed represent projects 12.6%oftotal value, projects 2014/15. during withatotalprojects value ofSR430billionto beimplemented projects. showedvarious sector Results availability of3,709 based onaninformation system that provides instant data on intheprojects participate projects. 45development parties give decision-makers and stakeholders a clear vision of the mechanisms for coordination between various bodies and aims to count andfollow-up oftheregion, projects create the executive programs regional ofArriyadh plan. The project Commission for theDevelopment to ofArriyadh beoneof founded pursuant to ofHRHPresident direction oftheHigh A program offollow-up was Region ofArriyadh projects Arriyadh The Commission High for theDevelopment of Government Agencies andOther Offered by the Opportunities Theme Investment One: (1) CommissionThe High for theDevelopment ofArriyadh. billion representing 3%oftotal projects’ cost intheregion. numberedHealth projects 121 with a total cost of SR 12.9 networks, developments. railways andairport 73 billion,17%oftotal values. project These includeroads There at projects atotal were sector cost ofSR 576transport cities.industrial financial and technology cities, hotels andoffices towers and of SR8.6billion,2%total projects’ value. These include There were 75economic development at projects atotal cost schools andtraining institutes. representing 17%whichinclude:universities, colleges, public 604 educational withatotal projects cost ofSR73billion water, electricity, sanitation and storm drainage. There are 28% of total costs of the region’s and include projects at projects acost ofSR120billionrepresent956 publicutility national andforeign private sector. apositivereflects investment climate for investment.authorities supervising That andthehomeofallhighmain Kingdom, with beingtheadministrative capitalofthe East. in theMiddle This location isenhanced location being one of the commercial sites Arriyadh constitutes anattractive strategic parties. the private andforeign sector investment investment available for opportunities some government bodies offer several privatization adopted by theState, policy For thepurposeofimplementation ofthe (1)

109 Investment Climate in Arriyadh 2014 110 The High Commission for the Development of Arriyadh (1) Ibid. downtown to historical, administrative, economic and The oftheprogram purpose isto transform Arriyadh Arriyadh Center Development Program opportunities. The mostprominent are: for Development offers ofArriyadh numeorus investment Within itsdevelopment planofthecity, Commission theHigh Stalled Delayed Not Completed Completed DevelopmentSouth Centers (Dawaser Governorates) andSulayyil Western Development Centers (Dawadami, Kwekaa, Afif,Marat Shaqraa,Governorates) Development CentersNorth Governorates)Gatt Zulfi, (Mujamah, Eastern Development Center (Al-Kharj –Al Aflaj –Hotat Bani Tamim, HareekGovernorates) Central Development Centers (Arriyadh, Addiriyah, Rimah, Muzuhimiah, Horemilaa)Thadek, the Projects Serving Whole Region Charity Sector Charity Private sector Economic Development Sector andHousingSector Public Services Transport Sector Sector Health Services Sector Educational Services Public Sector Utilities Projects by Development Sectors Charity Government andPrivate Private Government Projects by Clusters ofDevelopment Centers andGovernorates Projects by Clusters ofDevelopment Centers andGovernorates Project Type Project Type Project Project Status Arriyadh Projects 2013/14 Projects by ofProject Kind and publicutilitiesineacharea. areas, enhance security, urban improvement ofroad network social anddemographic balance, expansion intheopen diversificationkind of inthehousingpattern, achievinga commercial activity. Increasingemployment opportunities, of architectural andcultural aswell heritage asexisting cultural center at thenational level through thepreservation (1)

Did not start yet Did notstart Stopped Number ofProjects Number ofProjects Number ofProjects 1,398 2,834 136 536 311 363 151 998 577 127 804 347 34 51 42 34 56 51 (billion riyal) (billion riyal) (billion riyal) Total Cost Total Cost Total Cost (%) 154 166 1.5 0.5 2.5 2.5 8.5 75 21 31 60 43 15 24 54 57 35 60 2 2 5 3 6 • • • • The geographical ofeachlocation boundaries are asfollows: and financial complexes. governmental administrative complexes andcommercial institutions, healthcenters, promotion andcultural activities, majoreducational services, areas andassociated support significant investment embodiedin residential opportunities ofservices. andavariety activities They therefore offer communities with are sub-urban sub-centers Arriyadh Arriyadh Sub-Centers well Center. asthearea Abdulaziz Historical nearKing ofCulture andInformation as andneartheMinistry Alhokm, intheareagovernment located departments southofQasr administrative center that accommodates ofthecity more The planalsofocuses ontherole ofthedowntown asan Aldaho, andAlsalam Park. QasrAlhokm inAldahera,heritage, landmarks cultural andentertainment inthesouth,passingby be establishedinShumaisiQuarter to villagewhichissupposedto theheritage in thenorth tourist Center path from Abdulaziz extending Historic King of Aldahera andAldaho, creation ofacultural heritage buildingsby ofheritage developmentinclude preservation old walls anarea ofArriyadh withspecialcontrols that The development planalsoconsiders thearea withinthe thearea asawhole. andcity thatpublic parks serve Center. ExpansionofAlsalam Park from theeast. Creation of and create open areas Abdulaziz Historic in the south of King stations. Establishmenttransport of safe footpaths pedestrians through providing publicsquares withpublic connect The planfocuses onincreasing openareas andgardens areasareas indifferent andallocation ofparking parts. rehabilitation ofintersections, improvement ofpedestrians surrouds thearea aswell astheestablishment ofnewroads, includes rehabilitation oftheroads inacircular path that a comprehensiveRegarding transportation, plan was setthat population inasecured high-life area. quality different densitiesand residential unitsinorder to increase center,of thecity redevelopment ofresidential areas of are development ofhousinginanumberneighbourhoods the area is15k Street Abdulaziz BinMohammed south andImam inthewest, and Ammar Bin Yaser Street, by connected Asha Street inthe Street that inthenorth by isconnected OmarBinAlkhattab The planidentifies downtown fromArriyadh starting Washim The western liesbetween Prince sector binAbdulaziz Mishal and west isasshown onthelocation map. inthenorth, Road Wadi Hanifa intheeastandfrom south The south-western lies between South-West sector Ring inthesouthandAl-Haer Street Road Eastern Ring inthewest. inthewest. Road and theEastern Ring ibn HanbalStreet in thesouth,Janadriyah Street intheeast, Ahmad Imam Street binMegrin Mohammed inthenorth, The islocated eastern sector between Prince bin Saud The southern sector lies between Nasr Street in the north, the the liesbetween NasrStreetThe sector southern inthenorth, m 2 . The mostprominent features ofthisplan (2) CommissionThe High for Development ofArriyadh. Tatweer 67,2013. Magazine (1) CommissionThe High for Development at theCommission. Investment ofArriyadh, Opportunities • • • • • • andinvestmentThe available mainactivities (1) opportunities public medicalcenters. institutes andspecialized colleges inaddition to private and Private orpublicuniversities andcolleges, technology residents by ofthearea thecenter. served and green areas to bedestinationspoints andattraction for ofplaces forA variety familyrecreation, parks, playgrounds activities. exhibition centerscelebrations andother andartistic such aspubliclibraries, festivals, activities Multi-cultural areas away from center. thecity towards allsocialclassesespeciallyto familiesresiding in Preparation geared activities ofcultural andentertainment exhibition centers, hotels, places andothers. entertainment Development ofrelatively including projects large-scale companies. Commercial areas, andmarketing offices, banksand map . in theeastandwest are boundaries shown onthelocation Street Medina inthesouth, Street inthenorth, Wadi Hanifa of more thanSR430billion implemented inArriyadh Region withatotal cost More than3,709development are projects being Comprehensive Development Projects inArriyadh (2) .

111 Investment Climate in Arriyadh 2014 112 The High Commission for the Development of Arriyadh for theprivate sector. All ofthepreviously mentioned are investment opportunities • • • investment suchas: opportunities The implementation will result of these projects in many Abdulaziz Road.Air Base, andKing Abdullah Road King through ofAbu BakerandOrubaRoads extension Arriyadh andthe International Airport areasKhaled project ofKing theimplementation ofaroad inthe network supervising CommissionThe High for theDevelopment is ofArriyadh Roads Projects andAvailable Opportunities to thepublicsector.sector with hightraffic densities, against payments privatefrom the such asthecommercial zones, hubsanddowntown areas concessions onmainroads for thebestutilization ofparking is widespread around theworld. Another way isby obtaining returned to thegovernment sector. ofinvestmentThis kind to beinvested andthen period inover apre-determined This canbe offered by establishing multi-storey parking Parking Areas Density inHigh and traffic management systems. monitoring systems of security as wellInstallation as safety Tree planting, paving irrigation, andlighting works. centers. Petrol stations, cafes, restaurants andvariouscommercial • developing Addiriyah Historic City Investment withintheprogram of opportunities (1) CommissionThe High for theDevelopment investment ofArriyadh: oftheprogram of opportunities • • • • • • operation suchas: Addiriyah butthey are Historic City inneedoftheinvestors’ There are alsomany otherinvestment in opportunities • • • an average area of40m Shops squarein Albeheri (Addiriyah Park): 86 shops with development ofAddiriyah City, Historic 2009. Historic City.Historic websiteInternet applications for visitors of Addiriyah explain someevents andsites). inAl Interactive services Turaif Square (audio systems to (sound andlight show andseasonalevents). inAl ticketsto somesites andactivities Entry Turaif Square Square andbetween andAl Albeheri Turaif Squares). systems (within Al and tourism transport Internal Turaif addition to visitor centers. andsouvenir shopsinmuseumsAlGift Turaif Square in andAlSnacks stallsinAlbeheri Turaif Squares. for thesuccessnecessary ofthisinvestment project. to andallservices is providing thehotel, transport parking development planandmethodologyoftheregion andalso is designing and building this hotel according to the The Hotel Heritage (west ofAl Turaif Square): theinvestor and restaurants for familiesandindividuals. buildingsusedasshops shops whichisadobeconstructed Al Turaif has38 thismarket andthefood market court: City. There are 15innsdividedinto 40suites. are madeoutofmudinAl Turaif Square inAddiriyah Historic Al Turaif innsfor (heritage dailyrent) Inns theseresidences commodities, clothesandshoes. Park visitors suchasfood andbeverages, traditional 2 provide services for provide Addiriyah services (1)

(1) CommissionThe High for theDevelopment investment ofArriyadh: oftheprogram of opportunities includingindustrial comprises majoractivities Road. It Ring cross andtheNorthern road Road oftheEastern Ring from the is20km The of214square Eastern suburb km favourable foropportunities theprivate sector. and residentialcity. area andasports These are investment this area rest comprises roads houses, network, technical Fahad Road. Ring andtheNorthern Road The schemeof from is 20 kilometers the crossroad205 square km of King in and Arriyadh. eastern suburbs of suburb The northern approvedArriyadh schemesofbothnorthern thestructural CommissionSince 2007 the High for the Development of New Investment intheNew Suburbs Opportunities • • • • • • development ofAddiriyah City. Historic Addiriyah andland use. Compatibility systems withtheurban ofthehistoric characteristics. thesite’sMaintaining natural, andhistoric heritage cultural tourism inArriyadh. development ofthehistoric sites beingconsidered for natureand heritage andaccording to concepts of Addiriyah shallbe consistent withthecity’s environmental withtheinvestment withinhistoricDealing opportunities of theinvestment program ofAddiriyah suchas: isrelated toopportunities considerations anddeterminants in Ghosebeh square. The implementation of these in additionto restaurants, cafes andsouvenir shops Preparation ofsound, light andmultimediaservices andfolkheritage shows withinthewalls ofAl Turaif Square. Establishment ofseating areas andtraditional spaces for Commercial advertisements. (1) (SAGIA) ArabianSaudi General Investment Authority hotels.of theseheritage andAddiriyahArriyadh are themostsuitablefor theexistence available to theprivateopportunities sector. of The oldcity presented by theCommission withintheinvestment The hotels isanotherinvestment heritage project project Heritage Hotels for suchas theseprojects Wadi Hanifaand Thumamah. attention of theCommission. Several locations are available available to theprivate whichreceives sector opportunity the andrural guesthousesasaninvestment heritage eco-lodges CommissionThe High for theDevelopment offers ofArriyadh andRuralEco-lodges Houses Guest (SCTA) CommissionSaudi for Tourism andAntiquities thousand jobopportunities. investment whichprovide aboutonehundred opportunities camping areas andparks. are andservices These activities institutions, banks, companies’ branches, commercial malls, housing, construction, government port, hotels,services, dry (3) SAGIA website: www.sagia.gov.sa (2) CommissionThe High for inArriyadh oftheNewSuburbs theDevelopment Schemes Structural ofArriyadh, • • oftheseinvestment are: important opportunities all regions includingArriyadh, oftheKingdom, The most SAGIA provides many investment spanning opportunities City, Executive Summary, 2007. and communications sector. in the informationInvestment technology opportunities intheenergyInvestment sector. opportunities (3) (2)

113 Investment Climate in Arriyadh 2014 114 The High Commission for the Development of Arriyadh estimated at SR500billion. The total value ofinvestment is inthesesectors projects • • • • • • • suchas projects Arriyadh isimplementing many Municipality service Arriyadh Municipality visit thewebsite: www.modon.gov.sa For more information oninvestment please opportunities, • • • • • • • • • • offered andothercities: by MODONin Arriyadh Following investment are the most important opportunities Authority (MODON) Property Industrial Saudi The opportunity to investThe intheeducation opportunity sector. to investThe inthelife opportunity sciences sector. inthehealthsector.Investment opportunities Gift andsouvenir shops Gift Fast food outlets Cafes willresult from theseprojects: opportunities Park public plazas and others. in Malaz, Many investment Abdullah InternationalGardens, Abdullah King King be promoted to willingto manufacturers hire suchplants). plant (establishment projects Model to of model projects andestablishment ofwarehouses).packaging, export storage, (transportation, Logistical projects supply, service Restaurants andcafe projects. (offices, projects mobiles, services Banking ATMs). Communications andmobiletelephone tower projects. centers. including hospitals and health Projects of medical services centers for rehabilitation ofindividualsinfactories. Projects ofvocational, technical andadministrative training Projects ofcommercial complexes by BOT system. BOT system. establishment, operation and maintenance of hotels by Hotel projects, through of investors attraction for the plants usingmaterials that canberecycled. cooperation withinvestors through communication with for investment withencouraging incentives. and Support of materials anddemandsthrough theprovision ofland Projects sizes ofrecycling variouskinds, andspecifications • • • • composed of thefollowing AbdullahKing International Gardens are • • • Science parks(birds, geological, butterflies, andgenebank Seed MuseumBotanical GardenBotanical Festivals square Valley walkway andwatchtowers International Garden flowers etc.) • • • Olaya Towers Project andGranada OasisProject: additionotherinvestment areIn presented opportunities in economic inArriyadh. andtourism projects malls. to the project be one of the prominent GOSI expects one ofthecapital’s largest shoppingandentertainment The site is 466,000square meters within the Granada Center, hotel tower, anda14-storey tower with250hotel apartments. ArabiaSaudi willfeature two towers; a20-storey, 480-room area. The Hotel new-buildRiyadh andResidence in Hilton with the downtown International Airport Khalid King linking is located onArriyadh’s Road, amajorcorridor Eastern Ring General Organization for Insurance (GOSI). Social The hotel Arabia’sSaudi Granada Investment Center establishedby Hilton Worldwide has signed a management agreement with Hilton Riyadh General Organization forInsurance Social • • include: willbeavailable foropportunities theprivate sector. They and Communications Center (ITCC) where many investment Abdullah FinancialKing andInformation District Technology suchasthe inArriyadh projects development andservice The Public Pension isimplementing many Agency important Public Pension Agency the beginning oftheacademicyear 2011/2012. largest educational for project East at women in the Middle This University commenced work in its new building as the Princess Nora Bint University Abdul Rahman relevant to theseprojects. represented andcommercialopportunities utilities inservice These willopenthedoorfor projects many investment (residential, hotel, office andeducational towers). Techno Valley University andendowments Saud ofKing to development technology andknowledge suchasRiyadh University isimplementing Saud manyKing related projects UniversityKing Saud inArriyadh traditions into consideration. designed inaway that takesocialcircumstances, habitsand in additionto specialplazasfor youth (females) that are Petrol stations onthenewroads andnewlyestablishedareas suchas: opportunities alsooffersThe Municipality many otherinvestment Investment shops. ofcommercial andservice stores. Investment offlower stalls, cafes andsouvenir and gift Investment andexhibitions. ofgalleries restaurants andrecreational areas inITCC. Hotel investment infacilitiesfor celebrations, conferences, Abdullah FinancialKing District. Investment of commercial, office and residential centers in (2) Ibid. Company, Electricity (1) Saudi 2009/10. Annual Report, generation projects inelectricity participation to theprivate withintheprogram sector of private sector These present projects great investment opportunities of2,000MW.capacity (Central) District them isinArriyadh that runsongasandthe areprojects now available for oneof theprivate sector; toproject thepublicnetwork. Three power generation contracts. The Company willprovide fuel, landandlinkthe commit to purchase theentire under long-term production Company willinreturn Electricity basis whiletheSaudi onbuild, projects production own andoperateelectricity The private isencouraged inthe sector to participate generation. electricity investment to theprivate inthearea sector of opportunities Company setsstrategic Electricity Saudi plansto openup Company Electricity Saudi activities. commercial andservices Commercial centers inresidential communities andother • • • • activities: and service The University provides investors witharange ofcommercial Qarya /Eastern Qarya / Western Rabigh Airlines services centers services Airlines centers services Banking centersStudents services Restaurants andcafes Riyadh 11/CentralRiyadh Station /Region Rabigh (2) Rabigh Power Generation Stations Available to thePrivate Sector’s Investment (1) . Start-up 2017 2015 2014 2014 1,200 -1,400 1,700 2,000 2,000 M.W. Heavy FuelHeavy Crude FuelHeavy Natural Gas FuelHeavy (2) Fuel 115 Investment Climate in Arriyadh 2014 116 The High Commission for the Development of Arriyadh [email protected] [email protected] • • • materials). mold design and manufacture, of testing and selection Product development centers (training, technical assistance, InvestmentOther Opportunities palettes. forvehicles, householdappliances andcoloured parts plastic compositefor pipe, andexport, thelocalmarket industrial polyethylenefittings withasolid wall madeofhighdensity acute containers pipesand for andexport, thelocalmarket flat bagsmadeofpolyethylene, lotionsandmedicalbottles, for polyethylene dualfactory containers,and export, large includingpropylene films opportunities for thelocalmarket offerThe Petro Industries several Manufacturing Rabigh Projects inManufacturing Opportunities The investment value isover oftheseprojects SR18billion. turbines, chemicalcatalysts andchemicalsusedindrilling. gas labs, catalysts, machinery, compressors, manufacturing casting andforming, heat exchangers, aircoolers intheoiland of thefollowing suppliesandconsumables: valves, iron are Investment available inthemanufacturing opportunities Projects andServices inManufacturing Opportunities are: opportunities by theprivate sector. oftheseinvestmentThe mostimportant AramcoSaudi for provides investment multiple opportunities AramcoSaudi the following emailaddresses: andDevelopment ofLocal atDepartment, Projects Section Aramco,Saudi theNewProjects pleasecontact Assessment For information on investment in further opportunities ofpolymersandsupplyadditives.Installation provision). Supply chainmanagement (logistics, licenses andservices Parties OfferedOther by Opportunities Theme Two:Investment www.riyadhchamber.com ChamberofCommerceplease visittheRiyadh website at: For more information ontheinvestment opportunities between SR0.6millionand22million. 38 proposed withaninvestment projects value ranging investment for businesswomen, including opportunities andprofitability.and linesofproduction It alsopresents channels,and marketing sales, land space, andlaborrequired, projects. providesThe financial analysis directory ofprojects intheareasprojects offood, andcommercial industrial investment highlighting 65investment opportunities The Center hasissuedacomprehensive of directory around SR500,000. opportunities. is The capitalofmostthoseopportunities investmentcraft whichcontains 27new opportunities, Commerce has issued a guide on the professional and small The Investment Center Chamberof oftheRiyadh databases oninvestment Region inArriyadh inparticular. andmanages oninvestment intheKingdom reports activity by alsoworks SAGIA. onthepreparation It ofstudiesand the benefits accorded to foreign investmentKingdom in the Region inArriyadh andprovinces,sectors andpromotion of monitor the investment of the various business opportunities offoreignand attraction capital. The Center alsoaimsto through repatriation RegionArriyadh in particular of capital of theinvestment climateingeneral andin intheKingdom number ofkeyobjectives. These includethedevelopment Chamber asanindependent to center achieve a isseeking The Investment Center that was establishedby theRiyadh Chamber ofCommerceRiyadh andIndustry general andinArriyadh inparticular. investment climate in intheKingdom contribution to development ofthe investment center for the purpose of has established an independent Industry Also Chamber ofCommerce theRiyadh and climate inArriyadh. for thepromotion ofapositive investment investment, favourable for theprivate sector for both national and foreignopportunities Aramcobodies suchasSaudi andSABICoffer other large economic andnon-government additiontoIn various government agencies, productive companies. accommodation ofinnovations that later willbeturned to with regional, or marketing international andlocalpartners, reflected inestablishment of companies injoint ventures availableInvestment for are opportunities thesesectors • • • • prominent are:Most investment inRVC opportunities for creation inthemarket. ofsuccessful activities Riyadh Valley Company invests ofnational targets onsectors Kingdom. entrepreneurship investment andknowledge inthe University. Saud of King was establishedto stimulate It ofknowledge, andarecentin thesector achievement isoneofthenon-government companies whichinvestsRVC Riyadh Valley Company (RVC) Engineering andmanufacturing Communications andinformation technology Chemicals, petrochemicals andenergy industry. Biotechnology andpharmaceutical, medicalandfood 11 10 9 8 7 6 5 4 3 2 1 1 8 7 6 5 4 3 2 Ceramic decoration products Cake andpastamixes Travel bagsandaccessories Children’s food Shawls andheadwear. Women’s underwear Women’s readymade clothes Clothing accessories Perfumes Children’s toys Children’s care centers Women’s accessories Paramedical training and x-ray institutes (laboratory technicians) Administrative training centers Computer training centers Women’s centers finearts Women’s centers for consulting andeconomic studies Women’s photography institutes andart Women’s showrooms goldandjewellery Second: Services Projects Second: Services First: Projects Industrial 22 21 20 19 18 17 16 15 14 13 12 16 15 14 13 12 11 10 9 Wallpaper Pickling factories Pickling Catalogue printing. Children’s furniture ofhandicappedtools andrequirements.Manufacturing gear Knitting Stoves for keepingfood temperature Stock cubes Textiles andglassaccessories Crystal andwindows curtains Upholstery Food supplycompanies. Businesswomen’s centers service andweightBeauty losscenters Women-dedicated malls Private institutes for sewingandembroidery Rehabilitation centers for peoplewithspecialneeds Physiotherapy centers Female services students transport 117 Investment Climate in Arriyadh 2014 118 The High Commission for the Development of Arriyadh needs, resources andgeographical location. a balanced and sustainabledevelopment related to actual span alltheprovinces Region ofArriyadh aimingto achieve isaroundof theseprojects SR120billion. These projects telecommunication andpublicservices. The estimated cost roads, environment, water, sanitation, electricity, in Arriyadh the areas of health, education, housing, 1,800developmentOver have projects beeninitiated Land Transport Network Land Transport Activities Storage and Transport Support andEquipment Machinery ProductsMetallic Except ofPrefabricatedManufacturing Specialized Activities Construction Telecommunication Buildings Construction Sectoral Studies Sectoral Resultingfrom Opportunities InvestmentTheme Three: Sector Economic Sectors, Job Opportunities and InvestmentEconomic JobOpportunities Sectors, inPublic Transport Project terminals. Goods cargo via main railroads network. Special short railroadsterminals. andself-runtrucksrental cargo Goods Special short via mainrailroads network. Passengers viametro andbuses. transport Transport orto linesfrom to theairport thecity storage operations. anddistribution Planning, oftransport, design andsupport passengers’ cargo. operations by Arrange land, transport airorseaaswell asalllogistic services. Run stores andwarehouses that store ofland, commodities alltypes airandmarine and addition to metaldoors, windows, tanksandcisterns. metaltires ofindustrial andprefabricated buildingsmainlymadefromManufacturing metal, in oftires metalsupplies(towers, andconstruction Manufacturing masts, beamsandbridges). and otherspecialized activities. construction conditioning, solarpanels, sanitation andelevators.Other coating works suchasaluminuim,plaster provision suppliesfor buildingsandother projects’ ofelectric facilitiesincludingcooling, air ofbuildings,Demolition removal sites, ofconstruction landworks, drilling, oftunnels, construction internet sevices to publicfacilities internet to target facilities, usinginfrastructure oftelecommunication andsupplying phoneand Operation, maintenance andfacilitation ofaccess ofhumanvoice, data, soundandimage text, of prefabricated buildingsinthesite. factories, garages) includingunderground garages, warehouses, assemplypoints andinstallation ofresidential ofalltypes Construction andnon-residential buildings(workshops, assembly offices andothers. administrative, economic andfinancial these studies, aswell asfor consulting, for companies operating inthefieldof investment available opportunities of different studies. sector There are thepreparation undertake Several parties Opportunities Manufacturing Equipment Electrical Chemicals Manufacturing Leasing andRental Activities Manufacturing ProductsNon-Metallic Manufacturing Machinary Civil Engineering Coordination Places andIndoor Construction ProvidedServices to Buildings Coordination Places andIndoor Construction ProvidedServices to Buildings Chemicals Manufacturing Manufacturing Plastic andRubberProducts Manufacturing Basic Metals Sector electric cablesboxes,electric traffic lights. and pedestrians lamps andfluorescent lamps, ultraviolet andinfrared lamps.Insulated wires andcables, switchers, dooropeningandclosing devices, lighting equipment, discharge transportation Manufacturing tubeswithswitchgearpower panelsandpower delivery distribution, switching equipment. engines,and distributors. generators, Manufacturing circuit breakers, control panelsfor ballasts,substations transformers for power andvoltage distribution transmission devices transformers, distribution ofelectrical arc weldingManufacturing transformers, fluorescent paper.paper andwriting ofliquidandcompressed inorganic gases. Manufacturing industrial Paint andvarnish industry, similarcoating materials, anti-leak material, printin printing ink, rechargeable batteries. motors, andmaintenanceRepair ofelectric power batteries generators, and single-use offices. andcivilengineering machinery.construction Rentingofresidences andcontainers to beusedas recreational ascapitalcommodities leasing, vehicles flights, andotheronesusedinindustry for operation passengers self-runvehicles, purposes: Renting orleasingmachinery trucks, trailers, smoothing stones usedfor roads roofing… etc works includecutting, concrete Other shapingand ofready-mix andMortal. ordry Manufacturing plates, ofplant-based buildingmaterials pipesandbeams.Manufacturing (wool, straw, reeds). casting cement aswell asconcrete andstone materials usedinconstruction:bricks, stone tablets, hydraulic cement includingPortland cement, aluminiumcement, acidphosphate cement, pre- pavingdried-mud stones, insulators, electrical ceramic products, ceramic insulation, and burners ofclay,and insulating glass. Manufacturing concrete, heat-resistant of ceramic.Manufacturing anddyed, offlat glass, glassincludingarmed glasstiles, colourful fiberglass Manufacturing andvariousaccessories requiredspare parts for motor vehicles ofmotorized andothervehicle, structures Manufacturing concrete-mixer trucks, special containers ofcommercial machinessuchaslargeManufacturing vehicles, trucks, andsemi-trailers. tractors system andlanddivisionimprovement. linesofthecity, includingtransport Establishment ofcivilengineering constructions sewage ofhighways,Construction streets internal pathways, tracks carsandpedestrians andbridges. balanced environment view. cleaning,industrial planting andgardens parks andprovide to maintenance maintaine services andoutdoor cleaningforIndoor ofbuildings, alltypes sterilization streets andpecticide, sweeping, waist disposal, security, safety, andotherrelated withinthefacility. services laundry postalservices, withinclient’sProvision services ofsupport suchasgeneral interior facility cleaning, maintenance, solvents, soap, detergents andpolishingproducts. ofpaints orvarnish,enamelpaints orlaquers, paintsManufacturing thinners, organic compounds products. steel andrubbertubesarms, finalplasticproducts, plasticsupplies andotherplastic construction oftires orinterchangable andremanufacturing tapes, of skips wicks.Manufacturing Manufacturing these industries. of steel andsteel semi-finishedproducts wires inaddition to many other associatedworks with ferroalloys, iron pelletsorpowdered iron, scrap steel ofiron molds, orsteel, re-melting production Blast furnaces operation, steel convertors, rolling machines, refinement of andproduction Opportunities 119 Investment Climate in Arriyadh 2014 120 The High Commission for the Development of Arriyadh transport project (bus, project metro)transport inArriyadh. for resettlement relatedopportunities ofindustries to public The following investment tableshows mostimportant Automatic Gates Machinary Hoses andPneumatic andHydraulic Fittings Lower andUpperAxes andParts ofSuspensionSystem Helical Springs, Leaf andPaper Springs Spring Gears Bearings Brakes andBrakes Blocks Production/Assembly Low Cost Vehicles Wheels Railways Spare Parts Manufacturing Planning andDesigning Signal Equipment ofLocomotivesRenovation/Manufacturing and Equipment Waste Collection Services andRelated Services Consultancy Computer Programming, andEquipment Machinary of andInstallation Repair Equipment TransportOther (notcategorized) Manufacturing andEquipment Machinary Investment for Resettlement Related ofIndustries to Opportunities Public Transport Project Sector Railways Collection ofsolidnon-hazardousCollection waste andallrecycable materials provision viacomputer. ofconsultancy Design computer code structure, content, and facilitiesmanagement electronic andactivities devices relative to theindustry. fluidpowerparts, equipment, valves, gears, transducers, switchgears, relays electric and contrl lighting equipment, locomotives andtrailers viamobilewelding equipment, pumpsandrelated ofmotors andmentenanceRepair suchasships, ofotherkinds andengines ofrailroads trains, traffic and electromechanical signs andsafety ,electrical system ofthe railroads. Shocks absorbers, wagons andlcomotives’ outer structure. Trains seats, control equipment axes, pivotal parts, wheels,and theirspecialparts; suchashooks, brakes, couplers. brakes parts railway electric locomotives runbyManufacturing diesel, steam railways, orothers. Electric buses materials orlayers ofthesamematerial. boxes, speedchangegearbox, couplers, joints andsimilarmaterials madeoutofcombination of pumps that fitinternal cylinders and combustion engines. gearsandgear related of parts, Carriers combustion engines. Hydraulic andpneumatic components, fluidpower system, anddesigned combustion engines anddieselengines. Valves andexit intheexhaust ofinternal ofentry oftrains engines, pistonsManufacturing andpiston rings, carburetor andthelikefor allinternal Available Opportunities Long-Term Aspirations Interior FurnishingInterior PanelsBody Batteries Tires Windscreens ofLow CostManufacturing BusesComponents Engine Systems Management Anti-Lock System Braking Vehicle Units Management Cost ofHigh BusesComponents Manufacturing Joint Venture withCompany Produces Technical Components. Complete Assembly ofParts inKSA Opportunities Buses • • Local Networks Road • • • • • • • Network Roads Regional Arterial • • Networks Regional Road Main Future Plan to Develop Networks Road and otherroads centers’ that connect clusters. a numberofmainregional ofthearea roads parts to connect of the existing roads through network establishmentpart of worked ondevelopmentsector andupgrading thebiggest The executive program oftheregional planinthetransport development ofroad withincities. networks cities intheregion anddevelop theexisting roads, aswell as thatprojects willbeimplemented to linkprovinces and Region inArriyadh isdependent uponthenewroadsector The investment inroads andtransportation opportunities Transport andRoadsSector road withalengthof130km. AlhdarConnecting Center inAl Aflaj -Bishah with Arriyadh centers. eastern development centers withwestern development south alsoconnects It Asir Region headedto Makkah. road for inArriyadh coming trips from citiesand southern astransit serves It Kowekaeyah withalengthof180km. Establishment - ofatwo-way road Al-Kharj connecting with theEastern Province. in tocentralArriyadh) connect developmentpart centers Province way isthelengthof to road atwo- (123km Convert –Shawya-Rafe’ Rmah intheEastern ahRoad development centers withAl QassimRegion. way to west beasecond road hubconnecting of170km, Convert Dawadmi road –Al passingby Ras Alnafitwo- to a Region. southdevelopment to connect center205 km withMakkah Convert Wadi Aldawaser road to- Rania a two-way road of Region. westconnect development center withMakkah Convert Afif- Thalm two-wayroad km to a to road of154 and Al Qassim. southeasternto development connect centers withRagbi - Arriyadh Taif Highway – Al Qassimpassing by Sajer. This is road from extending Establishment Al ofa480km Aflaj to withtheEastern Province. City Industrial Kharj Dammam highway to atwo-way road Al- that connects Convert and - Arriyadh the road Al-Kharj connecting ProvinceArriyadh is450km). passing througha two-way road (thelength of the part Convert area passingAl Rayn -BishahRoad Arriyadh to passingthrough Province Arriyadh the part is120km). theareaconnects withtheEastern Province(the lengthof RegionArriyadh withJubailto beasecond hubthat cities in Establishment of a road northern connecting ofthisareaconnection withAseer area. to enhance passingby is670km) Arriyadh length ofthepart Bani Tamim –Al Aflaj - Wadi Aldawaser to ahighway (the passingby Road Mushait HotatConvert Arriyadh-Khamis • • • following tasks: or whole to general subscription. the The undertakes project Assembly isallowed to offer shares ofthe Company inpart equal value, thenominalvalue ofeachisSR10. The General the company isSR1billiondividedinto 1millionshares of and raw materials aswell aspassengers. The capitalof standards.and security They includetransfer ofmineral according to economic operation standards aswell assafety or otherthird party. shallbeimplemented Railway projects through theCompanymanagement andsupervision itself withallrelated facilities, services, operation,(North-South), the taskofestablishment andexecution ofarailway project RailwayCompanySaudi (SAR),theresolution assigned to SAR dated 2005 the Council 4/6/2002. In approved on founding by a resolution of the Supreme Economic Council No. 3/23 expansion ofrailways adopted intheKingdom, network ofthe executive isoneofthekeyprojects It program of Line: –South 1- North andwithGulfcountries.Kingdom These are: projects ofthe thatprojects withwest, linkArriyadh eastandnorth Arabia ofSaudi isofferingKingdom anumberof railways Railways Projects • • • Express transportation ofpassengersbyExpress trains (200km/ transportation services. traditional transport multi-purpose Public shippingofpetroleum andchemicalsthrough facilities inRas-Al-Zour. Jalameed andbauxite inAlzubaira area to processing Transfer metalsofphosphate ofheavy from minesin approved withinArriyadh. network publictransport is the recently under One construction of the mega projects from othercitiesandwestern provinces. road way Dirab to to facilitate 19km two-high transport Convert the highway – Arriyadh connecting Taif – Alshifa Eastern Province andcities. inorder to facilitateof 11km traffic movement coming from –AlArriyadh Qassimhighway to to atwo-way road Khzam Convert theroad from extending on Banbanintersection Yanbu Al Busayta Al Haditha Al Qurayyat Al Rabigh Jeddah Mecca Madinah Hazem elJalamid Hail Jazan Buraydah Zuberah Taif Mushait Khamis Arriyadh Al Hufuf Ras TanuraRas Haradh Al Jubail Dammam Future Projects -south Line north Express TrainHaramain Land bridge The current network 121 Investment Climate in Arriyadh 2014 122 The High Commission for the Development of Arriyadh expansion program approved by theSupreme Economic This represents megaproject anessential element inthe millionsof passengersannually.to serve countries.neighboring The isexpected project LandBridge and tons ofcargo to oftheKingdom themarkets carried tois expected reach 700,000withatotal ofeight million The number ofcontainers handledontheLandBridge by costs intheregion. saving intransportation That ofmore meansattraction transit trade and economies development ofJeddahIslamicPort. andto theeconomic to transportation be cruciallyimportant and investors to contribute to itsimplementation whichwill railroad companies, civilandmechanicalworks contractors for is a unique opportunity It location of theKingdom. routesof transportation dueto thestrategic geographical in the region and will play a great role in the development This isamongthelarge that scaleprojects willbeimplemented of 115km. withatotal ofthenetwork length region, withotherparts areas and the Arabianmain industrial Gulf in the Kingdom km. City,The second linelinksJubailIndustrial oneofthe Islamic Portwithatotal andendsinArriyadh lengthof950 from Jeddah consists oftwo lines:thefirststarts markets. It container trafficserve whether nationally orwithother GCC This withtheArabian aimsto Sea project Gulf and link theRed 2- LandBridgeLine(Railways) equipment. equipment maintenance andemergency portable stock, 107 bridges. The willpurchase project locomotives, rolling Alhaditha), in addition to 6 Cargo stations, admin facilities and passengers stations (Arriyadh- Qassim-Hail-Jawf- Majmaa- addition to sidestorage railways, maintenance points and6 The ensures project establishment ofarailwayin of2400km, • • • • oftheproject; Branch lineswillbeestablishedaspart Arab Gulf. are plannedto inRas-Al-zour beconstructed onthecoast of facilities inAlzubaira to facilitieswhich processing andexport passing by bauxite deposition Alzubaira in the north, on Arriyadh-Alhaditha line to a point called Multaqa Jordanian borders. The second from lineextends amidpoint to andextends Arriyadh theNorth West to Alhaditha closeto The consists project oftwo mainlines. in The firststarts Arab Gulf. onthe city JubailIndustrial A branch to lineextends serve region. line to bauxite Ras-Al-Zour minesinAlzubaira to serve A branch from lineextends Alzubaira region onthemain eastpart. area inthenorth A branch road willbeallocated Basitahagricultural to serve phosphate minesinJalameedtheNorth West part. fromA line extending toArriyadh Alhaditha to serve Alhaditha. Sudair,International Airport, Qassim,Hail,Jawf and Khaled King hour) between Alhaditha Arriyadh- to serve company and undertake organizationcompany oftherailway andundertake theinfrastructure RailwaysSaudi Organization shallsupervise the Fund) to betheowner oftherailway infrastructure. establishment ofanewjoint stock company (fullyowned by of with theMinistry Transport) shallstudythematter of of directors ofthePublic Investment Fund (incoordination existing Railways facilitiesofSaudi Organization. The board infrastructure ofallexisting andfuture railway and projects The resolution alsoincludedtheState’s right to owning by thework team referred to thereof. toof theproject competition according to amechanismset cooperate Railway Company withSaudi andoffer operation the project’s might infrastructure inpubliccompetition. It and membersoftheFund implementation of to supervise of of Finance,Transport, Ministry Railways Saudi Organization Public Investment Fund includingmembersfrom the Ministry project’s infrastructure. The work team shallbeformed inthe The Public Investment Fund willassumefundingofthe Two Railroad. HolyMosques Project –South match andthe implementation oftheNorth existing betweenandDammamshall Arriyadh network withtheeastonArabian Sea Gulfcoastthe Red viathe theweston of therailway oftheKingdom linking projects andDammamstipulatesArriyadh that theimplementation and JubailPort through theexistingbetween network ProjectBridge whichlinksJeddahIslamicPort withDammam The Council 322,of2011ontheLand Resolution ofMinisters on thislineisestimated at eight milliontons. oftheGulfcountries. andmarkets markets Container freight of increasing numbersofcontainers headedto thelocal Provide express, safe for andreliable shipping services Kingdom-wide. transport developed railway whichutilizes network advantages ofrail to inJeddahandArriyadh a oftheKingdom Link mainports granted implementation oftheproject). The aimsto: project assets andemployees oftheexisting company to theparty Council (withintheframe oftransferring intheKingdom Jeddah Saudi landbridgeproject Saudi Riyadh Al Jubail Haradh Al Hufuf Dammam expertise specializedstudieswere inconducting entrustedexpertise oftheinterestAs oftheGCC part inthisproject, world 3- GCC Train Project issued thorughCabinet 1,in2008. Resolution with what has beenstated inregulations oftheOrganization andoperation safety activities inaccordancetransportation follows: stages andproposed atimetablerequired for eachstageas Studies drew uparoadmap oftheproject, identified business implementation oftheideaby theGCC memberstates. been formed detailedstudiesfor to conduct thepractical with this mission. A financial and technical committee has 123 Investment Climate in Arriyadh 2014 124 The High Commission for the Development of Arriyadh 2,116 km. 2,116 km. The Arabia lengthofthelineinSaudi is663km. toOman via Sohar Muscat. The total length of these linesis Emirates (Abu Dhabi–Al Ain) thenonto to theSultanate of From Arabia Saudi itwillpassby Batha Port to theUnited Arab the Qatar –Bahrain proposed Bridge to beconstructed. willalsolinkQatarto withBahrain Qatar via viaSalwa Port. It Fahadthe King Causeway. From Dammamitwillrunoverland Bahrain viaaproposed to bridge inparallel beconstructed to Arabiapassing by inSaudi of to DammamCity theKingdom from KuwaitThe GulfRailwayLineisplannedto City start (the proposed route). Preparationb- ofdetailedengineering sketches of theproject a- Preparation offeasibility studiesoftheproject. Kingdom of Saudi Arabia ofSaudi Kingdom Countries Bahrain Kuwait Oman Qatar Total UAE Total Lengths ofGCC Railway Length oftheRailway 2,117 145 663 684 306 283 36 (1)

Saudi Railways(1) Saudi Organization. and joint investments theireconomies. supporting countries, freedom ofmovement ofcitizens andresidents such asfacilitation oftrade movement between these The GCC willhave project positive effectandbenefits direct integration between Arab States. for betterconnectivity economic interdependence and railway in additionto linkproject improved landandsea There isalsoanArab consensus onthecompletion of a link countries intheGulfwithotherArab countries. hassignedThe aninternational Kingdom railways contract to of West Asia (ESCWA). is a member of the Economic Committeethe Kingdom Social expand thesystem by joiningwithotherArab countries as completed by mid-year 2017/18. There isalsoanintention to Regarding implementation, to is expected the project be domain according to aspecifictimetable. methodology andsteps required to beachieved inthis consultationsThe to team lay started foundations ofwork inside theKingdom. studies andprepare located engineering designs for parts to setup project, form atechnical work team intheMinistry of the Ministry Transport to prepare detailedstudiesofthe The approval Abdullah hasissuedandassigned ofKing established inparallel Fahad to theKing Causeway. Qatar,linking Bahrain Arabia andSaudi proposed to be Bahrain will betoconnected the GCC Railway via a sea bridge • • • • • • • • Arriyadh: The following are development theindustrial in projects The Sector Industrial • • • • • • establish passengerandfreight stations including: and SAR Partrailway of the Land Bridge is to projects in Arriyadh Region Establishment ofPassenger andFreight Stations each country: The following tableshows total lengthofGCC railways in Household refrigerators. medical support. Medicines, vaccines, antibiotics, medicalsuppliesand Car tires. Examplesare: inArriyadh. activities industrial private sector, and foreign investments as well in various areInvestment available to opportunities thenational 539 million. withatotal City costDevelopment ofSR ofSudair Industrial etc.devices and sub-stations control boards, sewage networks, water systems, measuring of thesafety system inthefueltankyard, replacement of a total cost ofSR790million,includingtheimprovement Developmentat andmaintenance Refinery ofArriyadh cost ofSR 34million. at a Establishment Laboratory ofandequippingArriyadh cost ofSR73million. at inArriyadh a City Development oftheSecondIndustrial Passenger Station inRwedah Passenger Station inZulfi Passenger Station inMuzahemiah Passenger Station inMajma’ah Freight City Station inSudairIndustrial Station InternationalAirport Khaled King • • • • opportunities of this sector inArriyadh ofthissector opportunities The following investment are themostimportant expansion ofwater andstorage networks facilities. capacity. As aresult, there is aneedfor theestablishment and and rehabilitation ofexisting stations to raise theproduction desalination include the establishment of additional stations The investment inthewater andwater sector opportunities Water Sector Ministry of Water(1) Ministry andElectricity, 2009/2010Annual Report. Among theinvestment are inArriyadh 21 opportunities implementation ofwastewater treatment plants. andtheprovinces, city inArriyadh new networks and of Region isSR3,863million, including theextension The cost ofthesewage development network inArriyadh and processing. programs andraise the potential of wastewater harvesting This isaimedto keepupwithwater supplydevelopment development ofsewage andtreatment networks capacities. Region of haveArriyadh The efforts been focused onthe rapid Sanitation Sector • • • • • million. Two water treatment at projects atotal cost ofSR123 million. 29 water at inArriyadh projects acost network ofSR823.5 implemented. with acost ofSR1,865million.39%theplanhasbeen thefirstphaseof waterImplement strategic plan 5,850 million. Transfer thewater AlGeneral Station withacost ofRas ofSR Electrical appliances andairconditioning compressors.Electrical Cloth, yarn, blanketsandbedsheets. Water andgasmeters. ware.Plastic sanitary Pottery andcolored reflective glass. (1) : 125 Investment Climate in Arriyadh 2014 126 The High Commission for the Development of Arriyadh process. the private to play sector aleadingrole inthedevelopment These are projects investment available to opportunities (2) Ibid. (1) www.alriyadh.gov.sa facilities rehabilitation and maintenance. Another is project There are several inschoolbuildingsandeducational projects ofEducation andGuidanceand three Centers. Department 27 educational complexes, 47large schools, 50smallschools, The general education include the establishment projects of of SR2.92billion. at acost for of SR2.69 billion and 537 projects girls at a cost million. These for comprise of558projects boys’ education various stagesofeducation at atotal cost ofSR521.86 675 approved educational for projects boys andgirls in The Region inArriyadh offers education sector for investment Education Sector power distribution projects, 62power of transmission and19projects projects RegionArriyadh is SR 22.4 billion for ten power generation The in value sector of approved in theelectricity projects related to power generation, transmission anddistribution. to theprivate interms ofprojects sector opportunities in offersArriyadh sector investmentThe electricity Sector Electricity meters perday at acost ofSR100million wastewater treatment of200,000cubic plant withacapacity upgrading existing stations andimplementation of of new stations, include construction projects Other SR 430million. and a cost of sanitation with a length of 1,512 km projects engage boththegovernment andprivate sectors. Nerves Centers CenterNerves inthe National Security HealthHospitalin Arriyadh Mental University Saud inKing City Expansion oftheMedical Aflaj Community College / Salman UniversityPrince Prince Public Salman inAl-Kharj Utilities Expansion ofStations andBasicFacilities University ofImam Abdullah CampusKing for Females University /Imam Female University Saud HousingCampus inKing Establishment of a Hospital in the North of Arriyadh (300beds) ofArriyadh Establishment ofaHospitalintheNorth Establishment of15Clinics (2) . These investment will opportunities Project Description Educational Sector Projects inArriyadhEducational Sector (1) . Health Projects inArriyadh flowers, pharmaceuticals, etc Lease ofstores withinhealthunitsfor thesaleofgroceries, • launched investment for projects smallbusinessessuchas: The GeneralDirectorate ofHealthAffairs has in Arriyadh these projects isSR2.7billion. these projects training institutes andspecialized colleges. The total cost of will be implemented in including Arriyadh, technical colleges, 46technicalOver education andvocational training projects • • • • RegionArriyadh isover SR21.8billion. They include: total value that ofthe health projects willbe implemented in medical centers, training centers andhealth education. The include hospitals and in in Arriyadh the health sector sector The many investment available to theprivate opportunities Health Sector University Saud expansion at projects King is over additionttheexisting and projects SR1.3billion.In colleges indifferent disciplines. The total cost oftheseprojects university colleges for boys andgirls, andindependent includingacomplexbeing establishedinArriyadh, ofseveral At level, theproject majorhighereducation are projects role ofprivate education whichwillboosttheintake capacity. ofthehighereducation sector.capacity This focuses onthe to major efforts raiseRegion theArriyadh intake is exerting ofEducation Region. inArriyadh Ministry buildingsofthe the establishment ofthenewheadquarters (6) Data was takenfrom website: Arriyadh www.alriyadh.gov.sa. ofHealthwebsite. (5) Ministry website. City (4) Arriyadh (3) Ibid. Lease ofsites for vending machinesandATMs etc. Establishing 162 primary health care units Establishing 162primary laboratories, medicaloperations facilitiesandclinics. The establishment, restoration anddevelopment of complexes andcenters. Establishment, development andexpansion ofmedical Establishing 15newhospitals. (million riyal) Total Cost 1,803 300 260 300 406 Number 2,703 9,056 224 412 800 (5) (5) Waiting for landallocation Waiting for tender offer Waiting for tender offer . Completion Rate (%) (billion Riyals) (%) (billion Riyals) Total Cost (3) 53 73 (4) . 81 72 32 78 77 . (2) Ibid. website. City (1) Arriyadh • • • • in thesocialwelfare Region: inArriyadh sector Following are themostsignificant investment opportunities social welfare buildings. center,social observation girls rehabilitation centers and includingpsychiatric rehabilitationopportunities centers, This offers sector as investment projects several service WelfareSocial Sector • • sector: The following are investment ofthehousing opportunities investment companies, foundations charitable andothers. of government agencies,under the supervision real estate RegionArriyadh are inclusive whichare ofhousingprojects The in investment in thehousing sector opportunities Housing Sector center.e-Government with acost ofSR6,414 million andtheestablishment ofthe Communication andInformation Technology Commission At buildingfor thetop ofthelistare the thenewheadquarters and investmentprojects to the private sector. opportunities The telecommunications offers inArriyadh sector anumberof Telecommunications Sector million. The total is1,001withacost oftheseprojects ofSR17,449 King Abdulaziz AdministrativeKing Center for National Dialogue ofInterior andSafety UnitintheMinistry Security Dawadmi HousingProject SABIC Company Staff Housing Staff Saud Housing King in Al-Kharj Establishing asocialwelfare center at acost ofSR20million million in Wadi Aldawaser. Establishing agirls’ rehabilitation homeat acost ofSR30 million inArriyadh. Establishing asocialmonitoring center at acost ofSR35 SR 70millioninArriyadh. Establishing apsychiatric rehabilitation center at acost of million of1,000housingunitsat acostthe construction ofSR150 from 2008.Phase includes years oneoftheproject starting Region.Arriyadh The will be implemented project over four Affairsof Social for the benefitof low-income familiesin Establishment of 4,000 new housing units by the Ministry RegionArriyadh at atotal cost ofSR252million. offered by Housing SalmanPrince Charity in Project Contracts for theimplementation of838 housingunits (1) . (2) . The Project Housing Projects provide for more insurance opportunities facilities and in development andabundance ofdevelopment projects, still the stock thesize market, economy, oftheSaudi itsdynamic Although there are about35insurance companies listed on Insurance Sector inArriyadh. inthetourism sector projects is 7% . All of these licenses will be translated into investment Company withacost of SR 330million, the completion rate hotel to establishment of five-star for the Public Pension agencies (13mainoffices and22 branch offices) inaddition 35licenses for apartments, 41furnished in Arriyadh, travel SCTAand hotel apartments. granted licenses for 17hotels hotels and improvement and development of existing hotels At inArriyadh. tourism sector thetop ofthelistcomes new There are many investment available inthe opportunities Tourism Sector (million riyal) Total Cost 2,182 305 403 637 750 Completion Rate (%) 70 57 17 77 3 127 Investment Climate in Arriyadh 2014 128 The High Commission for the Development of Arriyadh • Examples are: significant exists. need for personal andhouseholdservices requirements ofthecity, there isclearevidence that a studies providing detailed information ontheactual medium enterprises (SMEs).Despite theabsence offield investment available projects to individualsorsmallto technologies there stated are withinthisreport, several whichrequiremega projects large capitaland sophisticated investment and additionto large-scale In opportunities Personal Sector Services economy. the sophisticated requirements and community oftheSaudi information technology andtelecommunications to meet broadcast media, whether traditional or based on establishment mediafacilitiesinprintand ofmodern in the creation of moreopportunities and activities, presents advanced Arabia mediaandthisfact Saudi lacka Media market. Saudi technologies that alignto-date withtherequirements ofthe where there with up- areparticular significant opportunities personal services to residents.personal services equal growth establishments ofmodern whichprovide havedecades ofthelastcentury not beenaccompanied by The development urban thelastthree andexpansion during of adequate parking lots, iscurrentlyof adequate thecity inneedof parking toDue theincreased numberofvehicles andthelack Car Parks contract basis. towingparts, andoptionsfor ona maintenance services wheel alignment andtire replacement, oilchange, saleof body repair,electrical, paint jobs, car washing and polishing, repair andmaintenance services. These includemechanical, integrated workshops capableofprovidingof-the-art full provides several investment to set up state- opportunities are individuallyowned and offer limted services. The city Except for auto dealers, ofworkshops thevast majority Auto Repair Workshops and Vehicle Centers Service • • particularly in,butnotlimited to,particularly thefollowing areas: whicharefirms capableofproviding services, highquality Accordingly,services. there will be a need for sophisticated will therefore openthedoorfor newinvestments in these This willincrease and thedemandfor personalservices Abdullah Financialsuch astheKing inArriyadh. District which aremega projects currently being established, expansion inthecity’sto further facilities, inadditionto Development oftheNinth Implementation Plan willlead way by firms owned andmanaged by individuals. the smallvolume provided ofitsservices, inthetraditional due stilloffer to offirms the vastmodestservices majority size to whichprovide residents, Arriyadh personalservices Whilst there are a number of sophisticated of medium firms services. services. still hasarequirement for andintegrated modern beauty such ashairdressing, shopsandseamstresses, bridal thecity establishments for whichprovide females personalservices Although there are large numbers of modestly sized Personal Offered to Services Females to homes.deliver laundry companies that canprovide from collect and goodservices, few ofthemprovide service. highquality There isaneedfor are available services throughout Arriyadh, Although laundry Services Laundry technicians andwithfixed prices. bymaintenance qualifiedandguaranteed services companies canbeestablishedto provide professional where qualifiedhouseholdmaintenanceopportunities by unqualifiedstaff.Arriyadh provides great investment which provide ofmaintenance onlyonetype ofpoorquality are mostlyprovided byestablishments, individually-owned etc. connections Suchservices water andsanitary networks inareasmaintenance ofelectricity, services air-conditioning, households ofrequireArriyadh A vast majority periodic Household Maintenance Services demand offers a great investment opportunity.. vacations.long term during withitsgrowing Car parking basisor ontemporary services providingactivities, parking inareas withcommercialmulti-storey particularly parking, investment inArriyadh. prospects forwhich provide major services personal and high quality isclearthereforeIt that thesignificant need for suchentities be awelcome additionto Arriyadh. and offer suchas washing, otherservices, oilchange, etc. will chain ofgasstations that willaccept credit card payments ofgasstations stillrequestThe majority cashpayments. A StationsGas diversified andchildren’s menus, parking playgrounds. toprovide customers, goodservice afamilyambiance, with in thislineofbusiness. exists for Demand restaurants that stillprovidesArriyadh excellent investment opportunities fast food, traditional, oriental andwestern dishes. However, hasalargeArriyadh numberofrestaurants whichserve Family Restaurants provide services. schooltransportation controlled car hire companies. Suchcompanies could also operating there inArriyadh, isstillaneedfor computer- Despite thelarge numberoftaxisandlimousineservices Taxi withPaging Services Systems 129 Investment Climate in Arriyadh 2014

Statistical Tables and Key Addresses 132 The High Commission for the Development of Arriyadh (2) CDSI,(asmentioned inlabourforce search 2014). ofEconomy andPlanning,(1) Ministry CDSI,Population Estimates 2010-2025. Saudis Non-Saudis S/N 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Labour ForceLabour 3,090,594 Communications Services Development RegionCommunications inArriyadh 2011/12 Services Medical Services Providers Services Medical Region, inArriyadh First of2012 Quarter Lengths ofExisting, andProposed UnderConstruction Region inArriyadh 2012 Roads Building Licences 2012 Region IssuedinArriyadh during Licences Region ofShopsIssuedinArriyadh during Branches ofCommercial Region BanksinArriyadh 2012/2013 Cost ofLivingIndicators for 2012/13to Arriyadh theEndof2013/14 allCities Including Entities Subscribed in the Social Insurance SystemEntities intheSocial Subscribed Region inArriyadh upto theendof2011 National Industrial LicencesNational (notoperating Industrial yet) Region inArriyadh at EndoftheFirst of2014/15 Quarter National andJoint Productive Plants Region inArriyadh to EndofFirst of2014/15 Quarter Existing Commercial Companies Region inArriyadh 2012/2013 General Education Indicators for theSchool Year Region 2011/2012inArriyadh Achievements Region inArriyadh 2011/2012 Security oftheSocial inthePrivateNumber ofJobSeekers Region inArriyadh 2008/2009-2010/2011 Sector ofLabourForceDistribution Working inthePrivate 2012/2013 Region inArriyadh by andNationality Gender Sector Labour Force Region inArriyadh 2013/2014 Population City Arriyadh Total to % theKingdom % intheKingdom to Total % 27.2 Total Type ) Labour ForceLabour inArriyadh Region2013/2014 Statistical Tables Arriyadh Population City Employed 2,930,906 Description Table 2 Table 1 to Labour Forceto Labour % 94.8 (1)

30,770,375 5,999,434 3,487,252 2,512,182 Number 19.5 (2 Unemployed 159,688 to Labour Forceto Labour % 58.1 41.9 100 (%) 5.2 Page 137 137 137 137 136 136 136 135 135 134 133 133 133 133 133 132 132 ( ofLabour,(2) Ministry ofSAMA) 2011statistics (as mentioned inthe49thannualreport 2013 ofLabour,(1) Ministry 2012/13statistics. * ) Starting from July 2011 the Ministry of Labour issued Hafez System, from July 2011 the No Ministry more) Starting Issuance Data.. of Job Seekers No. of TeachersNo. No. ofSchools Non-Saudi Saudi No. ofStudents Total 13043 intheKingdom Arriyadh Total intheKingdom Nationality Item 2010/2011 2009/2010 2008/2009 Item Number Total 44,528 Years Number ofJobSeekersNumber inthePrivate inArriyadh Region 2008/2009-2010/2011 Sector ( * General Education Indicators for theSchool Year 2011/2012inArriyadh Region ) Distribution of Labour Force ofLabour Distribution Working inthe Private inArriyadh Region Sector Achievements inArriyadh Security Region2011/2012 oftheSocial Existing Commercial Companies inArriyadh Region2012/2013 87,90,298,368 Spent Sums 294,227,790 8,162,999 2,820,373 2,490,360 787,053 330,013 40,159 Males 2,908 Males by andNationality 2012/2013 Gender Gender Number 23527 27780 23867 27 % Females 324,534 129,331 47,653 81,678 % to the Total Table 4 Table 3 Table 7 Table 5 Table 6 Females 755,587 48,109 3,040 3.3% 100 (5) Ministry of Commerce and Industry (as mentioned in the 47th Annual Report ofSAMA) (asmentioned 2011. inthe47thAnnual Report ofCommerce andIndustry (5) Ministry ofSAMA) ofEducation, Annual Statistics (asmentioned 2013. inthe 49thAnnual Report (4) Ministry Affairs, ofSocial 2011/12. (3) Ministry 8,487,533 2,949,704 2,538,013 Number 411,691 354,958 Total 22.4 21 19 % Total/Arriyadh (1) Beneficiaries Number of

1,542,640 798,858 131,106 88,268 5,948 Accumulated Total (5)

(3)

(4) % to the Total 106603 111865 147197 Total/Kingdom 86.04 13.96 Total (2) (%) 100 30 %

6,454,351 16.4% 421,225 27,744 100 133 Investment Climate in Arriyadh 2014 134 The High Commission for the Development of Arriyadh (1) Ministry ofCommerce andIndustry, Statistical(1) Ministry Indicators: www.mci.gov.sa Textiles Beverages Foodstuff Clothing Leather Products Wood Products except Furniture Printing andPublishing Paper Products Coke andRefined CharcoalPetroleum Manufacturing Products Basic Pharmaceutical Products Chemicals andRelated Products Basic Industries ofMetals Basic Industries ProductsNon-Metallic Plastic andElasticProducts Computers, and Electronics Visuals Constructive Products Metallic Vehicles and TrailersVehicles Categorized Appliances Equipment Electrical Other Manufacturing Industries Manufacturing Other Furniture Transport Machinery Fixing andEquipment andMaintenance ofMachinary National andJoint Productive Plants inArriyadh Regionto of2014/15 EndofFirst Quarter Industrial Activity Industrial Total Table 8 Number 2,892 265 264 510 360 442 111 210 37 59 52 21 29 39 94 66 18 82 30 76 82 39 3 3 (million Riyals) 111,326.3 Funding 18,110.8 28,328.7 10,935.5 1,841.5 3,423.4 1,264.9 4,033.3 1,292.7 1,200.7 5,083.5 3,421.2 8,025.3 7,093.3 1,103.5 2,547.7 8,857.1 1,913.2 804.2 404.7 131.1 783.7 655.5 71.0 (1) Labour Force 344,232 17,032 49,668 11,724 16,432 67,957 34,337 36,805 11,022 22,300 16,721 8,578 7,850 2,197 1,157 3,746 4,240 3,747 7,582 3,869 7,048 6,266 3,501 453 (2) General Organization of Social Insurance, Statistical Report (34), 2012. (2) General Organization Insurance, ofSocial Statistical Report ofCommerce andIndustry, Statistical(1)Ministry Indicators: www.mci.gov.sa Other Manufacturing Industries Manufacturing Other Furniture Appliances Industry Appliances Industry Beverages Foodstuff Transport Machinery and TrailersVehicles andAppliances Categorized Machinery Computers, and Electronics Visual Products Constructive Products Metallic ofMetals Basic Industries ProductsNon-Metallic Plastic andElasticProducts Basic Pharmaceutical Products Chemicals andRelated Products Coke, andRefined CharcoalPetroleum Manufacturing Products Paper Products Textiles Activity Industrial Wood Products except Furniture Clothing 932 232 No. Government National Licences Industrial (notoperating yet) inArriyadh Regionat of2014/15 EndoftheFirst Quarter Rate (%) Entities Subscribed in the Social InsuranceEntities intheSocial Subscribed System inArriyadh Regionupto theendof2011 24.9 100 195 No. Public Company 31 Rate (%) Total 15.9 100 Government Other GovernmentOther 151 100 No. Parties Total of The Kingdom Rate (%) 66.2 100 Table 10 Table 9 1,279 363 No. Total - Number Rate (%) 430 66 32 12 78 10 95 59 24 10 28.4 100 3 6 9 1 2 5 7 6 3 2 - (million Riyals) Funding 334,494 67,947 No. Special 7,132.7 3,355.4 288.1 485.6 156.4 224.1 439.7 432.4 471.7 592.2 276.6 224.4 16.7 32.2 68.9 10.9 36.4 11.3 1.1 8.5 Rate (%) 20.3 100 335,773 68,310 No. (2) - Force Labour

Total 23,308 2,336 1,762 8,094 2,827 1,367 2,036 154 370 413 342 937 803 310 547 690 155 20 85 60 Rate (%) (1) 18.5 100 135 Investment Climate in Arriyadh 2014 136 The High Commission for the Development of Arriyadh (3) (Ministry of Municipal andRural ofMunicipal Affairs, 2012 Statistics.(3) (Ministry 2013. (2) SAMA, 49thAnnual Report, (1) CDSI,Cost ofLiving, 2014. First 2013/2014 Quarter Fourth Quarter Third Quarter Kingdom Total to Second Quarter Commodities and Other Services Commodities andOther Hotels and Restaurants Education Education andRecreation Communications Transport CareMedical Appliances andMaintenance Housing, Water, andFuel Electricity Textiles, ClothesandShoes Tobacco Products Food andBeverages General Index Kingdom Total ofthe Total Renew New First Quarter

Type of Activity 70,898 23,076 19,359 3,717 Cost ofLivingIndicators for allCities Arriyadh Including 2012/13to theEndof2013/14 32.5 Food Supplies Period 1,332 26.6 354 265 89 Central Markets Branches ofCommercial inArriyadh Banks Region2012/2013 70,253 23,413 11,758 11,655 33.3 Item Licences ofShops Issued inArriyadh Regionduring Commercial Institutions 7,227 1,186 16.4 863 323 Industrial Workshops 11,057 3,846 2,903 34.8 943 Furniture and Fixtures Number Table 12 Table 13 Table 11 (100 =1999) 518 506 499 495 496 18,342 9,947 7,900 2,047 54.2 Maintenance and Machinery 21,112 6,014 3,463 2,551 28.5 Vehicle Maintenance Total oftheKingdom 11,049 6,277 3,438 2,839 56.8

Sanitary Materials 2011/12 117.8 121.7 110.2 104.5 108.3 105.6 117.5 148.7 103.3 141.3 132.9 122.4 1,711 1,696 1,676 1,669 1,661 92.1 21,333 (3) 13,071 9,125 3,946 61.3 Fuel and Services (2) 51,734 16,095 13,634 2,461 31.1 Personal Services % to the Kingdom 47,612 17,220 13,546 3,674 (1) 36.2 2012/13

117.6 126.8 112.6 106.3 111.0 109.0 122.6 153.8 104.8 153.1 140.5 126.7 30.2 29.8 29.8 29.7 29.9

Others 93.8 331,949 120,499 86,254 34,245 36.3 Total (4) CDSI,Statistical (48),2013. Book ofHealth,2012Statistics. (3) Ministry and Rural ofMunicipal Affairs, 2012 Statistics.(2) Ministry (1) Ibid.

Existing Roads Construction Under Roads Proposed Roads Industrial /CommercialIndustrial Commercial Residential and Special Clinics Dental Laboratories Physiotherapy Centers Laboratories Optical Store Pharmacies CentersMedical Hospitals Total Governmental and Social Mosques Education, Healthand Total oftheKingdom Total to Kingdom Building Usage Kingdom Arriyadh Item % Lengths ofExisting, UnderConstruction andProposed RoadsinArriyadh Region2012 Total Item Asphalt, tree-lined withstreet lightsAsphalt, tree-lined Riyadh 4,338 1,003 3,566 Lines Telephone Land No ofLicences Medical Services Providers Services Medical inArriyadh of2012 Region,First Quarter Communications Development Services inArriyadh Region2011/12 4,633,158 1,388,881 100,756 21,278 24,084 2,003 23.9 30.0 314 489 Building Licences Issued inArriyadh Regionduring2012 Kingdom 35,283 14,768 7,789 Subscribers Broadband Land Area m 374,243,470 Kingdom % to the 47,698,696 73,913,908 12,260,816 8,747,851 5,206,545 12.3 12.9 24.1 3578 1973 701 749 No 47 18 26 32 32 19.8 1,951,143 632,459 0.3 2 15,164 Riyadh 5,197 4,561 Table 14 Building Area m3 Table 16 Table 15 Table 17 53,587,515 11,402,911 8,172,698 2,360,290 Mobile BroadbandMobile Subscribers 245,857 624,066 21.3 Asphalt Only Kingdom 91,194 16,305 25,973 11,337,154 0 0 30.8 23.7 23.1 32.5 32.7 28.4 36.6 34.5 23.4 Number of Kingdom % % to the 264,626 59,006 65,653 Stores 16.6 31.9 17.6 1,297 4,956 24.8 394 239,293 31,760 79,570 Internet Users Riyadh Stores Space m (1) 122,525,977 13,600,000 20,134,922 27,469,926 3,489,219 1,642,964 4,997,586 694,454 22.4 0.3 Number ofLampPosts (3) (4) Total oftheKingdom 1,379,057 Kingdom 133,598 411,547 2 (2) (km) 11,619 6,947 1,913 2,168 Lines TelephoneMobile 198 137 78 80 98 Walls’ Height m 53,705,808 10,701,416 3,033,675 3,386,080 222,053 92,846 37,506 31.6 0.0 0 Kingdom % to the 17.4 23.8 19.3 137 Investment Climate in Arriyadh 2014 138 The High Commission for the Development of Arriyadh S/N 10 12 11 13 14 15 16 17 18 20 19 22 21 36 35 34 33 32 31 30 29 28 27 26 25 24 23 37 1 2 3 4 5 6 7 8 9 Ministry ofDefence &AviationMinistry Ministry ofForeignMinistry Affairs Ministry of Municipal &Rural ofMunicipal Affairs Ministry Ministry ofEducation Ministry Ministry ofInterior Ministry Ministry ofJustice Ministry Ministry ofCulture &Information Ministry Ministry of Ministry Telecommunications &Information Technology Ministry of Commerce & Industry ofCommerce &Industry Ministry Ministry ofPetroleum Resources &Mineral Ministry Ministry of Higher Education ofHigher Ministry ofEconomy &Planning Ministry Ministry ofHealth Ministry Ministry ofLabour Ministry Ministry ofFinance Ministry Ministry of Transport Ministry Ministry ofAgriculture Ministry Ministry of WaterMinistry &Electricity Ministry of Social Affairs ofSocial Ministry ofCivil Service Ministry Supreme Economic Council ofHousing Ministry Arriyadh RegionArriyadh Municipality (CMA) Authority Capital Market FoodSaudi andDrugAuthority (CITC) Communications &Information Technology Commission Authority Property Industrial Saudi CompetitivenessRiyadh Center National Anti-Corruption Commission Royal Commission for Jubail& Yanbu ArabianSaudi Standards Organization (SASO) ArabianSaudi General Investment (SAGIA) Authority CommissionThe High for theDevelopment ofArriyadh CommissionSaudi for Tourism &Antiquities (SCTA) Technology Project Secretariat GeneraloftheNational Plan for Information Supreme Council for Petroleum Affairs &Mineral General Organization for Insurance (GOSI) Social Key Government andPrivate Addresses Agency Address Telephone 4789000 4055000 4569999 4046666 4011111 4057777 4068888 4522222 4012222 4787777 4415555 4011444 4015555 4778888 4050000 4043000 4016666 2038888 4778888 4026666 4801052 2894100 4112222 2797777 2038222 4618000 2831331 4053200 2644444 4794445 4520000 4484533 4883331 4808850 4625004 4831444 4777735 Ext. 1200 Ext. 4026457 4023707 4563196 4037229 4069279 4059716 4350794 4522608 4038421 4761123 4419004 4052051 4026395 4789175 4033130 4035743 4044592 2052749 4789175 4035665 4803750 4070050 4118686 2797770 2751164 4618002 4775235 4065196 2645555 4793275 4520086 4481234 4829331 4808844 4625003 4833085 Fax P.O. Box 11416 94737-Arriyadh P.O. Box 11527 68222-Arriyadh P.O. Box 11311 25022-Arriyadh P.O. Box 11588 75606-Arriyadh P.O. Box 11671 84214-Arriyadh P.O. Box 11474 16683-Arriyadh P.O. Box 11671 84214-Arriyadh P.O. Box 11614 94501-Arriyadh P.O. Box 11586 66680-Arriyadh P.O. Box 11472 7775-Arriyadh P.O. Box 11161 5705-Arriyadh P.O. Box 13312 6288-Arriyadh P.O. Box 13311 7667-Arriyadh P.O. Box 11482 8218-Arriyadh P.O. Box 11471 3437-Arriyadh P.O. Box 11431 1267-Arriyadh P.O. Box 11432 5964-Arriyadh P.O. Box 11136 955-Arriyadh P.O. Box 11191 247-Arriyadh P.O. Box 11182 358-Arriyadh P.O. Box 11421 878-Arriyadh Mailing AddressMailing Arriyadh 11165 Arriyadh Arriyadh 11124 Arriyadh Arriyadh 11148 Arriyadh Arriyadh 11134 Arriyadh Arriyadh 11112 Arriyadh Arriyadh 11162 Arriyadh Arriyadh 11153 Arriyadh Arriyadh 11176 Arriyadh Arriyadh 11157 Arriyadh Arriyadh 11177 Arriyadh Arriyadh 11178 Arriyadh Arriyadh 11195 Arriyadh Arriyadh 11233 Arriyadh Arriyadh 11157 Arriyadh Arriyadh 11272 Arriyadh Arriyadh 11146 Arriyadh S/N 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 75 74 73 72 Agricultural Development Fund The Centennial Fund Human Resources Development Fund EstateReal Development Fund Development Fund Industrial Saudi (SIDF) FundSaudi for Development ArabianSaudi Airlines Grievance Board ofStatisticsCentral &Information (CDSI) Department CustomsSaudi for Abdulaziz City King Science & Technology (KACST) Promotion Exports CenterSaudi Saudi Water Conversion Corporation (SWCC) Training (GOTEVOT) General Organization for Technical Education and Vocational Ports Authority Saudi GovernmentSaudi Organization Railroad (SGRRO) Grain Silos&Flour Organization Mills Public Pension Agency (SAMA) Agency ArabianSaudi Monetary Saudi ArabianSaudi Crescent Red General Audit Bureau General Presidency for Youth Welfare ofPublicInstitute Administration (IPA) Arab Branch) OpenUniversity (Riyadh Dar Al UloomUniversity Al Yamamah Private University Al Faisal University Prince SultanPrivate University Princess Nora University Bint Abdul Rahman Naif Arab Sciences (NAUSS) University for Security IslamicUniversity binSaud Mohammed Imam University Saud King PressSaudi (SPA) Agency CreditSaudi Bank Saudi Arabian Mining Company ArabianSaudi Mining (Ma’aden) National ShippingCompany Arabia ofSaudi (SABIC) ArabianSaudi BasicIndustries Meteorology General Presidency for Environment Protection and Address Telephone 920000570 2118888 2253100 2790804 4792222 4774002 4640292 4500000 4021724 4014138 4013334 4883555 4053200 4631111 4052770 4050005 4480811 4643500 4025100 4662200 4740027 4056770 4018888 4768888 2742277 4949000 2242222 4548489 2297290 2463444 2580000 4670000 4193333 4797200 4740857 4785454 2258000 2211584 2198013 4191512 2790803 4786232 4775138 4627450 4569383 4034296 4059493 4043412 4883756 4065196 4641630 4065876 4082739 4489400 4631943 4053645 1662439 4740430 4032057 4010376 4768878 2742696 4949490 2242222 2157826 4548317 2297291 2464713 2580707 4678126 4193492 4797204 4721333 4777478 4013831 2211581 Fax P.O. Box 11321 231265-Arriyadh P.O. Box 11512 45180-Arriyadh: P.O. Box 11517 67778-Arriyadh P.O. Box 11517 67778-Arriyadh P.O. Box 11474 16683-Arriyadh P.O. Box 11499 40471-Arriyadh P.O. Box 11168 18364-Arriyadh P.O. Box 11533 50927-Arriyadh P.O. Box 11586 66833-Arriyadh P.O. Box 11671 84428-Arriyadh P.O. Box 11537 68861-Arriyadh P.O. Box 11149 4143-Arriyadh P.O. Box 11149 1887-Arriyadh P.O. Box 11461 2836-Arriyadh P.O. Box 11138 1138-Arriyadh P.O. Box 11481 3735-Arriyadh P.O. Box 11197 3483-Arriyadh P.O. Box 11442 6086-Arriyadh P.O. Box 11422 5968-Arriyadh P.O. Box 11472 7823-Arriyadh P.O. Box 11188 5162-Arriyadh P.O. Box 11471 3402-Arriyadh P.O. Box 11169 2992-Arriyadh P.O. Box 11128 7185-Arriyadh P.O. Box 11681 8490-Arriyadh P.O. Box 13314 3535-Arriyadh P.O. Box 11452 6830-Arriyadh P.O. Box 11451 2454-Arriyadh P.O. Box 11138 1138-Arriyadh P.O. Box 11492 8931-Arriyadh P.O. Box 11422 5101-Arriyadh P.O. Box 1158-Jeddah21431 P.O. Box 11185 956-Arriyadh P.O. Box 11141 205-Arriyadh P.O. Box 11432 571-Arriyadh Mailing AddressMailing Arriyadh 11126 Arriyadh Arriyadh 11129 Arriyadh P.O. Box 7186 139 Investment Climate in Arriyadh 2014 140 The High Commission for the Development of Arriyadh S/N 94 93 92 91 90 89 88 87 86 85 84 83 82 81 80 79 78 77 76 Al Inma Bank Al Inma Bank Al Rajhi Saudi HollandiBank Saudi FransiBanque Saudi SABB SAMBA Financial Group InvestmentSaudi Bank Bank Riyadh Al-Bilad Bank Arab National Bank Al-Jazira Bank National Commercial Bank ChamberofCommerceRiyadh &Industry Council ChambersofCommerce ofSaudi &Industry National Company for Cooperative Insurance Saudi AramcoSaudi Zain Telecommunications Ittihad Itisalat Company Itisalat Ittihad TelecomSaudi Company Address 6493333/02 Jeddah 4787877 Arriyadh Telephone 6158070/02 2185555 4601000 4010288 4042222 4050677 4774770 4778433 4013030 4798888 4029000 4023503 4040044 4053200 2180100 4410200 2444444 2735050 4527000 0590005959 0560412070 6612348/02 6533278/02 8738190/03 Ext. 4632 Ext. 1200 Ext. 2185000 4776781 4067888 4042311 4776781 2916069 4027747 4020110 4024747 2180102 4525229 Ext. 656 Ext. 404207 Fax P.O. Box 11351 295814-Arriyadh P.O. Box 11586 66674-Arriyadh P.O. Box 11554 56006-Arriyadh P.O. Box 11416 22622-Arriyadh P.O. Box 11564 56921-Arriyadh P.O. Box 11632 86959-Arriyadh P.O. Box 11652 87912-Arriyadh P.O. Box 5000-Dhahran 31311 P.O. Box 11431 1467-Arriyadh P.O. Box 11413 9084-Arriyadh P.O. Box 11481 3533-Arriyadh P.O. Box 11474 1183-Arriyadh P.O. Box 11423 9979-Arriyadh P.O. Box 3555-Jeddah21481 P.O. Box 6277-Jeddah21442 P.O. Box 11421 833-Arriyadh P.O. Box 11411 140-Arriyadh P.O. Box 11421 596-Arriyadh P.O. Box 11481 28-Arriyadh Mailing AddressMailing The High CommissionThe High for theDevelopment ofArriyadh Governorate ofArriyadh Ministry ofCivil Service Ministry Education ofHigher Ministry ofJustice Ministry Shura Council ofEducation Ministry &Rural ofMunicipal Affairs Ministry ofForeignMinistry Affairs ofInterior Ministry Saudi ArabianSaudi Standards Organization (SASO) Communications &Information Technology Commission (CITC) Royal Commission for Jubail& Yanbu ArabianSaudi General Investment (SAGIA) Authority CommissionSaudi for Tourism &Antiquities BorderGovernorate Region ofNorthern Governorate ofNajran Region Governorate ofQassimRegion Governorate ofJazanRegion Governorate ofAl JoufRegion Governorate ofAseer Region of TabukGovernorate Governorate ofAl-Baha Region Governorate ofHail Governorate ofEastern Region Governorate ofMadinah Governorate ofMakkah ofHousing Ministry of WaterMinistry &Electricity ofCommunications andIT Ministry ofFinance Ministry of Transportation Ministry ofAgriculture Ministry ofHealth Ministry ofEconomy &Planning Ministry ofCommerce &Industry Ministry ofInformation &Culture Ministry Affairs ofSocial Ministry ofLabour Ministry ofPetroleum Resources &Mineral Ministry Web Addresses Organizations ofSelected Name ofOrganization Government Organizations Governorates Ministries www.agrwat.gov.sa www.moh.gov.sa www.planning.gov.sa www.commerce.gov.sa www.saudinf.com www.mol.gov.sa www.mol.gov.sa www.mopm.gov.sa www.mcs.gov.sa www.mohe.gov.sa www.moj.gov.sa www.shura.gov.sa www.moe.gov.sa www.momra.gov.sa www.mofa.gov.sa www.moi.gov.sa www.saso.org.sa www.citc.gov.sa www.rcjubail.gov.sa www.sagia.gov.sa www.sct.gov.sa www.ada.gov.sa www.northernborder.gov.sa (underconstruction) www.najran.gov.sa www.qassim.gov.sa www.jazan.gov.sa www.aljouf.gov.sa www.emartaseer.gov.sa www.tabuk.gov.sa www.albaha.gov.sa www.hail.gov.sa www.easternemara.gov.sa www.imaratalmadinah.gov.sa www.makkah.gov.sa www.riyadh.gov.sa www.housing.gov.sa www.mowe.gov.sa www.mcit.gov.sa www.mof.gov.sa www.mot.gov.sa Web Address 141 Investment Climate in Arriyadh 2014 142 The High Commission for the Development of Arriyadh Al Madinah NewspaperAl Madinah Al-Eqtesadia Newspaper Al-Watan Newspaper Newspaper Okaz Al-Yaum Newspaper Al-Jazeera Newspaper NewspaperRiyadh –Makkah Chamber ofCommerce &Industry -Jeddah Chamber ofCommerce &Industry –Madinah Chamber ofCommerce &Industry –Eastern Region Chamber ofCommerce &Industry ChamberofCommerceRiyadh &Industry Council ChambersofCommerce ofSaudi &Industry NAS Airlines ArabianSaudi Airlines &BusinessDirectory Money Saudi StockSaudi Market PressSaudi (SPA) Agency &Income ofZakat TaxDepartment (DZIT) TrafficArriyadh Department Abdulaziz FoundationKing for Research &Archive ArabianSaudi Agricultural Bank General Directorate for Passports General Audit Bureau for Abdulaziz City King Science & Technology (KACST) CustomsSaudi General Presidency for Environment Protection &Meteorology EstateReal Development Fund Development Fund Industrial Saudi (SIDF) FundSaudi for Development General Organization for Insurance (GOSI) Social (SAMA) Agency ArabianSaudi Monetary Ports Authority Saudi Public Pension Agency National ShippingCompany Arabia ofSaudi OrganizationSaudi ofCertified Public Accountants (SOCPA) Authority Property Industrial Saudi National Commission for Wildlife &Development Conservation FoodSaudi andDrugAuthority National Anti-Corruption Commission (CMA) Authority Capital Market CommissionSaudi for HealthSpecialties Geological Survey Saudi Name ofOrganization Saudi AirlineSaudi Companies Saudi DailyNewspapersSaudi Chambers ofCommerce www.kacst.edu.sa www.customs.gov.sa www.mepa.org.sa www.redf.gov.sa www.sidf.gov.sa www.sfd.gov.sa www.gosi.gov.sa www.sama.gov.sa www.ports.gov.sa www.pension,gov.sa www.nscsa.com www.socpa.org.sa www.modon.gov.sa www.ncwed.gov.sa www.sfda.gov.sa www.nazaha.gov.sa www.cma.org.sa www.scfhs.org www.sgs.org.sa www.al-madina.com www.aleqt.com www.alwatan.com.sa www.okaz.com.sa www.alyaum.com www.al-jazirah.com www.alriyadh-np.com www.makcci.com www.jcci.org.sa www.madcci.org.sa www.chamber.org.sa www.riyadhchamber.org.sa www.saudichambers.org.sa www.flynas.com www.saudiairlines.com www.allsaudi.com/defaultara.asp www.tadawul.com.sa www.spa.gov.sa www.dzit.gov.sa www.r-t.gov.sa www.darh.org.sa www.saab.gov.sa www.passport.gov.sa www.gab.gov.sa Web Address Al Rajhi Bank Al Rajhi Riyadh Bank Riyadh Al Jazeera Bank Al Inma Al BiladBank National Commercial Bank GazetteSaudi Arab News Albilad Newspaper Asharq Alawsat Newspaper yet ) andCommercial (Licensed -hasnotstarted Industrial BankofChina(ICBC) T.C.ZIRAAT A.S. BANKASI State (SBI) BankofIndia National BankofPakistan (NBP) J.P. Morgan ChaseN.A BNP Paribas Bank Deutsche Muscat Bank National BankofKuwait (NBK) National BankofBahrain (NBB) Emirates NBD Gulf International Bank(GIB) Arab National Bank SAMBA Financial Group (previously Bank) American Saudi InvestmentSaudi Bank FransiBanque Saudi HollandiBank Saudi SABB Name ofOrganization Licensed foreign banks’ branches Local Banks http://www.gibonline.com www.anb.com.sa www.samba.com.sa www.saib.com.sa www.alfransi.com.sa www.saudihollandibank.com www.sabb.com.sa www.riyadhbank.com www.baj.com.sa www.alinma.com www.bankalbilad.com.sa www.alahli.com www.alrajhibank.com.sa www.saudigazette.com.sa www.arabnews.com www.albilad-daily.com www.asharqalawsat.com http://www.icbc.com.cn http://www.ziraatbank.com.tr http://www.sbi.co.in http://www.nbp.com.pk http://www.citytowninfo.com/mortgage-articles http://www.bnpparibas.com https://www.db.com http://www.bankmuscat.com http://www.nbk.com http://www.nbbonline.com http://www.emiratesnbd.com Web Address 143 Investment Climate in Arriyadh 2014 This Report Was Prepared By

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