2015 Market Opportunities KSA

KSA – The Largest Market in the GCC

Area: 2,150 msm

Population: 29 m 8.5 m expats

GPD per capita: USD 26,468

Key business sectors:

Oil, Energy, Construction,

Food and Beverage,

Healthcare, Education and ICT

State Budget

June 1st 2015 60 $ 2015 State Budget 229 bn $

Sectors

• Oil

• Retail

• Health

• Food and Agriculture

• Construction

• IT

• Consultancy

• Energy

• Logistics

• Marine

• …..

SWOT on The Kingdom

”….I’m STRONG… I don’t

have any weaknesses…”

Strenghts

• By far the largest market in the Middle East

• Huge surpluses from oil revenues

• Stable government led by a popular king

• Huge government spending on infrastructure, social welfare

• Unprecedented volume of investment in utilities

• Access to cheap labour

• Low taxes

Weakness

• Limited visa access to the country

• Difficult access to information

• Bureaucratic government offices (SFDA+ SAGIA)

• Competition from Asian players (China+ Korea)

• Saudization

Opportunities

• KSA imports 90% of its food needs

• Lack of technical expertise

• Engineering services needed for all construction plans

• Huge investment in healthcare and hospitals, medical facilities

• Renewable energy projects

• Growing demand on healthy products

• Big players looking for high quality products

• Industrial training

• Regional security situation

• Troubled borders on all fronts

• Possible fall in oil prices

• Ageing leadership

• Poor control on public spending

• Unemployment

Threats

• Largest oil exporter in the world

• USD 80bn in water projects till 2020

• USD 90bn in power generation projects in next 6 years

• USD 100bn in road transportation projects till 2022

• KSA represent 55% of ICT market in the Gulf region

• USD 23bn Riyadh Metro Project

• USD 85bn projects in upgrading the oil sector

• USD 5bn in cement projects in the coming 3 years

Some numbers from KSA Market

Doing Business in KSA

3 Options

1. Single Setup

2. JV

3. Agent

What we want in Riyadh!

Thank You

Sukran