SAUDI ARABIA

is Welcoming Investments
Saudi Vision 2030 is at the very
heart of Saudi Arabia s ambitious
social, cultural, and economic
transformation.
SAUDI ARABIA IS CHANGING

An economy that has A young, educated population A once private nation, Saudi A sweeping economic
traditionally relied is forming the foundation of a Arabia today is hosting transformation is
heavily on oil and highly-talented, ambitious international sporting repositioning a powerful
gas is rapidly workforce events and welcoming G20 economy on the
diversifying global superstars to its cities world stage
 which is creating dynamic
BUSINESS OPPORTUNITIES

$64 >5000 20,000

billion live events jobs
is budgeted by Saudi Arabia for arts, in 2018 across 56 cities were created by 500 new
tourism, and entertainment entertainment companies
investments over the next 10 years in 2018

Source: GEA
MULTIPLE MNCS* HAVE ALREADY TAKEN
THE LEAP AND SET GROUND IN KSA
Examples of foreign MNCs in KSA

*Multinational Companies
WHY ARE BUSINESSES CHOOSING

SAUDI ARABIA?
DEEP DIVE: 7 KEY REASONS
TO INVEST IN SAUDI ARABIA
Ambitious reform
journey
Development of Vision
2030, with clear priorities
& alignment amongst
stakeholders
Strong governance
Clear 3-year planning,
through 13 programs
Undeniable initial
successes across multiple
themes (ease of doing
business, entertainment,
society, culture,
localization of industries,
women workforce, and
fiscal balance)
Achieved over a 150 major
business reforms including
insolvency and investment
laws
1. Middle East, North Africa and Turkey
Game-changing Strategic global Attractive Young and skilled Expanding Leading
opportunities location property solutions workforce quality of life financial sector
Privatization program Strategic natural >40 strategically ~30% of Saudi working Tax free salaries - Well-capitalized and
to unlock state-owned location linking three positioned industrial age population is among the world's resilient banking
assets and to increase continents and economic cities below 29 years old lowest level of tax sector: 20.3%
private investors regulatory capital to
Largest seaport on the Many of those creating ~400k young Saudis High safety and
participation risk-weighted assets
Red Sea, capturing 80% cluster-effects (e.g., entering the labor security- one of the
(CAR)
Localization of value of maritime flows chemicals, mining, market every year, safest places in the
chain by cooperating maritime) leveraging contributing to world Inclusive financial
Well-interconnected
with both local and synergies and fostering strengthen the sector with 82% of
internal transport Advanced healthcare
international investors system productivity development of adults holding bank
network systems and facilities -
workforce capabilities accounts
Giga projects to create Presence of ready-built ranking 26th worldwide
Efforts to optimize
integrated economic supporting Education as second Share of non-cash
logistics for turning Expanding lifestyle -
ecosystems infrastructure largest area of transactions in the
Saudi Arabia into a women driving,
government spending economy over 23%
Large commitment to leading logistic hub Land at very entertainment, and
attract investors by competitive prices Leading universities alternative tourism Biggest capital market
Digital infrastructure
improving overall with growing scientific in MENAT1: $496B
development with the
business environment research activities market cap
private sector
Emerging Market index
upgrade by FTSE and
MSCI as a result of new
reforms and initiatives
A LEADING G20 ECONOMY THAT S STILL GROWING

1st
population growth rate
2nd
highest Road Connectivity Index
over the next 5 years worldwide, behind the US
among G20

25.88% 48%
of the GCC economy
share of Investments to
GDP, 6th among G20
4%
CAGR over the past 10 years

2nd
Largest GDP per capita 18th
(PPP) among the G20 largest economy in the world

Sources: IMF, World Bank, World Economic Forum

GROWING POPULATION
Total Population forecast, 2017 2030 (millions)

44 45
42 43
40 41
39
37 38
35 36
33 33 34

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: GaStat
UNIQUE DEMOGRAPHICS

Sizeable Young Affluent

59% 14% 6% 58% $23,540 5th
of GCC of Middle Saudi of population GDP largest GDP
population East workforce under 30 years per capita per capita
population annual old, against a in 2018 in the MENA
growth 49.5% global region
average

Source: GaStat 2018, IMF 2018

A STRATEGIC LOCATION

4 Hours
More than 50 fast growing Easy access to 3
markets are within 4 hours continents within a
few hours

6 Hours 4 international
Over 40% of the world s airports across the
GDP is within 6 hours country

7 Hours 13% of global trade

comes through the
Over half of the world s Red Sea
population is within 7 hours

Source: Team analysis based on IMF and World Bank data

AN EXTENSIVE INTERCONNECTED LOGISTICS NETWORK

>4,500 10 Ports
km of railways processing over 13 million
transporting over 7 million containers per year, making
metric tons of minerals up the largest maritime
across key industrial hubs network in the Middle East

>232,000
29 airports km of roads
handling more than 90 million making for the world s 23th
passengers per year and largest network
connecting to over 45 countries

13% >40 industrial

of world trade goes
over the Red Sea cities and zones
with some of the lowest
rates worldwide

Mining sites Oil and gas Logistics platforms Ports Border crossing points Airports

Highways Double transfer methods Railways Railways (planned)

Source: Ministry of Transport, NIDLP, Mawani, General Authority for Civil Aviation, Saudi Railways, Modon
 Waad Al Shamal

WORLD-CLASS
INVESTMENT NEOM
King Salman International
Complex for Maritime
Industries and Services

PROJECTS Wadi Al-Disah

Amaala King Salman Energy Park

Saudi Arabia s mega and giga Al Ula ILBZ (SPARK)
projects represent some of the
The Red Sea King Abdullah Financial District
most ambitious developments Knowledge
under construction around the Economic City
King Salman Park
world today. King Abdullah Qiddiya
Economic City

New Jeddah
Downtown

Jizan Economic City

Giga Projects Mega Projects

THESE PROJECTS WILL COVER A WIDE RANGE OF ASSETS
Real Estate Entertainment Logistics Institutional

Social housing Parks & gyms Airports Education

Middle-class Museums
residential Medical
Railways
Music centers, Government
Upper-class cinemas &
residential entities,
theaters post offices &
Ports
fire station
Offices Hospitality
Religious
Warehouses buildings

Retail Libraries Dams &

reservoirs
CHAMPIONING 7 INVESTMENT PRINCIPLES
Saudi Arabia introduced 7 investment principles by Royal Decree to ensure that a fully competitive investment
environment is enforced at the highest regulatory and legal levels

1
Equality between Saudi and
2
Protection of
3
Sustainability of
4
Equal access to investment
foreign investors investments investments incentives

5
Investor compliance with Saudi health,
safety, and environmental regulations
6
Accessible procedures for foreign
workers and their families
7
Solid transfer of knowledge and technology, and
enhancement of local human capital

3rd best country worldwide by 2019 protecting 2nd best country worldwide by 2020 in
interests of minority investors, up from 63rd in shareholder governance, up from 77th in
2017 2017
(World Bank) (World Economic Forum)
SOME OF THE LATEST REFORMS IMPLEMENTED
Exports 9 2
3 3 2 4
Days Hours Imports 12 2 100% Weeks Hours

Reduction in license Reduction in required foreign ownership Reduction in customs

approval period customs documents is allowed in most sectors clearance period
of the Saudi economy

24 +5
Hours Years

Launch of commercial is the time taken to issue Increase in investor

arbitration centers business visit visas, with no license period
local invitation required
KSA OFFERS A WIDE RANGE OF INCENTIVES TO INVESTORS
1 2 3 4 5
Export
credit Energy & Financial Customs duty
financing, utilities incentives for Loan
programs exemption
guarantee, enablement R&D
and insurance

Incentives
details in
6 7 8 9 10 appendix

Tax credit and Employment Property Government Ecosystem

exemption funding solutions procurement stimulus
(partial) law (for SMEs,
suppliers)

Source: Saudi Fund for Development, Industrial Clusters, Saudi Technology Development And Investment Company, Saudi Customs, Ministry of Commerce and Investment, Public Investment Fund,
Saudi Industrial Development Fund, The Arab Fund for Economic and Social Development, General Authority of Zakat and Tax, Passport General Department
INDUSTRIAL & MANUFACTURING
RAPID GROWTH
Saudi Arabia is the largest and fastest growing regional market for food Top investment opportunities
products, automotive, and industrial equipment. Industrial Equipments
Valves
The industrial equipment market is valued at $15B, with an expected annual Pumps
growth of 4.5% for industrial equipment. The growth of Saudi Arabia s food Compressors
market has been 6%, well above the world average of 4%. Also, the aqua HVAC
fisheries market has been growing at 7%, well above the world average 4%. Heavy machinery

IMPORT-SUBSTITUTION Automotive
With 80% of Saudi industrial equipment demand met by imports, strong CKD plant
government incentives are available for localization of several value chains. Spare parts

LOCATION Food Processing

Strategically located for export of manufactured products to an underserved Meat & poultry
and growing MENA region. Aqua fisheries (shrimp & fish)
Beverages
Flour processing
Top foreign investors
INFORMATION & COMMUNICATIONS TECHNOLOGY (ICT)
SIZEABLE DIGITAL ECOSYSTEM AND COMMUNITY
ICT market size exceeding $40bn in 2019 (largest in MENA and accounts for 70% of the Top investment opportunities
total GCC spending o n ICT)., a $7.6bn e-Commerce market size, and a 56% penetration as
Government Transformation
of 2019.
Digitizing operations
Digitizing citizensservices
GROWING OPPORTUNITIES
An opportunity to supply industrial AI and IoT to the largest oil, 4th largest chemicals, and Hajj &Umrah Digitization
largest desalination companies in the world. In addition to, rapidly growing opportunities Tech Savvy Citizens
across new unlocked sectors such as (Tourism & Logistics) E-services
E-commerce
DIGITAL INFRASTRUCTURE Socialmedia, media,and gaming adoption isamong the highest
An improving world class digital infrastructure with over $10 billion in theworld
governmental investment to increase high speed internet (47 Mbps Mobile Tourism/ Hajj &Umrah
Internet Speed) & penetration (93%) and enable emerging technologies Mobile app'sdevelopment
applications Crowd management
E-commerceande-services
Smart Hajj andUmrah
DIGITAL VISION:
An ambitious Vision to become an ICT hub for the region and beyond with focus digital Smart Cities and GigaProjects WaadAlshamal
innovation in Smarts Cities, Industry 4.0, Digital Education and Digital Health 35 Industrialcities SPARK
NEOM Biggest 3 urban cities to be
RedSea among the top 100cities in
Qidiyah
Top foreign investors livability in theworld
Cloud and Advanced Technologies
Operation industrial optimization by using advancedtech
(IoT,VR/AR,AI,and machine learning)
HEALTHCARE & LIFE SCIENCES
SPENDING
Over $224bn worth of cumulative healthcare spending over the next 5 years
(including public and private healthcare services, medical
devices/consumables, pharmaceuticals, and digital health).
GROWING
The co-existence of a very large youth base and a rapidly ageing population
with prevalence of chronic diseases are expected to triple healthcare
demand in the next 10years.
PRIVATIZING
private sector contribution to healthcare spending expected to increase at a
faster 10-year CAGR of 6.7%,which will see the market expand from $11.2B in
2017 to $22.4B by 2027.
REFORMING
100% foreign ownership expanded to a large majority of healthcare services in
2018, coupled with a more streamlined, digitized and efficient licensing process.
Top foreign investors
Top investment opportunities
Healthcare Services
Supply:
Private sector participation in many aspects of the healthcare
transformation plan implementation
Demand:
Increase in all aspects of services, especially home healthcare,
long-term care, primary healthcare, and rehabilitation
Healthcare Products (Pharmaceuticals and Medical Devices)
Significant room for growth in localization while
aligning with the government s strategy to drive local
manufacturing, R&D and job creation. Priority given by
large government tenders to products made in Saudi
Arabia with significant regional export potential
Digital Health
Multiple opportunities to optimize
efficiency and effectiveness of healthcare
clusters through the implementation of
digital health solutions across the Kingdom
REAL ESTATE
DEMAND Top investment opportunities
1.5m cumulative housing units needed by 2030, driven by rapid growth of a
large, young population and a wealthy middle-income class, driving a widen Housing
supply-demand mismatch. Affordable, mid-income, and high-end
Commercial
PPPs
Retail, offices, hospitality, and mixed use
Private sector taking the lead to fill the housing gap, with PPPs already
accounting for 69 projects and 124,331 housing units currently under Localization of Building Products
development. Precast concrete
Prefabricated/modular homes
TECHNOLOGY Windows & doors
New incentives for housing investors and building technologies providers, Rua Al Madinah Project.
including project matchmaking, licensing support, access to land and supply Madinah Downtown
chains, as well as advantageous loans.
Project.
Develop and Operate Multiple
Locations to Urban Centres.
Top foreign investors
MISA IS INVESTING TO MAKE YOUR JOURNEY BENEFICIAL
Economic intelligence
Provide standard
information packages
Provide periodic reports
and case studies
Develop Ad-hoc info
packages/reports
Share contacts and
databases
Matchmaking & linkage Site visits Location search
Connect to Plan trips and set up Provide high-touch guide
Industry/trade associations and logistics and bookings on site/property search
commissions Set up meetings with Connect with real estate
Large local companies for ministries and other agencies for deep
potential partnership stakeholders assistance and evaluation
Professional services
Other FDI companies for reference
SMEs for supply-chain universities
& research centers

Set-up assistance Incentives assistance Improving business climate

Provide advice on corporate structure Build business cases and Develop policy recommendations based on
Liaise with government entities and provide advice on feasibility studies feedback
applying for visas, permits, licenses, and utilities Advice and develop specific Submit investors proposals for amendment
Connect with executive onboarding assistance agencies incentive packages, and of legislation
mediate negotiations with Troubleshoot investor operational issues
Connect with recruiting employees agencies local authorities
Generate publicity, joint press release, and launch events
Connect with financial partners for co-financing and
support
Connect with us today
Abdulaziz Alghifaili MISA UK Office
+44 7387 976667
+966 50 444 4247
Investsaudi.sa
InvestSaudi
InvestSaudi