National

Industrial

Clusters

Development

Program

Kingdom of Saudi Arabia

Ministry of Commerce & Industry The Kingdom of Saudi Arabia

February 1, 2012‏

Tokyo, Japan‏

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3 © T h e S a u d i N a t i o n a l I n d u s t r i a l C l u s t e r s D e v e l o p m e n t P r o g r a m

Saudi Arabia is competitive in a global economy

• 1st economy in the region & 23rd globally

• 6th globally in a rewarding Tax system (20% flat tax)

• 11th globally in ease of doing business

• 16th largest exporter in the world

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NATURAL GAS

RESERVES

OIL EXPORTS

& RESERVES

Saudi Arabia the reliable supplier of Energy to the world

PETROCHEMICAL

PRODUCER

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836 Polymer

Robust Economic Growth

Real GDP SAR, billion

633

38%

2000 2011

124

Manufacturing GDP SAR, billion

65 91%

2000 2011

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More than double Industrial Value Added in 10 years

2010

SAR 111 billion

2020

SAR 266 billion

139%

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Manufacturing

Basic Materials

Natural Resources

• Energy Goods

• Automotive value Chain

• Plastics & Packaging

• Pharma and devices

• Solar Energy Products

• Home Appliances

• Minerals & Metals • Chemicals • Polymers

• Oil

• Gas

• Minerals

Growth cluster industries

Globally competitive industries

Saudi Arabia is home of globally competitive industries

and growth manufacturing clusters

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Foundries

3

1

Stamping Heat

Treating

Plating Machining

Processing

Forging

Copper / Brass

A

Zinc /

Magnesium

ingots

Aggregates

Alloying

Agent

Zinc Powder

A

4

5

3

3

3

6

4

3

2

1 The Foundries usually produce one or more metals.

3 2

1

3

3

Alu

min

um

Ingots

/Liq

uid

Continuous

Caster &

Cold Mill

Auto Body

Products

Can Stock

Common

Alloy Sheet

Building

Sheet

Foil Stock

Cable/

Wire

DC Mill

A Liquid / Ingot

Ingot

Liquid

Liquid

Rod

Billet Extrusion

3

Foundries

Pharma

Automotive Appliances Industrial

Products

Chemicals Packaging

3

Hot Rolled

Plate

Compact Strip

Rolling Mill &

Cold Mill

Complex

Specialty Alloy

Steels

Round Billets

Iron / Steel

Foundry

Marine

Hot Rolled Sheet

Cold Rolled

Sheet

Galvanized

Sheets

Pumps / Valves

Other Castings

Rod / Wire

Tool Steel

Bearings Steel

Specialty Grades

(stainless)

Beams

Vessels

Pipes

Small ø Seamless

Pipe

Commercial

Sheet

HR

Products

Large ø Seamless

Pipe

Steel Semi

Finished

(Blooms)

Medium / Heavy

Sections

Iron / Steel

Development Planned

Execution Existing

Copper

Cathodes

tube Plate

Cable

Wire

Copper

Rod

Sheet

3 2 1 3

4 5 6

A

Aluminum

Primary Metals road map – products & capabilities

supporting‏Saudi‏Arabia’s‏industrialization‏drive

Zinc

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Maaden Alcoa Rolling Mill – production 2013

• Beverage can sheet,

• Automotive body sheet series 6x & 5x,

• Foil & construction sheet.

• Aluminum & alloyed rod for wire & cable.

• Alloyed billets for extrusion products.

Aluminum – maximize the value of resources by

creating & growing new competitive conversion industries

New Opportunities

• Foundry for automotive &

industrial products.

• Foil mill for food and consumer

goods packaging

• Braising Sheet for heat

exchangers

Bauxite Mine Smelter Rolling Mill Refinery

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Al Rajhi Steel Project – production 2016

Auto and appliance sheet.

Steels for seamless pipe and forging

applications.

Specialty alloy steels & Stainless Steels.

Industrial bearing plant

Small seamless pipe plant

Steel – produce quality products & build capabilities for

growing and creating new conversion industries

New Opportunities

• Tooling manufacturing.

• Stainless tubing and pipe.

• Specialty steel fasteners.

• Specialty forging manufacturing.

• Plate mill for pipe, vessels,

marine, construction and

industrial applications.

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Maaden Smelters – production 2016

Copper rod for the wire & cable industry

Plate & sheet for the power industries

Copper tubing & pipe for appliance,

automotive and construction industries

Brass Products, alloyed with Zinc for

marine, industrial and consumer applications

Zinc powder and alloying agents

Copper & Zinc – integrate resources with smelters to

serve the growth in conversion industry & construction

Copper and Zinc Mine Smelter Downstream

Products Refinery

New Opportunities

Copper sheet mill

Copper rod and wire facility

Zinc foundry

Brass manufacturing

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Polymer

Tantalum powder for electrical capacitors, alloying agent in turbines and

medical implants and optical and thin film coatings applications.

Niobium in high strength steels, conductors (MRI units) and Super alloys.

Rare earth elements in magnets, phosphors(LCD, LED) and metal hydride

batteries (rechargeable hybrid vehicles).

Tantalum, Niobium & Rare Earths - maximize the value

of resources by creating new conversion industries

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Petrochemicals –100 million tons by 2016 a 250%

growth from 2006 . The focus now on conversion projects

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

C

a

p

a

c

i

t

y

(

k

T

A)

Petrochemicals Evolution in Saudi Arabia 2008-2015

2015

2008

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Bulk Polymers (KTA) Specialty Polymers (KTA)

0

50

100

150

200

250

300

0

2000

4000

6000

8000

10000

12000

PE PP PVC PS PET

Existing & upcoming polymers

Existing Capacities Execution

Petrochemicals – maximize conversion of the diverse

120 product portfolio of polymers & chemicals

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Industrial Opportunities – Silica and Quartz Silica quartz – maximize integration of resources with

solar energy and conversion industries

UMC – production 2016

Mining Silica quartz

Silicon metal plant

New Opportunities

Silicones

adhesives

Solar cells

Solar modules

PTC– production 2014

IDEA – production 2015

Solar Grade polysilicon

Ingot

Wafer

Ingot Wafer Cell Quartz

mining Poly -

silicon Module

Silicones

Sealants

Adhesives

Cosmetics

Rubber

Silicon

metal

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Isuzu Truck Assembly – production 2013

• 25,000 heavy, medium & light-weight

trucks.

PCC auto components – production 2013

• Under the hood Nylon parts

• small plastic interior parts

Automotive Zone, State-of-the-Art

Automotive cluster for 500 vehicles.

Automotive cluster– capture substantial portion of the

$80 billion regional auto market & export globally

New Opportunities

Vehicle Assembly serving the 2.6

million car market of GCC & MENA

Spare parts

Tires

Engines & transmission assembly

Auto glass

Interior & exterior parts

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Investing in the Kingdom – Key Investment Enablers and

Agencies Competitive incentives for industrial projects

Attractive Lease rates for developed industrial land @

USD 0.26 – 1.2 per square meter

Industrial Loans @ competitive rates covering up to:

For developed regions- 50% of investment for 15 year term

For developing regions- 75% of investment for 20 year term

Competitive Power cost @ USD 0.038 kwh

Financial‏support‏for‏on‏the‏job‏training‏of‏Saudi’s‏‏

Export support program

Single flat tax rate of 20% on corporate profits. Special

tax deductions for projects in developing regions.

Import duty exemptions for equipment, machinery &

materials used in manufacturing.

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In summary

1. Major investments in the upstream are being integrated

with downstream and conversion industries.

2. Saudi‏Arabia’s‏future‏projects‏using‏national‏resources‏

to be integrated with downstream and conversion.

3. Increasing‏Local‏Content‏is‏integral‏to‏Saudi‏Arabia’s‏

upstream, downstream and infrastructure projects.

4. The Clusters Program facilitates and help you in

evaluating investment opportunities.

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The Kingdom of Saudi Arabia

For More Information Contact:

www.ic.gov.sa

info@ic.gov.sa

Tel: +966 1 2188999

Saudi Arabia; the land of opportunities