1 Copyright © 2009 The National Competitiveness Center.

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Copyright © 2009 The National Competitiveness Center

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Attracting sufficient investment to achieve rapid and sustainable economic growth in Saudi Arabia, capitalizing on the Kingdom’s competitive strengths as the global capital of energy and as a major hub between East and West

SAGIA’s SAGIA’s VisionVision

SAGIA’s SAGIA’s MissionMission

Positioning Saudi Arabia among the world’s most competitive nations through the creation of a pro-business environment, a knowledge-based society, and by developing new, world-class “Economic Cities”

SAGIA seeks to encourage investment, embrace innovation, and enhance the

Kingdom’s competitiveness

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National Competitiveness Center: Driving Change

Provide data-driven, objective advice on competitiveness improvement opportunities

Establish Competitiveness Advisory Councils in a number of important sectors, bringing together the key private and public sector stakeholders

Publish the annual Competitiveness Review and other sector competitiveness reviews

Solicit advice from top consulting firms

Measure 300 indicators of competitiveness from international sources (e.g., WEF, IFC, and others)

To plan, orchestrate, and publicize reforms and competitiveness enhancement efforts in the Kingdom

NCC’s NCC’s PurposePurpose

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Transportation Infrastructure Projects Under Construction

Transportation Infrastructure Projects Under Construction

Current RailLandbridgeNorth-SouthHaramain

Jeddah

Buraydah

Ras Al-Zawr

Ha'il Jubail

Riyadh

Al-Hadeetha

Dammam

Medina

Mecca

Railroad Expansion

Multiple freight and passenger railways are under development, these will– Increase and facilitate

tourism– Transport resources

from the north to industrial centers

– Transport goods across the country and to export markets

Road Construction

8,250 km of roads will be constructed over the course of 2009-2010 bringing the total network up to 183K km from 42K in 1994

Airport Expansion

$US 666 million is being spent to develop, create, and expand 23 airports, including Madinah, Taif, Najran, and other regional airports

Jeddah’s airport will have a capacity to handle 30 million passengers annually

Red Sea Terminal/ Jeddah Islamic Port

The Port will have the capacity to hold 1.8 MM shipping containers

The total capacity for Jeddah ports will reach 6 MM containers by 2011

Airport Expansion

Straddling the east and west, Saudi Arabia recognizes the potential of its

transport and logistics sector to drive competitiveness and has invested

heavily in supporting infrastructure

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Launched Electronic Data Interchange (EDI)

Developed under the auspices of the Ministry of Finance, jointly with the Customs Department, the Saudi EDI has allowed paper forms to be completely replaced by the electronic submission of customs declarations, both for imports and exports, and of shipping manifests.

Saudi Arabia has also ushered in important reforms to streamline customs

procedures and reduce the costs of importing and exporting

1 Established “Single window” for customs clearance at Jeddah Port

Previously, traders and brokers had to travel between numerous “satellite” offices in the port and to private banks, located outside the port. Now, traders and brokers can accomplish all tasks under a single roof

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3 Reduced port handling fees by 50%

4 Increased use of x-rays to inspect containers

These reforms have made it cheaper and faster to move goods into and out of Saudi Arabia

These reforms have made it cheaper and faster to move goods into and out of Saudi Arabia

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Global Competitive Index: 2007 MENA Country RanksGlobal Competitive Index: 2007 MENA Country Ranks Global Competitive Index: 2010 MENA Country RanksGlobal Competitive Index: 2010 MENA Country Ranks

These reforms and investments have contributed to Saudi Arabia’s growing

competitiveness, as seen in the World Bank’s Global Competitiveness Index…

80

35

Saudi Arabia

32

Tunisia

31

Qatar

30

KuwaitSyria

77

Egypt

49

Jordan

43

Bahrain

42

Oman

37

UAE

97

Egypt

81

Syria

65

Jordan

37

Oman

35

Bahrain

34

Tunisia

32

Kuwait

25

UAE

21

Saudi Arabia

17

Qatar

Note: Saudi Arabia did not appear in the GCI rankings prior to the 2007-08 ReportSource: Global Competitiveness Report 2007–2008, Global Competitiveness Report 2010–2011, World Economic Forum

Saudi Arabia has moved from 35th to 21st in the last 4 years, and is now 2nd in the MENA region

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Annual FDI Inflows ($B) into Saudi ArabiaAnnual FDI Inflows ($B) into Saudi Arabia

Due to the financial crisis FDI inflows declined by 7%, but this was much lower than most other countries; the US declined by nearly 60%

And have contributed to its reputation as a desirable destination for foreign

direct investment, as shown by UNCTAD’s World Investment Report

$35.5

$38.2

$22.8

$17.1

$12.1

$1.9

2008

CAGR79%

200920052004 20072006

Saudi Arabia leads the region in FDI in-flows and had the 8th largest amount globally in 2009

Source: UNCTAD

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IFC’s ‘Ease of Doing Business’ Rank, Saudi Arabia, 2004-2011IFC’s ‘Ease of Doing Business’ Rank, Saudi Arabia, 2004-2011

These reforms and investments have also made KSA an easier place to do

business, as shown in the World Bank’s Ease of Doing Business Index

67th

2004145 Countries

Ranked

38th

2005155 Countries

Ranked

38th

2006175 Countries

Ranked

23rd

2007178 Countries

Ranked

16th

2008181 Countries

Ranked

80

70

60

50

40

30

20

10

1

Reforms across Saudi Arabian government agencies have vaulted the Kingdom into the Top 20 for “Ease of Doing Business”

Source: Doing Business 2011; World Bank / IFC; NCC Analysis

13th

2009183 Countries

Ranked

2010183 Countries

Ranked

11th

1 Copyright © 2009 The National Competitiveness Center.

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