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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
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