2 SAGIA seeks to encourage investment, embrace innovation, and enhance the Kingdom s competitiveness Attracting sufficient investment to achieve rapid

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2 2 SAGIA seeks to encourage investment, embrace innovation, and enhance the Kingdom s competitiveness Attracting sufficient investment to achieve rapid and sustainable economic growth in Saudi Arabia, capitaliing on the Kingdom s competitive strengths as the global capital of energy and as a major hub between East and West Positioning Saudi Arabia among the world s most competitive nations through the creation of a pro-business environment, environment a knowledge-based society, and by developing new, world-class Economic Cities SAGIA s Vision SAGIA s SAGIA s Mission

3 3 National Competitiveness Center: Driving Change NCC s P Purpose To plan, orchestrate, and publicie reforms and competitiveness titi enhancement h t efforts ff t in i the th Kingdom Ki d Provide objective P id data-driven, d t di bj ti advice d i 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)

4 4 Straddling the potential of its g the east and west, Saudi Arabia recognies g p transport and logistics sector to drive competitiveness and has invested heavily in supporting infrastructure Airport Expansion $US 666 million is being spent to develop, create, and expand 23 airports, i l di Madinah, including M di h Taif, T if Najran, and other regional airports Transportation Infrastructure Projects Under Construction Al H d th Al-Hadeetha Jeddah s airport will have a capacity to handle 30 million passengers annually ll Buraydah Jeddah Jubail Ha'il Dammam Riyadh Medina Red Sea Terminal/ Jeddah Islamic Port Current Rail Landbridge North-South Haramain Airport Expansion Ras Al-Zawr 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 Mecca Road Construction 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 ,250 km of roads will be constructed over the course of bringing the total network up to 183K km from 42K in 1994

5 5 Saudi Arabia has also ushered in important reforms to streamline customs p procedures and reduce the costs of importing and exporting 1 Established single single window window for customs clearance at Jeddah Port 2 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 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. 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

6 6 These reforms and investments have contributed to Saudi Arabia s growing competitiveness, as seen in the WEF s Global Competitiveness Index Saudi Arabia has moved from 35th to 21st in the last 4 years, and is now 2nd in the MENA region Global Competitive p Index: 2007 MENA Country y Ranks Global Competitive p Index: 2010 MENA Country y Ranks Syria Egypt Jordan Bahrain Oman UAE Saudi Tunisia Qatar Kuwait Arabia Egypt Syria Jordan Bahrain Kuwait Oman Tunisia UAE Note: Saudi Arabia did not appear in the GCI rankings prior to the Report Source: Global Competitiveness Report , Global Competitiveness Report , World Economic Forum Saudi Qatar Arabia

7 7 And have contributed to its reputation as a desirable destination for foreign direct investment, as shown by UNCTAD s World Investment Report Saudi Arabia leads the region in FDI in-flows and had the 8th largest amount globally in 2009 Country 2009 Rank FDI Inflows ($B) United States 1 $130 China 2 $95 France 3 $60 Hong Kong, China 4 $48 United Kingdom 5 $46 Russian Federation 6 $39 Germany 7 $36 Saudi Arabia 8 $36 I di India 9 $35 Belgium 10 $34 Italy 11 $31 Luxembourg 12 $27 Netherlands 13 $27 Brail 14 $26 British Virgin Islands 15 $25 Ireland 16 $25 Australia 17 $23 Canada 18 $19 Singapore 19 $17 Spain Source: UNCTAD 20 $15 Annual FDI Inflows ($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% CAGR 79% $38.2 $35.5 $22.8 $17.1 $12.1 $

8 8 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 Reforms across Saudi Arabian government agencies have vaulted the Kingdom into the Top 20 for Ease of Doing Business IFC s Ease of Doing Business Rank, Saudi Arabia, th 10 16th 13th Countries Countries 23rd th 38th Countries Countries th Countries Countries Countries Source: Doing Business 2011; World Bank / IFC; NCC Analysis