The Kingdom of Saudi Arabia Ministry of Commerce

The Kingdom of Saudi Arabia Ministry of Commerce & Industry National Industrial Clusters Development Program The Era of New Manufacturing in Saudi Arabia Presented to: The Saudi - Italian Business Forum Council of the Chambers of the Saudi Chambers, Riyadh November 6, 2010

Kuwait Turkey Syria Iraq Iran Pakistan Bahrain Egypt Saudi Arabia Qatar INDUSTRIAL CLUSTERS Saudi Arabia is heavily investing in value added manufacturing serving at least 400 million consumers UAE Sudan § § § § Oman 1 st economy in the MENA & 23 rd globally 7 th globally in rewarding Tax system (20% flat tax) 13 th globally in ease of doing business A center serving over 400 million consumers Vast oil, Petrochemicals, Mineral and Metals resources Competitive power cost (3. 2 cents/KWH) Rapid growth of young educated Saudi’s Largest free market in MENA region MENA- Middle East and North Africa 2

1. Ministry of Commerce & Industry l Industrial Clusters Program 2. Saudi General Investment Authority 3. Saudi Industrial Development Fund l Industrial loans 4. Industrial Land leasing ($per sqm/year): l MODON (government) l Royal Commission (government) l Petro. Rabigh park (private) l Economic Cities (private) 5. Human Resource Development Fund 6. Saudi Export Program 7. Council of the Chambers l Industrial strategy New Manufacturing One Step Shop l 2. 5% annual charges l $0. 26 -0. 53 $1. 06 $1. 6 Commercial rates Training & wage support Export credit & insurance Home for business l l l l INDUSTRIAL CLUSTERS Specialized Government and Private agencies committed to make investors successful 3

Minerals & Metals+ Petrochemicals^ Automotive Oil & Gas Offshore* Plastics & Packaging Energy Goods & Services* INDUSTRIAL CLUSTERS The chosen sectors are export oriented & being developed as globally competitive & sustainable clusters Solar Energy Home Appliances + by Ministry of petroleum, Clusters Program, Maaden, Sabic and private industry ^ by Ministry of Petroleum, Royal Commission J&Y, Sabic, Saudi Aramco, and private industry * by Saudi Aramco, Taqa and private industry 4

INDUSTRIAL CLUSTERS Minerals & Metals Cluster will produce material & products to serve the new industries and the export markets 5

INDUSTRIAL CLUSTERS The Automotive cluster to capture a significant portion of the fast growing $75 billion market in the region 6

SAUDI ARABIA POLYMER FORECAST SAUDI ARABIA POLYMER CAPACITY FORECAST (thousand tons per year) INDUSTRIAL CLUSTERS Plastic and Packaging is increasing value by becoming a consumer products goods center for the region and beyond 25 000 20 000 15 000 10 000 production 5 000 0 Note: In the right-hand chart, “Others” represent a number of new products such as : SBR, EPR, PBR, Carbon Black, EPDM, PPMA, PA, EVOH, PACN, POM, Carbon Fibers, etc… 7

INDUSTRIAL CLUSTERS A major player in the Solar industry from R&D through manufacturing of products and ultimately export of power The crystalline PV value chain Poly Silicon Ingot Wafer Cell Module System The thin-film PV value chain Substrate (e. g. glass) Module System 8

§ Leadership committed to industrializing the nation. § Significant resources directed to support manufacturing. § Focus is on value added manufacturing & services. § We welcome Italian companies as strategic partners. § We are reliable, fair, & long term partners. INDUSTRIAL CLUSTERS Summary 9

Contact us National Industrial Clusters Development Program @ Council of Saudi Chambers Building in Riyadh Phone: +966 (1) 218 -8999 Fax: + 966 (1) 218 -8911 Email: info@ic. gov. sa www. saudiclusters. com “To live well, a nation must produce well. ” Source: Made in America, Regaining the Productive Edge