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2015 Market Opportunities KSA
KSA – The Largest Market in the GCC
Area: 2,150 msm
Population: 29 m 8.5 m expats
GPD per capita: USD 26,468
Key business sectors:
Oil, Energy, Construction,
Food and Beverage,
Healthcare, Education and ICT
State Budget
June 1st 2015 60 $ 2015 State Budget 229 bn $
Sectors
• Oil
• Retail
• Health
• Food and Agriculture
• Construction
• IT
• Consultancy
• Energy
• Logistics
• Marine
• …..
SWOT on The Kingdom
”….I’m STRONG… I don’t
have any weaknesses…”
Strenghts
• By far the largest market in the Middle East
• Huge surpluses from oil revenues
• Stable government led by a popular king
• Huge government spending on infrastructure, social welfare
• Unprecedented volume of investment in utilities
• Access to cheap labour
• Low taxes
Weakness
• Limited visa access to the country
• Difficult access to information
• Bureaucratic government offices (SFDA+ SAGIA)
• Competition from Asian players (China+ Korea)
• Saudization
Opportunities
• KSA imports 90% of its food needs
• Lack of technical expertise
• Engineering services needed for all construction plans
• Huge investment in healthcare and hospitals, medical facilities
• Renewable energy projects
• Growing demand on healthy products
• Big players looking for high quality products
• Industrial training
• Regional security situation
• Troubled borders on all fronts
• Possible fall in oil prices
• Ageing leadership
• Poor control on public spending
• Unemployment
Threats
• Largest oil exporter in the world
• USD 80bn in water projects till 2020
• USD 90bn in power generation projects in next 6 years
• USD 100bn in road transportation projects till 2022
• KSA represent 55% of ICT market in the Gulf region
• USD 23bn Riyadh Metro Project
• USD 85bn projects in upgrading the oil sector
• USD 5bn in cement projects in the coming 3 years
Some numbers from KSA Market
Doing Business in KSA
3 Options
1. Single Setup
2. JV
3. Agent
What we want in Riyadh!
Thank You
Sukran