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CHEMICALS

INVESTOR-CENTRIC ECOSYSTEM

LARGE AND GROWING LOCALCHEMICALS MARKET

ATTRACTIVE FEEDSTOCK MARKET

ACCESS TO LARGE REGIONAL MARKETS

4 REASONS TO INVEST IN SAUDI ARABIA’S CHEMICALS SECTOR

LARGE AND GROWING LOCAL CHEMICALS MARKET

KSA CHEMICALS GROSS OUTPUT GREW AT 8%, AS COMPARED TO GLOBAL GROWTH OF 3%

KSA CHEMICALS GROSS OUTPUT1

1. Includes basic chemicals, fertilizers and nitrogen compounds, plastics, synthetic rubber in primary forms, pesticides and other agrochemical products, paints, varnishes and similar coatings, printing ink, mastics, soap and detergents, cleaning and polishing preparations, perfumes, toilet preparations, and man-made fibers

xx 2010-2017

$ Billion

Source: Central Department of Statistics & Information, Saudi Arabia; Oxford Economics; Haver Analytics

2010

42

2011 2013

59

2012

55

2014

64

51

2017

71

2016

70

2015

69

%8

05

DRIVEN BY THE INTRODUCTION OF NEW PRODUCTS

KSA’S PETROCHEMICALS CAPACITY

NEW KEY PRODUCTS INTRODUCED

Mainly C1 productfrom methane

C2 development EO/EG, PE cracking ethane

Start of mixed ethane/ propane cracking, increase of C3, C4

Start of naphtha cracking – increase of C6

Introduction ofOil-to-chemicals

Development of further downstream products

xx 1980-2020

Mta

1. Capacity for 46 basic and intermediate chemicals including volumes used for captive use.

Source: BCG ChemCom database; American Institute of Chemical Engineers (AIChE) (2014); BCG analysis

1970

0 0 0 0 3 8 10 1511 16 2030 32 34 39

6774 79

44

9

1980 20001990 2010 2020

AmmoniaUreaFormaldehydeMethanol

C1 chemistry

BTXPET

C6 chemistry

EO/ EGPE

C2 chemistry

PVC

Chlorine chemistry

PP

C3 chemistry

EthylaminesPolyolsElastomerNylon 6,6

Other downstream



THE GROWING SAUDI MARKET ATTRACTED ALMOST ALL OF THE 10 LARGEST INTERNATIONAL PLAYERS

Source: ICIS, report published in 2017

Saudi company

BASF

DOW Chemical

SABIC

INEOS

Mitsubishi

Lyondell Basell

ExxonMobil

Dupont

Air Liquide

Sinopec

Sales (2016, $ B)

60,6

48,2

35,4

32,9

30,3

29,2

26,1

24,6

19,1

48,3

Operations in KSA

Saudi BASF for Building Materials Co. Ltd.

JV with SABIC

JV with Sahara Petrochemicals

JV with Saudi Aramco

DuPont Powder Coatings Saudia Co. Ltd.

Al Khafrah Industrial Gases

Saudi company



1. Operations might be through JVs

IN RECENT YEARS, SEVERAL MEGA INVESTMENTS WERE MADE (NON- EXHAUSTIVE LIST)

1. The total investment is $9 billion, $5 billion direct investment by Saudi Aramco and Total, $4 billion in a petrochemical and specialty chemical plant by third party investors

Source: Saudi Aramco; Sadara; Reuters; Financial Times; Business Standards

TYPE OF INVESTMENT

INVESTORS

YEAR OF INVESTMENT

INVESTMENT AMOUNT

PRODUCT

Joint venture

Saudi Aramco and Dow Chemicals

Production of 3 million MT of chemicals per year

2011

$20 Billion

Joint venture

Saudi Aramco and SABIC

Production of 9 million T of chemicals and base oil per year

2017

$20 Billion

Joint venture

Saudi Aramco and Total

Construction of 1.5 million T per steam cracker and petrochemicals unit

2018

$5 Billion


IN THE FUTURE, THE SAUDI CHEMICALS MARKET IS EXPECTED TO GROW AT 6%

2018

7376

2019

83

2020

89

2021

93

2022

GROWTH IN DEMAND WILL BE DRIVEN BY THE EXPANSION IN MANUFACTURING SECTORS AND LOCALIZATION EFFORTS

1. Includes basic chemicals, fertilizers and nitrogen compounds, plastics, synthetic rubber in primary forms, pesticides and other agrochemical products, paints, varnishes and similar coatings, printing ink, mastics, soap and detergents, cleaning and polishing preparations, perfumes, toilet preparations, and man-made fibers.

Source: Central Department of Statistics & Information, Saudi Arabia; Oxford Economics; Haver Analytics

6%

THE PROJECTED SAUDI GROSS OUTPUT FOR CHEMICALS

xx 2018-2022$ Billion

LARGE AND GROWING MANUFACTURING SECTORS LOCALIZATION EFFORTS


09

LARGE AND GROWING MANUFACTURING SECTORS

CHEMICALS ARE WIDELY USED IN FIVE SECTORS IN KSA, ALL OF WHICH ARE LARGE OR EXPECTED TO GROW SIGNIFICANTLY...

Source: Vision 2030; World Bank; Statista

SECTORS

KEY FACT AND HIGHLIGHTS

CURRENTLY LARGE INDUSTRIES

Food and Beverages

33 M population

Construction

$42 B industry

value

Defense

50%

Local content

by 2030

Mining

$26 B

GDP by 2030

Renewables

9.5 GW

By 2030

GROWTH INDUSTRIES



LOCALIZATION EFFORTS CAN BESUPPORTED BY GROWING DEMAND FOR CONVERSION PRODUCTSCASE STUDY: THE SAUDI RUBBER

Source: UN Comtrade, Oxford Economics, National Industrial Strategy

2018

186

201

2019

217

2020

321

2025

472

2030

8%

THE PROJECTED SAUDI RUBBER MARKET SIZE xx 2018-2030

$ Million

Hoses and tubes

Sheets and belts

Tires

LOCALIZATION EFFORTS

11

LOCALIZATION EFFORTS CAN BESUPPORTED BY GROWING DEMAND FOR CONVERSION PRODUCTSCASE STUDY: THE SAUDI RUBBER MARKET

Source: General Entertainment Authority, North American Industry Classification System

(NAICS), United Nations International Standard Industrial Classification

“Bring the private sector to its full potential, maximize local spending and optimize Balance of Payments”

“Achieve SABIC’s localization agenda and local industry development”

“Drive additional domestic value creation to support a rapidly changing economic environment and foster future prosperity”

Local Content and Private Sector Development Unit

SABIC’s Nusaned Program

Saudi Aramco’s IKTVA program


Source: Aramco; IKTVA website; U.S. Energy Information Administration

OVERVIEW OF ARAMCO AND IKTVA


LOCALIZATION EFFORTS

OVERVIEW OF ARAMCO

A state-owned oil company of the Kingdom of Saudi Arabia, a fully integrated, global petroleum and chemicals enterprise, and the largest crude oil producer in the world.

Manages proven conventional crude oil and considers supplying the Kingdom and the world with energy as the core of its mission.

Among other operational achievements, Aramco succeeded in 2016 to:

- Produce 920 million scfd of ethane - Process 12 billion scfd of raw gas - Produce 1.4 million bpd of NGL

OVERVIEW OF IKTVA

Aramco has launched the IKTVA program with two main objectives:

- Double the percentage of locally-produced energy- related goods and services to 70% by 2021 - Export 30% of the output of the local energy goods and services industry

By setting such objectives Aramco expects to spend $210 billion of procurement on local production in 10 years

To ensure effective communication, Aramco announces local content opportunities on IKTVA’s website.

13

Preliminary figures based on international benchmarks

Source: General Entertainment Authority

OVERVIEW OF SABIC

A global leader in diversified chemicals headquartered in Riyadh, Saudi Arabia. It manufactures on a global scale, making distinctly different kinds of products: chemicals, commodity and high-performance plastics, agri-nutrients and metals

SABIC is the fourth largest petrochemical company in the world, reaching $35.4 billion of sales in 2016

OVERVIEW OF NUSANED

In order to achieve its localization agenda and local industry development, SABIC initiated the “Nusaned” program

The program presents opportunities available to drive investment and create local demand through:

- Procurement spending- Product conversion to develop a downstream industry - Commercialization of SABIC’s patents, technologies, and applications

Nusaned aims at providing solutions for some of the issues inventors face, such as:

- Robust pre-feasibility assessment to convert ideas into opportunities - Support package to improve financial attractiveness of opportunities- Develop workforce and provide functional capabilities



FEEDSTOCKS IN KSA ARE ATTRACTIVE FOR THREE REASONS

LOW PRICES OF ETHANE, PROPANE,AND BUTANE

ABUNDANCE AND GROWTH OF THE NAPHTHA MARKET

HUGE POTENTIAL FOR CRUDE OIL TO CHEMICALS PRODUCTION

15


KSA HAS LOW PRICES OF ETHANE, PROPANE AND BUTANE COMPARED TO OTHER GLOBAL BENCHMARKS

1. Saudi Arabia Ethane Contract FD, US Ethane Spot FOB, WE Ethane Spot FD (Fuel Oil Parity). 2. Saudi Arabia Propane Contract FD, WE Propane Spot

CIF, Singapore Propane Spot FOB, China Propane Spot CFR. 3. Saudi Arabia Butane Contract FD, WE Butane Spot CIF, Singapore Butane Spot FOB,

China Butane Spot CFR, Japan Butane Spot CFR

LOW PRICES OF ETHANE, PROPANE, AND BUTANE

Western

Europe

Ethane1 Propane2

Butane3

185

354

85

Western

Europe 442

Western

Europe 532

Southeast

Asia490

Southeast

Asia 544

China 502

China 544

KSA

369KSA

395KSA

USA

399USA

434USA

xx $/ton

2017

xx $/ton

2017

xx $/ton

2017

2020

19

2015

18

NAPHTHA PRODUCTION IN KSA HAS ALREADY INCREASED OVER THE PAST YEARS, DRIVEN BY GOVERNMENT EFFORTS

Source: Nexant

ABUNDANCE AND GROWTH OF NAPHTHA MARKET

2000

10

2010

18

2005

16

2030

22

2025

20

%2.7

KSA PRODUCTION OF NAPHTHA, COMPLEMENTED BY…xx 2000-2030

Million tons/year

A $20 B INVESTMENT IN SADARA, MAKING IT THE FIRST TO CRACK NAPHTHA IN GCC

A joint venture between Saudi Aramco and Dow Chemicals, Sadara is the largest chemicals complex built in a single phase

Sadara will expand its service portfolio, to open the door for new specialty chemical plants


17


BY 2020, NAPHTHA IS EXPECTED TO CONSTITUTE 14% OF TOTAL FEEDSTOCK CRACKERS IN KSA

Source: Nexant; O&G annual ethylene survey

ABUNDANCE AND GROWTH OF THE NAPHTHA MARKET

1985

100

92

63 56 53

3434288

9 10 14

1995 2005 2015 2020e

LPG

Naphtha

Ethane

SUSTAINED CRUDE OIL SUPPLY……WITH POTENTIAL TO PROVIDE MULTIPLE ADVANTAGES FOR PRODUCERS

…WITH POTENTIAL TO PROVIDE MULTIPLE ADVANTAGES FOR PRODUCERS

KSA has the second largest proven oil reserve globally, at 266 Billion bbl

KSA is looking into diversifying its energy portfolio; allowing additional supply of oil for chemicals industries

Higher scale of operations at 2x to 5x the scale of petrochemical plants

Creates a diversified portfolio of feedstock

Higher scale of operations at 2x to 5x the scale of petrochemical plants

Creates a diversified portfolio of feedstock

AS CRUDE OIL BECOMES A COMMON FEEDSTOCK WORLDWIDE, KSA HAS HUGE POTENTIAL TO TAP INTO THIS MARKET



Source: U.S. Energy Information Administration; Expert interviews

19


KSA HAS ALREADY STARTED CAPITALIZING ON SUCH POTENTIAL WITH A MAJOR INVESTMENT


1 2 3 4

A $20 billion investment by Saudi Aramco and SABIC …

with operations expected to start in 2025 …

to build the largest crude oil to chemicals facility in the world …

leveraging 400,000 barrels per day to produce 9 million tons of chemicals


GLOBAL IMPORTS OF CHEMICALS INCREASED BY 3% OVER THE PAST YEARS, REACHING $2 TRILLION

North AmericaWestern Europe

Africa and

Middle East Latin America

Central &

Eastern EuropeAsia-Pacific

2010

1,653

235

74

714

94

86

451

1,920

268

93

810

113

99

537

2011

1,921

270

98

795

118

102

538

2012

1,965

270

98

806

124

109

558

2013

1,961

300

88

820

99

117

539

2015

1,979

299

82

832

100

118

548

2016

3%

GLOBAL CHEMICALS IMPORTSxx 2010-2016

$ Billion

2,003

286

92

832

116

120

558

2014

Source: ABIQUIM; ANIQ; CCPA; CEFIC; JCIA; VCI; Bureau of the Census; Eurostat; QuERI; Statistics Canada; United Nations;

WTO; American Chemistry Council

21


ON A REGIONAL LEVEL, FUTURE DEMAND FOR SPECIALTY CHEMICALS IS EXPECTED TO GROW AT 3.5%

Source: IHS, Mordor Intelligence, National Industrial Strategy

REGIONAL DEMAND FOR SPECIALTY CHEMICALSxx 2016-2021

$ Billion

2016

48

2019

53

2018

51

2020

55

2017

49

2021

57

3.5%

COMPANIES IN KSA HAVE THE POTENTIAL TO CAPTURE GLOBAL GROWTH, LEVERAGING TWO KEY ENABLERS

KSA is located within the GCC and at a close proximity to African, Asian and European countries, and thus has a logistical advantage (i.e., lower transportation cost, shorter delivery time) over several other countries.

Following GAFTA – Goods produced in any of the GAFTA member countries shall be exempted from customs duties in any other member country.

GEOGRAPHICAL ADVANTAGE TRADE AGREEMENTS WITH OTHERARAB COUNTRIES


23

STRATEGICALLY LOCATED, KSA OFFERS ACCESS TO VAST GLOBAL MARKETS

GEOGRAPHICAL ADVANTAGE


From North American markets, importing $298.5 Bn worth of chemicals

From European markets, importing$932 Bn worth of chemicals

From Asia-Pacific markets, importing $547.8 Bn worth of chemicals

From Latin American markets, importing$82 Bn worth of chemicals

From African and Middle Eastern markets, importing $118.4 Bn worth of chemicals

21,000 KM1 10,900 KM3

11,700 KM4

13,000 KM2 2600 KM5

Aberdeen Port US

ABT Brazil

Benghazi Libiya

Archangel Russia

HashihamaJapan

... WHICH IS SUPPORTED BY A MATURE LOGISTICAL INFRASTRUCTURE AND EASE OF DOING BUSINESS INITIATIVES

INFRASTRUCTURE INITIATIVES

10 MAIN HARBORS

Largest marine network in the Middle East

- 6 leading container ports - Over 240 million tons of cargo handled in 2017

King Abdullah Port at KAEC with a 4 million TEU2 annual capacity

- Fastest growing port inthe world - Port throughput increased by 14% in

the first half of 2017

>1,700 KM OF RAILS

Cargo line: 556 km starting at King Abdulaziz Port in Dammam and ending in Riyadh

Branch lines: 486 km connecting industrial sites and facilities

Approx. 700 thousand containers handled every year

Additional 1,500 km are to be added in the upcoming years

>200,000 KM OF ROADS

66,000 km of roadways connecting major cities and providing access to railways, ports and airports

>140,000 km of dirt roads

12,000 km of roads connecting Saudi Arabia’s regions to international borders

CUSTOM CLEARANCE (TAYSEER INITIATIVE)

Most inbound cargo containers are cleared within 24 hours

Reduced documents for imports from 12 to 4 and for exports from 9 to 3

Improved regulations for importing chemicals and chemical products & created an online platform for advanced approvals on chemical imports

1. Ministry of Transport 2. TEU stands for twenty-foot equivalent unit

Source: Saudi Arabia’s Vision 2030; SAGIA; Industrial Clusters; Saudi Railways Organization; Ministry of Transport; Saudi Ports Authority; Tayseer; Saudi

Arabia’s Vision 2030

GEOGRAPHICAL ADVANTAGE


25

SUPPORTING ENTITIES& FUNDING

KSA IS A GAFTA MEMBER, ALLOWING ITS EXPORTS TO REACH ~340M CONSUMERS FREE OF CUSTOMS DUTY WITHIN 15 MEMBER STATES

TRADE AGREEMENTS WITH OTHER ARAB COUNTRIES

Egypt 97.6

Population (million)Chemicals imports ($B, 2016)

5.9

Morocco 35.7 3.8

UAE 9.4 8.6

Sudan 40.5 0.8 (2015)

Tunisia 11.5 1.9

Lebanon 6.1 1.0

Algeria 41.3 4.1

Yemen 28.3 0.32 (2015)

Libya 6.4 NA

Iraq 38.3 0.7 (2014)

Jordan 9.7 1.3

Palestine 5.1 0.3

Kuwait 4.1 1.6

Oman 4.6 1.7

Bahrain 1.5 1.1

Note: The provisions of this program do not apply to its products that are prohibited from being imported, traded or used in any country for religious,

health, security, environmental or quarantine reasons and is committed States Parties shall submit a statement of such products as well as any

amendments thereto.

1. Algeria became a member in 2009 2. Iraq has recently paused acting on GAFTA on a temporary basis Source: Ministry of Industry, Trade, and Supply

in Jordan; World Bank; World Meters; UN Comtrade

Source: Ministry of Industry, Trade, and Supply in Jordan; World Bank; World Meters; UN Comtrade


KSA HAS A SET OF KEY ENABLERS AND PROGRAMS TO PROMOTE THE CHEMICALS INDUSTRY

DEVELOPED INDUSTRIAL CITIES

ACCESSIBILITY TO FINANCIAL SUPPORT

LOW PRODUCTION COST

AVAILABILITY OF HUMAN CAPITAL & RESEARCH CAPABILITIES

27


KSA OFFERS ATTRACTIVE INDUSTRIAL PROPERTY SOLUTIONS…


Support through mature infrastructureand tailored services …

… diversified industries hosted, including but not limited to, synthetic materials and alternative energy …

... all for very competitive land prices starting at $0.27/m2 a year

ROYAL COMMISSION FOR JUBAIL & YANBU:

KING ABDULLAH ECONOMIC CITY (KAEC)

SAUDI INDUSTRIAL PROPERTY AUTHORITY:

Manages four strategically located industrial cities

Located on the west coast of KSA, KAEC is the perfect location to connect the East with the West

Develops and supervises 40 industrial cities across the Kingdom

…PROVIDED BY MULTIPLE ENTITIES

1. Based on 2011 statistics 2. For example, engineering work request service in Yanbu Industrial City

Source: RCJY; Asharqia Chamber; Desk research

120 km2

930 km2

106 km2

185 km2

RAS AL-KHAIR

JUBAIL

JAZAN

YANBU

Availability of raw materials (e.g. oil and gas, minerals, etc..)

- Jubail hosts more than 160 industrial enterprises, among which is Sadara, ensuring reliable supply

- Yanbu has a 1,2001 km pipeline that transports natural gas & oil across KSA

Easy access to domestic and international markets

Accessibility to services through e-solutions2

STRATEGICALLY LOCATED INDUSTRIAL CITIES…

…WITH AN ATTRACTIVE SET OF SERVICES AND INCENTIVES

KSA OFFERS ATTRACTIVE INDUSTRIAL PROPERTY SOLUTIONS…



29


JUBAIL INDUSTRIAL CITY (I/II)


ROYAL COMMISSION FOR JUBAILEstablished

Jubail city (km2)

Jubail Industrial City (km2)

Population

Main businesses

Airport

Seaport

Rail

Hospital and specialized clinics

Schools and universities

1975

1016

82

779,000

Petrochemicals and oil industries, plastics, chemical products, steel products and fertilizers

King Fahd International Airport

Jubail Commercial Port and the King Fahd Industrial Port

Future planning

25+

20+

VALUE PROPOSITION

Access to local feedstock

Strategic location

Modern world-scale infrastructure

Attractive financing support

Well-developed communities

Attractive energy costs

Attractive land lease

Largest industrial city in the Middle East

Home to the Middle East’s largest and world’s fourth largest petrochemical company

The world’s largest IWPP (Independent Water and Power Project)

Saudi Arabia’s biggest industrial center and host to more than 160 industrial enterprises

Home to almost 70,000 full-time residents

The most modern and biggest industrial complex in Asia

EXAMPLE OF RAW MATERIALS AVAILABLE IN JUBAIL INDUSTRIAL CITY

Tasnee

Kayan

Sipchem

Safco

Sadara

Al bayroni

Kemya

Sharq

Jana

United

Ibn sina

S-chem

Chemanol

Rufayah

Gsi

Titanium Dioxide, Acrylic Acid, Butyl Acrylate, -2Ethyl Hexyl Acrylate, Glacial Acrylic, Super Absorbent Polymers

Ethylene Oxide, Ethylene Glycols, Acetone, Benzene, Ethoxylates, n-Butanol, Phenol, Bisphenol A

Vinyl Acetate Monomer, Ethylene Vinyl Acetate, Ethyl Acetate, Butyl acrylate Terephthalate.

Urea-Formaldehyde

Ethoxylates, PEG, TDI, Benzene, MDI, Butanol, Polyols, Epoxy Resins, Acrylics

2EthyleneHexanol

TPE, BR, EPDM Elastomers, Carbon Black

Ethylene Glycols, Polyethylene

Epoxy Resins

Ethylene Glycols, Linear Alfa Oefin

Methanol, Polyacetal

Cyclohexane, Benzene, Gasoline Components, Styrene, Polyethylene, Polystyrene, Polypropylene

Pentaerythritol, Urea-Formaldehyde, Melamine-Formaldehyde, PARA, Sodium Formate

Aliphatic Hydrocarbon Resins, Aromatic Hydrocarbon Resins, DCPD Hydrocarbon Resins,Water White Hydrocarbon Resins, Aromatic Solvent (200 ,150 ,100)

Dipentaerythritol, Formulated Biocides, Deformer Anti-Foam Agent

JUBAIL INDUSTRIAL CITY (II/II)

BIG PLAYERS

COMPANY RAW MATERIALS PRODUCED


31


YANBU INDUSTRIAL CITY (I/II)


ROYAL COMMISSION FOR YANBU (RCY)Established

Jubail city (km2)

Jubail Industrial City (km2)

Population

Main businesses

Airport

Seaport

Rail

Hospital and specialized clinics


1975

1016

606

125,000

Petrochemicals and oil industries, chemical products and steel products

Prince Abdulmohsin Bin Abdulaziz Airport

King Fahd Industrial Port (KFIP)

Planned railways to connect the city

20+

20+

VALUE PROPOSITION

3rd largest global refining hub with a capacity of more than 1.0 Million Barrel per day

Total investment is over $53 Billion

Average annual growth rate of private sector investments is 18%

Largest oil shipping port on the Red Sea & major liquid handling terminal

Access to local feedstock

Strategic location

Modern world-scale infrastructure

Attractive financing support

Well-developed communities

Attractive energy costs

Attractive land lease rate

EXAMPLE OF RAW MATERIALS AVAILABLE IN JUBAIL INDUSTRIAL CITY

Crystal

Yanpet

YASREF

IBN Rushd

Yansab

Titanium Dioxide

Polypropylene, Polyethylene, Ethylene Glycol

Diesel, Gasoline, Sulfur & Coke, Benzene

Polyester, Aromatics, Purified Terephthalic Acid and Polyethylene Terephthalate

Ethylene, Ethylene Glycol, Polyethylene, Polypropylene, Butene 1, Butene 2, MTBE and BTX

YANBU INDUSTRIAL CITY (II/II)

BIG PLAYERS

COMPANY RAW MATERIALS PRODUCED


33

20-year contracts, ensuring business stability

Competitive yearly rental rate across key locations, starting at 0.27 cents/m2

Mature infrastructure with easy access to utilities

E-solutions and one-stop shop, providing easy access to service offerings

Rich supply chain networks, with ~3,000 productive factories across cities

MODON OFFERS A VARIETY OF SOLUTIONS THROUGH ITS 35 INDUSTRIAL CITIES



24/7

2 53 6

7

1 4 Includes allocation request services; follow up of requests, review of drawings and issuance of building permits

Aims at providing a list of qualified contractors to serve the industrial and investment projects of MODON customers

Renews contract services, and waives and issues statements of account

Contains a package of research and inquiry services about the industrial cities in various ways as well as other mapping services, such as measurement, satellite images, etc.

Includes different types of prequalification requests, follow-up prequalification requests and evaluation of qualified consulting offices

Deals with customers’ communications, suggestions, and management of their accounts

Provides a collection of research services to equip investors with information about the industrial cities, the available industries, products, and others

LAND ALLOCATION

CONTRACTOR PREQUALIFICATION

CENTRAL SERVICES

MODON MAPS

CONSULTING OFFICES

PREQUALIFICATION

CUSTOMER AFFAIRS SERVICES

QUERY AND REPORTING

SERVICES

SEVEN MAIN SERVICES OFFERED THROUGH THE “E-MODON” SYSTEM


35


KING ABDULLAH ECONOMIC CITY (KAEC) IS A FULL-FLEDGED LOGISTICAL CITY


KING ABDULLAH ECONOMIC CITY (KAEC)Established

KAEC (km2)

Industrial valley (km2)

Population

Main businesses

Airport

Seaport

Rail


Supporting industries

2005

173

63

+/-1 Million

Logistics, automotive, FMCG, pharma, packaging, general industries national paints.

Jeddah international airport

King Abdullah port

High speed link to Jeddah international airport

The multi-university campus is designed

To accommodate 18,000 students; National Paints; producing all types of emulsion

VALUE PROPOSITION BIG PLAYERS

King Abdullah Port is strategically located for imports and exports.

King Abduallah Economic City is governed by a single regulator—the Economic Cities Authority (ECA).

At the forefront of KAEC’s master planned development is the Industrial Valley, a new pro-business partner in one of the fastest growing regions and economies in the world.

PETRO RABIGH Established

KAEC (km2)

Industrial valley (km2)

Population

Main businesses

Airport

Seaport


2005

2.5

63

+/-1 million

18.4 million tons per annum (mtpa) of petroleum-based products and 2.4 mtpa of ethylene and propylene-based derivatives

King Abdulaziz International Airport

Marine terminal

King Abdullah University for Science and Technology

VALUE PROPOSITION

PRC Investment $10 B

PRC Expansion investment $8.4 B

Rabigh Plus Tech Park is the first private industrial park for conversion industries

Rabigh Plastic Technical Center (R-PTC), a state-of-the-art facility

Petro Rabigh Industrial Complex

35 plants and 25 products

Offtake agreement for 100% refined products

Largest propylene oxide producer in the Middle East

Excellent access to all markets

Fully integrated utilities

Marine terminals

MOREOVER, PETRO RABIGH OFFERS A SECURED SUPPLY OF PETROLEUM-BASED PRODUCTS


37

USA 64.0

USA

12.0

USA

7.2 0.6

4.9 0.5

EU 70.0

EU 14.0 EU 2.1

0.9KSA

8.0 1.1

KSA

15.0UAE

11.2

UAE

India India

China

China

1.9

UAE


… ALL OF WHICH IS SUPPORTED BY LOW LAND RATES

LOW PRODUCTION COST

INDUSTRIAL LAND RATES PRICING

ELECTRICITY PRICES WATER PRICES

xx m2

$

xx kWhUS cent

xx cubic meter$

KSA HAS LOW ELECTRICITY AND WATER PRICES

KSA

2.1



FINANCIAL SUPPORT SPANS ACROSS FOUR MAIN INITIATIVES

Covering up to 90% of credit value

Exempting import tax for establishments

Financing up to 75% of project costs

Refund on raw materials used for imports

EXPORT CREDIT FINANCING, GUARANTEE, INSURANCE

CUSTOMS DUTY EXEMPTION

LOAN PROGRAM FOR INDUSTRIAL PROJECTS

CUSTOMS DUTY DRAWBACK

39

INCENTIVES TARGETING EXPORT INCREASE



DESCRIPTION

An export focused program thatcovers up to 90% of credit value

CONDITIONS

Minimum of 25% local value added (excluding crude oil)

Minimum transaction value funded set at SAR 100k

Assessment of operational risk and credit worthiness; thus guarantees are requested accordingly

RESPONSIBLE ENTITIES

The Saudi Fund for Development

EXPORT CREDIT FINANCING, GUARANTEE, INSURANCE(SAUDI EXPORT PROGRAM)

SPECIAL LOAN PROGRAM FOR INDUSTRIAL PROJECTS

DESCRIPTION

Finance project costs of up to 50% in major cities and 75% in promising cities

CONDITIONS

Industrial projects with a valid license that realize considerable value for the economy1


Saudi Industrial Development Fund

LOAN PROGRAM FOR INDUSTRIAL PROJECTS

1. Characteristics: a) viable from an economic perspective, b) provides training and employment opportunities, c) uses locally sourced materials,

d) integrates with other projects in KSA/GCC, e) replaces imports with local products, f) targets export opportunities, g) acquires advanced

technologies Source: Saudi Industrial Development Fund


41

SUPPORT FOR FOREIGN-SOURCED MATERIAL (1/2)



DESCRIPTION

Tax exemption of selected imports for industrial establishments (e.g. raw materials, and machinery)

CONDITIONS

Local supply is unavailable or does not meet required specifications


Ministry of Energy, Industry and Mineral Resources

CUSTOMS DUTY EXEMPTION

SUPPORT FOR FOREIGN-SOURCED MATERIAL (2/2)

DESCRIPTION

Refund on raw material imports processed in Saudi Arabia and re-exported as more finished products

CONDITIONS

The re-exporter is the same person who imported the goods

The taxes refunded shall not be less than $5,000

The goods should be re-exported within 1 year of importation, the claim should be made within 6 months of re-exportation

Drawback is limited to customs taxes


Saudi Customs

CUSTOMS DUTY DRAWBACK


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OFFERING INCLUDES AN ADVANCED EDUCATIONAL SYSTEM AS WELL AS ON-THE-JOB TRAINING PROGRAMS FOR EMPLOYEES



ADVANCED R&D ECOSYSTEM ON-THE-JOB TRAINING AND FINANCIAL SUPPORT FOR PROFESSIONAL CERTIFICATION SEEKERS



… THROUGH TRAINING PROGRAMS AND PROFESSIONAL CERTIFICATION SUPPORT OFFERED BY THE HUMAN RESOURCES DEVELOPMENT FUND

TAMHEER PROGRAM

Provision of financial support, up to SAR 3,000/month, during on-the-job training (period is 3 to 6 months)

Three conditions apply: - Applicant must be a Saudi national - Applicant must have been unemployed for the past

6 months - Applicant must have no previous participation record

in Tamheer Program

PROFESSIONAL CAREER CERTIFICATION SUPPORT PROGRAM

This program aims to empower the national workforce to gain recognized professional certificates in miscellaneous occupations required by the Saudi labor market. The program is intended to improve the personnel efficiency in both the public and private sectors, increasing the productivity in the labor market, creating more employment opportunities and enhancing the national competencies through the concept of Development and Succession Planning.

Five conditions to apply: - Applicant must be a Saudi national - The certificate must be approved and registered in the

HRDF website, and it should have been acquired after the program launch date

- The applicant should confirm that the entity which he/ she works for did not pay the costs of the certificate

- HRDF pays the cost subsidy of a maximum of two certificates per person

- The certificate acquired by the applicant should be valid and not expired

NON-EXHAUSTIVE

ABOUT SAUDI GENERAL INVESTMENT AUTHORITY

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The Saudi Arabian General Investment Authority is the Kingdom’s investment promotion agency. Our priorities are to attract and develop foreign investment, enhance the nation’s investment climate, improve the Ease of Doing Business, and eliminate obstacles from the investors’ journey.

Imam Saud Bin Abdulaziz Road

P.O. Box 5927, Riyadh 11432Kingdom of Saudi Arabia

T + 966 11 203 5555F + 966 11 263 2894E [email protected]

investsaudi.sa

HEADQUARTERS

To discover the countless opportunities across major economic sectors that Saudi Arabia has to offer:

CONTACT US NOW

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