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Saudi Arabia Economy And The Transport Sector

2013 Ali Alireza

HHA PROFILE

Company name – Haji Husein Alireza & Co. Ltd

Founded – 1906

Head Office – Jeddah , Saudi Arabia Primary Business – Sales & Service of Passenger cars

and commercial vehicles and MAN Trucks assembly plant

Sales – $640 million (2012)

Employees – 2,200

HHA PROFILE

HHA Showrooms, Service Centers & Parts Outlets across the kingdom.

Showroom

Service Centers

Parts outlets

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--Saudi GDP growth in 2012 reached 8.6% ($742 bn. GDP

Forecast 2013)

--GDP expected to grow 2.8% in 2013

--Non-oil economy to grow 5% in 2013.

--Oil production expected to average 9.4 mil b/d in 2013. (one third for local consumption)

--Inflation expected to remain in the 4.5% range--Net foreign asset position (official and commercial bank) will reach $870 billion by end 2013.

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- Saudi is among the top 20 recipients of Foreign Direct Investment in the world.- 15th largest exporter and 30th largest importer of goods and services in the world.- Saudi Arabia covers an area of 830,000 sq. mi.- Current population is 28.1 million with an annual growth rate of approx. 3.2%.- Ninth Saudi Development Plan announced August 2010 sets out investment spending of $385 billion in 2010-2014.-Gasoline price: $0.45/ Gallon.

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Saudi Arabia Announced Budget (In $ Billions)

2010 2011 2012 2013f

Revenue 125.3 144 187.2 221

Expenditure 144 154.7 184 219

Difference -18.7 -10.7 3.2 2

2013 above is the declared budget. Actual final numbers will vary.

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Major recipients of Government Spending 2013

1)Education & Training: $54.4 bn.(24.9% of budget) An increase of 21% over 2012.

- An addition of 539 new schools to existing 3900 school projects of renovation or new construction.

- Over 40 new college projects under way

- Over $20 bn. for more than 120,000 students

studying overseas.

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2) Health and Social Affairs: $26.6 bn. (12.2% of Budget)An increase of 16% over 2012.

- Unemployment benefits were introduced in 2012.

- Minimum wages introduced for the public sector.- New poverty reduction programs.- 19 new hospitals added to 102 currently under construction, plus many new social centers and

welfare offices.

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3) Transport and Infrastructure$17.3 bn.(7.9% of budget) An increase of 16% over 2012.

- Airport expansion project in Jeddah under way.

- Building additional 3,700 kilometers in 2012-2013. Plus plans for another 1,523Km

- This is in Addition to current 30,200 km under construction from last year.

- New projects for ports, railways, postal services, etc.

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4) Water, agriculture and related infrastructure: $15.2 bn.(7% of budget) An increase of 11% from 2012.

- Need to enhance water production and water treatment networks as well as enhancing sewage network.

- Population increasing to 36.5 million by 2020 and need for increase in water desalination.

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5) Municipality Services. $9.6 bn.(4.4% of budget) An increase of 23% from 2012.

- Need to cater to growing population and growing cities and towns with related infrastructure.

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The National Transportation Strategy

Vision:

To develop and maintain a multimodal transportation system, serving the needs of society by ensuring a safe,efficient and technologically advanced transport system that promotes social and economic development and International competitiveness for the Kingdom and ensures a healthy and secure environment for its citizens.

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Six Areas Identified for Transport Investment And Development

● Transport Infrastructure Development

● Freight Transportation and Trade Facilitation

● Passenger Transport

● Transport Safety

● Environmental Protection

● Hajj Transportation

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● Develop a cohesive integrated transport infrastructure planning for Saudi Arabia to promote better system wide efficiencies.

● Promote development of modern intermodal terminals and logistics centers.

● Encourage commercialization of infrastructure for increased private sector participation.

● Harmonize guidelines for highways and roads and commercialize management of transport services

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2) Freight Transportation and Trade facilitation

● Enhance transport operations to facilitate international trade by:-- promoting multimodal transport,-- reducing border crossing impediments, --Strengthening governance, --and professional capacities, as well as, --ensuring competition and increasedmarket access.

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3) Passenger Transport

● Enhance and develop urban transport system.

● provide kingdom-wide passenger mobility by air, bus and railway.

● Consider transport for tourism.

● Promote competition of commercial services for all areas of transport.

● Liberalization of aviation sector and grow rail passenger services.

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4) Hajj Transport Services

● Strengthen the planning and logistics arrangements for the annual Hajj period and improve urban and

intercity movements of the pilgrims.

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5) Transport safety

● Implement and strengthen institutional frameworks and capacities especiallyIn areas of:-- engineering, enforcement, education and emergency response.

● Develop and implement Transport Safety programs for all sectors; Land Transport, Maritime and aviation

● Enhance standards for infrastructure and services provision.

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6) Environmental protection

● Minimize the negative environmental impacts and health risks brought upon by the transport sector.

● Formulate policies, regulations and standardsUnder the direction of the Presidency for Meteorology and Environment.

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Thank You