Doing Business In Saudi Arabia - Bna

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Petrochemicals (CHM) Overview Return to top The unprecedented scale of the expansion of petrochemicals production being implemented in Saudi Arabia (and the opportunity for US equipment exporters) makes estimates of market size data extremely difficult. Major petrochemical projects are being implemented as part of the country’s strategy of adding value downstream. The pace of implementation is constrained only by a worldwide shortage of experienced project managers and engineers. Saudi Arabia, flush with funds from the continuing high world prices for it’s crude exports, currently has more than 31 ongoing and planned petrochemical projects valued at more that $57.3 billion. U.S. companies have around 80% involvement in these projects, directly and through local joint venture partners, in the form of proprietary technology licensors; project management contractors; front-end engineering design (FEED) contractors; engineering, procurement, and construction contractors. Receptivity to US products and services is exceptionally high and the current weakness in the value of the US dollar reinforces the competitiveness of US exports of goods and services. Nevertheless, major competitors come from Europe, Japan, South Korea, and Australia appear determined to participate in this lucrative market. The 2006 annual report of Saudi Arabian Basic Industries Corp. (SABIC), one of the ten largest producers of petrochemicals in the world, mentioned that its petrochemical plants produced 45.1 million metric tons achieving a 7% increase over production figures in 2005 (www.sabic.com). The total sales volume of petrochemicals in 2006 was $20 billion. SABIC has started looking downstream for the next wave of expansion projects. SABIC’s management reported that up till 2008, the Group had a full slate of projects. Every year, SABIC supplies over 20 million metric tons of basic petrochemical products like ethylene, methanol, and methyl tertiary butyl ether (MTBE). Best Prospects/Services Return to top There is a huge demand for the products and services of U.S. manufacturers/suppliers of industrial equipment used in the petrochemical industry. U.S. companies are expected to avail themselves of excellent opportunities evolving from new projects undertaken by the state-owned SABIC and private sector petrochemical companies. Furthermore, U.S. design and engineering companies/licensors have good opportunities to license their processes or provide technical know-how through licensing agreements and through active participation in international tenders to manage, design, procure and build petrochemical complexes. The new foreign investment law encourages foreign companies to establish directlyowned industrial and non-industrial ventures in Saudi Arabia. Foreign investors, interested in setting-up a facility to produce petrochemicals must apply for a license and 5/13/2008
a commercial registration. Additional information can be accessed at the website of the Saudi Arabian General Investment Authority at www.sagia.org Opportunities Return to top Upcoming and ongoing major petrochemicals projects include: Ras Tanura Petrochemicals o Saudi Aramco/Dow Chemical o Value: $22 billion o Completion: 2012 Jubail Olefins Complex o INEOS/Delta o Value: $2 billion o Completion: n/a Jubail Olefins and Ammonia o Sipchem o Value: $8 billion o Completion: n/a Resources Return to top Saudi Arabian Basic Industries www.sabic.com Saudi International Petrochemical Company www.sipchem.com Saudi Aramco https://www.aramcoservices.com Companies interested in providing material sources for ASC should contact Material & Vendor Services. Contact Phone: 713-432-4692 Email: Beatrice.Garza@aramcoservices.com Saudi Arabian General Investment Authority www.sagia.com 5/13/2008
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Page 3 and 4: 5/13/2008 Commercial Disputes Settl
Page 5 and 6: 5/13/2008 Deregulation and privatiz
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Page 9 and 10: Another service is the Gold Key Ser
Page 11 and 12: growing competition from local and
Page 13 and 14: contractors must subcontract 30 per
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Page 17 and 18: Saudis are gracious hosts and will
Page 19 and 20: Shows. CS Saudi Arabia office is al
Page 21 and 22: There are many firms throughout Sau
Page 23 and 24: Oil & Gas Field Machinery (OGM) Ove
Page 25: U.S. Department of Energy Energy In
Page 29 and 30: Information Technology Equipment &
Page 31 and 32: Electrical Power Systems (ELP) Over
Page 33 and 34: Rabigh: In August 2005, a Japanese
Page 35 and 36: of the Kingdom of Saudi Arabia. Nat
Page 37 and 38: Medical Equipment (MED) Overview Re
Page 39 and 40: Telecommunication Services (TES) Ov
Page 41 and 42: Automotive Parts & Service Equipmen
Page 43 and 44: which many necessary requirements a
Page 45 and 46: Opportunities Return to top In the
Page 47 and 48: Agricultural Sector Saudi Arabia is
Page 49 and 50: Best Prospects for Agricultural Goo
Page 51 and 52: RICE (0422110) Overview The United
Page 53 and 54: SNACK FOODS (EXCLUDING NUTS) Overvi
Page 55 and 56: share. The foreign equity limitatio
Page 57 and 58: Import Requirements and Documentati
Page 59 and 60: established SASO standards are eith
Page 61 and 62: 5/13/2008 Arabia, and will act as a
Page 63 and 64: 5/13/2008 self-certification to cov
Page 65 and 66: Return to table of contents Chapter
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Page 69 and 70: accordance with the requirements de
Page 71 and 72: y thoroughly researching the busine
Page 73 and 74: Under existing procedures, business
Page 75 and 76: IPO market will likely develop at a
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Since September 1994, the Ministry
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Return to table of contents Chapter
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Foreign-Exchange Controls Return to
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zone, an advanced IT studies instit
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The letter should name the visa app
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Language Return to top The official
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Travel Advisories and Warnings U.S.
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Saudi Geological Survey Saudi Indus
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