Final verocy saudi vison2030_iro (3)

SAUDI ARABIA VISION 2030

Dr Cyril WiddershovenBusiness opportunities for supply chain in Saudi

IRO- Saudi Aramco Overseas, April 4 2017Rotterdam, The Netherlands

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MAXIMIZING VALUE OF KEY ASSETS AND RESOURCES

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FROM A VISION TO A REALISTIC MISSION

A Vibrant Society A Thriving Economy An Ambitious Nation

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Population: ~ 28 Milion July 2016 est. (Immigrants >30%)

Median age: 27.2 years

GDP: $639.6 bln (2016), $579 bln (2017f), $680bln (2020f)

GDP per capita: $19,664 (2016), $17.282 (2017f), $18,505 (2020f)

Real GDP (% change): 1.4 (2016), -0.7 (2017), 3.0 (2020)

. Hydrocarbon GDP: 2.4 (2016), -0.1 (2017), 2.5 (2020)

. Non-hydrocarbon GDP: 0.7 (2016), -0.1 (2017), 3.4 (2020)

Unemployment: 11.6% (Saudi men only, 2016 est.)

SAUDI ARABIA fast facts

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SAUDI ARABIA key trends

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ULTIMATE: DIVERSIFYING THE SAUDI ECONOMY• Transform into a global investment powerhouse. • A global trade hub connecting the three continents of Asia, Europe and Africa. • Exploit the central role in the Islamic and the Arab world.

THEREFORE …• Education of Saudi men and women• Reform incentives• Strengthening Public Sector Governance • Privatisation of Govenment bodies• Public Investment Fund Restructuring & Expansion• Saudi Aramco Strategic Transformation• …

SAUDI VISION in a nutshell

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SAUDI VISION breakdown

• Moving the economy from the current position as the 19th largest economy in the world into the top 15.

• Increasing the private sector’s contribution from 40% to 65% of GDP.

• Raising the share of non-oil exports in non-oil GDP from 16% to 50%.

• Increasing non-oil government revenue from Saudi Arabian Riyal (SAR) 163 billion to SAR 1 trillion.

• Growing PIF assets, from SAR 600 billion to over SAR 7 trillion.

• Increasing foreign direct investment from 3.8% of GDP to 5.7%.

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SAUDI VISION Investments in SAUDI!

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SAUDI VISION expected impactON ECONOMIC DIVERSIFICATION• Non-oil revenues from ($43.5 billion) to ($267 billion)• Non-oil exports in non-oil gross domestic product (GDP) from 16% to 50%• Foreign direct investment from 3.8% to 5.7% of GDP in line with more

developed economies.• Private sector’s GDP from the current 40% to 65%.• Small and medium-sized enterprise (SME) GDP contribution from 20% to 35%.• Lower unemployment from 11.6% to 7%.• Improve the participation of women in the workforce from 22% to 30%.

ON POPULATION, WELLFARE & OTHER …• Localization• Saudi workforce• Subsidies out, well-fare cuts• …

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SAUDI VISION economic diversification

ENERGY REFORM+

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SAUDI VISION indicators 2016-2020 Energy Sector

Performance Indicator Baseline 2020 Target Unit

Petroleum production capacity

12.5 12.5 Mb/d

Dry gas production capacity

12 17.8 Bcf/d

Refining capacity 2.9 3.3 Mb/d

Efficient utilization of fuel in power generation

33 40 (Percentage %)

Number of job opportunities in mining sector

65 90 ‘000 jobs

Decrease in water and electricity subsidies

0 20 SAR Billion

Generation from renewable energy

0 3,450 Megawatts (MW)

Share of renewable energy in total

0 4 Percentage (%)

Job opportunities Saudis in atomic and renewable sectors

500 7,774 Jobs

Local content within the renewable sectors

25 35 Percentage (%)

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• The Oil & Gas Sector and revenues will remain central to Saudi Arabia’s economy• Doubling gas production and building a national gas network• “Power demand is growing 8% annually, forcing Saudi Electricity to spend billions of

dollars on projects to add capacity.• RENEWABLE ENERGY

• Only 1% of total produced is renewable energy • Target of 4% renewable energy by 2020 equal to 3,450 MW • Feasibility and design studies for two commercial nuclear reactors, which will

total 2.8 GW• Planning for 9,5 GW in 2030• Saudi Arabia will launch a renewable energy program with investment of between

$30 billion and $50 billion by 2023• Energy subsidy reform plans to incentivize behavioral change and reduce cost• …

SAUDI ENERGY REFORM

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SAUDI ENERGY Power Projects

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SAUDI ENERGY CITY

DAMMAM

RIYADH

JEDDAH

JAZAN

ENERGY CITY

MEKKAH

“AN ECOSYSTEM OF COMPANIES AND ORGANIZATIONS FOR ALL ENERGY RELATED

MANUFACTURING, SERVICES. R&D AND VENTURING”

TABUK

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DAMMAM

RIYADHBahain

Qatar

JUBAIL

SAUDI ENERGY REFORM players

King Abdullah City for Atomic & Renewable Energy (KA-CARE)?

King Fahd University of Petroleum and Minerals

(KFUPM)

King Abdulaziz City of Science and Technology (KACST)

Investments Funds: PIF, SAGIA, SAMA

King Abdullah Petroleum Studies and Research Center (KAPSARC)

GOVERNMENT

SABIC

SAUDI ARAMCO

Ras Al-Khair Shipyard

Tanajib Offshore hub

RAS TANURA

Renewable Energy Project Development Office (REPDO)

King Abdullah University of Science and Technology (KAUST)

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PIB SAUDI ENERGY REFORM Partners in International Business

FOR DUTCH COMPANIES & ORGANIZATIONS IN THIS NEW ECO ENERGY SYSTEM

Activity in Saudi Arabia

CALL FOR

PARTNERS

SHORT VEROCY INTRO

RISK INTEGRATED STRATEGY

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WHAT WE DO


OPPORTUNITY

AMBITION, CHANGE

& INSTABILITY RISK

Opportunity Development

Scenario Development

STRATEGY AND RISK INTEGRATED SERVICES AND SOLUTIONS

FOR COMPANIES AND ORGANIZATIONS THAT NEED TO DEVELOP, MANAGE AND PROTECT THE VALUE OF ASSETS

AND RESOURCES.

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HOW WE DO IT


INFORMATION SERVICES

ADVISORY, ANALYSIS & SUPPORT

ASSET DEVELOMENT SOLUTIONS

MIDDLE EAST & NORTH AFRICA

InvestmentsInstitutional (SWFs), Big Family,

Corporations, Banks, Pension Funds

Energy

Technology

Economic Diversification

Security

Politics Country, Regional & International

Oil & Gas

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INFORMATION SERVICES

Arab Sovereign Wealth Fund Monitor

Arab Defense Industry Papers and Journal

(ADIP)

Strategic Update MENA (SUM)

NEWS LETTERS - RESEARCH & REPORTS - OPEN SOURCE DATA & INTELLIGENCE

Weekly Regional Threat & Stability

Free, Subscription based & Sponsored packages

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ADVISORY, ANALYSIS & SUPPORT

(Geo)political & Country Risk Analysis Portfolio Risk Assessment & Scenario Analysis

Growth Potential Assessments Market & Project Development

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ASSET DEVELOPMENT SOLUTIONS

Econometric Portfolio and Scenario Analysis Critical Incidents Analysis and Reporting

Mobile Incident Alerting & Notification Critical Asset Inspection

[email protected]: 0031-6-53819265Skype: Cyril.widdershovenwww.verocy.com

THANK YOU!

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