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EDITOR IN CHIEF: ALBERTO LEANDRO LLARYORA

SAUDI ARABIA Custodian of the future

Possessing around20% of the world’sproven oil reserves,the Kingdom of Sau-di Arabia is a leading

member of the Organizationof Petroleum Exporting Coun-tries (OPEC), and a key play-er in global energy markets.

Ruled since its inception in1932 by the House of Saud, itis a highly conservative coun-try founded firmly on the prin-ciples of Islam.

Yet within its relatively shorthistory, it has undergone a re-markable transformation.

Exploitation of its oil inpartnership with internation-al energy companies hasbrought Saudi Arabia pros-perity and modernization.

Within seven decades it haschanged from an undevel-oped desert kingdom popu-lated by scattered nomadictribes into a highly urbanizedsociety, and one of the world’smost rapidly developing,wealthiest nations.

TToopp 2200 eeccoonnoommyyToday the country is one ofthe world’s top 20 economies,the largest economy in theMiddle East and North Africa(MENA) region, and the mostinfluential of the ArabianPeninsular states both region-

ally and internationally. SaudiArabia’s gross domestic prod-uct (GDP) is larger than theoutput of Bahrain, Kuwait,Oman, Qatar, and the UnitedArab Emirates combined.

AAcccceelleerraatteedd ttrraannssffoorrmmaattiioonnFar from being complete, thetransformation of the king-dom is ongoing, and evenspeeding up. For, in order to se-cure its future, Saudi Arabiamust provide jobs and homesfor a rapidly expanding popu-lation. Most importantly, itmust diversify its economicresources by expanding the in-dustrial base of the kingdomto make its economy less re-liant on a single commodity.

Fortunately, it has thewealth, stability and firm foun-dations on which to build.

At a time of global and re-gional uncertainty, Saudi Ara-bia has a robust and fastgrowing economy thanks toprudent, conservative eco-nomic and financial policies.And it has remained largelyunaffected by the uprisings ofthe Arab Spring and the in-stability that has followed inother Arab countries.

RRooyyaall vviissiioonnKing Abdullah bin Abdul Az-iz Al-Saud, who succeeded to

the throne in 2005, is also thePrime Minister of the Coun-cil of Ministers. Under his rule,Saudi Arabia has maximizedits earnings from the oil sec-tor to fund further growth. Atthe same time, a range of ma-jor economic, social, educa-tion, health, and infrastructureprojects have been initiated.

The objective is to turn Sau-

di Arabia into a more diversi-fied economic power withinthe next 20 years, while bal-ancing calls for social and po-litical liberalization with thekingdom’s traditionally con-servative culture.

Municipal elections wereheld for the second time in2011, and women have beengranted the right to vote andrun when they are next held,in 2015.

PPrriivvaattee sseeccttoorr ggrroowwtthhBy creating an increasingly

deregulated and competitiveeconomic environment, thegovernment is fostering pri-vate sector-led growth.

Oil wealth is being chan-neled into a series of five-yeardevelopment plans designedto build a modern industrialstate. Billions of dollars are be-ing poured into the construc-tion of new economic cities,

infrastructure-related projects,the expansion of human cap-ital, and the development ofknowledge-based, value-added industries.

The strategy is working. Theprivate sector is playing an in-creasingly large role in the Sau-di economy, and now accountsfor 48% of GDP.

The non-oil sector of theeconomy is growing faster thanthe oil sector, with construc-tion, transport and communi-cations sectors expanding atdouble-digit rates.

HHuummaann ccaappiittaall iinnvveessttmmeennttResources are being allocat-ed to develop Saudi Arabia’spotentially most valuable as-set: its people. The popula-tion has soared from 6 millionin 1970 to around 26.5 milliontoday. More than 50% of Sau-di citizens are under the ageof 25, and there is a pressingneed to provide them withjobs and housing.

At present, the Saudi econ-omy is heavily dependent onthe efforts and expertise oflarge numbers of foreign work-ers. Its future lies in the cre-ation of a highly skilledindigenous workforce. Thisyear’s budget – the latest andlargest of a series of budgetsaimed at stimulating the econ-omy – focuses more stronglythan ever on education, health-care, and housing.

OOppeenniinngg uupp ttoo ffoorreeiiggnnppaarrttiicciippaattiioonnSince becoming a member ofthe World Trade Organiza-tion (WTO) in 2005, SaudiArabia has improved its reg-ulatory regime, opening up toforeign investors in key sec-

tors, such as banking andtelecommunications.

It remains in first place inthe Middle East in the latestWorld Bank’s Ease of DoingBusiness rankings – placed22nd globally, ahead of the UAEin 26th place, and well aheadof other countries in the GCCregion, such as Qatar, Bahrain,and Oman, ranked 40th, 42nd

and 47th respectively.The United States is one of

Saudi Arabia’s largest tradingpartners and its biggest in-vestor. Most of that invest-ment is in the energy sector,but the kingdom’s drive to di-versify the economy awayfrom its hydrocarbon base of-fers a steady flow of growthopportunities.

In addition to its ownrapidly expanding consumermarket, Saudi Arabia isstrategically placed, offeringaccess beyond the MiddleEast and Africa to markets inthe European Union, EasternEurope, and the Common-wealth of Independent States,as well as to the South Asiansubcontinent and the Asia-Pacific region.

“THE MOST BENEFICIAL OF ALL DEEDS IS ONETHAT CONTINUES TO BEAR FRUIT FORGENERATIONS TO COME.”

KING ABDULLAH BIN ABDUL AZIZ AL-SAUD,Custodian of the Two Holy Mosques, King of Saudi Arabia, Prime Minister of theCouncil of Ministers, and Commander of the National Guard

Our WorldTuesday, March 19, 2013

AA UUNNIITTEEDD WWOORRLLDD SSUUPPPPLLEEMMEENNTT PPRROODDUUCCEEDD BBYY:: Aleksandra Pancevska, Fabricio Sordoni andAgustina Bellsola

Saudi Arabia is one of the world’s top 20 economies, the largest in the MENA region, and the most influential

of the Arabian Peninsular states

#SaudiArabiaWorldfolio

ARABIA SAUDI redes sociales.qxd 11/3/13 16:11 Page 1

Distributed by USA TODAYTuesday, March 19, 20132 SAUDI ARABIA

Saudi Arabia’s private medicalcare has been an area of stronggrowth since the CooperativeHealth Insurance Act of 1999provided medical insurance toall Saudi private-sector work-ers, expatriate employees andtheir families.

Currently 27 insurance firms,seven third-party administra-tion companies, and more than3,000 healthcare providers arecertified by the industry’s regu-lator, the Council of CooperativeHealth Insurance (CCHI). Theindependent government bodymaintains the legal rights of theinsured, checks employers havea health insurance scheme foremployees, and ensures thathealth insurance companies aregiving access to, and paying for,the healthcare provider’s ser-vices. Some 8.4 million peoplein the country are now insuredand this success has resulted ina drive to expand Saudi Arabia’shealthcare provision.

Studies are planned on the pos-sibility of implementing healthinsurance for two new groups:Saudis who are travelingabroad for tourism or busi-ness, and tourists visitingthe country. The target is toincrease the number of in-sured to 11 million.

The long-term aim is toprovide universal health-care insurance. Providersbelieve that the privatehealthcare system is not

yet ready to handle that level ofdemand, but government healthservices are increasing to keeppace, and new facilities beingbuilt or expanded will in-crease the num-ber of hospitalbeds.

Secretary General at CCHI,Dr. Abdullah I. Al-Hamed Al-Sharif, studied the healthcareprovisions in other nations, in-cluding the U.S., and conclud-ed “each country has its ownsystem. It cannot be simplycopied and pasted.” With over60% of the population under 30,Saudi Arabia’s Ministry ofHealth is making healthcare de-cisions based on youth health is-sues like smoking and recklessdriving. Also, CCHI is workingclosely with the Gulf Coopera-tion Council (GCC) to unifyhealthcare in the region.

Dr. Al-Sharif is confident thatCCHI can deliver an integrated,standardized healthcare systemto make Saudi Arabia proud. Lat-er this year it plans to launch anIT system with real-time infor-mation about the processes be-

tween the healthcare providerand health insurance compa-

nies, setting an ex-ample for otherGCC countriesto follow.

In a desert region known asthe Empty Quarter, in the east-ern part of Saudi Arabia, lieswhat is by far the world’s largestand most productive oil field.Just over 170 miles long by 30miles wide, the Ghawar Fieldcontains estimated proven re-serves of approximately 70 bil-lion barrels of Arabian Lightcrude. Some 5 million barrelsof oil are produced there everyday – around half the nation-al output.

Last year, oil from Ghawarand Saudi Arabia’s other giantoilfields was pumped into theglobal energy market at a recordrate, filling a gap left by inter-national sanctions on Iran andthe temporary shutdown of pro-duction in Libya. Output aver-aged 9.95 million barrels per day(bpd) – up from an average ofjust over 8 million bpd in 2009,and 9.1 million bpd in 2008.

With record productionmatched by sustained high oilprices, well into triple digits,petrodollars flowed into thekingdom’s coffers, taking ex-port earnings to a record $347billion, and pushing the cur-rent account surplus to an all-time high of $178.5 billion,according to Riyadh-based Jad-wa Investments.

AA rroobbuusstt,, rreecceessssiioonn--bbeeaattiinnggeeccoonnoommyyWhile the world economy re-mains in the doldrums, SaudiArabia has been enjoying ro-bust growth. The last couple ofyears have seen a surge in eco-nomic activity, exceeding theaverage pre-crisis level.

Recently revised govern-ment statistics show the king-dom enjoyed gross domesticproduct (GDP) growth ofaround 6% in 2012, and 8.5% in2011 (the highest since 1979).This rapid rate of expansion isexpected to moderate to a still

very respectable 4% in 2013,mainly due to projected slow-er growth in oil production

SSuussttaaiinneedd lloonngg--tteerrmm ggrroowwtthhThe International MonetaryFund, in its Article IV report onSaudi Arabia published last Sep-tember, forecasts a medium-term rate of growth of above 4%through to 2017.

Looking further ahead,PricewaterhouseCoopers fore-casts in its biannual TheWorld in 2050 report that theeconomy will more than triplein size to $3 trillion by 2050 –growing 230% to $1.582 trillionby 2030, and then doubling

over the following 20 years tobecome the 18th largest in theworld, ahead of other MiddleEastern countries, such asEgypt and Iran.

PPeettrroolleeuumm rreeiiggnnssOil dominates the Saudi econ-omy, accounting for 90% of Sau-di Arabia’s total export earnings,80% of government revenue,and 45% of GDP. However,while hydrocarbons will remainthe economic mainstay for the

foreseeable future, an increas-ing proportion of the oil outputis being directed toward do-mestic uses, such as fueling theincreased power generation re-quired to support the kingdom’songoing economic boom.

DDoommeessttiicc ddeemmaannddSaudi Arabia is the largest con-sumer of petroleum in theMiddle East. According to thenational oil and natural gascompany Saudi Aramco, it cur-rently consumes more than 2million bpd, around a quarterof its total production.

Having established theworld’s largest crude oil pro-

duction capacity – estimatedat around 12 million bpd –Riyadh is focusing on expand-ing the natural gas, refining,petrochemicals, and electricpower industries.

High government spending isthe main engine of the non-oileconomy, which last year grewby 7.5% in 2012, exceedinggrowth in the oil sector of 5.5%.

Industry and agriculture ac-count for a much larger shareof economic activity than they

did only a few years ago. Thepetrochemicals industry isemerging as the secondlargest after oil, and aims tocapture a 10% share in theglobal market.

“The government has donewhat it should, and now theprivate sector should startleading the way,” says HusseinAl-Athel, Secretary Generalof Riyadh Chamber of Com-merce and Industry.

RReeccoorrdd ssppeennddiinnggThe government, which basesits budgets on conservativeestimates of national income,plans to spend a record $219billion in 2013, almost 20%more than the $184 billion itbudgeted for 2012.

Capital spending has beenallocated $76 billion, much ofit will go on projects such asports, railroads and water re-sources, and there will alsobe big rises in expenditure oneducation and healthcare.

Saudi oil production is ex-pected to slow in 2013 asmore oil becomes availablefrom Iraq, and North Amer-ica boosts its self-sufficien-cy with increased domesticproduction.

Nevertheless, even if oilearnings were to fall this year,the kingdom has a huge pileof foreign assets to fall backon – a staggering $634.8 bil-lion at the end of November2012, projected to rise to $1.2trillion by 2017.

Vast amounts of petrodollar earnings and the push for economic diversification have fueled a recent surge in thekingdom’s economic activity and add weight to forecasts for its economy to more than triple to $3 trillion by 2050

Economy to surgethrough 2050

The Council of Cooperative Health Insurance (CCHI) is an independent governmentbody set up to regulate the health insurance industry in Saudi Arabia

RECENT YEARSHAVE SEENECONOMICACTIVITYEXCEEDING THE AVERAGE PRE-CRISIS LEVEL

THE PRIVATESECTOR IS BEINGENCOURAGED TO‘START LEADINGTHE WAY’ TOENSURE BALANCEDGROWTH

Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content

In brief � Kingdom founded: September 23, 1932

� Total area: 830,000 square miles (13th largest in the world)

� Population:26,534,504 (2012 est.)

� GDP (PPP):Total $740.5 billion Per capita $25,700 (2012 est.)

� GDP growth: 6% (2012 est.)

� Human DevelopmentIndex 2011 (health,education, livingstandards): 0.770 (higher than 2011 worldaverage of 0.682)

� Main industries: Crude oil production,petroleum refining, basicpetrochemicals, ammonia,industrial gases, sodiumhydroxide (caustic soda),cement, fertilizer, plastics,metals, commercial shiprepair, commercial aircraftrepair, construction

� Saudi riyals (SAR) perU.S. dollar: 3.75 (2012)

� World Bank Ease of Doing Business rank: 22nd

� Exports: $381.5 billion (2012 est.)

� Export goods:Petroleum and petroleumproducts 90%

� Main export partners:Japan 13.9%China 13.6%United States 13.4% South Korea 10.2% Singapore 4.8%

� Imports: $136.8 billion (2012 est.)

� Import goods:Machinery and equipment,foodstuffs, chemicals, motor vehicles, textiles

� Main import partners: China 12.8%United States 11.9%Germany 7.1% South Korea 6%Japan 5.6% India 4.9% Italy 4.1%

� Gross external debt: $127.4 billion (2012 est.)

� Public debt:12.9% of GDP (2012 est.)

� Export earnings:$347 billion (2012)

� Current account surplus:$178.5 billion (2012)

� Economic aid (donor):$100 million in 1993 toLebanon, and since 2000Saudi Arabia has commit-ted $307 million to Pales-tinians, pledged $240million to Afghanistan, andprovided $1 billion in ex-port guarantees and softloans to Iraq

� Standard & Poor’s creditrating:AA- (domestic)AA- (foreign)AA+ (T&C assessment)Outlook – Stable

� Moody’s credit rating:Aa3 Outlook – Stable

� Fitch credit rating: AA- Outlook – Stable

� Reserves of foreign exchange and gold:$626.8 billion (2012 est.,currently the third highestin the world)

Healthcare insurancedevelops towarduniversal provision

DR. ABDULLAH I. AL-HAMED AL-SHARIF,Secretary General of the CCHI

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Western shoppers perusingthe shelves of any super-market in Saudi Arabia can-not fail to notice the manyfamiliar brands of groceryand consumer items on dis-play, from Hershey’s choco-late and Kellogg’s cereals toAvon cosmetics and Jifkitchen cleaner.

What most do not knowis that these and many oth-er products are imported anddistributed exclusively by thekingdom’s leading tradingcompany, the Binzagr Group,which also manufacturessome foreign brands in Sau-di Arabia.

Recently having celebrat-ed its 131st anniversary, thegroup does not just supplythe prosperous and boom-ing home market, but alsoexports its locally-manufac-tured products to dozens ofcountries in the rapidly in-tegrating Middle East.

“It is fantastic,” exclaimsGroup President Sheikh Ab-dullah Saeed Binzagr. “Wehave a number of factoriesand export approximately70% of what we make be-cause throughout the MiddleEast everyone wants Saudi-made food and drinks.”

But groceries and person-al hygiene items are not allthat the Jeddah-based firmhandles. It is also the localrepresentative for PittsburghCorning glass products,Dunlop and General tires,Pabco roofing materials, andHarbison-Walker industrialproducts, among others.

The Binzagr Group’s his-tory is highlighted by twodistinct events: the signingin the 1930s of its first dis-tribution contract with thecompany which eventuallybecame Unilever, and 40years later when the groupbegan manufacturing oper-ations on its own.

This latter period coincid-ed with the unprecedentedsurge in consumer demandfueled by the spike in the

kingdom’s, and the region’s,earnings from petroleum.

“In the 1970s we started tobuild factories first for pow-dered detergents, soaps,shampoos and other productsin cooperation with Unilever,”Sheikh Abdullah recalls.

“Then soft drinks with aDanish company, matcheswith a German company, andcorn oil processing with anAmerican company. We hada tea factory in Riyadh, then

moved it to the Unit-ed Arab Emirates aspart of a joint venturewith Unilever andwhich now suppliesaround 30 countriesaround the world.”

The president saysthe group’s businessmodel is to always cre-ate a joint venture withforeign manufacturersthat have the know-how and technology toaccommodate thenecessary innova-tions and improve-ments.

“We havemany long-standing re-

lationships with companiesthrough which we have beenable to develop the brandswith the actual brand own-ers,” the president says.

“Our skills set is the abili-ty to import, distribute anddevelop brands along withour partners.

“Added value is the nameof the game and unless weadd value, we are obsolete.”

However, Sheikh Abdul-lah cautions that it does not

always go according to plan. “Sometimes it works, and

sometimes it doesn’t. My el-dest brother was the first tointroduce long-life milk froma dairy in Wales. But then aDanish company set up localfactories here so we stoppedimporting milk from Walesbecause making it with localwater is more competitive.”

Throughout its history, theBinzagr Group has been atthe forefront in both distrib-

ution and retailing in SaudiArabia. The sheikh’s brotherintroduced direct sales fromvans in the Red Sea city ofJeddah, a practice that so up-set the established merchantsthat they complained to hisfather.

“But in reality, it was an in-novation that transformedthe market and createdadded value,” he argues. “Andwe were the first to intro-duce into Saudi Arabia theconcept of modern retail su-permarkets more than 30years ago.

“At the time it was a won-der to behold and since thenthere have been hundreds ofcopies, although we are nolonger in the supermarketbusiness.”

The Binzagr Group was al-so the first in the kingdomto bring in high-quality,Western-style branding ofluxury goods, patterned onthe pricey brands from Lon-don’s Bond Street. The group,he says, always seeks how toimprove either the most ef-

ficient or most en-joyable way for itscustomers to findwhat they need.

Sheikh Abdullahknows the businessthoroughly fromtop to bottom. Un-like scions of otherwealthy businessfamilies who auto-matically assumeleadership posi-tions in the familyenterprises, heworked his way upto the top post ,growing along withthe group.

As a young boy,his vacations werespent working inthe group andwhile in college, thesheikh spent timeat Binzagr’s variousoperations or get-ting hands-on ex-perience with other

companies. At one point, heworked for a year as a teataster with Lipton in Paris.

“Although you can learn alot from multinationals, thepassion comes from havingsomething that is your own,”he explains. “Either peoplehave passion and they suc-ceed, or they lack passionand wilt away like a plantwithout water.”

The group’s foreign part-ners acknowledge and hon-or this concept. The CEO ofUnilever regularly visits theBinzagr Group in Saudi Ara-bia where the company ’sglobal brands like Lux, Dove,Comfort, Signal, Close Upand Sunsilk are householdnames.

Unilever products manu-factured in the kingdom atthe group’s local factory,which employs 350 people,are also exported to 10 coun-tries including Morocco,Tunisia, Yemen and Sudan.

Despite that success,Sheikh Abdullah says thegroup will continue to con-centrate its manufacturingoperations in Saudi Arabiawhich it knows best.

“There is a saying in Ara-bic that putting your moneysomewhere other than yourown country is like bringingup someone else’s child. Sowe are passionate and fo-cused on Saudi Arabia whichis our core competence.”

Efficiently handling thatmarket alone is a gargantu-an task, he notes, pointingout that the kingdom is big-ger than the United Stateseast of the Mississippi andlarger than Western Europe.

“We move things acrossthose distances better andfaster than anyone else andthat is why our partners re-main with us. We are open toreal partnerships, but it hasto be in what we do,” thesheikh adds.

“We stick to what we knowand what we are good at, andthat is Saudi Arabia.”

Distributed by USA TODAY Tuesday, March 19, 2013 3SAUDI ARABIA

In the midst of an uncertainglobal economic climate,Saudi Arabia suddenly findsitself home to some of thebiggest and most influentialcompanies in the world. Asthe King’s vision to strength-en the nation’s infrastruc-ture comes into fruition, sois the economic evolution ofmany of the country’s home-grown enterprises becom-ing increasingly noticeable.

Haji Husein Alireza & Co.Ltd. (HHA) is one suchbrand. Established as a fam-ily business in 1906, makingit Saudi’s second oldest com-pany, the group today rep-resents some of the world’sleading automobile andtruck manufacturers , in-cluding Aston Martin, Maz-da, Peugeot, Geely, GeelyEmgrand, Yuejin and MANTrucks.

It is a story which reflectsthe success of Saudi Arabiaas a whole: in 1926, HHA be-came the first importer anddistributor of automobilesin the Arabian Peninsula.

While the company re-tains some business inter-ests in other areas, mostnotably IT and real estate, ithas concentrated its effortson the automotive sectorsince the mid-70s. As a re-sult, the company has ex-tensive geographical reachacross the country.

“In the 1970s, the marketwas really hungry for cars,”comments HHA’s Chairman

Sheikh Amin A. Abulhasan,who adds that a patient,growth-oriented strategy haskept the company at the fore-front of the industry.

As well as being a family-owned business that hasgrown thanks to a balancedoutlook with regard to quar-terly results and long-termprospects, the chairman al-so points out that improve-ments to Saudi Arabia’sinfrastructure have allowed

the business, along with oth-ers in the kingdom, toprogress.

Nevertheless, he admitsthat there is still plenty ofroom for improvement, andhighlights the importance ofgovernment spending toboost national activity.

“Although the governmentis trying its best to industri-alize the country, the econo-my still depends on howmuch money the governmentspends on building roads, in-frastructure, bridges, andsewage systems,” he explains.

The chairman also high-lights the importance of bi-lateral relations betweenSaudi Arabia and the USAas a significant contributingfactor in terms of nationalstability. “There is a friend-ly relationship between thetwo countries. This has giv-en the Saudi Arabians cred-ibility, not only in the UnitedStates but also over thewhole world,” he says.

“There are so many com-panies in the U.S. that areexporting to Saudi Arabiaand there are thousands ofstudents studying in theUnited States. Even if theyfail to achieve their goal instudying, they will be bring-ing ideas and ways of life thatwill improve their situation.They will look at societyfrom a different angle, andthis will enrich society.”

A firm proponent of main-taining the close ties be-tween the kingdom and theU.S, Sheikh Abulhasan be-lieves that Saudi Arabia isone of the United States’ bestallies.

“Libya and the Emirateshave a lot of oil, but there isno strategic weight in thesecountries,” he comments.“Saudi Arabia has the weightof the holy mosques, and theSaudi Arabian government isnot just important for oil,but it is important becauseit is the religious holy place.They look up to Saudi Ara-bians.”

Sheikh Abulhasan adds“People do not just visit Sau-di Arabia during Hajj – theycome to visit the holymosque all year round, andthey are spending money. Ifone person spends 10 riyalsa day in Mecca and 5 millionpeople come a year, you cansee how much money isspent.”

One of the country’soldest companies hasbeen fundamental to thedevelopment of Saudi’sautomobile market andhas long been a keenadvocate of itsinfrastructureenhancement

Infrastructure and U.S. relations drive progress

SHEIKH AMIN A. ABULHASAN,Chairman of Haji Husein Alireza & Co. Ltd.

One of the kingdom’s oldest trading companies, Binzagr partners with major Western manufacturers to import, and in some cases locally produce, popular foods and consumer goods

Added value is the name of the game

“ALTHOUGH YOUCAN LEARN A LOTFROMMULTINATIONALS,THE PASSION COMESFROM HAVINGSOMETHING THAT ISYOUR OWN.”

“WE WERE THE FIRSTTO INTRODUCE INTOSAUDI ARABIA THECONCEPT OFMODERN RETAILSUPERMARKETSMORE THAN 30YEARS AGO.”

SHEIKH ABDULLAH SAEEDBINZAGR,President of Binzagr Group

Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content

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Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content

Distributed by USA TODAYTuesday, March 19, 20134 SAUDI ARABIA

Saudi Arabia has witnessedremarkable social and politi-cal reforms, and carried outmassive projects in the eco-nomic, health, education andindustrial sectors. It has nowbecome the largest economyin the Middle East and a mem-ber of G20. And the nationalflag carrier Saudi Arabian Air-lines (Saudia) has played a sig-nificant role in the kingdom’ssocial, educational, econom-ic, commercial and industri-al development.

To meet its present and fu-ture requirements, the com-pany has given top priorityto employee training, as it be-lieves that well-qualified andwell-trained manpower is thebackbone of any organiza-tion. The Prince Sultan Avi-ation Academy in Jeddah hasbeen influential in trainingthe staff of Saudia and otherairlines. In addition, Saudiahas sent some of its staffmembers to reputable inter-national universities and col-leges abroad on scholarshipsto pursue higher studies inaviation sciences and tech-nology.

The company’s focus onnurturing human capitalbacks Custodian of the TwoHoly Mosques King Abdul-lah’s aim to make Saudi Ara-bia a knowledge-basedeconomy. Since his ascensionto the throne in 2005, KingAbdullah has adopted a num-ber of measures to realize thisgoal, including opening newgovernment universities inall regions of the kingdomand licensing several privateuniversities and colleges.

TThhee ppiillggrriimmss’’ cchhooiicceeSaudia plays a key role intransporting millions of pil-grims who come to the king-dom for Hajj and Umrah (thegreater and lesser pilgrim-ages) every year. It annuallytransports more than 3 mil-lion Umrah pilgrims andabout 1 million Hajj pilgrims.

The airline makes advancepreparations for the massivepilgrimage operations anddeploys additional staff forground services. It holdsmeetings with the variousgovernment departments atairports to ensure smoothhandling of pilgrims and Hajjflights. Customer Care Cen-ters at airports have been in-structed to take care of thepilgrims and their require-ments with urgency.

The company states that itconsiders the services it pro-vides pilgrims “as a great na-tional and religiousresponsibility, and mobilizesall its resources to render thisservice in the best possiblemanner, living up to the ex-pectations of the Saudi gov-ernment as well as pilgrims.”

MMaajjoorr pprroojjeeccttssThe tremendous progressachieved by the kingdom’s avia-tion sector will have a big im-pact on Saudia’s services. TheGeneral Authority of Civil Avi-ation (GACA) has embarked ona number of massive projects,including the expansion of KingAbdulaziz International Airportin Jeddah and Prince Muham-mad bin Abdulaziz Internation-al Airport in Madinah – twomain gateways of growing num-bers of foreign pilgrims.

The expansion of KingKhalid International Airportin Riyadh is another major pro-ject being carried out byGACA. A number of regionalairports in Tabuk, Hail, Qas-sim, Abha, and Yanbu havebeen developed recently andhave started receiving inter-national flights.

EEaassiinngg pprreessssuurreeA lot of new and attractiveplans are in the pipeline to at-tract passengers and tourists.

More than 54 million passen-gers passed through the king-dom’s 27 airports in 2011,13.6% more than the figure of2010. The number of passen-gers transported by Saudia isgrowing year after year. In2012, it carried more than 23.7million passengers.

At present the air traffic inthe kingdom is focused on fourairports: King Abdulaziz In-ternational Airport in Jeddah,King Khalid International Air-port in Riyadh, King Fahd In-

ternational Airport inDammam, and PrinceMuhammad bin Abdulaziz In-ternational Airport in Madi-nah. GACA intends to reducepressure on these facilities byexpanding nearby airports.The expansion of Madinah air-port, which now receives alarge number of foreign Hajjflights, has reduced the pres-sure on Jeddah’s airport. TaifAirport, which is located closeto Makkah, is currently un-dergoing expansion to increase

its capacity from 350,000 to550,000. It has also started re-ceiving Hajj flights and otherinternational flights.

New airports at mega eco-nomic cities will also boost thekingdom’s aviation sector, aswell as Saudi Arabia havingadopted an open-skies policy.

RReeggiioonnaall hhuubbssGACA offers a lot of incen-tives to attract foreign airlines.Its airport expansion projectsare designed to turn King Ab-dulaziz International Airport,King Khalid International Air-port and King Fahd Interna-tional Airport into majorregional hubs.

The Saudi government is en-couraging private investmentin aviation projects. GACA hassigned contracts with privatecompanies to implement anumber of airport expansionprojects in recent years.

It has also signed contractswith specialized internationalfirms for the operation andmaintenance of major airportsin the country. The authorityintends to privatize domesticand international airportsgradually to ensure its com-mercial and efficient opera-tion, reducing spending.GACA has recently licensedQatar Airways and Gulf Air tooperate domestic flights.

CCoommmmiitttteedd ttoo bbeeiinngg tthhee bbeessttSaudia has made unprece-dented progress during thepast seven years as a result ofthe combined efforts of itsmanagement and staff. Thecompany is also deeply con-cerned with global warmingand other environmental is-sues. It has been trying its bestto protect the environmentby purchasing the most ad-vanced and environmentallyfriendly aircraft to reduce car-bon emission.

Despite all its great achieve-ments over the past years,Saudia management believesthat this is no time to rest andmerely be satisfied with whathas been gained. The airlinesees big challenges as well asa lot of opportunities aroundit, and the management iscommitted to make Saudiaone of the best airlines in theworld, meeting the require-ments of Saudi Arabia and itspassengers worldwide.

Saudi Arabian Airlines (Saudia) is flying high, making astute decisions and adopting the right strategies to become a world leader in theindustry. It is also focusing on how to enhance customer satisfaction by introducing various attractive services

SaudiArabianAirlinesaims everhigher

SkyTeam membership seals Saudia’s global qualityDuring the past five years,Saudi Arabian Airlines(Saudia) has advanced re-markably. It has upgraded itstechnical infrastructure, shift-ed to the most advancedAmadeus passenger manage-ment system, and modern-ized its fleet with the purchaseof 90 new state-of-the-art air-craft from Airbus and Boe-ing. It has also been busyimproving customer servicesand completing the privati-zation of its catering, cargoand ground services units.

The company’s endeavorsare bearing fruit: May 29, 2012became an important date inSaudia’s history when it offi-cially joined the globalSkyTeam alliance, which nowhas 19 premier airlines as itsmembers.

Saudia’s management andstaff have gone to great lengthsto fulfill the conditions set bythe alliance. Their efforts, inaddition to the upgrading oftechnical infrastructure andfleet modernization, includethe restructuring of the com-

pany’s administration – all be-ing instrumental in furtherstrengthening the organiza-tion.

The airline’s differentstrategic units – such ascatering, cargo, ground ser-vices, maintenance, and pri-vate airline – compete withone another to provide thebest services to clients andcontribute to generatinghealthy profits. These entitieshave applied their consider-able experience to confrontmarket challenges, especial-

ly regional and internation-al competition.

Saudia’s future plans in-clude extending f lights tomore international destina-tions. It currently operatesroutes to more than 100 des-tinations across Asia, Africa,Europe and the Americas,and intends to expand its op-erations to new markets af-ter studying their marketpotential. Its SkyTeam mem-bership further supportsSaudia’s drive to go moreglobal, as well as its dedica-

tion to meeting the require-ments of its passengers.

Saudia actively participatesin regional and internationalaviation organizations. It isone of the founders of theArab Air Carriers Organiza-tion (AACO), which servesArab airline companies, rep-resents their common inter-ests, and strengthens theircooperation to improve op-erational efficiencies.

The organization now has28 members and Saudia playsan important leadership role,

being the largest airline in theregion. It has hosted AACO’sannual general assemblymeetings a number of timesas part of its efforts tostrengthen the pan-Arabbody and adopt joint strate-gies to confront challengesfacing the industry.

In addition, Khaled Al-Molhem, the Director Gen-eral of Saudia, has beenre-elected to the board of gov-ernors of the renowned In-ternational Air TransportAssociation (IATA).

Technical upgrades and fleet modernization helped Saudi Arabian Airlines become one of the 19 members of SkyTeam, a leading alliance in the international airline industry

SAUDIA HAS MADEUNPRECEDENTEDPROGRESS DURINGTHE PAST SEVENYEARS AND ITSMODERNIZATIONHAS INCLUDEDPURCHASING THEMOST ADVANCED,ENVIRONMENTALLYFRIENDLY AIRCRAFT

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Distributed by USA TODAY Tuesday, March 19, 2013 5SAUDI ARABIA

Saudi Arabia, the world'sbiggest oil producer, has bigplans to become 100% pow-ered by renewable and low-carbon forms of energy as thegovernment moves aheadwith its commitment to in-vest in renewable energy, nu-clear power, and otheralternatives to fossil fuels.

The country produces upto 12 million barrels of oil aday, representing more than12% of world crude produc-tion. It also has around one-fifth of the world's oil reserves,according to the U.S. govern-ment’s Energy InformationAdministration. Energy useper person within the king-dom is also high by world stan-dards, because energy pricesare kept so low.

Currently, Saudi Arabia'senergy demand is met almostentirely by fossil fuels, withabout two-thirds coming fromoil and the remainder satis-fied by gas. As the energy de-mand on the country isincreasing and will reach lev-els of more than it will be ableto meet through petroleumsources alone, the governmentrealizes that they have to thinklong term and hence have aplanned budget of $100 bil-lion to invest in renewable en-ergy programs – namely solarand nuclear energy.

Desalination and water se-curity represent another sec-tor related to energy in whichthe Saudi government wouldlike to see more progress be-ing made. The country faceswater shortfalls in the futurethat could devastate the wholeeconomy. With a fast-growingpopulation and mounting in-dustrial needs, the kingdom’sauthorities cannot waste cost-

ly desalinated water on ineffi-cient ventures such as wheatproduction. In fact, Saudi Ara-bia is already using desalinationto cover as much as 60% of itswater requirements.

Simultaneously, Saudi Ara-bia is taking the lead in devel-oping nuclear technology andsolar energy, two environ-mentally friendlier industrieswith enormous growth po-tential. Creating a balancedmix of non-fossil fuel energyis of strategic importance forthe country’s long-term pros-perity and energy security.

By pressing ahead with in-vestment in renewable energy,

nuclear power and other al-ternative energy sources, notonly would it make sense froma carbon emissions point ofview, but also commercially, asthe government would thenbe freed up to use the coun-try’s vast oil reserves for oth-er purposes, such as theproduction of plastics, poly-mers, and other oil-basedproducts.

Having a green economy inthe kingdom would benefitSaudis through the creationof highly skilled jobs in man-ufacturing, technical and in-vestment organizations as wellas attracting foreign investors.

Plans by the planet’snumber one oil producerto aim for a 100%switch from fossil fuelsto clean energy sourcesmay come as a surprise

The cost of solar energy is now around 15% of what it was 20 years ago andcould be the ideal renewable energy source in sun-drenched Saudi Arabia

Soroof International is a Sau-di Arabian company offeringon-site oilfield services fordrilling contractors. The com-pany’s founder and President,Prince Bander bin Abdullahbin Mohammed Al-Saud, isgrowing his company usingcutting-edge technology whilealso employing a high regardfor the environment.

The company provides pro-fessional, customer-orientedconsultancy services in oil andgas engineering in response toa rapidly expanding market, es-pecially in Saudi Arabia. SoroofInternational’s mission is toprovide advanced and sus-tainable integrated solutionsthat will lead to a knowledge-based economy.

“There is a conscious efforttowards environmentally soundsolutions in Saudi Arabia,” saysPrince Bander. “People consid-er the environment in all theiractivities. The wheel has turnedas far as this is concerned.”

Aside from Soroof ’s primarygoal of being environmentallyconscious, the company strivesto be progressive and innova-tive. “Soroof in Arabic meanschange, continuous change, andthe name that I chose reflects mycore beliefs,” explains Prince Ban-der. “I started the company in2002 with firm but modest goals.The second goal is to promoteour own technology-basedproducts and services.”

Soroof International doesn’tshy away from challenges andthrives on serving previouslyneglected niche markets. PrinceBander is also working hard tobuild strategic alliances and dis-tribution agreements with worldleaders to create a powerful port-folio of high technology prod-ucts. But no matter how fast thecompany develops, one of thecore values will always be tomaintain customer-centric

philosophies, and to contributeto the community.

In line with the government’sambitious economic develop-ment plans, Soroof Interna-tional is a company in the leadin terms of helping to change

Saudi Arabia’s economy to onebased on knowledge. “My vi-sion for the company is to be aconstant source of innovation,”professes Prince Bander.“Soroof develops and promotesSaudi-made technologies forglobal application.”

Soroof ’s president is hopingto lead by example and en-courage other Saudi Arabiansto become producers ratherthan consumers.

Soroof International has al-ready come a long way. When

the company was initiallyformed, it began with the ener-gy division, Soroof Power, andfollowing extensive research,other subsidiaries and partnerswere added. In 2003, Soroof In-ternational was launched, whichis made up of several compa-nies and joint ventures.

The core sectors today areCIT, energy (power, oil and gas),and water. “We have been do-ing well in the water sector,” saysPrince Bander. “We are usingour very own patented watertreatment system and winningcontracts in competition with in-ternationally acclaimed systemson the basis of quality, quantity,costs and maintenance. Apartfrom our activities in industrialand municipal wastewater treat-ment, we are also looking to con-vert sea water to potable water.That is something we have inthe pipeline.”

The company is also cur-rently developing the very first100% Saudi-made engine. “Weare at the stage of developinga prototype compressor whichis being tested by FEV, Inc. inAachen, Germany,” explainsthe president. “It is a quantumleap in terms of output andsize, and will serve as the coreof the engine that we are look-ing to produce. In terms ofpower consumption it willconsume an estimated 25% lesselectricity to produce an equiv-alent output of a convention-al compressor.”

The Soroof Internationalgroup of companies as a wholeprides itself on using evolvingtechnologies to find solutions tochallenges at the foundation of society. Whether it is the re-quirement for energy in rural areas or drinking water in desertlands, Soroof has set out to become a leader in making en-vironmentally friendly tech-nologies work for the good of all.

Environmentallysound solutions

Turning the desertinto a green oasis

Not only does Soroof International have an environmental conscience, but it is alsoprogressive, thanks to its strong leadership and innovative strategies. Soroof isgoing from strength to strength in the oil and gas industry

“SOROOF INARABIC MEANSCHANGE,CONTINUOUSCHANGE, ANDTHE NAME ICHOSE REFLECTSMY COREBELIEFS.”

PRINCE BANDER BIN ABDULLAHBIN MOHAMMED AL-SAUDPresident and CEO

Soroof Aqua Solutions (SAS)has been in operation since 2002and is a member of the SoroofInternational group of compa-nies. SAS develops and com-mercializes state-of-the-artenvironmental technologies inthe field of water and waste-water treatment.

SAS differentiates itself fromits competitors by serving as asingle-source for water andwastewater treatment equip-ment and services, capable ofdesigning, engineering, man-ufacturing, installing, servic-ing, operating and maintainingwater and wastewater treat-ment plants and equipmentfor both municipal and indus-trial customers.

SAS has experience, and re-sources, and an understand-ing of the nature of projects inthe region.

The company’s activities in-clude: introducing advanced andcomprehensive water reclama-tion solutions; transferringknowledge and protecting theenvironment; investing in coreindustry and technologies; andcontributing to society.

SAS plays an important rolein providing water in the drySaudi Arabian region. The localmarket for the water treatmentbusiness began a long time ago;the need for sweet drinking wa-ter was the major need. In laterstages, when both industrial andagricultural sectors began togrow, more and better qualitywater was needed – and morewastewater was also generated.Thus, water treatment productswere introduced.

Several features give SAS aunique edge as a solutionsprovider for water treatment.“We cover it all from concept toimplementation,” explains Mo-hamed Nasr, SAS’s GeneralManager. “And we have exper-tise. Know-how is a recipe; its in-gredients are inventions such as

engineering, designs, drawings,procedures and methods. To-gether with our accumulatedskills and experience makes SASa leader in the field.”

SAS offers process andpotable water treatment plants,industrial and sewage waste-

water treatment plants, waterreuse and effluent recycling, de-salination plants (brackish andsea water), off-gas treatment,VOC control, odor control, andbiosolids treatment.

The defining moments inSAS’s history since the compa-ny was established is clear inthe GM’s mind. “I would say themoment we started up our firstIBAC unit in Saudi, as IBAC(Integrated Bio Active Clarifi-er) is our company-patentedtechnology in the field of waste-water treatment,” says Mr. Nasr.“At this moment we were soproud of being the first SaudiArabian company to developand commercialize its ownpatent in this field.”

The key to SAS’s success liesin its clear goals. “New businessopportunities can be found inmany directions: strategic part-nerships with other businesses,expanding our market over alarger geographical base, devel-oping new products for niche

markets, or promoting a strongweb presence for our productsand services,” says the GM.“Whichever direction you go into create new business oppor-tunities, one thing is certain:without a clear mission and vi-sion, you will be limiting your

chances for success before youeven leave the starting block.”

Currently the entire world,including Saudi Arabia, hascome to a new level of aware-ness regarding the need to con-serve natural resources,especially water. A high per-centage of Saudi’s national wa-ter consumption is suppliedthrough desalination. SaudiArabia has ambitious financialand trade development plansand along with this predictedgrowth comes a need for moreresources such as water. Thecountry’s latest vision to pro-duce sufficient water resourcesis to recycle or reclaim water.

In line with the government’splans for water supply, SAS hasthe capability to utilize innov-ative technologies that bringvalue in an environmentally andsocially conscious manner. “Ithink the upcoming trend is thezero-discharge concept whereall wastewater is treated forreuse,” acknowledges Mr. Nasr.

Achievementthrough knowledgeWater is an issue on everyone’s lips, and Saudi Arabia has particular challengesin providing sufficient supply for domestic and industrial markets. Soroof AquaSolutions offers some innovative and forward-thinking solutions

Established in 1989, the SaudiPaper Manufacturing Compa-ny (SPMC) is the largest man-ufacturer of tissue paper rollsin the Middle East. SPMC hasthree main companies basedin Saudi Arabia, namely: Sau-di Paper Manufacturing Com-pany, Saudi RecyclingCompany and Saudi PaperConverting Company. As wellas the production of jumbo tis-sue rolls, one of SPMC’s pri-mary activities is the collectionof waste paper, which has a pos-itive impact on the environ-ment and society as a whole.

Prince Abdullah bin Mosaadbin Abdulaziz Al Saud, Chair-man of SPMC, sheds some lighton his company’s determina-tion to follow a green path andbecome the most sustainablebusiness in the kingdom.

“There is a lot of waste paperin Saudi, and that is not goodfor the environment or theeconomy,” said Prince Abdullah.“We can solve many problemsif we just start segregating wastefrom homes, just the mainthings like paper, glass and alu-minum. If we were to do this,

waste paper would be morereadily available to people oth-er than us to start up differentindustries. That would help cre-ate Saudi jobs. We have notbeen successful up until nowwhen it comes to dealing withhome waste, but I think it is on-ly a matter of time.”

The chairman is highly op-timistic about the country’s cur-

rent business leaders prepar-ing the next generation.

“We have all the tools to ac-complish the King’s vision andto change the country for thebetter. But it needs hard workand accountability,” he says.“We need the best and bright-est minds. Not only should weseek to develop our own sonsand daughters, and to ensurethrough Saudization that theyhave opportunities to prosperand contribute; we should seekto attract the best and bright-est minds (scientists, special-ists, entrepreneurs) within theMuslim world.”

Looking to the future, thePrince has big plans for his com-pany over the next five to 10years. “I want it to grow to be-come a regional power,” he says.“I want to see Saudi Paperstrong in Asia and Africa. Wewill also export to Europe.

“I would like to see SPMCgrow into other related busi-nesses. Also, I want to alwayshave strong, passionate, youngmanagement, and, of course,for the company to continuebeing profitable.”

A focused vision tocreate a greener future The Saudi Paper Manufacturing Company (SPMC) is a fully integrated paperenterprise focused on recycling, manufacturing and converting paper, whichis determined to become the most sustainable business in the kingdom

A leader in essential water treatment and supply services in the region, SAS hasintroduced advanced reclamation systems and invests in the latest technologies

PRINCE ABDULLAH BIN MOSAADBIN ABDULAZIZ AL SAUD,Chairman of the Saudi PaperManufacturing Company

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Distributed by USA TODAYTuesday, March 19, 20136 SAUDI ARABIA

Saudi Chemical Com-pany (SCCO), a Saudijoint stock company,can trace its begin-nings back to 1972when it became thefirst civil explosivemanufacturing com-pany in Saudi Arabia,offering a wide rangeof civil explosives, det-onators and acces-sories. It has beeninstrumental in thecountry’s developmentby manufacturing ex-plosives for militaryand civil uses such asrock blasting for roadconstruction, founda-tions, trench blasting for oiland water pipelines, and tun-neling for roads and mining.

SCCO’s line of productionincludes the latest, safest andmost commonly used civil ex-plosives and non-electrical det-onators in the world – namelyKemulex, Prillex, Enviroseisand Sanel.

Kemulex is an emulsion-typeexplosive characterized by itshigh detonation velocity andgood waterproof properties,and is packaged in special plas-tic cartridges with different sizesthat meet the clients' needs.The company’s other explosiveproduct, Prillex, is a dry blast-ing agent composed of ammo-nium nitrates and fuel oil.

Enviroseis is produced lo-cally by SCCO under licensefrom Austin Powder, USA. Itis a sensitive, high viscosityexplosive packed in rigid plas-tic tubes.

SCCO’s Sanel detonatorsprovide highly accurate control

and precision that minimizesvibrations and improves frag-mentation for all kind of blast-ing. They are produced in awide range of delay times,lengths, and models for dif-ferent types of use.

CCoommppaannyy mmiilleessttoonneessJust over 40 years on since it wasfounded, General Manager andproud company stalwart Dr.Mohammed Saud Al-Badr listssome of the company’s mile-stones over the years.

“SCCO started in 1972, andmoved to new industrial zonessome 20 years ago,” says Dr.Al-Badr. “Each factory is 5kmby 5km, so it provides morespace for production, in threeregions. Another importantmilestone was when the com-pany became public around12 years ago. Then SCCO ex-panded into the pharmaceu-tical business with theacquisition of SITCOPharma.”

Regarded as the largest na-tional distributor of cooled vac-cines and medicines, such asinsulin and enrichment hor-mones, SITCO Pharma’s dis-tribution network covers thewhole kingdom.

SCCO is also the owner ofthe Suez International NitratesCompany, SINCO, in Egyptthat provides the vital porousaluminum nitrate for the com-pany’s explosives.

Dr. Al-Badr adds: “In 2010we inaugurated the Egyptianarm to supply our factories inthe region. We established thenew business distributingboth pharmaceutical and fastmoving consumer goods (FM-CG) and last year we startedbuilding a phar-maceutical fac-tory.”

BBuussiinneessss eexxppaannssiioonnFrom the outset, SCCO has en-deavored to maintain a strongcommitment to quality, marketglobalization and efficient cus-tomer support, all of whichhave lead to the success of thecompany. SCCO has beengrowing 13% since 2006 – quitea phenomenal feat, and onethat Dr. Al-Badr is happy totalk about.

“We are expanding both inthe pharmaceutical and the ex-plosives business,” he said. “Weare able to gain more businessthanks to our reputation ofmaintaining security, safety, andquality, and we have a great pro-ject portfolio constructing roadsand so on. In pharmaceuticalswe have a very transparent op-eration where we enjoy a goodrelationship with our partners.”

EEnndd pprroodduucctt ppootteennttiiaallIt doesn’t just stop with explo-sives and pharmaceuticals.Looking ahead Dr. Al-Badr seesa very bright future for his com-pany and the people of SaudiArabia. “There are endless op-portunities in the fields of sec-ondary manufacturing andpetrochemicals,” he says.

“Petrochemicals produce thematerial, which is not the finalmaterial for customers. In orderto produce the end product,there are endless opportunities.

“There is also potential intimber and lumber in the north-ern region, as well as in in-

dustries associated withminerals such as

p h o s -phate.”

A specialist in civil explosives and pharmaceuticals, Saudi Chemical Company (SCCO) also eyes great potential inthe nation’s secondary manufacturing and petrochemicals sectors, as well as minerals and lumber

SCCO sees ‘endlessopportunities’ tomake end products

Buoyed by significant long-term revenues from its exportsof oil and natural gas, SaudiArabia has invested heavily inall aspects of the country’s in-frastructure – from roads, rail-ways, ports and airports totelecom, electricity and water-supply networks, as well as hos-pitals, schools and universities.

As a result, Saudi Arabia’sinfrastructure sector is cur-rently among the world’s mostdynamic, with ongoing im-provements – especially totransport hubs – making thecountry even more accessibleto the rest of the globe.

Today, the country offers in-vestors the high-capacity, high-quality infrastructure neededto help businesses grow. Sau-di Arabia’s more than 34,000miles of paved roads link allparts of the kingdom, ensuringthe efficient movement of nat-ural resources, raw materials,products and people.

In recent years, the Saudigovernment has launched amassive $624 billion invest-ment program for infrastruc-ture and industrial projectsthrough to 2020.

A total of 17.9 million pas-sengers were handled in 2010at King Abdulaziz InternationalAirport (KAIA), the country’sbusiest airport. It is also thesecond-busiest airport in thePersian Gulf based on passen-ger traffic volumes. As well asserving the commercial cen-ter of Jeddah 12 miles to thesouth, millions of pilgrims trav-eling to the Islamic holy citiesof Makkah and Madinah passthrough its Hajj Terminal every

year. A massive upgrade planis currently under way at the air-port that will add new termi-nal buildings, a high-speed raillink and boost capacity.

Three years of major re-habilitation, expansion anddevelopment works beganlast year at Madinah’s PrinceMohammad Bin AbdulazizInternational Airport. Ac-cording to one o f the devel-opers, TAV Construction, the“design of the new terminalbuilding, inspired by the He-jazi architecture, emphasizesthe concept of an elegant,modular structure with spaceas the main object.”

Also among the country’stop civil construction devel-opments under way are thenew economic cities that arenow rising from the desert.Created to spur growth awayfrom the traditional centers ofRiyadh, Dammam andMakkah, they aim to spark theeconomic synergies that un-derpin diversification awayfrom energy. The flagship pro-jects include the King Abdul-lah Economic City (KAEC)between Jeddah and Rabigh;the Knowledge Economic City(KEC) in Madinah; the PrinceAbdulaziz Bin Mousaed Eco-nomic City (PABMEC) nearHa’il; and the Jazan EconomicCity (JEC) in the south, closeto the Yemeni border.

According to the govern-ment, by 2020 the impact ofthe Economic Cities will in-clude $150 billion contributedto GDP growth, 1.3 million jobscreated, and the accommoda-tion of 4.8 million people.

Infrastructuredevelopmentstake shapeFlagship new developments and major upgrades ofexisting infrastructure are gaining ground

SCCO acquired the Saudi InternationalTrading Co. Ltd. (SITCO Pharma) to‘redefine the Saudi Arabianpharmaceuticalsmarket’

Check-in at Prince Mohammad Bin Abdulaziz International Airport in Madinah

“WE ARE ABLE TOGAIN MOREBUSINESS THANKSTO OURREPUTATION OFMAINTAININGSECURITY, SAFETY,AND QUALITY.WE ENJOY AGOODRELATIONSHIPWITH OURPARTNERS.“

DR. MOHAMMED SAUD AL-BADR,General Manager of SCCO

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Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content

Distributed by USA TODAY Tuesday, March 19, 2013 7SAUDI ARABIA

Saudi Arabia is undergoing amassive program of economicgrowth and industrial diversifi-cation as it plans its futureprogress. The Saudi ArabianGeneral Investment Authority(SAGIA), created by the gov-ernment in 2000, is at the fore-front of this development.SAGIA plays an active role inthe economic liberalization ofSaudi Arabia and is responsiblefor fostering investment oppor-tunities in key sectors of the econ-omy, including energy,transportation, and knowledge-based industries.

As the world’s fastest-re-forming economy, Saudi Ara-bia has seen growingmomentum and recognition forits economic transformation. Itseconomy is ranked third in theworld for economic stability andit has proven itself to be an at-tractive business environment.In just four years, Saudi Arabiahas risen from 67th to 22nd posi-tion in the World Bank’s Ease ofDoing Business Index. It also

ranks 12th in the world for easeof registering property and thirdfor paying taxes.

FFoouurr EEccoonnoommiicc CCiittiieessAt the heart of SAGIA’s strategyfor growth is a massive buildingprogram. Working in partner-ship with some of the world’smost prestigious developers andinvestors, SAGIA is creating fourspectacular Economic Cities inkey locations around the nationat a cost of more than $60 billion.These cities will become pow-erhouses of technology, industryand knowledge, and are designedto maximize investment poten-tial and deliver huge advantagesto businesses located there.

In developing the EconomicCities, more than 1,000 of theworld’s cities were surveyed. The60 deemed most successful weremeticulously studied to deter-mine key success factors. As a re-sult, the Economic Citiesrepresent the ultimate innova-tion in public-private partner-ships (PPPs).

Each city will feature modernbuilding design alongside world-class services and infrastructure.SAGIA is working with leadingenvironmental institutions toensure that the cities are devel-oped with minimum negativeenvironmental impact and max-imum energy efficiency and sus-tainability. The visionary projectwill promote economic diversi-

fication, create over a millionnew job opportunities, homesfor 5 million residents, and con-tribute more than $150 billion toSaudi’s GDP.

The four cities are the KingAbdullah Economic City(KAEC), Prince Abdulaziz BinMousaed Economic City (PAB-MEC), Knowledge Economic

City (KEC), and Jazan EconomicCity (JEC).

KAEC has a planned invest-ment of $27 billion funded en-tirely by private capital; whencomplete in 2025 it will be thesame size as Washington DC.The city will be divided into fourmain areas: industrial and resi-dential zones, a seaport, and a searesort that stretches along 1.5

miles of unspoiled beach – a con-cept new to Saudi that will sure-ly make it a top tourist destination.

PABMEC has been dubbed“skyscraper city” and is set to bethe Middle East’s most moderntransportation and logistics hub,strategically located at the cross-roads for navigational, trade andtransportation routes between

East and West. Transport infra-structure will include an inter-national airport expected to serve3 million passengers per year, arailway station, and a dry port andoperations center capable of han-dling more than 1.5 million tonsof cargo per year. The railwaysystem and road connectionswill further expand to connectwith Al-Madinah province, Jor-dan, and Iraq.

KEC will be a cultural land-mark and the focal point of Sau-di Arabia’s knowledge-basedeconomies, focusing on intel-lectual property, medicine, hos-pitality, tourism, and multi-mediaindustries. The city will createopportunities for both foreignand local entrepreneurs in thesesectors. Given its proximity tothe Holy Mosque in Al-Madinah,it is expected to attract hugenumbers of visitors from with-in Saudi and around the world.

JEC is designed to become anexport platform for internation-al consumer markets. Close tothe main trade routes between

Europe, Asia and Africa, JEC willbe a strategic stop for neighbor-ing countries that do not have theinfrastructure necessary to accessexport markets. An industrialpark will occupy over two-thirdsof the city and it will contain amodern oil refinery and inte-grated petrochemical complex,a copper refinery, fisheries, andan aluminum complex. Trans-port infrastructure has been de-signed to include a new seaportand dry dock.

GGlloobbaall aappppeeaallFor foreign investors, the newEconomic Cities create a uniqueopportunity for private-sectorinvolvement and business suc-cess. SAGIA is dedicated to mak-ing it as easy as possible to investin or set up and operate a busi-ness in the country. Already for-eign direct investment inflow isthe 14th largest in the world; theEconomic Cities will continue tobuild on this achievement. Theoutlook for Saudi Arabia has nev-er been brighter or more secure.

Working in partnership with some of the world’s most prestigious developers and investors, four new cities will be the region’s locations of choice for local and foreign businesses

Building the future

Saudi Arabia’s government is fa-cilitating an industrial shift awayfrom petroleum, and the entre-preneurial mindset of Saudis ismaking it a success. Numerouscompanies have been prominentin driving forward the idea of aSaudi industrial brand that is syn-onymous with quality.

The National Industrializa-tion Company (TASNEE) wasthe first Saudi joint-stock indus-trial company to be whollyowned by the private sector. Es-tablished in 1985, TASNEE isnow the second-largest producerof titanium dioxide in the world.

CEO Dr. Moayyad Bin IssaAl-Qurtas says, “TASNEE is oneof the biggest industrial compa-nies in Saudi Arabia, yet at thesame time we are diversified; we

also operate in chemical, petro-chemical and downstream in-dustries. By spreading ourinvestments we are lessening thedependence on oil exports andenhancing economic develop-ment in the country.”

In 2007 the company boughtMillennium Inorganic Chemi-cals, one of the largest purchas-es by a Saudi company abroad,and acquired facilities aroundthe world.

Dr. Al-Qurtas believes thatthe mentality Saudi Arabia hasadopted in recent years has pos-itively shaped the future oppor-tunities of the country. “It isgetting easier to do business inSaudi Arabia; we have seen sub-stantial improvement in gov-ernmental procedures. It is

considerably more investorfriendly,” he says.

Sheikha Nadia K. Al-Dossaryis the CEO of Al Sale EasternCompany. Founded in 1976, itspecializes in ferrous scrap met-al processing and weighing sys-tems. As a woman in industry,Sheikha Al-Dossary is tran-scending traditional attitudes.

“I made this business,” she says.“I tell girls that when they are ina place where they do not feellike they have an opportunity,they have to go ahead and makethat opportunity.”

Saudia Arabia is a huge mar-ket for steel. SABIC, just one ofthe company’s many customers,takes delivery of 15,000 tonsevery month. Management atAl Sale believe their Saudi steel

has a competitive edge due totheir high-tech processingequipment and stringent stan-dards that focus on quality ratherthan quantity. The company al-so supplies weighing systems inOman, Kuwait, Bahrain and theUAE, and it is ambitious to ex-pand further.

As well as a working with in-dustrial heavyweights, Al Saleis keen to develop the youngergeneration of entrepreneurs inthe country. Innovatively theyhave collaborated with small-scale scrap dealers to co-ownscrap yards. The company pro-vides them with training on howto weigh and treat scrap, andshares the profits from their sales.Dealers can also opt for an in-stallment plan that allows them

to purchase the yard outright. Another company set up in

response to a call for the privatesector to invest in the country’seconomic diversification is Sau-di Advanced Industries Com-pany (SAIC). Established in 1987,it is an investment company thatallocates money to industrial en-terprises to enable them to real-ize their projects. GeneralManager Saad A. Al-Shammarisays, “The private sector is try-ing to support the government’svision and make a positive con-tribution to it. Indeed we are di-versifying and differentiating ourown products.”

The company has a strategicplan to move from being an in-vestment company to an oper-ations company. It is looking into

solutions to reduce energy con-sumption in buildings, and re-placements for expensivematerials like metals and plastics.

Mr. Al-Shammari thinks thereare investment opportunities forboth Saudi and non-Saudi com-panies in the country. “It is notdifficult to start a business here,you just have to do your home-work and understand the cul-ture.” Dr. Al-Qurtas adds, “Theemerging economies that sur-round us are gaining importance,and we have a mass of middle-class people eager to consumeproducts and services.”

Sheikha Al-Dossary agrees,saying: “Business takes risks andSaudi Arabia is very adventur-ous and lucrative. There is a lotof money and opportunity here.”

Entrepreneurs spark greater industrial activityIndustrial development has gone from strength to strength in Saudi Arabia as the country shifts from petrochemicals to technology and knowledge-based industries with increasedprivate-sector participation. Also, the government is focusing on education, infrastructure and youth employment with the goal of creating a global financial and trade center

The new Economic Cities in progress include: the King Abdullah Economic City (KAEC), Knowledge Economic City (KEC), Jazan Economic City (JEC), and Prince Abdulaziz Bin Mousaed Economic City (PABMEC)

SAGIA IS WORKING WITH LEADINGENVIRONMENTAL INSTITUTIONS TOENSURE THAT THE FOUR ECONOMICCITIES ARE DEVELOPED WITH MINIMUMNEGATIVE ENVIRONMENTAL IMPACT ANDMAXIMUM ENERGY EFFICIENCY ANDSUSTAINABILITY

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Our World Insert is produced by United World. USA TODAY did not participate in its preparation and is not responsible for its content

Distributed by USA TODAYTuesday, March 19, 20138 SAUDI ARABIA

Tourism has adopted an in-creasing amount of econom-ic importance in Saudi Arabiain recent years, with the king-dom’s government devotingenormous attention to re-

structuring the sector.In 2000, the state

created theS a u d iC o m -m i s -s i o nf o r

Tourism and Antiquities (SC-TA) and the Supreme Com-mission in an effort to promotetourism within the nation, inline with its Islamic values, cul-ture and environment.

Aiming to unify the coun-try’s previously regionallyfragmented tourism indus-try by providing guidance onboth a national and provin-cial level, the SCTA has ex-ecuted and embarked upona 20-year economic plan todevelop the sector in a sus-tainable manner.

Chaired by the Presi-dent, Prince Sultan binSalman bin AbdulAziz , the Com-mission works topreserve and pro-mote the nation’smuseums and her-itage sites, oversee theaccommodation sec-tor, assist with touristvisas, supervise thework of tour agencies,and support tourismprojects. It also placesgreat emphasis on li-aising with both thepublic and privatesectors to achievethese means.

Rich in both nat-ural and historicalwonders, as a tourist

destination Saudi Arabia hasmuch to offer. Its unique ge-ographic location grants it awide variety of terrains andclimates, boasting desert, sea,bustling cities and World Her-itage Sites.

Its reputation as a peacefulkingdom is one the cabinet iskeen to capitalize on, in ad-dition to maximizing the po-tential of the country’s natural

touristic attractions.The nation hasseen its inter-national pro-file raised oflate, thanksto variouscultural ini-

tiatives suchas the exhibi-tion ‘Roads ofArabia: Ar-chaeologya n d

History of the Kingdom ofSaudi Arabia’. Currently be-ing hosted by the USA aftertouring Europe, the exhibi-tion has attracted hugecrowds to the Washington-based Smithsonian museum,where it is now based.

‘Roads of Arabia’ contains320 historical artifacts origi-nating from the Riyadh-basedNational Museum, the Mu-seum of King Saud Universi-ty, the King Fahd NationalLibrary and other variousSaudi cultural institutions. Italso contains numerous arti-facts discovered in recent ex-peditions, ranging in datefrom the Paleolithic Age tothe Saudi State Age.

Additional attractions atthe exhibition include chil-dren’s calligraphy work-

shops, theatershows of Arab his-

torical stories, and a concertgiven by a Saudi folklore band.

Inaugurated in Novemberlast year by Prince Sultan binSalman bin Abdul-Aziz andWayne Clough, the Secre-tary of the Smithsonian In-stitution, it has attractedmore than 1 million visitorsand received wide acclaim.

Other recent projects toboost Saudi Arabia’s profile in-clude the second SCTA Ur-ban Heritage Forum, held inthe Eastern Province in De-cember 2012. Attended bynumerous Saudi and inter-national urban heritage ex-perts and officials, theforum provided the op-portunity for discussionson a number of relatedissues in the kingdom.

Topics covered in-cluded investment inheritage developmentand preservation, ed-ucation and training,social awarenessand participation,project financing,and technology.

There remainsprogress to bemade, butPrince Sultanbin Salman re-cently praisedthe Commis-

sion for advancing in manyareas of the tourism sector.

“In order to meet its pro-jections diligently, the Com-mission’s most importanttask was the development ofits structure and statute, inaddition to raising the social

awareness and acceptanceby the community ontourism and antiquities,”he says.

“This required abroad participation ofall the relevant sectorsworking in the com-munity, with an em-phasis that theSaudi citizen is themain element oftourism and re-quires due at-tention.”

At the heart of Saudi Arabia’s na-tional identity lies the holy cityof Makkah; one of the most vis-ited places on earth.

As the birthplace of theProphet Muhammad and theplace to which he returned aftermigration to Madinah in 622AD, Makkah (also known asMecca) is one of the five pillarsof Islam he established beforehis death in the year 632, name-ly: declaring the oneness of Al-lah and that Muhammad is hismessenger; praying five times aday; fasting during the month ofRamadan; giving to charity; andmaking the holy pilgrimage toMakkah at least once.

Worldwide, five times a daythe global Muslim communityturns to face this ancient placeof worship in prayer. Makkahacts as a religious compass tothe 1 billion Muslims all overthe world – all of whom arebound by their religion to visitthe holy city at least once in theirlives if possible.

As such, each year the city re-

ceives millions of religious pil-grims fulfilling their duty to theProphet. The ritual, known asthe Hajj, is cur-rently the largestannual pilgrim-age in the world.

During the Ha-jj, pilgrims walkaround the Ka’a-ba, a sacredcubed structure,seven times. Ac-cording to Mus-lim beliefs, theKa’aba was firstbuilt by Abrahamand his son Is-mail. Inside is ablack stone be-lieved to havebeen given toAbraham by theAngel Gabriel.

The Hajj comprises severalrites and traditions, includingdressing in white garments,called Ihram and comprising twoseamless pieces of cloth. Onceproperly attired, pilgrims then

enter a state of physical, mentaland emotional purity.

The date of the Hajj changes

each year, in accordance withthe Islamic calendar. It takes placebetween the eighth and 13th days

of the last month of the Muslimyear. Pilgrimages can be madeto Makkah at other times of theyear, but the process is known asUmrah, or the ‘lesser pilgrimage’.

The huge logistical and ad-ministrative concerns such a ma-jor international event producesare dealt with by the Ministry ofHajj and Umrah. A Supreme Ha-jj Committee comprising thegovernors of Makkah and Mad-inah provinces, as well as variousrelevant minis-ters,

oversees every detail of the Ha-jj and Umrah processes to ensuretheir smooth coordination.

The government also issuesspecial pilgrimage visas thatallow pilgrims to visit Makkahand to carry out the traditionalexcursion to Madinah to vis-it the tomb of the ProphetMuhammad.

Makkah is around 45 mileseast of Jeddah, in the country’sMakkah Province. The closestairport is King Abdulaziz In-ternational Airport, which fea-tures a dedicated Hajj Terminal

specifically designed to copewith the large influx of reli-gious pilgrims passingthrough on their way to thesacred site.

Five times every day, 1 billion Muslims worldwide turn toward Makkah to pray, and all Muslims, who are able, are obliged to perform the Hajj, a pilgrimage to carry out a set of ritualsthat take place in and around Makkah every year, at least once in their lives. Therefore, each year Islam’s holiest city is host to millions of pilgrims, or Hajjis, from around the world

From vast sand dunes to splendid waterfronts and ancient monuments, thekingdom’s geography provides a beautiful backdrop to its heady blend ofhistory, culture and Bedouin hospitality that greet increasing numbers of visitors

The Holy Mosque in Makkah housesthe Ka'aba, a sacred cubedstructure, which Hajj pilgrimsdressed in white Ihram garmentsmust walk around seven times

Tourism turns up the heat to create the next hotspot

A massive tourism expansion is on the horizon as a new emphasis on developing Saudi Arabia’s tourism sector beyond its well established religious offerings is encouraging visitors to take advantage of new airports and hospitality infrastructure to discover a fascinating kingdom

Makkah, a once-in-a-lifetime experience

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