United States of America
SAGIA’s interest in U.S. companies lies in their wealth of knowledge and expertise in the industries where we are looking to attract investments. U.S. companies can provide Saudi Arabia the “know-how” with regards to competition and innovation, which are key factors to the success of any economy. The U.S. economy is highly diversified, and is characterized by constant innovations and technological advances, especially in the fields of computers, telecommunications, sciences, and the aerospace industry.
Within the industries we are targeting, such as downstream to petrochemicals, mining, utilities, logistics companies, biotech, health clinics, pharmaceuticals, educational institutions, and telecommunications and IT, the U.S. have companies that are top in each of these fields. Furthermore, we recognize that in order to succeed we will have to invest heavily in our people and in developing the necessary human resources to compete in a competitive global economy. In the U.S. there are more than 4000 universities and colleges, many of which are recognized internationally, and provide the highest quality of education.
Saudi Arabia is currently experiencing a boom, with a forecast of real GDP to increase by 3.7% for the year 2007. We are looking to create a win-win situation for both countries. By investing in Saudi Arabia, U.S. companies will have access to the largest market in the Middle East, access to Saudi Arabia’s strategic location between regional and international markets, access to Saudi high market liquidity, access to soft capital and commercial financing from lending governmental institutions, a right to all the incentives associated with the Foreign Investment Law, and the opportunity to participate in the development of six world class economic cities.
Trade and economic relations between Saudi Arabia and the US:
Bilateral trade between Saudi Arabia and the U.S. amounted to 40 billion USD for the year 2006. Saudi Arabia is the 17th largest export market for the U.S., and provides growth opportunities for U.S. companies in many industries. The U.S. holds 23.0% of FDI Stock in Saudi Arabia, representing the country with most FDI stock in Saudi Arabia. However, FDI Inflows from the U.S. in 2006 only amounted to 11.1% of the total FDI inflows coming into the country.
|
Year |
Total FDI Stock
(Millions of US $) |
U.S. Share of Stock (Millions of US $) |
|
2006 |
47,828 |
11,018 |
|
Year |
FDI Yearly Inflow to KSA (Millions of US $) |
U.S. Share of Inflow (Millions of US $) |
|
2000 |
183 |
7 |
|
2001 |
504 |
16 |
|
2002 |
453 |
8 |
|
2003 |
778 |
268 |
|
2004 |
1,942 |
269 |
|
2005 |
12,097 |
84 |
|
2006 |
14,293 |
1,594 |
List of top companies: