INVEST IN Four NEW World Class Economic Cities in SAUDI ARABIA

YOUR GUIDE TO TRADE & INVESTMENTS BETWEEN CANADA AND THE KINGDOM OF SAUDI ARABIA

Fast Facts on Saudi Arabia : WHY INVEST ?


Being one of the world’s Top 20 most competitive economies makes Saudi Arabia the perfect investment opportunity. But that’s not the only reason why:


  • Saudi Arabia is ranked 5th in the world for “fiscal freedom” and it’s the 3rd  most rewarding tax system in the world
  • One of the world’s 20 largest economies (19th ) and the largest economy in the MENA region.
  • One of the world’s fastest growing countries: economic growth is 6.8% in 2012. 
  • It’s the world’s fastest reforming business climate.
  • It’s the largest free market in the MENA.
  • Represents 25% of total Arab GDP.
  • It has 25% of world's oil reserves.
  • 22nd  out of 185 countries for the overall ease of doing business globally.
  • 1st for ease of registering property and it’s the largest recipient of Foreign Direct Investment in the Arab world



Fast Facts on GCC Market

  • Population (est.): 37.8 million

GDP (est.): $1.1 trillion
Main Canadian Exports (millions): Machinery ($636), Cereals ($512.6), Aerospace products ($284), Oil seeds ($149.1), Motor vehicles ($140.3)
Main Canadian Imports (millions): Mineral fuels and oils ($1.7 billion), Precious stones and metals ($62.7), Fertilizers ($12.3), Mineral ores ($6.4), Machinery ($6.0)


  • The six-member Gulf Cooperation Council (GCC)—Saudi Arabia, United Arab Emirates (UAE), Kuwait, Qatar, Bahrain and Oman—represents one of the wealthiest country groupings in the world. Blessed with extensive oil and gas reserves, development and investment in the sector is substantial. The GCC countries are seeking to diversify their economic base and reinvest a substantial amount of their surplus capital in massive infrastructure projects, including hospitals, medical centres and educational institutions. Despite the current global economic slowdown and lower oil revenues, GCC governments are determined to draw down their accumulated reserves to maintain the level of these investments in order to sustain their economies. Rising levels of disposable income, government subsidization of basic necessities, and more flexible consumer and business lending practices are creating a new generation of affluent consumers influenced considerably by Western lifestyles and tastes. The GCC is also a major source of foreign investment capital: by 2020, GCC countries are expected to have over US$3.5 trillion in foreign direct investment holdings. Furthermore, the region is being positioned as a leading trading hub serving the Middle East, Africa and Southeast Asia. Canadian businesses are well suited to engage in the substantial economic activity under way in the GCC, particularly in the infrastructure, oil and gas, agriculture and health care sectors. Canadian companies that establish commercial credibility in the region will also be in a preferential position to attract the region’s substantial investment resources.


  • Commercial Relations, 2009


Canada’s two-way merchandise trade with GCC countries exceeded $4.8 billion.
Canadian merchandise exports to the region reached almost $3.0 billion, while imports reached $1.8 billion.
During the past five years, exports to the GCC countries from Canada have more than doubled while imports from the region which had more than doubled during the five years leading up to 2008, declined by 28.4% in 2009.

  • Market Opportunities


The Government of Canada has identified the GCC as a GCS priority market—based on extensive consultation with government, academic and Canadian business and industry representatives—and has developed a comprehensive Market Plan that identifies the following sectors as offering clear market opportunities well suited to Canadian capabilities and interests in the region:

Service Industries and Capital Projects: Rapid population growth, substantial revenues from oil and gas, large allocations by government to public projects, and major real estate developments are contributing to an infrastructure and construction expansion, as well as increasing demand for education and training. Canadian business has played a key role in infrastructure developments worldwide, and a number of leading firms have already established a credible presence in the GCC region. Canadian expertise in education is also well respected.
Oil and Gas Equipment and Services: Canadian firms have world-renowned expertise in the oil and gas sector and are well placed to supply the industry’s needs as they upgrade their facilities and processing in the GCC.
Health Industries: GCC countries are building and upgrading many health care facilities, the development and management of which match well with Canadian capabilities. The GCC countries also import virtually all of their medical equipment and supplies and are highly dependent on foreign-trained physicians. GCC demand for Canadian expertise in the sector is in part due to the significant influence of GCC decision makers who have returned from studies in Canada. Sub-sectors include health care facilities management, hospitals, pharmaceuticals, and institutional devices and supplies.
Agriculture, Food and Beverages: The GCC has limited local agricultural production, a growing demand for imported foodstuffs, and a strong re-export market. Canadian agri-food products are looked upon as high-quality, with a distinctive North American image, and represent a substantial percentage (30 percent) of Canada’s overall merchandise exports to the region.