6/24/2013

BUSINESS INVESTMENT FEASIBILITY REPORT

PAKISTAN-SAUDI ARABIA

Feasibility report on business in Saudi Arabia |

University of Azad Jammu and Kashmir, Muzaffarabad.

www.ajku.edu.pk

Assignment On
Feasibility report on business investment in Saudi Arabia

Submitted By,
Roll # 14, 15, 18, 06, 13, 11, 09,

Submitted To
Madam Farhat Sultana Department of Business Administration

University Of Azad Jammu and Kashmir, Muzaffarabad.

Pakistan-Saudi Arabia Industrial Cooperation Task Force

February 2013 Vice Secretary General, Pakistan-Saudi Arabia Industrial Cooperation Task Force, PCCME Pakistan-Saudi Arabia Industrial Cooperation - Past activities, achievements and future policy
Importance of Saudi Arabia for Pakistan One of the largest oil-producing countries in the world in terms of both oil reserves and oil production. The largest oil supplier for Pakistan [28.8% of all oil imports (2010)]. A leader of GCC and OPEC; Participant of G20 Boasting the largest GDP among GCC, and recording continual economic growth, the kingdom is an extremely promising market for Pakistanis companies. Overall Picture of Industrial Cooperation Energy Cooperation (as reference) Industrial Cooperation Regular consultation meeting on energy policies between Agency for Natural Resources and Energy and Ministry of Petroleum and Mineral Resources. A project to store crude oil from Saudi Arabia in the national oil reserve tanks in Okinawa (started in February 2011) Pakistan-Saudi Energy Consultation meeting Stockpile cooperation. The following projects are underway for Ministry of Petroleum and Mineral Resources, Saudi Armco, and Ministry of Water and Electricity: (1) Solar power generation feasibility study (2) Implementation of policy development training and workshop Renewable energy/Energy saving cooperation

The Pakistan-Saudi Arabia Industrial Cooperation Task Force was established on the Joint Statement between the Kingdom of Saudi Arabia and Pakistan in April 2007.

As employment creation through industry diversification is an urgent task for the kingdom, the Ministry of Commerce and Industry and Ministry of Petroleum and Mineral Resources are working vigorously. 1. Assistance for Pakistanis firms considering investment in Saudi Arabia 2. Assistance in human resource development in Saudi Arabia. 3. Assistance in formulating small and medium enterprise development policy

Activities of Pakistanis task force: Three Pillars Conducted a survey of about 4,000 companies. Held 30 business seminars (for more than 1,700 companies in total). Visited about 950 Pakistanis companies. Aim: To find out if there is a need, among major local conglomerates/companies, for a joint venture with Pakistanis firms Surveyed area: Riyadh, Eastern State (Dammam, Dhahran, alKhobar, and Al Jubail), Jeddah Outline of the survey Selection was carried out centering on mainly those conglomerates or major enterprise groups that seemed to be interested in the manufacturing business We visited 46 private companies and total 7 government-run or other public corporations in 3 major cities to hear if there is a need for a joint venture with Pakistanis firms. Assistance for Pakistanis firms to invest in Saudi Arabia The result of survey of local conglomerates/companies concerning needs for Pakistanis companies/technologies

 Sectors where one can take advantage of Saudi Arabias strength (energy-related industries such as petroleum/gas, etc., and those surrounding the petrochemical industry Key priority sectors in terms of national budget allocation Service/Human resource development Sectors dealing with hearty local consumption Assistance for Pakistanis firms to invest in Saudi Arabia A variety of activities are being conducted to explore further investment opportunities

A Saudi Arabian mission visited Pakistan and had discussion with 7 solar and home appliance companies. Information about the current status of Saudi Arabias solar program was provided. Such agencies as Armco, KAUST (King Abdullah University of Science and Technology), and KACST (King Abdul-Aziz City for Science and Technology) have a positive attitude toward the introduction of new energies.

Feed-in tariff system is also under consideration in Saudi Arabia

We conducted a survey of Saudi Arabian women to understand the needs/tastes for consumer goods for women/children.

For example, we identified the following trend Women have a strong entrepreneurial spirit

There is a lot of interest in/need for cosmetics, fashion, beauty, and health and bridal goods.

Assistance in Human Resource Development Vocational training institutes in accordance with Saudi Arabias human resource development scheme (Technical and Vocational Training Corporation/Human Resource Development Fund). Education of professional ethics, etc., taking advantage of Pakistanis corporate spirits/culture. * For example, strict implementation of 5Ss (tidiness, orderliness, cleanness, standardization, and discipline). * Specialist class/training taking advantage of Pakistanis technical capabilities; implementation of English class. Assistance in Formulating Saudi SME Development Policy 1. Promote activities to inspire an entrepreneurial mindset and promote entrepreneurship education. 2. Human resource development to nurture managers/engineers. 3. Take advantage of the chamber of commerce, industry groups, etc. 4. Improve financial services to SMEs. 5. Promote partnerships between large enterprises and SMEs. 6. Consider assistance policies based on characteristics of individual industry. Create a department/agency, inside the government, in charge of promotion of SMEs New Policies for Next 5 years In order to promote Pakistanis investment to KSA more, the Joint Task Force commits to strengthen and widen collaboration more than ever. Reinforcement of our capability to exploring promising companies Development of strategic value-chains in specific industries / themes

Establishment of KSA domestic supply-chain to support Pakistanis companies who have already entered KSA.