The document discusses strategies and initiatives by the Saudi Arabian General Investment Authority (SAGIA) to attract more foreign direct investment into Saudi Arabia. 1) SAGIA is working with Monitor Group on the "Invest in Saudi" strategy to better understand investor segments and target niche opportunities. This will help SAGIA attract its goal of $150 billion in foreign investment by 2015. 2) SAGIA's activation strategy involves both direct outreach to priority investors and reverse engineering to identify gaps that can be filled. The strategy will use targeted marketing materials and incentives. 3) The "IPA CRM Certified" initiative aims to accelerate key investments by empowering SAGIA teams globally to directly

1. IPA
March 2011
Monthly
Newsletter
Your Internal Public Relations...
“ INVEST IN SAUDI “ STRATEGY IN THE MAKING
The Invest in Saudi Strategy, led by MONITOR group, started the kick off with an objective of delivering strategic
focus in attracting quality FDI & DDI .
The Invest in Saudi Strategy, led the investor landscape through
traditional customer segmentation.
by IPA along with Monitor Group,
This will help SAGIA to identify
kicked off earlier this month. The
priority 'groups' of investors that
engagement will follow a
share similar perceptions, behaviors
proprietary methodology of Monitor
and investment parameters across
Group entitled “Growth path” that
each sector. With this
will start with assessing the
understanding SAGIA will be able to
competitive advantage across a
develop detailed marketing plans
broader array of strategic sectors
that 'activate' the investor segments support, however with the
for the Kingdom and identifying the
that are most attractive and outputs of the strategy Sector
specific opportunities that would be
promising to Saudi Arabia. Heads and the Investment
of interest to foreign and domestic
A key component of the Invest Saudi Promotion and Attraction
investors. A key objective of the
strategy will be the collaboration department will be in a better
Invest Saudi strategy is to improve
with other stakeholders. SAGIA will position to target specific niche
the quality of investment. One of
in some serves as the investment opportunities that will help to
the key levers that will be employed
promotion agency for all key FDI realize the desired economic
is the use of targeted incentives to
stakeholders in the Kingdom and as objectives of attracting $150 Bn
ensure that investors are motivated
such represent to varying degree's in DDI and FDI by 2015, which
to make the 'right kind' of
of support the sectors therein. On will correspond to the creation of
investments in Saudi Arabia.
one hand this will result in a 500,000 new jobs.
The unique approach of Monitor will
broader set of sectors for SAGIA to
develop a deeper understanding of
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2. THE WAY FORWARD...
In the increasingly competitive environment for FDI, a fundamental
challenge for the investment promotion agency (IPA) in the developing
world is to meet the information requirements and facilitate the right
opportunity towards the investors needs. The stakes are very high for
IPA to position Saudi Arabia as the prime investment destination.
To achieve this, the IPA will continue to drive “awareness” led activations
to ultimately drive conversion to attraction to action. This is based on
Invest in Saudi Activation strategy to include a dual approach and will
also look into reverse engineering which will be action of targeted
investors which have a high attraction multiplier factor leading to
increased awareness amongst targeted investors; hence bottom up
approach
Dual Approach activation Strategy:
I. Direct targeted AAA:
Activation plan 2011 to drive Awareness, Attraction, & Action targeted operational plan
2011. This will include a massive activation plan to drive IPA & SAGIA presence and
activation in the following:
a. Anchor global events
b. Sector premier events
c. Regional events
d. Local events
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3. 3 PILLARS
II. Reverse engineer targeted AAA:
Activation plan 2011 to identifying FDI/DDI regional &
sector gaps and addressing these gaps by proactively
targeting investors to setup operations in the Kingdom.
a. Hit list of targeted investors.
a. Pre-license & licensing of targeted investors.
b. Activation of targeted investors.
All of the above will be coupled with a tailor made activation kit
and media plan which will include various tools i.e.:
a. Selective investment opportunities
Awarenes b. Marketing , sales, incentive kits investment
c. Interactive display and point of sales material.
d. SAGIA investor marketing collaterals
e. Licensing guides, leaflets, intent application
forms, etc.
f. Advertorials, press releases, newsletters, web
AAA
AWARENESS
? ATTRACTION ACTION
1) Building knowledge of After creating Awareness
Attraction the Kingdom as a
competitive investment
destination
of the Kingdom &
SAGIA, we then move
into engaging potential
investors in the investing Issuing investment
2) SAGIAs service process, this includes: License !!
offerings to potential
investors. 1) Promoting specific
investment opportunities
3) Building Awareness:
2) Explaining licensing
- 1st meetings with procedures
potential investors
- Speaking at local & 3) Introduction to
international events
potential local partners
- Sending SAGIA
brochure
Action
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4. IPA CRM CERTIFIED
“Targeted Investors at the heart
of invest in Saudi IPA Strategy”
With an objective to target 40b USD FDI/DDI investors via empowerment and training for IPA
equally for the year 2011 and doubling FDI/DDI regarded teams to be fully operational.
within the next five years, this initiative is a
cornerstone to achieve that. Based on various discussions with both OSS &
ECA licensing teams we have established a
IPA CRM certified is an initiative with an project targets by phase, milestone, timeline,
objective to proactively accelerate converting and accountability plan to deliver on this
key quality investments into the Kingdom. This initiative.
requires a qualified and an empowered team to
serve targeted investors wherever they are.
Hence new IPA structure integrates the global
coverage of Europe, Americas, Asia/Australia,
and Middle East & Africa it is a fortune
opportunity to institutionalize targeting
IMMEDIATE TERM Q1 2011 MEDIUM TERM Q2 2011 LONG TERM Q3-4 2011
1) IPA to provide a hit list of 1) OSS/ECA to provide all 1) OSS/ECA online licensing new
targeted investors necessary training content processes & procedures.
relevant to certify IPA CRM
2) OSS/ECA to develop minimum initiative. 2) IPA to provide input based on
requirements application phases I & II based on targeted
process for targeted investors. 2) IPA CRM certified training to investors initiative.
certify all regional offices to
3) OSS to validate and issue either issue either a provisional license 3) OSS/ECA/IPA to identify
a provisional license (pre license) (pre license) or an active license required resources/systems/
or an active license. independently based on operations of online licensing.
targeted investor’s hit lists by
4) IPA team to follow thru on region.
activation in time bounded
interval. 3) IPA CRM international role to
follow thru on activation in time
bounded interval, fast track, and
activate VIP services i.e. Visa
issuance etc.
4) IPA to identify additional
services based on targeted
investors and invest in Saudi
strategic work in which
outcomes will be
institutionalized during this
phase.
5) SLA agreement with all
stakeholders to be developed
jointly.
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5. OUR OPERATIONS
An Insight to the way we monitor things ... TRACK’EM
HOW ?: the process of WHY ?: this data is used
collecting and organizing all to improve the investment
DID you know ??
conversion process by:
the data related to SAGIAs
at the end of 2010, a total of 918
interaction with investors, • Providing up to date
investors have been tracked: :
including: and sharable
information on each
• Investor contact
• 918 (Aware) as Total
investor engaged with
information Tracked investors.
any SAGIA employee
• Investor meeting • 281 (Attracted) Potential
• Monitoring the investor
minutes attraction process to investors moved to
learn from successes, attraction by signing MOU
• Potential Investor Or showing more interest
obstacles…etc
stage: AAA in existing Opportunities.
• Using this data to build
• Next steps & action
strategies and action • 53 (Action) Investors
items
items in support of Issued new licenses & start
converting each business in KSA.
investor to the Action
stage
Track’em
A monthly reporting mechanism that monitors all AWARENESS, ATTRACTION and ACTION
conversion rates , that helps pave the way to achieving our KPI’s.
Diagram below give sample of brief status report for January and February of 2011
30 MONTH AWARENESS ATTRACTION ACTION
January 27 17 0
22.5 February 23 6 0
Total 50 23 0
15
7.5 Activities are aimed to enhance
Action conversion rates and achieve higher
0 Attraction targets for action.
Key tarket on average 20% converstion
Awareness
rate
January February
For more information please contact Trackem@sagia.gov.sa
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6. Conflict-battered Iraq has received around
$5.06 billion while the occupied Palestinian
territories emerged with one of the lowest
levels of FDI, which totaled around $1.2
GLOBAL
billion due to persistent tensions and
Israeli restrictions.
The report showed FDI flow into the GCC
FDI TRENDS :
declined in 2009 for the first time in many Global Distribution
years because of the 2008 global fiscal
crisis. From around $60 billion during Emerging markets have a larger
2008, FDI into GCC dropped to nearly $50 share of FDI flows coming out of
the recession
FDI Watch in the Region billion last year.
– Nine non-developed economies
Only Qatar bucks the trend as economic A breakdown showed the UAE was the
are in the top 20 FDI countries
crisis hits FDI flow into remaining GCC main victim of the downturn, with FDI (e.g. China and India)
countries. inflow tumbling from around $13.7 billion
The UAE has attracted more than $73 in 2008 to nearly $four billion in 2009, one ! Companies are increasingly
billion in foreign direct investment (FDI) of its lowest levels over the past 15 years. becoming internationalized (as
measured by number of foreign
since it was created nearly four decades ago FDI flow into Saudi Arabia slumped from a
record high of around $38.1 billion to affiliates divided by the number of
to emerge as the second top capital all affiliates) this trend continued
recipient in the region, according to UN nearly $35.5 billion in the same period.
accelerated during the recession
statistics. There was a decline in Bahrain and Oman
Saudi Arabia, the world’s oil basin, while Kuwait recorded a net inflow of $145
remained the largest Arab destination of million in 2009 compared with a negative
! Notable amongst the trends is
FDI, attracting nearly $147.1 billion, net flow of nearly $51 million. that Latin American companies
showed the figures by the United Nations Qatar was an exception in the Arab region, are becoming more and more
Conference on Trade and Development with FDI inflow more than doubling from globally; moving from 5% in 2009
around 4.1 billion to $8.7 billion in the to 8% of cross-border M&A sales
(UNCTAD).
same period. Experts attributed the surge in 2010
Cumulative FDI flow into the UAE totaled
around $73.4 billion, nearly 26 per cent of to investments by the country’s foreign
the combined foreign capital received by partners in gas projects, which have turned ! !West Asia" saw a decline
Qatar into the top LNG supplier in the of 29% in FDI in 2009
the six-nation Gulf Cooperation Council
world, with its current production – However, Saudi Arabia only
(GCC), which controls over 45 per cent of
exceeding 40 million tones per year. declined 7%
the world’s oil.
Taken together, FDI by the UAE and Saudi Despite the sharp rise in FDI flow into the
Arabia accounted for around 80 per cent of GCC over the past 10 years, it remained a ! Dubai‘s debt crisis and the fall
of Turkey greatly impacted !West
the total FDI of nearly $278 billion received tiny fraction of the global FDI of nearly
$17.74 trillion, not exceeding 1.5 per cent. Asia"
by the 29-year-old GCC.
Qatar, the world’s top LNG exporter, Compared with FDI flow into developing
emerged as the third largest FDI target nations, the GCC also accounted for only ! Countries with stable
around 5.6 per cent of the total capital of financial systems, like Saudi
within the GCC, receiving nearly $28.1
$4.89 trillion. Arabia, are strategically
billion. It was followed by Bahrain, with
As for the UAE it accounted for around 0.4 positioned to acquire foreign
cumulative FDI of about $14.9 billion, companies coming out of the
according to UNCTAD. per cent of the world’s total, 1.5 per cent of
recession
FDI flow into Oman stood at around $13.2 the FDI in developing countries and over 10
billion while Kuwait emerged as one of the per cent of the Arab FDI.
least attractive investment destination in
the region, with only $986 million.
Outside the GCC, Egypt was the largest FDI
recipient and the third in the whole Arab
world, with cumulative FDI of about $66.7
billion.
It was followed by Morocco with around
$40.7 billion, Lebanon, with $32 billion,
Tunisia with nearly $31.8 billion, Jordan
with $18.7 billion and Algeria with $17.3
billion. Source: Middle East Business News
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