The Future?, page-299

SAUDI ARABIA…

THE HEART OF THE ARAB AND ISLAMIC WORLDS
THE INVESTMENT POWERHOUSE
THE HUB CONNECTING THREE CONTINENTS

Integrating regionally and internationally

With a GDP of SAR 2.4 trillion, our economy is already the largest in the Middle East.

We enjoy close economic ties with the Gulf Cooperation Council and other Arab countries, as well as constructive relations with Islamic and foreign countries.

We will seek to establish new business partnerships and facilitate a smoother flow of goods, people and capital. Among our top priorities is to fortify and extend our interconnectivity and economic integration with other Gulf Cooperation Council countries.

We will strive to complete the process of implementing the GCC common market, unifying customs, economic and legal policies, and constructing shared road and railway networks.

We will seek to effectively link with other countries in the region, through enhanced logistics services and new cross-border infrastructure projects, including land transport projects with Africa through Egypt.

Logistical and trade exchanges will be streamlined, further cementing our pre-eminent position as a major trade hub.

Saudi Arabia is right at the crossroads of important international trade routes, between three continents: Asia, Europe and Africa.

We will therefore maximize the benefits from our exceptional and strategic geographic position, agree new strategic partnerships to grow our economy and help Saudi companies to increase exports of their products.

We will leverage the close proximity of energy sources and our distinctive logistical offer to stimulate a new phase of industrialization and to catalyze exports and re-exports.

https://vision2030.gov.sa/en

The automotive sector in Saudi Arabia

The automotive industry is a key pillar of the global economy, a main driver of macroeconomic growth and technological advancement in developing and developed countries.

The value chain for the automotive industry is wide and covers many other adjacent industries and, hence, creates a multiplier effect much higher than any other industry.
Saudi Arabia is considered one of the largest automotive markets in the Middle East.

Moreover, the addition of 3 million women drivers to the automotive market by 2020 will open a host of incremental opportunities for investors and industry participants, ranging from car sales to motor insurance, vehicle leasing and driving schools.

The government is seeking to develop a domestic automotive industry and has encouraged global vehicle manufacturers to establish local operations, in an effort to create jobs for the country’s growing youth population and facilitate the transfer of technology and skills.

Saudi Arabia is currently developing a car manufacturing city and working to incentivize investors to inject money into the industry.

The Kingdom will also provide the required raw materials including aluminum, rubber, plastics and others at competitive prices.

The Auto Cluster aims to attract Saudi and foreign investment, increase exports, provide job opportunities, and contribute to economic diversification as part of its 2030 Vision reform plan.

Saudi Arabia already has more than 8 million passenger vehicles in operation, and this will increase significantly in the coming years, with potentially 9 million new drivers added to the roads.

Saudi automotive dealers will be the first to benefit, along with banks and insurance companies that finance and underwrite new car purchases.

According to Messe Frankfurt Middle East, Saudi Arabia is already the Gulf region’s largest auto aftermarket, with revenues from tires, batteries, lubricants and engine components and accessories valued at more than $7.1 billion in 2017.

Early estimates had projected the market to be worth $8.9 billion by 2021.

However, with the recent decree allowing women to drive this year, the figure will likely be much higher.

In spite of the temporary sales decline which has affected most Saudi luxury dealers, I believe that the Kingdom’s automotive sector is set for a rapid transformation in the coming years.

Not only will the affordable mass market brands witness sales growth, but the 3 million female drivers expected to be added to the Kingdom’s roads by 2020 will also contribute.

www.arabnews.com/node/1460406

Megafactories

Benchmark Minerals was the first to track the global build out of lithium ion battery plants and the first to coin the term: Battery Megafactories.



The battery megafactory concept, Tesla’s Gigafactory 1, became a reality in 2016 and sparked a global battery arms race to shift the world to electric vehicles and energy storage.

These multi-gigawatt hour facilities are an order of magnitude bigger than their predecessors and the impact on the supply chains that feed them has been profound.

The lithium ion battery today is what the oil barrel was to the 20th century – the linchpin holding together these energy megatrends.

Our team travels the world and speaks regularly with lithium ion battery producers and consumers to assess the facts from the speculation.

www.benchmarkminerals.com/megafactories/