This document presented opportunities for finance and investment in Saudi Arabia. It showed charts and data on topics like oil prices and production, GDP growth by sector, government spending packages, consumer spending indicators, stock market performance, bank lending, deposits and profits. Key data and forecasts were also provided for nominal GDP, real GDP growth, oil and economic indicators, government finances, inflation, external trade and social demographics through 2012. The overall document highlighted the strong economic growth and opportunities in Saudi Arabia.

1. Opportunities for Finance and Investment
Presented to US-Saudi Business Opportunities Forum
December 06, 2011
Ahmed al-Khateeb
Managing Director & CEO
1

2. Oil prices
150
140
130
120
110
100
($ per barrel)
90
80
70
60
50
40
30
Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11
Brent crude WTI
2

3. (thousand barrels per day)
10,000
7,500
8,000
8,500
9,000
9,500
Jan-08
May-08
Sep-08
Jan-09
Saudi Arabia: oil production
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11

4. Saudi Arabia: Real GDP growth by sector
16
12
8
(percent)
4
0
-4
-8
2004 2005 2006 2007 2008 2009 2010 2011f 2012f
Real non-oil growth Real oil growth Real GDP growth
4

5. Saudi Arabia: Real GDP growth by sector
(percent)
2008 2009 2010 2011 2012
Agriculture 0.7 -0.5 1.1 1.0 1.0
Manufacturing 6.0 1.5 4.2 5.5 4.5
Electricity, gas and water 6.7 6.8 6.0 7.0 7.0
Construction 1.5 0.6 3.7 6.0 8.0
Wholesale & retail trade 6.5 2.5 4.4 8.5 4.6
Transport & communication 12.2 6.9 5.6 5.0 4.5
Finance 2.4 3.0 1.4 2.1 3.0
Non-oil private sector 4.6 2.7 3.7 4.2 4.9
Oil 4.3 -8.5 2.1 14.4 -2.9
Government services 2.4 5.0 6.1 5.0 4.6
Total 4.2 0.2 3.8 7.1 2.7
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6. Saudi Arabia: Supplementary government spending packages
Item Allocation
($ billion)
Construction of 500,000 residential units 66.7
New funding for Real Estate Development Fund 10.7
Increase in capital of Saudi Credit Bank 5.3
Additional allocation to Ministry of Health 4.3
Support for General Housing Authority 4.0
Other funded commitments in February 24 package2 2.1
Other funded commitments in March 18 package1 0.5
Total 93.5
Other major items of new spending Jadwa estimate
(2011; $ billion)
Additional two month’s salary for government employees 10.7
Fifteen percent pay rise 8.5
Introduction of public sector minimum wage 3.2
Unemployment benefit 0.3 per month
1
Includes allocations to support those on low incomes and broaden social services.
2
Includes allocations for construction and renovation of mosques and support for religious institutions.
6

7. Saudi Arabia: Government finances
350
300
250
200
($ billion)
150
100
50
0
-50
2004 2005 2006 2007 2008 2009 2010 2011f 2012f
Revenue Expenditure Budget balance
7

8. Saudi Arabia: SAMA net foreign assets
550
500
450
($ billion)
400
350
300
250
Jan May Sep Jan May Sep Jan May Sep Jan May Sep
2008 2009 2010 2011
8

9. Saudi Arabia: Indicators of consumer spending
2.6 19
2.4
17
2.2
2.0 15
($ billion)
($ billion)
1.8
13
1.6
1.4 11
1.2
9
1.0
0.8 7
Jan May Sep Jan May Sep Jan May Sep Jan May Sep
2008 2009 2010 2011
Cash withdrawals f rom ATMs Point of sale transactions - RHS
9

10. Saudi Arabia: Inflation
20
16
12
(percent)
8
4
0
-4
Jan 2008 Jul Jan 2009 Jul Jan 2010 Jul Jan 2011 Jul
Food prices Rent Overall inflation
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11. Saudi Arabia: Inflows of foreign direct investment
40
35
30
25
($ billion)
20
15
10
5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: UNCTAD
11

12. MENA: Inflows of foreign direct investment
(2010)
30
25
20
($ billion)
15
10
5
0
UAE Lebanon Qatar Egypt Saudi Arabia Others
Source: UNCTAD
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13. Saudi Arabia: TASI
7000
6800
6600
6400
6200
6000
5800
5600
5400
5200
Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11
13

14. Saudi Arabia: TASI
12000
11000
10000
9000
8000
7000
6000
5000
4000
Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11
14

15. Saudi Arabia: TASI P/E
25
20
15
10
5
0
Jan May Sep Jan May Sep Jan May Sep Jan May Sep Jan May Sep
2007 2008 2009 2010 2011
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16. Saudi Arabia: Bank lending to the private sector
4 40
3 30
2 20
(percent)
(percent)
1 10
0 0
-1 -10
-2 -20
Jan May Sep Jan May Sep Jan May Sep Jan May Sep
2008 2009 2010 2011
Month-on-month Year-on-year - RHS
16

17. Saudi Arabia: Commercial bank loan-to-deposit ratio
92
90
88
86
84
82
(percent)
80
78
76
74
72
70
Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct
2008 2009 2010 2011
17

18. Saudi Arabia: Commercial bank deposits with SAMA
45
40
35
30
($ billion)
25
20
15
10
5
0
Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul
2007 2008 2009 2010 2011
Statutory deposits Other deposits with SAMA

19. Saudi Arabia: Bank profits
(year-on-year change)
100
80
60
40
(percent)
20
0
-20
-40
-60
Q1 2008 Q3 Q1 2009 Q3 Q1 2010 Q3 Q1 2011 Q3
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20. Saudi Arabia: Key data and forecasts
2004 2005 2006 2007 2008 2009 2010 2011F 2012F
Nominal GDP
(SR billion) 938.8 1182.5 1335.6 1442.6 1786.1 1397.5 1630.0 2079.2 1977.3
($ billion) 250.3 315.3 356.2 384.7 476.3 372.7 434.7 554.4 527.3
(% change) 16.7 26.0 12.9 8.0 23.8 -21.8 16.6 27.6 -4.9
Real GDP (% change)
Oil 6.7 6.2 -0.8 -3.6 4.2 -7.6 2.1 14.4 -2.8
Non-oil private sector 5.3 5.8 6.1 5.5 4.6 2.7 3.7 4.2 4.9
Non-oil government 3.1 4.0 3.1 3.0 3.7 5.2 5.9 5.0 5.0
Total 5.3 5.6 3.2 2.0 4.2 0.2 3.8 7.1 2.7
Oil indicators (average)
WTI ($/b) 41.5 56.6 66.0 72.3 99.7 62.0 79.5 94.0 86.0
Saudi ($/b) 34.7 49.5 60.5 68.1 93.4 60.5 77.7 105.0 92.0
Production (million b/d) 8.9 9.4 9.2 8.8 9.2 8.2 8.2 9.2 8.8
Budgetary indicators (SR billion)
Government revenue 392 564 674 643 1101 510 742 1097 824
Government expenditure 285 346 393 466 520 596 645 809 753
Budget balance 107 218 280 177 581 -87 97 288 71
(% GDP) 11.4 18.4 21.0 12.2 32.5 -6.2 5.9 13.9 3.6
Domestic debt 614 475 366 267 237 225 167 160 160
(% GDP) 65.4 40.2 27.4 18.5 13.3 16.1 10.2 7.7 8.1
Monetary indicators (average)
Inflation (% change) 0.3 0.7 2.3 4.1 9.9 5.1 5.3 4.9 4.4
SAMA base lending rate (%, end year) 2.50 4.75 5.20 5.50 2.50 2.00 2.00 2.00 2.00
External trade indicators ($ billion)
Oil export revenues 110.4 161.6 188.2 205.3 281.0 163.1 214.9 305.2 232.8
Total export revenues 125.7 180.4 210.9 233.1 313.4 192.2 251.0 346.8 277.2
Imports 41.1 53.8 63.0 81.5 100.6 86.4 96.7 102.5 114.7
Trade balance 84.6 126.6 147.8 151.6 212.7 105.8 154.3 244.3 162.5
Current account balance 51.9 90.0 98.9 93.3 132.3 21.0 67.0 162.9 81.6
(% GDP) 20.7 28.5 27.8 24.3 27.8 5.6 15.4 29.4 15.5
Official foreign assets 127.9 195.5 273.4 359.8 502.0 474.2 520.3 637.2 697.3
Social and demographic indicators
Population (million) 22.7 23.4 24.1 24.8 25.5 26.3 27.1 27.9 28.8
Unemployment (male, 15+, %) 11.0 11.5 12.0 11.0 9.8 10.5 10.2 11.0 10.5
GDP per capita ($) 11039 13503 14806 15523 18651 14158 16017 19849 18308
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