- Foreword
An introduction to the Industrial Clusters program from president, Azzam Shalabi.
ObjectivesSpecific goals of the Industrial Clusters program.
OrganisationHow the program and individual clusters are structured.
ExpertiseSpecific areas of expertise and key people within the program.
PartnersOrganisations that work closely with and support Industrial Clusters.
- Strategic advantages
More about the many advantages KSA offers industrial investors.
InfrastructureAn overview of KSA’s modern and expanding industrial and business infrastructure.
Human capitalEducation, training and demographics of KSA’s world-class labour pool.
Investment incentives and supportA guide to the incentives and support available to industrial investors.
- Labour regulations
More about working practices and regulations in Saudi Arabia.
Trade agreementsSaudi Arabia is an active member in many trade organisations worldwide.
TaxationLearn about Saudi Arabia's highly favourable taxation and duty levies.
Setting up a businessHow Industrial Clusters can advise on establishing a business in KSA.
SAGIAThe Saudi Arabian General Investment Authority can facilitate investment and support.
- Minerals and Metal Processing cluster
The opportunities for metals and minerals industries and downstream applications.
Automotive clusterWhy KSA is well-placed to meet growing demand for vehicles and vehicle components.
Plastics and Packaging clusterHow plastics conversion builds upon the success of KSA’s petrochemicals industry.
Home Appliances clusterKSA’s resources can meet soaring demand for home appliances in the Middle East.
Solar Energy clusterMore about the potential for creating the components for and generating solar energy.
Other industriesBeyond the Industrial Clusters, KSA has a raft of long-established and successful industries.
Industrial Clusters program supportMore about the support Industrial Clusters can offer to industrial investors.
Advantages and opportunities
Home appliances are a great opportunity for the Kingdom of Saudi Arabia (KSA) and investors: vast numbers are imported, the conditions are right for volume production in KSA instead, and the country could even become a net exporter of these high value-added products.
The government's Industrial Clusters program (IC) is driving the development of KSA's Home Appliances cluster, together with Minerals and Metal Processing, Automotive, Solar Energy and Plastics and Packaging clusters.
Saudi Arabia is the largest market in Middle East-North Africa. Its population of 27 million is growing by 2.3% a year and the total number of households is expected to reach 6.1 million by 2015.
KSA's GDP per capita is $23,807 and the economy is growing by 5% - 6% a year. Saudis are relatively affluent and increasingly able to both afford and regularly replace consumer durables.
The forecast demand for new home appliances includes:
- 681,000 washing machines in 2011, increasing to 960,000 in 2013
- 474,000 fridges in 2011, rising to 519,000 in 2013
- 201,000 cookers in 2011 and 211,000 in 2013
- 1,038,000 air-conditioning units in 2011 and 1,166,000 in 2013
Due to changing purchasing priorities, KSA is now seeing particularly fast-growing demand for front-loading washing machines, freezers, dishwashers and tumble dryers.
Saudi Arabia can provide most of the natural resources, raw materials and products required to supply a growing home appliances sector. Among these are: oil; gas; zinc (for example for galvanising); technical gases (refrigerant); glass (doors); steel (housings, frames, motors and wiring); plastics, (moulded trims and parts); aluminium (extrusions); copper (piping); concrete (counterweights); and paint (finishes).
KSA has further significant strengths and advantages, in terms of both demand and supply. They include:
- A young population (24-45 is the most important age group for buying home appliances), helping to expand both the workforce and consumer demand
- An average family size equivalent to six adults, requiring heavy-duty home appliances such as a 7kg-load washing machine and top freezer of over 70 cm
- A preference for water- and energy-efficient front-loading washing machines and dishwashers
- Relatively frequent replacement of home appliances compared with other countries, on average every five years, due to intensive use and climate
- The abundant, reliable energy needed for high-volume production
- Easy, tariff-free access to Gulf Cooperation Council and Greater Arab Free Trade Area markets
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