High-Level U.S. and Saudi Arabian Business, Government and Civic Leaders Discus Energy, Utilities, Infrastructure, Petrochemicals, Agriculture, Knowledge, Trade and Investment at Second Day of U.S.-Saudi Business Opportunities Forum
Memorandums of Understanding and partnership agreements signed by numerous U.S. and Saudi companies
CHICAGO, April 29, 2010—Today, Chicago welcomed more than 1,100 Saudi Arabian and U.S. senior businesspeople, top government officials, civic leaders and others at the U.S.-Saudi Business Opportunities Forum, a two-day conference that seeks to highlight Saudi Arabia’s growing global financial and economic influence as well as its rapidly expanding economy. A delegation of approximately 200 Saudi government and business leaders traveled to Chicago for the event, held at the Sheraton.
This first-ever U.S.-Saudi Business Opportunities Forum is a major platform to discuss not only the need for enhanced cooperation at the national level but also an opportunity for Chicagobased, Midwest and national companies to network with their Saudi counterparts to identify specific commercial and investment opportunities.
The day’s panels ran concurrently:
“Opportunities in the Energy Sector” was moderated by Michael Dolan, Senior Vice President of ExxonMobil. Dolan welcomed panelists Munir Rafie, Vice President of Materials Supply for Saudi Aramco; Peter Oosterveer, Group President, Energy and Chemicals for the Flour Corporation; Paul Bonner, Business Director of Honeywell Process Solutions and Jeffrey S. Merrifield, Senior Vice President, Shaw’s Power Group. These corporate experts highlighted the current projects and developments within the Saudi energy sector, along with outlining the wealth of opportunities that exist for American companies. Saudi Arabia is the world’s largest producer and exporter of petroleum liquids and is currently the world’s second largest crude oil producer behind Russia. At the same time, the Kingdom is the fastest growing consumer of energy in the Middle East due to its rapidly growing population and large-scale development programs. Currently supplying over 10 percent of the world demand for oil, Saudi Aramco will spend $60 bill ion (SR225 billion) on upstream and downstream operations through 2014 in order to further advance the industry.
Experts in the field of water were brought together for the “Opportunities in Water and Electricity” panel, in which moderator Erik Fyrwald, Chairman & CEO, Nalco and panelists Ali Saleh Al-Barrak, President and CEO, Saudi Electricity Company; Nabil Habayeb, President & CEO, General Electric Middle East and Africa; Thamer S. Al-Sharhan, President & CEO, Marafiq and Anant K. Upadhyaya, Senior Vice President of Al Turki Group discussed the role of the private sector in ensuring that the Kingdom keeps pace with its rising demand for potable water and electricity.
The water and power generation sectors in Saudi Arabia are some of the fastest growing industries in the Middle East. In an effort to meet the ever-increasing demand, while at the same time restructuring the industries for greater effectiveness, the Saudi Government has initiated private ownership through independent water and power projects (IWPP) across the Kingdom.
Saudi Arabia has continued to aggressively expand its facilities and boasts the development of the world’s largest IWPP at the Marafiq complex.
“Meeting Saudi Arabia’s Infrastructure Needs” was moderated by Zuhair Fayez, President of Zuhair Fayez Partnership, and featured panelists William Hall, Executive Director, WorleyParsons; Dr. Tawfiq Al-Rabiah, Director General, Saudi Industrial Property Authority (Modon); Dr. Awwad Al-Awwad, Deputy Governor for Investment Affairs at SAGIA; C. David Welch, President, Europe, Africa, Middle East, Bechtel Ltd; Rami K. Al Turki, President, Al Turki Group and Mohammad Bajba, Deputy Executive Director, Ma’aden Aluminum Project. These leaders discussed the multitude of ways in which Saudi Arabia is developing its infrastructure, along with the investment opportunities for American companies to take part.
The Saudi Government is in the midst of an aggressive national development plan to diversify the country’s economy and bolster operations and investments across all key economic sectors.
Flagship projects such as the expansion of Saudi Arabia’s two industrial cities, Jubail and Yanbu, and the construction of six economic cities from the ground up serve as national icons for the myriad of development projects currently underway across the Kingdom and the critical infrastructure, telecommunications, power generation, utilities and transportation needed to support them. The Kingdom has launched unprecedented expansion programs that include the simultaneous construction of three major new rail lines, while upgrading all major airports and seaports. From a real estate perspective, the Saudi Government is addressing the need for the rise in housing demand, as the population growth is one of the highest in the world.
“Opportunities In Downstream Petrochemicals” was moderated by Charles S. Hallab, Chair, Middle East Practice, North America, Baker & McKenzie LLP. Hallab was joined by experts in downstream petrochemical industries, Mohamed Al-Mady, Vice Chairman & CEO, SABIC; James D. McIlvenny, SVP Performance Products Division, The Dow Chemical Company; Mubarak Al-Khafrah, Chairman, Tasnee; John Lefas, CEO, Ingenia Polymer and Ahmed Suliman Al Rajhi, Vice Chairman, Al Rajhi Group. The panelists examined the emerging emerging trends in the Saudi market and discussed how American companies can take advantage of opportunities in this sector. Despite the global economic downturn, the volume of the Saudi petrochemical industry is expected to triple. By 2015, Saudi Arabian Basic Industries Corporation (SABIC) is set to be the largest producer of petrochemicals in the world. Concurrent to the development of the petrochemical industry is the plastics sector, which the Saudi Government has identified as one of five areas of concentration for the National Industrial Clusters Development Program. Polymers are the current focus of the packaging cluster, which will in turn be used in bulk industrial packaging, particularly in the food and pharmaceutical industries.
The day’s special workshop, “Saudi Arabia’s Agriculture Initiative” was moderated by Adbullah Masry, Chairman and Director, Spectrum Holdings and included panelists Dr. Abdullah Al-Obaid, Deputy Minister for Research and Agricultural Development, Ministry of Agriculture; Abdullah Al-Hamoudi, Deputy Minister for Foreign Trade, Saudi Ministry of Commerce and Industry and Taha Asad Alshareef, Team Member, King Abdullah Initiative for Agro-Investment Abroad, Saudi Ministry of Commerce and Industry. The Saudi agriculture sector has continued to respond to the demand for food and water as a result of a rising population. Beginning in 2008, the Saudi Government began to drastically scale back the production of wheat and other water-intensive crops, and has emerged as a major purchaser of wheat from the United States and the global market. In an effort to adapt to the harsh climate of the region, Saudi Arabia is seeking to purchase farmland abroad in order to grow foodstuff in a more sustainable environment. The Saudi Government is encouraging the investment of farm projects abroad with the intention of eventually securing fish and livestock investments as well. The panelists discussed the Kingdom’s efforts to ensure future food and environmental security.
The luncheon panel, “Creating a Workforce for the Future,” focused on Saudi Arabia as having one of the fastest-growing populations in the world, and the Saudi government’s aggressive national plan to expand all key economic sectors and provide advanced technical and educational training for Saudi youth. Central to this endeavor is a massive educational investment program designed to better equip Saudi students for employment in the private sector. The government has heavily invested in the country’s education infrastructure, along with establishing targeted programs for Saudi youth to acquire the necessary skills to contribute to the Kingdom’s economic growth. The panel was introduced by Majed Al-Kassabi, Director General, Sultan Bin Abdulaziz Al-Saud Foundation, and panelists Rita Athas, President, World Business Chicago; Khaled Al-Turki, Chairman, Al-Turki Group and Dr. Lama Al-Sulaiman, Vice Chairman, Jeddah Chamber of Commerce and Industry discussed the various educational and vocational initiatives undertaken by Saudi Arabia to prepare the growing youth for professional careers.
The luncheon also included the signing of multiple Memorandums of Understanding (MOU), signifying collaboration between U.S. and Saudi businesses and organizations.
Abdulrahman Ali Al-Jeraisy represented Al-Jeraisy Group Co. in a signing with Robert Pew, Chairman of Steelcase. Jeraisy Group and Steelcase signed a Certificate of Achievement for 15 years of successful partnership. Rami K. Al Turki, Khalid Ali Al Turki & Sons Co. President, represented Khalid Ali Al Turki & Sons Co. in a JV signing with Andrew Bonham, President of Grace Construction Products.
Grace Saudi Arabia LLC and Khalid Ali Al Turki & Sons Co. are preparing to open two concrete admixtures manufacturing facilities in 2010; one in Dammam and the other in Jeddah. Jim Thomas, Xenel International, USA Chairman and Chief Executive Officer represented Xenel in a signing with Alan Kiruluk, Chairman of KIRCO. XCDC and KIRCO signed a Memorandum of Understanding to lease land in Orlando, Florida.
Aamer Alireza, Managing Director, Saudi Services & Operations Company, represented Saudi Services & Operations Company in a signing with Michael G. Kelly, Senior Vice President, Corporate Development, Trican Well Service (Overseas) Ltd. Saudi Services & Operations
Company and Trican Well Service (Overseas) Ltd. are setting up a joint venture company that will provide operations to oil and gas companies in Saudi Arabia, Bahrain, and the Partitioned Neutral Zone located between Saudi Arabia and Kuwait.
Denis Blain, President & General Manager, Hason Steel Products Inc., represented Hason Steel Products, Inc. in a signing with Mohammed Kurdi, General Manager, Xenel Group Marketing. Hason Steel Products Inc. and Hidada Ltd. are establishing a venture to manufacture
process equipment for the refining, petrochemical, gas, power, and desalination industries in Jeddah.
