create jobs and create development. However, what distinguish this matter is that the decision is 100% totally owned by the government. The government today has made a decision requiring that any industry should be linked to local content (i.e. | will not buy from you unless you tell me how much you give me local content). There are types of industries, low-sensitive technology industries and in this case other countries do not have the embarrassment of being transferred to you 100% inside Saudi Arabia, such as light weapons or ammunitions or what can be included under it or spare parts or structures, etc. And there are a medium-sensitive technology industries, some countries have a certain sensitivity, we try to get out of the deal a certain percentage for the local content, and sometimes we manage to reach 70% of the local content, sometimes 50%, and sometimes 20%. There are also complex industries that countries refuse to transfer technology to Saudi Arabia. Here, we stipulate that the main materials are through Saudi Arabia, which has an indirect impact on the local content inside Saudi Arabia, but the condition in the competent authorities in Saudi Arabia today is that no weapon deal without local content targeting 100 % of industry transfer. If we do not succeed we must end up in 2030 with 50% local content. This means that from 50% (S 70 billion) will be spent inside Saudi Arabia in 2030 and will gradually increase. His Highness has pointed out that today there is a range of armament deals will be announced in the coming period. In each deal, we will know how much the local content is, and how many job opportunities will be provided by it. Arming is the largest item in the local content. The second item is the automotive industry, where car purchases by the Saudis are almost S$ 30 billion a year, sometimes higher than and sometimes less than. The positive element is that $ 13 billion of these purchases are purchases for the Saudi government and we can start with the first stage is to provide the needs of the Saudi government through Saudi manufacturing companies that the Saudi government is contributing to. This will bring us 40% to 43% in 2030 in the automotive industry.
* Will there be a localization of the automotive industry?
- We will not try to offer goods to the citizen in the next ten years as cars, it will be very difficult to compete in prices and also to convince him of the quality required, but we can ensure that these deals for the government in exchange for creating this industry within Saudi Arabia, and the third most important item of the local content is entertainment and tourism (22 billion dollars a year out of Saudi Arabia on entertainment and tourism) This is the most difficult item because its decision in full to the Saudi citizen and there is no part of the purchases with the Saudi government, it is very difficult that you invest in an investment convince the Saudi citizen that instead of spending this money outside Saudi Arabia to spend it inside Saudi Arabia. Also target 50% in 2030. Under the local content, there are too many items, this (230 billion US dollars) of which we are targeting US $ 115 billion to be spent annually in Saudi Arabia and increasing gradually after 2030. Hence, until reaching 2030, these are all challenges and profitability in it are not as expected or as required and the risk is very high, no one will invest in it except the Public Investment Fund so that this sector succeeds and then privatize and sell in the stock market then Companies are listed in the stock market and the fund starts to recover its expenses and enters into another chance. This is the second sector targeted by the Public Investment Fund after mining. The third sector targeted by the Public Investment Fund is the logistics sector. We have three very large logistics opportunities and we operate very strongly. The most important opportunity is the Red Sea. 13% of the world trade passes through the Red Sea and Saudi Arabia provides nothing at this field (zero services), and here are huge opportunities to work along the Red Sea for many exports and imports of countries. We began today to work with many countries since the recent time headed by
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