[Federal Register Volume 75, Number 143 (Tuesday, July 27, 2010)]
[Notices]
[Pages 43919-43921]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-17742]



[[Page 43919]]

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DEPARTMENT OF COMMERCE

International Trade Administration


Energy and Infrastructure Mission to Saudi Arabia: Third City 
Stop Added to the Trade Mission Itinerary

AGENCY: International Trade Administration, Department of Commerce.

ACTION: Notice.

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Mission Description

    The United States Department of Commerce, International Trade 
Administration, U.S. and Foreign Commercial Service (CS) is organizing 
an energy and infrastructure trade mission to the Kingdom of Saudi 
Arabia, December 6-8, 2010. Led by a senior Department of Commerce 
official, the mission to Saudi Arabia is intended to include 
representatives from a variety of U.S. energy and infrastructure 
industry suppliers and service providers. The mission will introduce 
mission participants to end-users and prospective partners whose needs 
and capabilities are targeted to the respective U.S. participant's 
strengths. Participating in an official U.S. industry delegation, 
rather than traveling to Saudi Arabia independently, will enhance the 
companies' ability to secure meetings in Saudi Arabia, especially in 
light of discussions on this topic between the Government of Saudi 
Arabia and the U.S. Ambassador to Saudi Arabia. The mission will 
include appointments, briefings and receptions in Riyadh and Dhahran, 
Saudi Arabia's primary energy and infrastructure industry hubs. Trade 
mission participants will have the opportunity to interact with 
Commercial Service (CS) specialists covering the energy and 
infrastructure industries to discuss industry developments, 
opportunities, and sales strategies.

Commercial Setting

    The Saudi Arabian energy and infrastructure sectors rank among the 
world's most dynamic. Government contracts worth approximately $140 
billion have been awarded so far this year, of which around $110 
billion were for non-oil projects. U.S. goods exports to Saudi Arabia 
in 2008 were $12.5 billion, up 20 percent from the previous year.

The Oil and Gas Sector

    Being the largest producer and exporter of crude oil, Saudi Aramco, 
the national oil company, is augmenting capacity to maintain a surplus 
production of 1.5-2.0 million barrels per day. The company is also 
expanding its Master Gas System, building an NGL recovery plant, a new 
grass-roots gas plant, and enhancing capacity at an existing plant. 
While the global recession that began in 2008 has presented new 
economic challenges, Saudi Arabia is pushing forward with many of its 
development projects in the oil and gas sector. In March 2009, the 
Saudi Arabian Ministry of Petroleum and Mineral Resources announced 
plans to spend approximately $60 billion on upstream and downstream 
operations through 2014. The budget includes allocations for 144 
projects, including 17 mega-projects (those valued at more than $1 
billion), 30 large projects, 17 medium-sized projects, and 80 small 
schemes.

Petrochemicals

    Industry sources believe that more than $70 billion in 
petrochemical projects are under development and Saudi Arabia Basic 
Industries Corporation has $48 billion projects planned for 2011-2020. 
The development of downstream, value added industry is a cornerstone of 
the government's efforts to diversify the economy away from oil and 
gas. The Saudi Government aims at consolidating the country's position 
as the leading bulk petrochemicals commodities producer of the 21st 
century: as such, a new wave of specialty petrochemical products is 
being developed, including polycarbonates, phenols, engineering 
plastics and thermoplastic olefins. Recent projects to produce 
specialty chemicals include the Saudi Kayan Petrochemical Company 
complex, which will produce the region's first polycarbonates and 
phenols; the mega Ras Tanura refinery upgrade and integrated 
petrochemicals complex, which will produce more than 300 different 
products, and the third-phase Saudi International Petrochemical Company 
(Sipchem) complex, which will produce synthetic fibers. The planned 
expansion at Jubail Industrial City II with around 20 petrochemical and 
infrastructure projects worth more than $21.6 billion dollars will also 
bring various opportunities for U.S. petrochemical and engineering 
companies, as well as to American U.S. manufacturers/suppliers of 
equipment, parts, supplies, and services related to the petrochemical 
industry.

Construction

    At a time when some Middle Eastern countries are facing financial 
difficulties, Saudi Arabia's star is clearly rising. With tens of 
billions of dollars of projects awarded, the Saudi construction sector 
is rolling forward. Saudi Arabia's ambitious rail plans are fueling 
activity in the infrastructure sector, with $30 billion worth of 
contracts under way or at the bidding stage. Likewise, the Saudi real 
estate market is set to grow significantly over the next four years. 
Saudi Arabia has the largest real estate market in the Gulf Cooperation 
Council (GCC), with more commercial (office, retail and residential) 
floor space than all of the other GCC countries combined. This 
impressive growth is being driven by a combination of a large and 
growing economy and strong demographic fundamentals. Among Saudi 
Arabia's super-projects are as many as six ``economic cities,'' to be 
completed by the year 2020 at an initial cost of US$ 87.8 billion, as 
part of a public-private partnership strategy led by the Saudi Arabian 
General Investment Authority (SAGIA). The ``cities'' are expected to 
contribute $150 billion to GDP, and to collectively create over 1.5 
million jobs by 2020, as well as living space for more than 2.5 million 
residents. Around $6 billion is being poured into Saudi Arabia's 
housing sector, to accommodate the population increase. Roughly $2 
billion is being spent on schools and universities.
    Billions more are going toward ultra-modern mega-commerce and 
tourism projects, and the country's strongly-competitive industrial 
sector. Hundreds of new factories are to be constructed. All of this 
fastpaced construction sector activity is creating a wealth of 
investment opportunity for American architecture, engineering, design 
and construction firms.
    Saudi Arabia's transport sector--including road infrastructure, 
airports and seaports--is also part of an ambitious investor-friendly 
expansion plan. Not surprisingly, these forward-looking plans are 
fuelling strong demand for a broad variety of cutting-edge construction 
materials and products from leading international suppliers.

Aviation

    The Kingdom of Saudi Arabia is the largest economy in the region. 
It is also the most populous country in the Gulf Cooperation Council 
(GCC) and, with its holy sites, is the focus of a vast market for 
pilgrimage and tourism that stretches across the entire Arab world. The 
country, however is lagging behind the booming regional aviation 
industry, and the infrastructure at the country's airports has become a 
source of concern to the Saudi authorities. Billions of dollars are now 
being invested in the Kingdom's main airports to improve the

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travel experience for the millions of pilgrims and tourists who enter 
the country each year.
    Energy and Infrastructure Trade Mission to Saudi Arabia offers an 
optional one-day stop in Jeddah for companies in the aviation sector, 
planned for December 5, 2010. For companies also traveling to Riyadh 
and Dhahran on December 6-8, additional cost for the optional aviation 
stop in Jeddah is $1,000 in addition to the trade mission fee. For 
companies wishing to travel to Jeddah only the cost is $2,000.

Mission Goals

    The short term goals of the energy and infrastructure trade mission 
to Saudi Arabia are to (1) introduce U.S. companies to potential joint-
venture partners and other industry representatives, and (2) introduce 
U.S. companies to industry and government officials in Saudi Arabia to 
learn about various program opportunities in those industries.

Mission Scenario

    In Riyadh, the U.S. mission members will be presented with a 
briefing by the U.S. Embassy's Counselor for Commercial Affairs, the 
Senior Commercial Specialist for the energy and infrastructure sectors 
and other key U.S. Government and corporate officials. Participants 
will also take part in business matchmaking appointments with Saudi 
private-sector organizations. In addition, they will attend a 
networking event with multipliers. In Dhahran, participants will 
receive a market briefing by the Senior Commercial Specialist for the 
energy and infrastructure sectors at the U.S. Consulate, and they will 
participate in one-on-one business matchmaking appointments, and 
networking activities. Energy participants will also receive a briefing 
on market opportunities by Saudi Aramco, the world's largest oil 
corporation.
    Matchmaking efforts will involve multipliers such as Council of 
Saudi Chambers. U.S. participants will be counseled before and after 
the mission by domestic mission coordinator. Participation in the 
mission will include the following:
     Pre-travel briefings/webinar on subjects ranging from 
business practices in Saudi Arabia to security;
     Pre-scheduled meetings with potential partners, 
distributors, end users, or local industry contacts in Riyadh and 
Dhahran;
     Transportation to airports in Riyadh and Dhahran;
     Meetings with Saudi Government officials;
     Participation in industry receptions in Riyadh and 
Dhahran;
     Meetings with CS Saudi Arabia's energy and infrastructure 
industry specialists in Riyadh and Dhahran; and
     Networking receptions in two cities of the trade mission.

Proposed Mission Timetable

    Mission participants will be encouraged to arrive December 5, 2010 
and the mission program will proceed from December 6 through December 
8, 2010.

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December 5..........................  Jeddah.
December 6..........................  Riyadh.
                                      Market briefings by U.S. Embassy
                                       Riyadh officials.
                                      One-on-one business matchmaking
                                       appointments.
                                      Networking reception.
December 7..........................  Dhahran.
                                      Travel to Dhahran.
                                      Market briefing by U.S. Consulate
                                       Dhahran officials.
                                      Networking reception.
December 8..........................  Dhahran.
                                      Meeting at Saudi Aramco.
                                      One-on-one business matchmaking
                                       appointments.
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Participation Requirements

    All parties interested in participating in the Energy and 
Infrastructure Trade Mission to Saudi Arabia must complete and submit 
an application for consideration by the Department of Commerce. All 
applicants will be evaluated on their ability to meet certain 
conditions and best satisfy the selection criteria as outlined below. A 
minimum of 10 and a maximum of 15 companies will be selected to 
participate in the mission from the applicant pool. U.S. companies 
already doing business in Saudi Arabia as well as U.S. companies 
seeking to enter the market for the first time are encouraged to apply.

Fees and Expenses

    After a company has been selected to participate on the mission, a 
payment to the Department of Commerce in the form of a participation 
fee is required. The participation fee will be $3,680 for large firms 
and $2,925 for a small or medium-sized enterprise (SME)\1\ or small 
organization, which will cover one representative. The fee for each 
additional firm representative (large firm or SME) is $500. Expenses 
for travel, lodging, most meals, and incidentals will be the 
responsibility of each mission participant.
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    \1\ An SME is defined as a firm with 500 or fewer employees or 
that otherwise qualifies as a small business under SBA regulations 
(see http://wwwsba.gov/services/contractingopportunities/sizestandardstopics/index.html). Parent companies, affiliates, and 
subsidiaries will be considered when determining business size. The 
dual pricing reflects the Commercial Service's user fee schedule 
that became effective May 1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
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    Energy and Infrastructure Trade Mission to Saudi Arabia offers an 
optional one-day stop in Jeddah for companies in the aviation sector, 
planned for December 5, 2010. For companies also traveling to Riyadh 
and Dhahran on December 6-8, additional cost for the optional aviation 
stop in Jeddah is $1,000 in addition to the trade mission fee. For 
companies wishing to travel to Jeddah only the cost is $2,000.

Conditions for Participation

     An applicant must submit a completed and signed mission 
application and supplemental application materials, including adequate 
information on the company's products and/or services, primary market 
objectives, and goals for participation. If the U.S. Department of 
Commerce receives an incomplete application, the Department may reject 
the application, request additional information, or take the lack of 
information into account when evaluating the applications.
     Each applicant must also certify that the products and 
services it seeks to export through the mission are either produced in 
the United States, or, if not, marketed under the name of a U.S. firm 
and have at least fifty-one percent U.S. content.

Selection Criteria for Participation

    Selection will be based on the following criteria:
     Suitability of a company's products or services to the 
mission's goals
     Applicant's potential for business in Saudi Arabia, 
including likelihood of exports resulting from the trade mission
     Consistency of the applicant's goals and objectives with 
the stated scope of the trade mission (as an example--be in the energy 
and/or infrastructure sectors indicated in the mission description)
    Referrals from political organizations and any documents containing 
references to partisan political activities (including political 
contributions) will be removed from an applicant's submission and not 
considered during the selection process.

Timeframe for Recruitment and Applications

    Mission recruitment will be conducted in an open and public manner, 
including publication in the Federal Register, posting on the Commerce 
Department trade mission calendar (http://www.ita.doc.gov/

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doctm/tmcal.html) and other Internet Web sites, press releases to 
general and trade media, direct mail, notices by industry trade 
associations and other multiplier groups, and publicity at industry 
meetings, symposia, conferences, and trade shows.
    Recruitment for the mission will begin immediately and conclude no 
later than September 15, 2010. The U.S. Department of Commerce will 
review all applications immediately after the deadline. We will inform 
applicants of selection decisions as soon as possible after September 
15, 2010. Applications received after that date will be considered only 
if space and scheduling constraints permit.

Contacts

    U.S. Commercial Service Domestic Contact: Sean Timmins, 202-482-
1841, [email protected].
    U.S. Commercial Service Saudi Arabia Contacts: Mr. Habeeb Saeed, 
U.S. Commercial Service Riyadh, Tel: 966-1-488-3800, 
[email protected].
    Mr. Ishtiaq Hussain, U.S. Commercial Service Dhahran, Tel: 966-3-
330-3200, [email protected].

Natalia Susak,
Global Trade Programs, Commercial Service Trade Missions Program.
[FR Doc. 2010-17742 Filed 7-26-10; 8:45 am]
BILLING CODE M