[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]
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