Coatings Industry News

Main News Page


SSPC, Industry Investors Partner with Saudi Arabia

Monday, July 24, 2017

Comment | More

With the support of the Ministry of Energy, Industry and Mineral Resources, the Saudi Arabian General Investment Authority recently signed 13 Statements of Intent with a group of local and international investors in the paint and coating sector.

This important step aims to build partnerships with the private sector and to chart a road map for investment in this vital sector. It will also enhance the availability of the most important materials, taking into account the strategic geographical location of the Kingdom and the industrial and economic ports on the Red Sea, through which more than 13 percent of the world’s trade traffic passes.

Bill Worms with Ibrahim Al-Omar
Courtesy of SSPC

SSPC Executive Director Bill Worms and SAGIA Governor Ibrahim Al-Omar shake hands following the signing of the SOI.

The Statements of Intent were signed following a meeting of paints and coatings sector investors, which was held recently at the SAGIA head office in Riyadh. Several government officials from the Ministry of Energy, Industry and Mineral Resources, SABIC and Aramco attended the meeting, as did executives from leading paints and coatings sector companies.

SSPC Representation

SSPC: The Society for Protective Coatings Executive Director Bill Worms participated in the meeting on behalf of the organization and discussed ways that SSPC could collaborate with SAGIA to help it achieve its development goals for the Saudi economy.

The meeting examined the key mechanisms of investment within the paints and coatings sector and its growth opportunities, as well as the initiatives designed to overcome the current challenges faced by investors. This agenda will be explored by the Saudi Paint and Coating Investors Committee (SPCC) announced during the meeting that will serve as a body to enhance cooperation between various government agencies and the business community to drive investment into the sector. The committee, however, will be led by the private sector.

SSPC will be a member of the Standards and Regulations, and the Institute, Coatings Academy, Training & Education subcommittees of the Council, which will have a role in overseeing sector development activities and implementation of solutions.

Committee Goals

The committee’s initiatives include supporting investors in cross-border trade by enabling them to export and access new markets. The committee also aims to establish zones or cities that are specialized in paints and coatings manufacturing that maintain a high level of attractiveness to potential investors.

Other initiatives include facilitating the provision of joint benefit services and facilities; the creation of attractive, profitable and tangible investment opportunities; and enhancing competition locally and internationally. The committee will also recommend the amendment or creation of relevant regulations or procedures to improve the business environment and coordination within the sector. The Saudi Arabian General Investment Authority will serve as the project management office for the committee.

Commentary

Ibrahim Al-Omar, governor of SAGIA, expressed his pleasure at the cooperation with the Ministry of Energy, Industry and Mineral Resources that culminated in the SOI signings and reflected upon the aspiration to transform these efforts into tangible developments in the investment in the paints and coatings sector.

"Through the Saudi Arabian market, investors are able to directly access more than 55 percent of the $140 billion global paint and coatings market,” he said. “The sector is growing rapidly not only in the Kingdom but also in the Middle East, North Africa, India and beyond. With a growth rate of 5.5 percent annually, the sector enjoys very competitive expansion rates."

Khalid Al Salem, president of the National Program for Industrial Clusters, expressed support for the paint and coating initiative by SAGIA, as well as for the SPCC.

“In view of the Kingdom's Vision 2030 and the National Transition Plan 2020,” Al Kalem said, “the investments in the paint and coating sector will contribute not only to increasing the percentage of local content by boosting the Kingdom's market share and thus increasing non-oil revenues, but it will open the door to investment in this sector for entrepreneurs to establish supporting small and medium enterprises. This is expected to create several thousand jobs directly and indirectly."

The investor meeting was complemented by numerous site visits to key locations across the Kingdom for the paints and coatings industry, including PetroRabigh, Kingdom Abdullah Economic City (KAEC) and the industrial cities of Jubail and Yanbu. All are uniquely placed to provide investors with key basic raw supply chain materials and ports providing a link to markets on three continents. These ports include the King Abdullah Port at KAEC and the King Fahd Industrial Port in Yanbu, situated next to 13 percent of the world’s trade flowing through the Red Sea.

The importance of these sites to the sector was reflected in the comments of Turki Hamdan, petrochemical advisor at SAGIA.

“These industrial cities and ports represent the real Saudi investment partnership story within the petrochemicals and refineries sector,” Hamdan said. “The basic chemical products already manufactured at these sites in Saudi Arabia are crucial to the production of basic materials in paints and coatings. We also have the strategic location to give investors access to exciting markets in Europe, Africa and Asia.”

   

Tagged categories: AS; Bill Worms; Government; Middle East; Program/Project Management; SSPC

Comment Join the Conversation:

Sign in to our community to add your comments.


Advertisements
 
DeFelsko Corporation

 
KTA-Tator, Inc. - Corporate Office

 
WEFTEC Show

 
Sauereisen, Inc.

 
SAFE Systems, Inc.

 
Strategic Materials Inc.

 
Tarps manufacturing, Inc.

 
 
 

Technology Publishing Co., 1501 Reedsdale Street, Suite 2008, Pittsburgh, PA 15233

TEL 1-412-431-8300  • FAX  1-412-431-5428  •  EMAIL webmaster@paintsquare.com


The Technology Publishing Network

PaintSquare the Journal of Protective Coatings & Linings Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy Policy   |   Terms & Conditions   |   Support   |   Site Map   |   Search   |   Contact Us