...Yasmin - Nada and Mominah CONTENT Company Background 3 Industry Background 3 Strategic Analysis Phase 4 Analysis of Vision and Mission Statement 4 Vision 4 Mission Statement 4 External Analysis 5 Political Analysis 5 Economic Analysis 5 Fiscal policy 6 Monetary policy 6 Socio-cultural Analysis 6 Technological Analysis 7 Legal Analysis 7 Environmental Analysis 8 Industry Analysis: Five Forces Model 9 Internal Analysis 10 Value Chain Analysis 10 Appendix 15 Appendix 1.0 15 Appendix 1.1 16 Appendix 1.2 16 Appendix 1.3 17 Company Background As the major electricity provider serving almost 6 million customers in the Kingdom of Saudi Arabia, SEC is responsible for generation, transmission and distribution of electricity throughout the Kingdom. Wholly owned by shareholders, the SEC also sets the price of electricity sold to consumers and industry under rules set by the Saudi government based on the cost of production, distribution and services. On 05/04/2000, Saudi Electricity Company was established as a Saudi joint stock company. This stipulated the merger of all Saudi electricity companies in the Central, Eastern, Western and Southern Regions in addition to the ten small companies operating in the north of the Kingdom as well as all other electricity operations managed by The General Electricity Corporation, into a single joint stock company which is now known as Saudi Electricity Company. It is a Riyadh-based utility, with 80%...
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...The Impact of multinational companies A case study of the energy industry in Saudi Arabia Abstract Contents 1. Introduction 4 1.1. Rationale of the Research 6 1.2. Aims & Objectives of the Research 7 1.3. Key Research Questions 7 2. Literature Review 9 3. Research Methodology 13 4. Key Findings & Discussion 13 5. Conclusion 16 6. References 16 7. Appendices 16 1. Introduction In this era of globalization, there has been a fundamental change in the way international business is being done. Due to the ease of communication and advances in the sophisticated communication systems more and more companies are becoming global and expanding their operations and creating production facilities away from their home countries. This trend has given rise to today’s Multinational Corporations (MNCs) whose role in the international scene is increasing rapidly. With increased international development and cooperation, the MNCs have been able to create such a network that their budgets, organizational structure and influence on the world trade stage rivals many nations [ (UN Conference Proceedings, 2006) ]. With their immense economic power and strong political connections and the fact that globalization is seen as a “Business driving phenomenon”, MNCs are in a strong position to influence the economies of the countries...
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...Energy in Saudi Arabia Table of Contents Subject | Page | Introduction | 2 | Consumption of Energy | 3 | Renewable Sources of Energy in Saudi Arabia | 4 | * Solar | 5 | * Nuclear | 5 | * Wind | 6 | * Waste –to- Energy | 6 | * Geothermal | 6 | Water | 7 | Water Desalination | 7 | World’s Largest Solar Powered Desalination Plant | 8 | Al- Midra Tower | 9 | Conclusion | 11 | References | 12 | Introduction Saudi Arabia is the world's top oil exporter and producer. Saudi Arabia's economy is petroleum-based; Oil actually accounts for 90% of the country's exports and nearly 75% government revenues. Oil is also the major source of energy in Saudi Arabia. A lot of energy is used to desalinate water. Water is scarce in a country that is surrounded by sea from East and West. Desalination consumes a lot of energy, although improvements had been made to make it more efficient. In this report, I will discuss the current and future energy sources in Saudi Arabia. In addition, I will talk about the water desalination in Saudi Arabia. Finally, I will talk about one building in Saudi Arabia that got LEED Platinum award from United States Green Building Council (USGBC) assessment. Consumption of Energy Saudi Arabia's economy is petroleum-based; Oil actually accounts for 90% of the country's exports and nearly 75% government revenues. The country has one of the largest reserves of natural gas in the Arabia Gulf Region. Its...
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...PROJECT CONTRACTUAL RELATIONSHIPS 10. DEVELOPMENT STAGES 11. OPPORTUNITIES 12. CONCLUSION 2 INTRODUCTION SAUDI ELECTRICITY COMPANY WAS ESTABLISHED IN 2000, BY MERGING ALL SAUDI REGIONAL ELECTRICITY COMPANIES TOGETHER WITH PROJECTS OF THE ELECTRICITY CORPORATION INTO A SINGLE ENTITY THE SAUDI GOVERNMENT OWNS 81% OF SEC SHARES IN 2006 , SEC POWER GENERATION WAS 31 GW COMPARED TO 1.4 GW IN 1976. NUMBER OF PRESENT POWER PLANTS IS 70 , IN 2006 SEC HAS PURCHASED 4 GW FROM SWCC AND LARGE CUSTOMERS, IN 2006 , THIS WILL RAISE TO 21 GW DUE TO FUTURE IPP/IWPP PROJECTS CURRENT SEC POWER TRANSMISSION INCLUDES 132/230/380 KV VOLTAGES WITH 380 KV INTERCONNECTIONS BETWEEN CENTRAL & EASTERN REGIONS AND FUTURE LINK TO GCC NETWORKS (UNDER CONSTRUCTION) ESTIMATED CAPITAL EXPENDITURE OF SEC FOR THE NEXT 10 YEARS IS SR 190 BILLION 3 HISTORICAL SUMMARY OF SEC POWER DEMAND THE HIGH GROWTH IN POPULATION AND ELECTRICITY POWER DEMANDS IS SHOWN BELOW FOR: YEAR 1976 POPULATION – 7.7 MILLION POWER DEMAND – 0.9 GW YEAR 2006 POPULATION – 23.7 MILLION POWER DEMAND – 29.9 GW YEAR 2024 POPULATION – 50 MILLION POWER DEMAND – 70 GW 4 WHY IPP? MASSIVE INVESTMENTS TO MEET HIGH GROWTH RATE IN BOTH RESIDENTIAL AND INDUSTRIAL DEMANDS ATTRACT PRIVATE SECTOR INVESTMENTS (FOREIGN & LOCAL) IN POWER INDUSTRY EXPAND CITIZENS OWNERSHIP THROUGH FUTURE INITIAL PUBLIC OFFERINGS INCREASE SAUDI EMPLOYMENT OPPORTUNITIES PROVIDE A FINANCIAL OPTION TO RE-DIRECT AVAILABLE SEC FUNDS TO TRANSMISSION AND DISTRIBUTION...
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...Saudi Cement Company: “Survival is the name of the game in a very competitive industry” Dr. Salem M. AL-Ghamdi King Fahd University of petroleum and minerals Dhahran, Saudi Arabia Abstract This is a case study on a Saudi Arabian company known in the cement industry. Saudi Cement Company (SCC) is a Saudi joint company established in 1955. The company is listed in the Saudi stock market. The information was collected through a structured questionnaire and from secondary data. The case write-up fits a case study in a strategic management undergraduate and graduate course. Information was organized to provide insights on how the company evolves overtime with an emphasis on strategic issues such as vision and mission, internal analysis via company’s current operation, External analysis using Porter five force model and major strategic issues Keywords: Strategy and policy, Saudi cement industry, Porter five force model, vision and mission, SWOT analysis. COMPANY BACKGROUND Saudi Cement Company (SCC) is a Saudi Joint Company established in 1955. The principal object of the company is to produce cement and cement products and to invest in the cement fields. SCC operates two cement plants in the Hofuf Plant and Ain Dar Plant in the Eastern Province of Saudi Arabia, located about 36 km apart and are both at an approximately equal distance of around 120-130km from King Abdulaziz Port at Dammam. Below is a brief history of the Company: ...
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...Saudi Arabia PEST analysis Policital factors Saudi Arabia is politically a very stable country in the Middle East since it is ruled by the Al Saud dynasty's which main goal is to concentrate on modernization and on developing the country's role as a regional power. It is general known that Saudi Arabia is the biggest petroleum exporter in the world which was discovered on March 3rd 1938. Before that the country was only a trade-based economy. The Kingdom is besides a member of the OPEC, the Organization of Petroleum Exporting Countries. It is of importance to mention that Saudi joined the WTO – the World Trade Organization - on 11th December 2005. This well-known organization reviewed the corresponding trade policies and practices in January 2012. Responsible for the developing followed by the realization of Saudi’s trade policies is the Ministry of Commerce and Industry, the MCI. To enter Saudi Arabia by air you will need a Visa and valid passport for at least another six month from the date of entry. The country has two major visa options, a travel and a working one. A working visa which should be applied through a visa agencies accredited to the Royal Embassy of Saudi Arabia. Besides a business partner, any Saudi business that “hold a majority interest in the company”1, is needed, who acts as a sponsor which is required as well for doing business in SA. Be aware, “you may be refused entry to Saudi Arabia if your passport contains evidence of previous travel to Israel or indicates...
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... In Middle East, the Saudi Arabia telecom industry is the largest with over fifty million mobile phone subscribers. At the end of 2011, the mobile penetration was about 188% with the sector enjoying stable growth. Saudi Arabia is the world’s largest oil exporter with oil being its largest income earner. However, to avoid the overreliance on the oil sector, the government of Saudi Arabia has been embarking on measures to diversify the economy through investments in other sectors as well as privatization of some industries. Their efforts have been successful and the telecommunication industry have benefitted from this diversification with a good growth rate which seems to be sustainable in the future. The United Arab Emirates on the other hand has had an unstable growth rate in their telecommunication industry. This paper compares the telecommunication industries of Saudi Arabia and United Arab Emirates and shows how economic diversification has been successful in growing the non oil sectors in Saudi Arabia. In addition, recommendations will be provided on improving the telecom sector of the UAE. Introduction to Saudi Arabia and its Economic development Saudi Arabia occupies the largest part of Arabian Peninsula, it is located on a 1,960,582 sq km area most of it being a desert. Saudi Arabia hosts about twenty eight million citizens with more than 80% living in the urban areas. 90% of its citizens are Muslim Arabs (Saudi Arabia, 2001). Saudi Arabia hosts Median and...
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...CEPCO (Civil and Electrical Projects COntracting) is a leading construction company with corporate headquarters in Jeddah, Saudi Arabia, and offices throughout Saudi Arabia and the Middle East. CEPCO has been in business since 1977 and provides construction services in the fields of Civil & Infrastructure, Electrical, Electromechanical, Oil, Gas & Power. CEPCO executes projects for civil and electrical projects in Saudi Arabia and in GCC countries, especially in the field of 69 up to 380 kV Cable Systems, Delivery, Installation and Testing of 110 kV Transformers and Substation Construction. They are qualified Turnkey-General Contractors with Saudi Electricity Company – Western, Eastern, Southern and Central Regions. CEPCO has executed a number of projects and had a turnover in excess of $150 million in 2007, and $500 million until end of 2008. In addition to construction services, CEPCO is an authorized agent for world class manufacturers and provides related support and field services. As a privately owned company, CEPCO's current strategy is to enhance its growth by building the company's resources and depth of services provided. Contents [hide] 1 Project fields 1.1 Civil and Infrastructure 1.2 Electrical 1.3 Electromechanical 1.4 Oil, Gas and Power 2 Trade 2.1 Authorized agents 2.2 Associates/Partners 3 References Project fields[edit] Civil and Infrastructure[edit] Specialized for turn-key contracts for water distribution, rainwater evacuation schemes...
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...Country Briefings: Azerbaijan and Saudi Arabia Marvin Labre Sarah Garstecki Kalle Stenbaek Trenton Norton Table of Contents Economic Environment………………………………………………………………………....3 Azerbaijan…………………………………………………………………………….....3 Saudi Arabia………………………………………………………………………….....5 Political and Regulatory Environment...………………………………………………………..6 Azerbaijan………………………………………………………………………………6 Saudi Arabia………………………………………………………………………….....6 Cultural and Societal Framework………………………………………………………………7 Azerbaijan………………………………………………………………………………7 Saudi Arabia………………………………………………………………………….....9 Technological Environment…………………………………………………………………....10 Azerbaijan………………………………………………………………………………10 Saudi Arabia…………………………………………………………………………....10 Conclusion……………………………………………………………………………………...10 References………………………………………………………………………………………12 Economic Environment Azerbaijan Azerbaijan is a developing country that is heavily dependent on the exportation of gas and oil for its economic status. Other forms of sustainable economic consistency are from non-export organizations such as construction, banking, and real estate (CIA: World Factbook). Even in times of various economic trends, the country maintains its middle-class economy through the increase/decrease of the prices of their main resources. It’s from the positively consistent results that the government permits pervasive corruption and structural economic inefficiencies from these local companies to pose as an obstacle to their...
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...Case Study Summary (SAUDI STOCK MARKET) The purpose of this article is to illustrate a simple and easy method to identify undervalued stocks in Saudi Stock Market to enable the investors for making well informed and conscious investment decisions. Actually, Investing is the act of committing money or capital to an endeavour with the expectation of obtaining an additional income or profit. True investing doesn't happen without some action on our part. A "real" investor does not simply throw his or her money at any random investment; he or she performs thorough analysis and commits capital only when there is a reasonable expectation of profit. Yes, there still is risk, and there are no guarantees, but investing is more than simply hoping Lady Luck is on our side. It is much the same with investing in equities but most of the Saudi investors ignored this basic principle of investment. This is evident from the volatility of the Saudi stock market during the past 12 months which witnessed high speculation, lack of direction, and overall confusion that led to the rise and fall of the Saudi stock market index (TASI) beyond justifiable levels. The aim of investing in equity is to get a healthy return by holding the stock for a longer duration. The return on a stock (dividends and price appreciation over the holding period) is tied to the future performance of the company. Further, an investor should know why he is buying or selling a particular stock and the timing of his buy-...
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...Summary Report Executive Summary After analyzing PEST analysis of Indonesia and Saudi Arabia, I came to know it has some advantage and disadvantage in term of legal policy, economic factor, social, geographic and technological factor. Although GDP growth rate, labor force, and lending interest rate are more in Indonesia, they have unstable central government, huge population, high inflation, persistent corruption and natural disaster. Indonesia’s investment climate ranks poorly in international comparisons. The World Bank’s Doing Business 2007 report ranks Indonesia 135th out of 175 economies on ease of doing business. Macroeconomic instability is still viewed as the biggest obstacle, followed by poor transportation service and corruption in electricity such as stealing. Other major obstacles include labor skills, tax administration, cost of financing, and labor regulation which raise the cost and uncertainty of doing business. In Indonesia FDI is restricted in most of the sectors and the business environment is not good，so I recommend do not invest in Indonesia and Saudi Arabia has the strongest political, economic, legal systems providing the best opportunity and potential for overseas expansion. Friendly government business regulations and vast petroleum reserves might be indicative of low political and financial risk for foreign direct investment and therefore a strong candidate for overseas growth. The year over year increase in GDP might also indicate that the general...
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...Oil, Bless or A Curse? Countries around the world have many sources of revenue which they can benefit from. Oil is a substantial source for many of them. Not only exporting countries advantage from it, also importing countries. This essay will focus on the effects of oil revenues on national economies, the effects of oil prices on oil- consuming economies and the economic alternative to oil production and consumption. Many economies depend on oil as their main source of revenue. It has many effects on these economies, positive and negative. To start with, income from oil reduces poverty in the society and improves its welfare. Oil revenue also contributes highly in the producing countries GDP. Angola, for example is the place where most of Africa’s oil is produced, exports 1.9 million barrels per day. Exporting countries can also use oil in funding schools, hospitals and construction. Low oil prices would normally be considered a downside, but sometimes it forces oil exporting countries to diversify its economy and use oil resources to develop other sectors which is in this case a good thing. On the other hand, low oil prices damage national economies and put a lot of pressure on governments to generate the best solution. Producing countries struggled heavily when oil prices went down and had to lay off large number of employees which gave poverty a rise. Even though the petroleum industry has its upsides, it still has many downsides. World Bank Report remarked...
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...state-owned company with the major career is mechanical fabrication and installation. Through 50 years of non-stop development, Lilama has grew up with the permanent employees of around 20.000. At present, Lilama is the leading EPC contractor in Vietnam with many national major projects such as Uong Bi Extension Thermal Power Plant, Dung Quat Oil Refinery, Son La Hydro Power Plant…. One of the strategic orientation and development goals is standardize and consolidate in order to lead Lilama to become a large industrial corporation in Vietnam and Asia, professional EPC contractor and manufacturer of mechanical equipment, has brand-name in the world and participate in the global product chain. The Middle East’s market is very huge, especially this market includes many big corporations such as Technip, Samsung, Hyundai, Bechtel, SK… Although financial crisis happened in 2008 but the owner of oil refinery plants in the Middle East still invested billions of dollars in upgrade, innovation, new plants construction. To realize that Lilama is the partner who has reality qualification, professional project management according to international standard, thus, in 2009, on the occasion of official visit of the Prime Minister in the Middle East countries, Lilama signed the cooperation agreement with Technip (French Contractor) in the Middle East market when Technip has contract. In October, 2009, Technip won 02 EPC contract belong to Jubail Oil Refinery Project in Saudi Arabia due to...
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...A P R I L 2 014 The disruptive potential of solar power David Frankel, Kenneth Ostrowski, and Dickon Pinner As costs fall, the importance of solar power to senior executives is rising. The economics of solar power are improving. It is a far more costcompetitive power source today than it was in the mid-2000s, when installations and manufacturing were taking off, subsidies were generous, and investors were piling in. Consumption continued rising even as the MAC Global Solar Energy Index fell by 50 percent between 2011 and the end of 2013, a period when dozens of solar companies went bankrupt, shut down, or changed hands at fire-sale prices. The bottom line: the financial crisis, cheap natural gas, subsidy cuts by cash-strapped governments, and a flood of imports from Chinese solar-panel manufacturers have profoundly challenged the industry’s short-term performance. But they haven’t undermined its potential; indeed, global installations have continued to rise—by over 50 percent a year, on average, since 2006. The industry is poised to assume a bigger role in global energy markets; as it evolves, its impact on businesses and consumers will be significant and widespread. Utilities will probably be the first, but far from the only, major sector to feel solar’s disruptive potential. Economic fundamentals Sharply declining costs are the key to this potential. The price US residential consumers pay to install rooftop solar PV (photovoltaic) systems has plummeted from...
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...ABOUT ALHANOO GROUP Right from the days of its inception in 1972, Al Hanoo Holding Company has been committed towards the development of the property sector in KSA and many other neighbouring countries. Besides properties, Al Hanoo Holding Company has also founded subsidiary companies that have a strong presence in Contracting, Gas and Electricity networks installation, Agriculture, Trading, and many other developing sectors. This diversified approach is what makes Al Hanoo a pioneer and an integral facet in the economic hub of various countries in the world. As of today, Al Hanoo Holding Company and its subsidiaries are pioneers in their own areas of expertise, and continue to achieve success after success with projects that make difference in people’s life, such as Nujoom Islands City. A project embraced by the sea from every side and covers a massive 60 million square feet. Group of Companies Marsa Al Nejoum : The landmark Blue Bay Project is brought to you by UAE based Marsa Al Nejoum Real Estate, a subsidiary of Al Hanoo Holding Co (UAE's leading real estate company), a pioneering group with impeccable real estate development credentials. Established in 1972, with its headquarters in KSA, Al Hanoo Holding has become one of the leading real estate master-developers in the UAE and other GCC region. Al Hanoo Holding has already established its credentials in the region, when it launched the successful Emirates Industrial City in Sharjah; this success has ensured...
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