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May 11, 2017
By: Catherine Diamon
Saudi Arabian Minister of Commerce and Investment, Dr Majid Al Kassabi is set to launch the Kingdom’s first paint and coating industrial committee on May 24th at the Saudi Arabian General Investment Authority (SAGIA) in Riyadh. The establishment of the committee comes as the Kingdom is stepping up its engagement with local and foreign investors under Vision 2030, Saudi Arabia’s program to enhance the development and diversification of its economy. Key government stakeholder’s including Ministry of energy, Industry and Mineral Resources, Saudi Customs, and the Small and Medium Enterprise Authority will join CEO’s from the local and foreign private sector to discuss substantive issues affecting the market’s investment climate. The committee will also seek to explore the opportunities within the paint and coatings sector that the Saudi government has targeted for development due the Kingdom’s unique location at the heart of the growing local and regional demand for finished products. The demand in the Saudi paints and coatings market is growing at a rate of 5.5% per year. Furthermore, the Kingdom is a five-hour flight away from 55% of the global $140bn paint and coatings industry. This includes the rapid growth markets of India, the rest of Southeast Asia, and Africa. The private sector has already taken notice of the market potential and the changes underway in the Kingdom. Since the launch of Paint and Coating Industry Initiative, 13 local and foreign investors have agreed to sign non-binding statements of intent (SOI) with SAGIA to further discuss future investments in the Kingdom. Turki Al Hamdan, Advisor for Petrochemical Industries at SAGIA noted, “The SOIs are an indication that there is significant interest in exploring opportunities in the Saudi paints and coating market. As the advocate for local and foreign investors in the Kingdom, SAGIA stands ready to receive all inquiries and assist investors in their journey to establish themselves this sector that has huge untapped potential.”
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