[Federal Register Volume 75, Number 172 (Tuesday, September 7, 2010)]
[Notices]
[Pages 54300-54302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-22135]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
Energy and Infrastructure Mission to Saudi Arabia
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
-----------------------------------------------------------------------
Mission Description
The United States Department of Commerce, International Trade
Administration, U.S. and Foreign Commercial Service (CS) is organizing
an Information and Communication Technologies (ICT) trade mission to
the Kingdom of Saudi Arabia, April 2-5, 2011. Led by a senior
Department of Commerce official, the mission to Saudi Arabia is
intended to include representatives from a variety of U.S. ICT industry
suppliers and service providers. This trade mission will introduce
suppliers of information technology (IT) and communication products and
services to potential buyers and allow them to explore new business
opportunities. Participating in an official U.S. industry delegation,
rather than traveling to Saudi Arabia independently, will enhance the
companies' ability to secure meetings with potential buyers,
distributors, partners and industry officials in Saudi Arabia. The
mission will include appointments, briefings and a networking reception
in Riyadh and Jeddah, Saudi Arabia's primary ICT hubs. Trade mission
participants will have the opportunity to interact with Commercial
Service (CS) specialists covering the ICT industries to discuss
industry developments, opportunities, and sales strategies.
Commercial Setting
Saudi Arabia is the largest IT market in the Arabian Gulf,
estimated at $3.7 billion in 2010. The Communication and Information
Technology Commission (CITC), the Saudi government regulatory agency,
revealed that spending on ICT reached $5.96 billion in 2009, is
expected to reach at $7 billion in 2010, and projected to grow to $9.8
billion by 2013. The impact of the global economic downturn on the
country has been offset by business organizations' growing interest in
technology solutions, which boost efficiency and productivity. The
Saudi market will continue to be a lucrative market for high-tech
products and services over the next few years, supported by increased
government spending to upgrade the country's IT and communications
infrastructure. Additionally, the government's urban development
initiative to establish new economic cities, airports, universities and
other infrastructure projects will also stimulate growth in the ICT
sector. Other major factors that will influence ICT sector growth
include:
A young population, which is highly technology-oriented.
According to the CIA World Factbook, the percentage of population under
the age of 14 is 38%.
One of the world's lowest Internet penetration levels,
providing for a good growth potential.
The latest industry figures revealed that there were approximately
ten million internet users as of the third quarter in 2009, about 34%
of the total population, with a broadband penetration level of 8%.
Industry sources expect sales of hardware to grow annually at an
average of 7% over the next three years, while the market for IT
services will grow an average of 9% during the same period. According
to some estimates, per capita IT spending will reach $173 by 2014, as
personal computer (PC) penetration rises to more than 30%. The number
of PCs sold in 2009 was 2.1 million units, and is expected to grow to
7.2 million units in 2014.
Industry Developments
The Saudi government continues to prioritize the development and
accessibility of the latest ICT products and services. One of the Saudi
Shoura Council's (Saudi Parliament) strategic objectives is to raise
the IT sector's contribution to GDP from the current 4% to 20% by 2020.
The Council aims to raise broadband penetration from 8% to 23% by 2013.
Despite the economic downturn in 2009, the Saudi government pressed
ahead with its ambitious e-government plan and IT projects. The
government launched a $3.1 billion plan to improve the education
system, by equipping schools to keep pace with scientific and
technological activities, which will include the establishment of a
technologically integrated school system with the latest high-tech
products and services available to both students and teachers. In line
with the government vision to enhance the country's IT standing and
install a digital infrastructure, the Saudi market will present
excellent opportunities for U.S. manufacturers/suppliers of:
--DSL access switches, enabling multi-service transmission equipment.
--Fiber-optic satellite links.
--Wideband transceivers.
--Network protocol software and systems.
Additionally, there will be growth potential for PCs, notebook
computers and IT accessories and services. Collectively, these product
categories generated sales that reached $2.9 billion in 2009, including
about $1 billion for IT services. Industry sources estimate that total
spending on ICT products and services will reach $9.8 billion by 2013.
Total U.S. goods exports to Saudi Arabia in 2009 were $10.8
billion.
[[Page 54301]]
Mission Goals
The short term goals of the ICT trade mission to Saudi Arabia will
be to:
(1) Introduce U.S. companies to potential joint-venture partners,
distributors, and other industry representatives, and,
(2) Introduce U.S. companies to industry and government officials
in Saudi Arabia for an update on various opportunities and government
projects as well as any relevant government regulations
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 ICT sector and other key U.S.
Government and corporate officials. Participants will also take part in
business matchmaking appointments with Saudi key organizations.
In Jeddah, participants will receive a market briefing by the
Senior Commercial Specialist for ICT sector at the U.S. Consulate, and
they will participate in one-on-one business matchmaking appointments.
In addition, they will attend a networking reception.
U.S. participants will be counseled before and after the mission by
the domestic mission coordinator on logistics and travel. Participation
in the mission will include the following:
Pre-travel briefings on subjects ranging from business
practices in Saudi Arabia to security;
Pre-scheduled meetings with potential partners,
distributors, end users and local industry contacts in Riyadh and
Jeddah;
Meetings with CS Saudi Arabia's ICT industry specialists
in Riyadh and Jeddah; and
Networking reception in Jeddah.
Proposed Mission Timetable
Mission participants will be encouraged to arrive April 2, 2011 and
the mission program will proceed from April 3 through April 5, 2010.
------------------------------------------------------------------------
------------------------------------------------------------------------
April 2.................. Arrival in Riyadh, Saudi Arabia.
April 3.................. Riyadh, Saudi Arabia.
Market briefings by U.S. Embassy Riyadh and
Saudi Government officials One-on-one
business matchmaking appointments.
April 4.................. Jeddah.
Travel to Jeddah.
Networking reception.
April 5.................. Jeddah.
Market briefings by U.S. Consulate Officials.
One-on-one business matchmaking appointments.
Debriefing with DOC officials.
April 6.................. Depart Jeddah.
------------------------------------------------------------------------
Participation Requirements
All parties interested in participating in the ICT 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 12 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 $3,453 for large firms
and $2,758 for a small or medium-sized enterprise (SME) or small
organization, which will cover one representative.
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://www.sba.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).
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.
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.
Diversity of sector participation.
Additional factors, such as diversity of company size, type,
location, and demographics, may also be considered during the review
process.
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/doctm/tmcal.html) and other Internet web sites, press releases to general and
trade media, direct mail, notices by industry trade associations and
other
[[Page 54302]]
multiplier groups, and publicity at industry meetings, symposia,
conferences, and trade shows.
Recruitment for the mission will begin immediately and conclude no
later than January 31, 2011. 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 January 31,
2011. Applications received after that date will be considered only if
space and scheduling constraints permit.
Contacts
U.S. Commercial Service Domestic Contact:
Natalia Susak, Phone: 202-482-4423, Fax: 202-482-9000, E-mail:
[email protected].
U.S. Commercial Service Saudi Arabia Contacts:
Ahmed Khayyat, Phone: 966/1/488-3800 x 4441, Fax: 966/1/488-3237,
E-mail: [email protected].
Natalia Susak,
Trade Promotion Programs, Commercial Service Trade Missions Program.
[FR Doc. 2010-22135 Filed 9-3-10; 8:45 am]
BILLING CODE 3510-FP-P