[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]


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 DEPARTMENT OF COMMERCE

International Trade Administration


Energy and Infrastructure Mission to Saudi Arabia

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 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:
    <bullet> 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%.
    <bullet> 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:
    <bullet> Pre-travel briefings on subjects ranging from business 
practices in Saudi Arabia to security;
    <bullet> Pre-scheduled meetings with potential partners, 
distributors, end users and local industry contacts in Riyadh and 
Jeddah;
    <bullet> Meetings with CS Saudi Arabia's ICT industry specialists 
in Riyadh and Jeddah; and
    <bullet> 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.

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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.
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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

    <bullet> 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.
    <bullet> 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:
    <bullet> Suitability of a company's products or services to the 
mission's goals.
    <bullet> Applicant's potential for business in Saudi Arabia, 
including likelihood of exports resulting from the trade mission.
    <bullet> Consistency of the applicant's goals and objectives with 
the stated scope of the trade mission.
    <bullet> 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: 
<a href="/cdn-cgi/l/email-protection#7e301f0a1f12171f502d0b0d1f153e0a0c1f1a1b50191108"><span class="__cf_email__" data-cfemail="97d9f6e3f6fbfef6b9c4e2e4f6fcd7e3e5f6f3f2b9f0f8e1">[email protected]</span></a>.
U.S. Commercial Service Saudi Arabia Contacts:
    Ahmed Khayyat, Phone: 966/1/488-3800 x 4441, Fax: 966/1/488-3237, 
E-mail: <a href="/cdn-cgi/l/email-protection#44252c2921206a2f2c253d3d25300430362520216a232b32"><span class="__cf_email__" data-cfemail="f6979e9b9392d89d9e978f8f9782b68284979293d8919980">[email protected]</span></a>.

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


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