JEDDAH: Saudi Arabia’s Vision 2030 and National Transformation Program (NTP) 2020 have generated tremendous interest among investors and the private sector.
The programs are being looked upon as a great opportunity for boosting the inflow of foreign direct investment as also for the private sector to play a contributory role in the Kingdom’s long-term goal of becoming the world’ major powerhouse.
“In fact, the programs are a golden opportunity for us to contribute to realizing the long-term goals of the Vision document and the NTP plan,” an investor and head of a major Saudi business entity, said echoing the sentiments of fellow businessmen.
Other business leaders are of opinion that both Vision 2030 and the NTP 2020 have unfolded tremendous potential for boosting the inflow of both local and foreign investors, and also for the thriving private sector to play a significant role in realizing the set goals.
The private sector in general has already swung into swift action with a view to making their contribution in the success of Vision 2030 announced by Deputy Crown Prince Mohammed bin Salman in recent months.
One of the major private sector entities is E.A. Juffali & Brothers Co. whose Managing Partner and Vice Chairman Khaled bin Ahmed Juffali affirmed at a recent roundtable discussion that the company was looking at localizing much more in the Kingdom than before, specifically by training young Saudis and students.
The roundtable on "The future of mobility and the development of the automotive aftermarket in Saudi Arabia" was hosted by Uwe Thomas, chairman of the automotive aftermarket divisional board at Robert Bosch GmbH, Khaled Juffali and Andreas Bodemer, vice president of the Middle East and Africa Region in celebration of Bosch’s longstanding presence in the Kingdom, and 50 years of partnership with Juffali Auto Parts Co.
Thomas gave a presentation on the aftermarket sector in the region and the Bosch’s solutions at the roundtable.
Juffali said: “What the company is doing now is to further intensify its efforts toward realizing the goals of Vision 2030. The capacity of the training center on Makkah Road has been raised to 800 students. We are training Saudi employees to bring them into the system. We are training young Saudis as mechanics and electricians.”
Juffali added that the company is depending on Bosch’s knowledge and entrepreneurial skills to assist training of young Saudis.
Thomas said Saudi Arabia with a population of over 30 million inhabitants and a GDP of $752 billion is the largest economy in the Middle East. “Saudi Arabia will continue to be the most important consumption market in Middle East and remain strategically the most important market in the region,” he added.
Bosch AA & Juffali will continue to invest in Saudi Arabia with the objective of increasing their market share. Juffali plans to have 23 branches to serve 2020 parts outlets by 2020. Bosch will setup a representative office in the fourth quarter of 2016 in support of local partners.
Thomas mentioned that the Middle East continues to be a key market for Bosch, although the current geopolitical situation and low oil price have a challenging impact on the economic development.
“We are however confident that the momentum created by mega events like the Jeddah Metro, Dubai Expo 2020, and the World Cup in Qatar 2022 will contribute toward positive business developments and a continued demand for our products and services. Vision 2030 will also promote continued positive developments,” Thomas added,
There are three mega trends ringing in this new era. They will shape and change mobility permanently: Increase in efficiency of combustion engines and electric powertrains, highly automated driving and connected driving, which is closely linked to the other two, according to Thomas.
The future holds good for connected mobility, and it will change the automotive aftermarket, said Thomas who heads the aftermarket in Bosch division.
"The Internet of Things (IoT) and the increasing digitalization have impacted and changed the way we live permanently. Today, we use our phones for a variety of things without even thinking about it; it has become normal,” he added.
Bosch has strong growth plans across the Kingdom as it is looking to have 46 Bosch car service centers by 2020 while maintaining quality service, reasonable price of original equipment and products with specification, and standardized look and feel in-service offerings across Saudi Arabia.
“Also, fleets are among the target customer segments for our connected solutions in the Kingdom. We would soon initiate discussions with private and government run fleets in order to introduce these solutions to the market,” Thomas said.
According to the vehicle type, the Kingdom remains the biggest market for automotive parts and services in the Middle East.
“Currently, we are supplying complete units; product portfolio expansion planned during the course of 2017-2018 to ensure supply of spare parts as well as service solutions,” he said.
“We have strong growth plans reflecting a strong signal for the Saudi market. We had 23 Bosch car service centers in Saudi Arabia in 2015. By 2020, we will have 46 Bosch car service centers across the Kingdom,” Thomas added.
Bosch AA is represented in the Kingdom by Juffali group since 1965. Diesel Electric Co. was the first Bosch sales and workshop office in Jeddah in 1966.
Since then, there have been lots of developments in infrastructure and organization. Business partnership in AA & Power tools has grown successfully over the last 50 years.
At present, Juffali Auto Parts Co. is serving 755 outlets through 13 JAPCO-owned branches. Bosch eXtra, which is the company’s online loyalty program and considered unique in the region’s automotive sector, is running successfully since 2014 with 400 enrolled customers.
Bosch AA maintains strong market shares in diesel and auto electricals in the commercial vehicle segment. A focused approach will help grow market shares in trade goods like braking, batteries, wipers, etc.
Vision 2030, NTP 2020 offer big hope for private sector, investors
Vision 2030, NTP 2020 offer big hope for private sector, investors
