DRAGON WORLD SAUDI ARABIA

Why Saudi Arabia？

Dragon World Saudi Arabia Q&A 2

The population of Saudi Arabia exceeds 34 million, making it the largest economy in the Middle East and a core country in the Islamic world. Saudi Arabia is the world's second largest proven reserve holder of oil (with 24% of the world's total explored oil reserves). It is the largest exporter of oil, and a major member of the Organization of the Petroleum Exporting Countries.

Huge Consumption Market

Saudi consumption market is huge, with its young population, high demand for consumer goods, and booming tourism industry. 72% of the Saudi population is between 16 and 64 years old, and Saudi relies heavily on imports for consumer goods. KSA plans to become one of the top five global tourist destinations by 2030, attracting 100 million tourists annually.

Strategic Location

Saudi Arabia is located at the intersection of the three continents of Asia, Africa, and Europe, connecting several important international sea lanes. Saudi Arabia boarders with Jordan, Iraq, Kuwait, the United Arab Emirates, Qatar, Oman, Yemen, so entering Saudi Arabia means gaining access to those markets.

Business Environment

From 2019 to 2021, Saudi Arabia made significant progress in improving investment and business environment through a series of reforms. The World Bank's 2020 Doing Business Report identified Saudi Arabia as a top reformer and improver in the world, with its ranking rising 30 places to 62nd.

Stable Political Situation

The political regim of Saudi Arabia is very stable. The Saudi Arabian government (SAG) has been pursuing its ambitious socio-economic reforms, collectively known as Vision 2030. Spearheaded by Crown Prince Mohammed bin Salman, Vision 2030 provides a roadmap for the development of new economic sectors and a transition to a digital, knowledge-based economy.

Financial Advantages

Saudi Arabia’s financial policies generally facilitate the free flow of private capital and currency can be transferred in and out of the Kingdom without restriction. Saudi Arabia maintains an effective regulatory system governing portfolio investment in the Kingdom. The Capital Markets Law, passed in 2003, allows for brokerages, asset managers, and other nonbank financial intermediaries to operate in the Kingdom.

Social Advantages

Saudi Arabia has embarked on a series of social reforms to modernize the country. One major area of reform has been women’s empowerment. The right to drive was heavily publicized and has made it easier for women to work and participate in the economy. Other changes have been implemented, like dismantling guardianship, offering freedom to live and travel alone, and working in a wider range of professions and participating more fully in the public sphere.

Bilateral Relation

Since 2013, China has become Saudi Arabia's largest trading partner, while China is Saudi Arabia's largest market for oil exports. China and Saudi Arabia are close and strategic allies and have been increasing cooperation in the energy and financial sectors, the Belt and Road Initiative, and has signed numerous deals across several areas. In a 2015 public opinion poll, 61.3% of Saudi Arabians expressed a favorable view of China, with 34.2% being very favorable.

Dragon World Saudi Arabia

Dragon World Saudi Arabia (“DWSA”) is located in the densely populated eastern part of Riyadh, around 40 kilometers away from the international airport in the north and about 20 kilometers away from the city center. Near the East Ring Road, it has good access to transportation.

DWSA covers an area of 35,000 square meters and there are around 450 stores and 3500 parking lots.

Sectors in the DWSA cover ①Furniture and kitchenware; ②Hardware and building materials; ③lightings; ④Electronic and electrical digital products; ⑤Sport and leisure products; ⑥Textile fabric; ⑦Household goods; ⑧Children products.

The expected opening date is 2nd quarter of 2024 and expected to attract footfall over 10 million during the first year.

International Trade: Shipping, custom clearance,door to door delivery;
Warehousing: Convenient warehousing facility and warehouse management;
Finance Management:Payment collection, fund transfer, taxation, ERP account;
Business Visa/Work Permit: Apply for business visa or work permit for the Chinese merchants
HR Service: Recruit local sales persons and offer sales training
Marketing: Both offline and online marketing

E-commerce Platform

An e-commerce platform for the DWSA will be established (“E-Dragon”) to cover catchment of the whole Saudi market. It’ll be a 2C platform integrating bulk-sale as well. The merchants joining the DWSA by the opening will be offered one online store for free.

DWSA Services

Easy Transportation Access
DWSA is next to the East Ring Road in Riyadh and is around 40 kilometers away from the international airport and about 20 kilometers away from the city center. It is inside the Rimal Center which is next to IKEA.

“Everything Under One Roof” Concept Popular Among ME Customers
As approved by Dragon Mart Dubai and Dragon City Bahrain, local customers enjoy shopping in the Dragon mall which covers every sector of consumer products. And even though e-commerce is rapidly developing in the Middle East Region, the local customers still would like to visit brick and mortar stores for shopping.

Localized Professional Management Model
Based on the local regulations in Saudi Arabia, we created created a unique model for the DWSA project. The local team who have rich overseas experience will take charge the management and operation.

Optional Sales Service
For the merchants who have extra needs, we could offer multiple sales services. For example, we could guarantee sales volume.

DWSA Advantages

LEASE RELAESE

Dragon World Saudi Arabia Q&A 1

Although Saudi Arabia is one of the largest e-commerce markets in the Middle East, most of the country's retail sales still come from brick and mortar stores, with popular shopping destinations including malls and markets. In addition, Dragon World Saudi Arabia offers a wide variety of goods as a source of supply for local 'e-commerce'. In the near future, DWSA will also develop its own e-commerce platform.

What is Saudi Arabia's attitude towards Chinese products?

The vast majority of Saudi Arabian citizens, like people in the other six Gulf countries, welcome and enjoy Chinese products, considering them to be of good quality, reasonably priced, and very suitable for local consumption needs and habits. In addition, Chinese products are up to date, and innovative which is particularly attractive to Saudi consumers, who are mostly young.

How to apply for Visa on the first visit to Saudi Arabia?

Currently, Saudi Arabia has opened up electronic visas which are very convenient and can be processed through the

https://visa.visitsaudi.com/Registration/Verify website.

Is it easy to transfer foreign currency in and out?

Whether for domestic residents or foreign residents, Saudi Arabia generally does not impose foreign exchange controls. Various currencies can be freely exchanged in Saudi Arabia, and various funds, profits, and foreign personnel income can be freely remitted in and out.

What is the reservation process？

After the merchants confirm their intentions to reserve, they should fill out the reservation form, select the desired store, and provide relevant documents for the leasing agent and logistics company to review. They should also submit the reservation fee. After the final review, they can sign the agreement.

Who should I contact for further information?

Potential merchants can contact CHINAMEX or the official authorized leasing agent at local. (we should indicate here the email addresses or some contact form for them to fill and send us)

How about the logistics and warehousing?

The management company will recommend logistics companies to provide certification, customs clearance, and logistics services for the merchants. Based on the merchants' needs, the management will provide warehousing services to facilitate the storage of merchants' goods.

Who are the merchants in Dragon World Saudi Arabia？

DWSA is a comprehensive commercial platform mainly composed of Chinese retailers and wholesalers. 90% of the merchants in the mall are Chinese traders.

What kinds of products does DWSA sell?

DWSA is mainly divided into four zones: Textile Fabric and Household Goods Comprehensive Zone, Children Products Zone, Electronics and Electrical Appliances Zone, Furniture and Kitchenware, Hardware, Building Materials and Decoration and Lighting Comprehensive Zone.

What is the scale of Dragon World Saudi Arabia?

DWSA is in the existing Rimal Center shopping mall, and will open in phases. The first phase includes more than 400 shops, with most shops ranging from 18-40 square meters and a few shops ranging from 40-70 square meters.

What is the specific location of Dragon World Saudi Arabia?

DWSA is located in the east of Riyadh where is a densely populated area with over 3 million inhabitants, accounting for about 40% of the total population of Riyadh. DWSA is located 40 kilometers away from the international airport and approximately 20 kilometers away from the city center. It is also adjacent to the main north-south transportation artery, the 'Eastern Ring Road'.

What is the outlook for the capital city of Riyadh?

A Riyadh, the capital city of Saudi Arabia, is the country's largest city and political and cultural center, located in the central region of Saudi Arabia, with a total area of 1,219 square kilometers. As of the end of 2020, the population of Riyadh was about 7.38 million, with an annual growth rate of 2.16%. Riyadh is a key focus of Saudi Arabia's economic development plan, and according to the Saudi 'Vision 2030', the population of Riyadh is expected to more than double to 15-20 million by 2030. Therefore, the outlook for Riyadh is very promising.

How is the relation between China and Saudi Arabia?

In 2022, the Chinese President's visit to Saudi Arabia opened a new chapter in the relationship between the two countries. The two nations signed an implementation plan for the integration of the 'Belt and Road' initiative with Saudi Arabia's '2030 Vision', which accelerated practical cooperation in investment, trade, and infrastructure. This has layed a solid foundation for more Chinese companies to invest in Saudi Arabia.

How is the Saudi market?

With a population of over 34 million people, Saudi Arabia is the largest economy in the Middle East and is poised to be the fastest-growing economy globally in 2022. Additionally, its strategic location at the center of the Asian, European, and African continents and its ports along the Red Sea that rank second in the world in terms of throughput make it an important global logistics hub. Currently, Saudi Arabia is working to diversify its economy and reduce its reliance on the oil industry. In 2020, it attracted nearly $5.5 billion in foreign investment, a 20% increase compared to the previous year. Moreover, Saudi Arabia is actively improving its business environment, enhancing its commercial legal framework, and launching large-scale privatization plans, while relaxing regulatory oversight on foreign investors in its capital markets.