Tour of the World Paper: Saudi Arabia
This profile on Saudi Arabia is intended to provide important information on a number of relative subjects that will help you consider establishing a business or considering investing in the Kingdom of Saudi Arabia.
The Kingdom of Saudi Arabia is the largest country in the Arabian Peninsula and occupies about 2, 149,690 square kilometers. It is the 13th largest country compared to the world and is slightly more than one-fifth the size of the United States. It is bounded to the west by the Red Sea, to the north by Iraq, Jordon, and Kuwait, to the east by the Arabian Gulf, the United Arab Emirates, Qatar, and Bahrain, and to the south by Omen and Yemen. Most of the country is desert, so its climate is harsh, dry and with great temperature extremes. Its capital is Riyadh and has 13th other provinces, which are presided over by governors. Based on the World Fact book, the Kingdom has a population of 26,534,504 people and that includes 5,576,076 expatriates.
Saudi Arabia is a stable Monarchy. The head of state is King Abdullah bin Abdul Aziz Al-Saud, whose official title is the Custodian of the Two Holy Mosques. He was preceded to the throne after the death of King Fahad in 2005. The King, who is the Prime Minister and a council of Ministers form the executive and legislative branches of the government. They are responsible for the policies and guiding the development of Saudi. The council of Ministers is supported by the “Shura,” which is 150 distinguished men as the members that are appointed by the King. The Kingdom’s legal system and laws are based on “sharia” Islamic principles. The laws and regulations applicable to all businesses are propagated by the Royal Decrees (online. "Middle East: Saudi Arabia.").
Saudi Arabia has grown to be amongst the wealthiest nations of the world since the discovery of oil. The kingdom has the largest oil reserves in the world outside the United States and the Soviet Union. It possesses about one-fifth of the worlds petroleum reserves, is the largest exporter of petroleum and the petroleum sector accounts for about 80% of the Kingdoms budget revenues, 45% of the GDP and 90% of the export profits. Saudi Arabia joined the World Trade Organization in 2005, and is optimistic about the private sector growing to help it expand its economy (online."2012 Index of Economic Freedom.").
Saudi Arabia purchasing power parity GDP is about $676.7 billion in 2011 and it is 24th in the world. The official exchange rate GDP is $560.3 billion. The real growth rate GDP is 6.5% and GDP per capita is $24,000. The GDP compositions by sector are 2.1% for agriculture, 67.6% for industry and 30.4% in services in 2011(online. "Middle East: Saudi Arabia."). Even though Saudi Arabia’s economy is trying to diversity, it is almost dependent on the products produced from oil. Saudi Arabia is one of the founding member’s of the Organization of Petroleum Exporting Countries (online. "2012 Index of Economic Freedom."). The Kingdom’s exports make up 30% of the organization yearly total exports. The diversification efforts are focusing on telecommunications and petrochemical sectors. In the oil and service sectors 6 million foreign workers play important roles in the economy of the Kingdom. But Saudi’s own people are unemployed. The officials are working hard to reduce unemployment by increasing spending on education and job training. The government is also establishing six “ economic cities” in different regions of the country to promote foreign investment and plans to spend $373 billion between 2010-2014 on infrastructure projects and social development to move forward Saudi Arabia’s economic expansion (online. "Middle East: Saudi Arabia."). With the agriculture sector contributing 2.1% to the country’s GDP, there are not a lot of products. Saudi’s products consists of wheat, barley,...
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