Saudi Arabia International Business

Only available on StudyMode
  • Download(s) : 230
  • Published : January 12, 2011
Open Document
Text Preview
TABLE OF CONTENTS

1. Executive Summary .......................................................... 2

2. Introduction to Saudi Arabia.............................................. 3

3. Business Environment.......................................................... 3

4. Attitude towards business..................................................... 6

5. Nature of Advantages........................................................... 8 6.1. Absolute theory..................................................................................9 6.2. Heckscher-Ohlin Factor Proportions Theory................................9 6.3. Porter’s Diamond of national competitiveness.............................10 6. Recommendations................................................................13

7. References.............................................................................14

1. Executive Summary

The objective of this assignment is to examine the potential business opportunities in Saudi Arabia. I will also identify the potential for formal economic co-operation with other nations through relevant trade grouping. The research will analyze Saudi Arabia’s 1) Cultural Environment

2) Political and Legal Environment
3) Economic Environment.
From the analysis, the research will also describe the country’s current international trade 2010 and the scenario of trade after 25 years.

In addition, using theories and concepts of International Trade the research will characterise the government’s attitude to international trade, both outwardly & inwardly.

Finally, based on the dept of research and understanding, I will conclude with recommendations for Saudi Arabia’s current International Trade Strategy.

2. Introduction
Saudi Arabia is a country in Middle East with area of around 2,149,690 sq km and with Iraq, Jordan, Kuwait, Oman, Qatar, UAE, and Yemen as neighbours. The population of Saudi Arabia is over 25 million with birth rate of 19.43 and death rate of 3.34. Around 90% of population is from Arab Ethnic group and 100% of population follows Muslim religion. The official language of Saudi Arabia is Arabic. Saudi Arabia is the birth place of Islam religion and home to Islam’s two holiest shrines in Mecca and Medina. The modern Saudi was founded in 1932. Mr. Abdallah Bin Abd al-Aziz rules the country today as required by the country’s Basic Law. Saudi Arabia is the leading producer of oil and natural gas and holds more than 20% of the world’s proven oil reserves. The government continues to pursue economic diversification, particularly since Saudi Arabia’s accession to the WTO in December 2005, and promotes foreign investment in the kingdom. A rapidly increasing population, aquifer depletion, and an economy largely dependent on petroleum output and prices are all ongoing government concerns. (https://www.cia.gov/library/publications/the-world-factbook/geos/sa.html, 2nd Nov’10)

3. Saudi Arabia’s Business Environment
The Business environment consists of 3 basic environments, namely, Cultural environment, Political environment, and Economic environment.

Cultural environment of Saudi Arabia
Saudi Arabia is a young nation with an ancient history. It is one of the most conservative traditional societies in the world struggling with the impact of modernization formed by the flood of great oil wealth beginning in the mid 20th century. It is an ancient desert society infused with Islam values on a collision course with modernity are interplayed throughout chapters on the land, people, and history, traditional Islamic culture and modernization, the extended family and gender roles, cuisine and dress, social customs, rites of passage, and holidays, communication and mass media, and artistic expressions. Arabic is the official language of Saudi Arabia. Two main ethnic groups are there, Arab (90%) and Afro-Asians (10%) with 100% population with...
tracking img