How to invest in saudi arabia

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How to invest in Saudi Arabia


Saudi Arabia is the largest country of the Middle East. It is today in the top 20 Destinations for foreign direct Investments and is planning to enter the top 10 by 2010.
The government has taken several initiatives to make the economy attractive to foreign business, with infrastructures and reforms.
Nonetheless, there are several aspects thatone should be aware of in order to establish a company in the Kingdom in the most successful way possible.
In this report, you will find all the information necessary to have an overall comprehension of the situation in Saudi Arabia. Political, Economic, Social, Technologic, Legal and Environmental (PESTLE) aspects will be dealt with in a specific way so you can take the most efficient decisionsin terms of management.


Few things to know about politics in Saudi Arabia:
Saudi Arabia is an absolute monarchy controlled by the family Saoud. King is at the same time Head of State and a leader of the government.
The constitution of the country is based on the Koran and the Sunna. No demonstration or cult of another religion is accepted and those who express assuch a different opinion are declared apostates and liable to the death penalty.
Executive power belongs to the King Abdallah. About the legislative power the consultative Assembly account 150 members named for four years by the king, among whom six women. Its role is essentially consultative and its power is extremely restricted. The consultative Assembly was created in 1993.
The political partiesand the labor unions are not authorized. The green Party of Saudi Arabia is the only active political formation in the kingdom, but its existence is not legally recognized.
The first elections, at the municipal level only, took place in 2005, and it is important to note that two women were elected to the Council of Jeddah. The vote should be authorized for the women during the next municipalelections according to King Abdallah.

Political institutions of Saudi Arabia
According to the principle of sharing the power between religious authorities and temporal authorities, Saudi Arabia is collectively controlled by the royal family and particularly by the Al Saoud having the royal title and the religious leaders of the country, the Oulemas.
Saudi’s unique geographic features offerinvestors distinct business advantages: unmatchable supplies of oil and gas mean that energy costs are low and constant plus, having borders with three continents ensures it can provide highly-efficient transport links.
To capitalize on these geographic advantages, Saudi has set itself three strategic targets:
* to become the global capital of energy. Up and downstream petrochemicals, minerals,power and water are all vital to the Saudi and global economy.
* to act as a transport and logistical hub between east and west. KSA’s roads, railways and air links create a potential consumer base of more than 250 million, all within 3 hours’ reach.
* to transform its knowledge-based industries, ie healthcare, life science, education and IT. These industries are all crucial drivers oflong-term, sustainable change.

 An easy place to do business
The Kingdom is investing massively to enhance its value proposition to foreign businesses, both with infrastructure and with reform. The King Abdullah bin AbdulAziz Al Saud has directed the Saudi government to become one of the world’s Top 10 most competitive economies by 2010. In pursuit of this goal, the organs of government haveinitiated a multi-faceted reform strategy that has made the Kingdom one of the easiest places in the world to do business.

Moreover, the government heavily concentrates on increasing the human resources development rate in order to cover all of the categories and ages which will give more opportunities for the investors to choose the required labour for their projects.
Many public and...