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Saudi Arabia

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by

Irene Xu

on 2 December 2012

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Transcript of Saudi Arabia

Lev Agreda, Jin Choi, Ellionore Jarl, Huayun Xu Journey into Saudi Arabia Intro of Saudi Arabia Business Cultural Politics The kingdom of Saudi Arabia Abdullah bin Abdulaziz Al Saud Monarchy based on Islam
The system of Government built around Shariah
A new Basic Law of Government, 1992 The role of Islam The government is headed by the king
The Council of Ministers
22 Government ministries
No other political parties - no elections The Executive Branch Serve as adviser for the king

Consultative Council / Majlis Al-Shura
- 150 members and a chair man
- 12 committees

Election for one third of the Consultative Council Legislative Body Three main parts in the court system
- Sharia Courts
- Board of Grievances
- Various Committees Judicial Branch Member of the League of Arab States
Their role in the economy of the US
OPEC
UN (1945)
WTO (2005)
International Monetary Found and the World Bank Impact on World Politics Business in Saudi Arabia Business in Saudi Arabia is based on personal relationship in Arabic cultural
Face-to-face meetings are preferred
Appointments should be made in advance, and times should be regarded as approximate rather than fixed
When scheduling appointments, it is important to take into account the five daily prayer times, as well as the Islamic religious holidays
There are 5 working days starting Saturday, normal working hours are 8:00am to 12:00pm and 3:00pm to 6:00pm Business in Saudi Arabia Both men and women should dress very modestly for meeting
First names are only used between close friends in Saudi Arabian business
Saudi Arabians usually shake hands as a greeting with foreign visitors, and may kiss close friends on both cheeks
Business cards are commonly exchanged
Business discussions are interspersed with small talk, and may be interrupted by personal visitors or colleagues Reference Culture in Saudi Arabia Bedouin Heritage Bedouin: Desert dweller Nomadic people in desert Fierce Pride Extended family Emphasis on Family Loyalty goes first to family Consanguineous marriage Marriage arranged by the elder of a family Can have up to 4 wives, but rare Family decides many things Familial involvement welcomed $692 billion
(2011 est.) http://www.cyborlink.com/besite/saudi-arabia.htm

http://geert-hofstede.com/saudi-arabia.html

http://www.expatfocus.com/expatriate-saudi-arabia-business-culture

http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Saudi-Arabia.html

http://www.kwintessential.co.uk/resources/global-etiquette/saudi-arabia-country-profile.html

http://en.wikipedia.org/wiki/Saudi_Arabia
Capital: Riyadh
Country size: 868,730 sq.mi. (ranked 13th)
Popluation size: 25,795,938 (ranked 46th)
Religion: Muslim
Language: Arabic, English is widely used
Currency: Riyal
Main Export: Oil
Main Export Partner: Japan, China, United State, European Union
Government: Monarchy Kingdom of Saudi Arabia Negotiating with Saudi Arabians Business is hierarchical
Decision-making concentrated at the senior level of an organization
Decision-making process is often very slow
complex business bureaucracy
Islamic custom of waiting for guidance from God Honor and Shame Feel shame and lose face
when honor is tarnished Family is also shamed Reason of being generous Reasons for being shameful Religion Highly religious country 100% Muslim No alcohol, no pork Pray five times a day Friday as Muslim holiday Ramadan: fast for a month Communication Believe in superiority of their language Fluency count more than logic High context Kissing and holding hands among men Bow to express respect Female Status Must wear abaya in public places Separate entrances for men and women Women can’t drive Enormous influence inside their home Changing atmosphere GDP Japan 13.9%
China 13.7%
US 13.4%
South Korea 10.2%
India 7.2% GDP per capita Saudi Arabia $24 500
Usa $49 000 World Rank
55
11 A Saudi sponsor is need as your intermediary
Do not use high-pressure tactics
Decisions are easily overturned
There is a tendency to avoid giving bad news and to give effusive acceptances
Haggling is expected Main Industries Crude oil production
Petroleum refining
Basic petrochemicals
Ammonia,
Industrial gases Main Oil Company
Saudi Aramco Oil production 10.52 Millin bb/day Oil-proved reserves - Jan 2011
262.6 Billion barrils Number 1 World Oil Producer Economics Oil-based economy
Possess one fifth of the world’s proven petroleum reserves
Petroleum represents 45% of GDP Export-Partners Export Commodities Petroleum and petroleum products 90% 5 Economics lev http://lifeintatooine.blogspot.com/p/fotos.html Currency: Saudi Riyal (SR)
Exchange Rate: 1$ = SR 3.75 China 12.8%
US 11.9%
Germany 7.1%
South Korea 6%
Japan 5.6% Import-Partners Import Commodities Machinery and equipment
Foodstuffs
Chemicals
Motor vehicles,
Textiles Commerce Industry Labor Force 7.63 Million
WR:62 Unemployement
rate: 10.9% By Occupation
Agriculture 6.7%
Industry 21.4 %
Service 71.9% 1932 1938 1970 Modern
Kingdom
Establishment

Before
Agriculture
Society Discover of Oil in Commercial
quantities

Funds for:
Roads
School
Seaports First of 5 years
development plans

Aramco
Production Facilities
Pipelines
Plants
Full transcript