Business In Saudi Arabia Tourism Essay

This paper introduces the history and background of Saudi Arabia – how from an agricultural economic system, the land has risen to go one of the universes powerful economic systems. The paper will besides portion on how to make concern in Saudi Arabia every bit good as how faith affects the edifice, partnership and deriving a concern in the part. In this paper will besides look at the segregation of adult females since the morning of history until the recent development on the authorization of adult females in some facets of the state. A close expression at the civilization and political relations will besides be discussed in this paper. How the authorities policies, manner of life, economical state of affairss is directed towards attachment to the Islam faith of the Arabs and what impact does this spiritual affinity garnered throughout the history.


Saudi Arabia, the place of birth of Islam and place to Islams two holiest shrines in Mecca and Medina ( CIA World Factbook ) , is one of the most god-fearing and insular states in the Middle East ( BBC Online ) . The land has risen from being an developing desert part to go one of the wealthiest states in the part with its natural and huge oil resources.

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The modern province was founded in 1932 by ABD AL-AZIZ bin Abd al-Rahman Al SAUD ( Ibn Saud ) after a 30-year run to unite most of the Arabian Peninsula. After his decease, he has been succeeded by assorted boies and today, a male descendant of Ibn Saud, his boy ABDALLAH bin Abd al-Aziz, regulations the state today as required by the state ‘s 1992 Basic Law ( CIA World Factbook ) . The monopoly of power with the consecutive male monarchs of the dynasty defines the countrys concentration on modernisation and developing regional power. It was in the leading involvement to continue the stableness in the part and to procure down any radical component that would do any perturbation in the integrity and beliefs. The state has, throughout the old ages, developed a strong spiritual self-identity.

The Kingdom of Saudi Arabia has now 26.2 million populations ( based on UN, 2010 cited in BBC Online ) . It has a land country of 2.24 million sq kilometer and its capital is Riyadh. It is located in sou’-west Asia, at the hamlets of Europe, Asia and Africa surrounding the Persian Gulf and the Red Sea. The extended coastlines from these boundary lines provide great purchase on transportation, most particularly with its rough oil. On the North are states Jordan, Iraq and Kuwait ; Yemen and Oman in the South ; United Arab Emirates, Qatar and Bahrain on the E.

The clime in the part is dry desert with great temperature extremes. It is rich in natural resources of crude oil and natural gas with others as gold, Fe ore and Cu. However, the deficiency of ageless rivers and go oning organic structures of H2O has driven the state to develop extended saltwater desalinization and purification installations.

The Saudi Arabia adheres to Islam, which is the footing of the legal system and of authorities. Arabic is the linguistic communication most normally used in the part but English is besides widely spoken in urban countries.

Globalization in Saudi Arabia

Known as the cardinal pillar of the Arab universe for decennaries, Saudi Arabias huge oil supplies and ties to the United States and cash-heavy diplomatic negotiations assured its place ( New York Times, Saudi Arabia ) . In a few short decennaries, the Kingdom has turned itself from a desert state to a modern, sophisticated province and a major participant on the international phase ( The History of Saudi Arabia, Saudi Embassy Online ) . Its oil-based economic system with strong authorities controls over its economic activities created places in the universe market as it posses about 20 per centum of the universes proven petroleum militias ranking as the largest crude oil exporter in the universe. The state plays a prima function in OPEC ( CIA World Factbook ) . Petroleum is the countrys built-in portion of its economic system and Saudi Arabia is known to being the universes largest oil manufacturer and exporter. The steady exportation of oil provided the needful sums of money to construct immense substructures. From so, the consequence has been a steady economic development and transmutation doing the Kingdom one of the fastest developing counties in the universe ( Constructing a Modern Economy, Saudi Embassy Online ) .

While the modern Kingdom of Saudi Arabia was established in 1932, the part was an agricultural society that works on agriculture and commercialism with day of the month exports and trade generated by pilgrims coming to Makkah and Madinah ( Constructing a Modern Economy, Saudi Embassy Online ) . The find of oil in 1938 by Aramco paved the alterations that the state has garnered through the exports of the oil to many states. The free market economic system of the part has undergone major and singular developments and alterations in a short period of clip from being a basic agricultural society to regional and planetary economic power with modern installations and substructure.

In December 2005, Saudi Arabia officially joined WTO or the World Trade Organization going the organic structure 149th member that set the phase for the state to play a important function in planetary market and commercialism ( Saudi Arabia Becomes 149th Member of WTO, Arab News Online )

Saudi Regularization ( GCC )

Gulf Cooperation Council was founded in 1981 with Saudi Arabia as the premier mover and Bahrain, Kuwait, Oman, Qatar and UAE as members. It is a political and economic brotherhood of the counties in the Persian Gulf that portions similar common societal, every bit good as cultural, mentality and political systems. It aims to hike economic cooperation between members and, through corporate security, to guard against any menace from neighbouring provinces and from Islamic extremism ( Profile, Gulf Cooperation Council, BBC Online ) . As a general aim of the council, the GCC Charter states the basic aims of coordination between Member States in all Fieldss, beef uping ties between their peoples, explicating similar ordinances in assorted Fieldss, furthering scientific and proficient advancement, set uping scientific research Centres, puting up joint ventures, and promoting cooperation of the private sector. ( Foundations and Objectives, The Cooperation Council for the Arab States of the Gulf ) .

The Structure

Supreme Council: is the highest authorization of the GCC formed of the Heads of Member States. They meet every twelvemonth to convene on the workss, developments and consequences but Member State can name for a particular convention upon the understanding of another Member State. The presidential term rotates annually in Arabic alphabetical order of the names of the members of the brotherhood.

The Advisory Sacramental manduction: Five members from each Member States forms 30 GCC Consultative Commission chosen based on their experience and certain makings and they are to take for three old ages. They study affairs given by the Supreme Council.

Commission for the Settlement of Disputes: they are formed by the Supreme Council on an ad hoc footing to seek peaceable solutions to jobs among member provinces.

The Ministerial Council: composed of foreign curates or other curates moving on their behalf and convenes one time every three months. They propose policies, lay recommendations, and promote and organize the already bing activities in all Fieldss.

The Secretariat-General: is the administrative organic structure that prepares meetings and surveies concerns related to programs and plans, prepares studies and proctors the execution of the policies created.

Making Business in Saudi Arabia

While the Western states makes strong separation between work and spiritual belief, making concern in Saudi Arabia ( or elsewhere in Gulf ) means bearing the importance of the all- permeant nature of the influence of Islam. ( Background to Business in Saudi Arabia, World Business Culture Online )

The concern is normally developed around the household unit and employees are from the extended household ( Saudi Arabia Business Structure, World Business Culture ) . They adhere to Nepotism or the thought that places would be given to household members, same with the leading. With the family-based construction, the bulk of power is being transmitted to household members, normally senior in the hierarchy. In Islam where they are taught of household relationships, this faith forms the background of any concerns and other societal organisations. From this, we can find that concerns in Saudi Arabia are extremely dependent on the spiritual imposts and patterns of Islam ( Saudi Arabia Business, Maps of the World Online )

Making concern in Saudi Arabia may besides intend cognizing how the authorities and private sectors operate. Government offices is from Saturday to Wednesday from 7:30 in the forenoon til 2:30 in the afternoon while private concerns is from 8:00 forenoon to midday and 3:00 PM to 5:00 PM. General banking hours is from 8:00 AM boulder clay midday and from 5:00PM to 8:00PM. Markets and stores are unfastened from 8:00 am until 10:00 autopsies. ( Business, Saudi Embassy Online ) . The Arabs besides does 5 day-to-day supplication times. Understanding Islam, which governs every regard of a Muslims life, shall heighten how and why Saudi concern people act or behave in certain mode ( Al-Ghamdi, 2008 ) because Islam has extended influence on Saudi society. The civilization in the state relies besides on gestural communicating cues like eye-contact, body linguistic communication, facial cues and silence and tone of voice. Arabian civilization is besides frequently described as item orientated and hence accent is placed on moralss and expected societal behaviors such as generousness, regard and solidarity ( Saudi Arabian Culture, Communcaid Online ) every bit good as regard for seniors. These are imposts and societal responsibilities that besides permeate the concern universes of Saudi Arabian and this affect the manner they handle concern communications. Womans may merely look in those commercials that related to household personal businesss, and their visual aspect must be in a nice mode that ensures feminine self-respect. Womans must have on a long suited frock which to the full covers her organic structure except face and thenars ( Al-Ghamdi, 2008 ) .

In a recent article of Making Business ( 2011 ) , Saudi Arabia ranks 11 out of the 183 economic systems of the universe, being Singapore ranking top in the Ease of Doing Business and other countries.

Saudi Arabia: Religion

The Kingdom of Saudi Arabia is the place of birth of Islam ( Saudi Arabia, Encyclopedia Britannica Online ) . The land is a modern state that adheres to Islam, honors its Arab heritage and tradition, and presses smartly frontward in the service of Islam while procuring the public assistance of its people ( Islam, Saudi Embassy Online ) .Islam is one of the universes great monotheistic faiths and the followings of Islam are called Moslems who believes in one God – Allah, and Muhammad is His Prophet. About one billion Muslims worldwide embrace Islam from different races and civilizations ( Janin, H. , Besheer M. , 2003 )

From the clip of oil find in the part, the state economic system has faced a enormous alteration and therefore gave the name as the universes largest oil exporter in the universe. With this, the state has been opened to international market and covering with foreign states and hence, foreign business communities and functionaries should observe the extremely attachment to the faith of the Muslim parties in their concerns.

Saudi Arabia is in a committedness to continuing the Islamic tradition in all countries of authorities and society. Islam guides non merely the lives of the people, but besides the policies and maps of the authorities and all countries of the society ( Saudi Arabia: Islams Heartland, Saudi Arabia Online ) . From this, faith in Saudi Arabia influences the society and the societal responsibilities affects how they deal with concern. Conducting concern in this state relies to a great extent on Islam imposts.

Saudi Arabia: Culture

The Kingdom of Saudi Arabia is the place of Arabs and Islam. The cultural individualities are chiefly Muslim and Arab continuing the states spiritual place. The civilization of the state is rich and has been shaped by its Islamic heritage, its function in ancient trading system and its Bedouin traditions. The development has been enormous but the Saudi people takes clasp of their traditions and values – with the same cordial reception and imposts and frock codifications and manner still adapted to the modern universe. Jewelry in Saudi Arabia is besides a symbol of societal position.

Bing at the hamlets, Saudi Arabia has been portion of the trade system in ancient times widening from south Asia to Egypt and far-reaching states. The debut of Islam moreover defined the civilization of Saudi Arabia in the early seventh century AD. Islam spread since so and fostered dynamic acquisition in different countries of society such as doctrine, civilization, humanistic disciplines. This was known as the Islamic Golden Age. Pilgrims would go to the sanctum sites Makkah and Madinah and this farther developed Arab civilization. Since 1932 foundation, saving of these imposts are adapted by King Abdulaziz bin Abdulrahman and his replacements.

Saudi Arabia: Sexual Segregation

Saudi Arabia ranks 129th out of the 134 states in footings of gender equality harmonizing to World Economic Forum 2010, Gender spread study. Despite the said of the importance of adult females, adult females right in Saudi Arabia remains to be problematic subjects in the state ( Asmaa Al-Mohamed, n.d ) . Saudi Arabia adult females have such a limited function in Saudi public life and every Saudi adult female, irrespective of age or position, must hold a male relation who acts as her defender and has duty for and authorization over her in a host of legal and personal affairs. ( New York Times Online, Zoepf, 2010 ) . Saudi churchmans see the care of adult females ‘s honor as a key to the state ‘s societal and moral order ( Saudi Women ‘Kept in Childhood, BBC Online ) .

But things have changed ; Saudi work forces must get down acquiring to see adult females in place and to see mixed-gender workplaces are going common. ( New Rights, New Challenges for Saudi Women, Time 2009 ) . Although Saudi adult females still tilt do the drive and, in legal footings, buzzword leave the house to shop or acquire a occupation without counsel and permission of male household members, the authorities is spread outing chances for adult females and there are already little stairss now being taken into consideration for adult females. Social order can non be changed all at one time but enterprises are done.

In the recent old ages, there are legion accomplishments that were accounted to Saudi adult females, unmatched by many in the Arab universe, even their male opposite numbers. Womans are now seen a respectable challengers in assorted Fieldss ( Saudi Women Rise up after Old ages of Absence, Alarabiya Online ) . This, I believe will add power to the bing strength of the economic system of the Saudi Arabia.

Saudi Arabia: Politicss

The authorities in Saudi Arabia takes in the signifier of monarchy where the King of the Kingdom of Saudi Arabia is the caput of province and the caput of authorities. Decisions are made with the audience among his seniors and working organic structures. The fundamental law is based on Quran ( Islams Holy Book ) which is governed by Islamic jurisprudence ( Shariah ) .

The King appoints a Crown Prince who is 2nd in line to the throne. The administration of the King is besides with the aid of Cabinet ( Council of Ministers ) and there are 22 governement ministries that are portion of the Cabinet. The ministries have their specified responsibilities and duties ( instruction, foreign personal businesss, and finance ) . The Advisory Council ( ( Majlis Al-Shura ) besides advises the King for proposed Torahs and amendments. The King appoints the 150 members of this council that works four old ages and can be renewed. The Kingdom is divided into 13 states ; this was for a more localised supervising of all the facets and countries of Saudi political personal businesss.

There are no political parties and labour brotherhoods that are founded ; national election is non adhered by the Kingdom. The royal household of the Kingdom of Saudi Arabia controls the political relations and authorities and the familys line of descent takes the of import places and engagement at all authorities degrees. The old Saudi male monarchs and the present male monarch, King Abdullah bit by bit develops the authorities since the foundation of Saudi Arabia. Policies and activities were created and amended in signifiers that chiefly adheres the beliefs and civilizations and for the public assistance of the citizens.

With the natural oil militias that the Kingdom has, and the economic impact it does to the state, the states economic and concern relationship with its foreign spouses are wrapped with the disposal of the King and its authorities ministries who are being guided by the words of the Quran – the rules to which the state has a strong foundation.

The oil-based economic system of Saudi Arabia, every bit good as other economic activities, is so being controlled by authorities.

Potential Solutions for a Better Saudi Economy

The Kingdom of Saudi Arabia possesses the 20 per centum of universes proven oil militias. It ranks as the largest exporter of crude oil, and one of the leads in OPEC operations ( Saudi Arabia, Facts and Figures, OPEC Online )

With the uninterrupted attempts of the Kings and the authorities, Saudi Arabia is now one of the powerful states in the universes holding the oil militias that sustain economic stableness throughout the old ages and the old ages that will come. But as everything is decreasing, the preservation of the resources is of import every bit good as happening other alternate ways. For these, there are already a batch of attempts that is being examined by the authorities.

Another thing to look at is the Making Business Reports that ranks Saudi Arabia on the 11th from among the 183 states. Although the figure states a good overall end product, hitting the top 10, if non the top 1, would be a major economic attempt for the state. Saudi Arabias Registering a Property has got 1 while the Enforcing Contracts got 140 and Closing a Business at 65 in its class. Ratification on the bing policies would be best programs to travel to a more develop concern direction to the state.

Beginning: Economic Rankings, Making Business Reports

Janin, H. , Besheer M. , 2003, Cultures of the World, Saudi Arabia, Tarrytown, NY: Marshall Cavendish Corporation, p5

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