Saudi Arabia Free Essays

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. We will write a custom essay sample on Saudi Arabia or any similar topic only for you Order Now 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 â€Å"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 â€Å"sharia† Islamic principles. The laws and regulations applicable to all businesses are propagated by the Royal Decrees (online. â€Å"Middle East: Saudi Arabia. â€Å"). 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 udget 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. â€Å"2012 Index of Economic Freedom. â€Å"). Saudi Arabia purchasing power parity GDP is about $676. 7 billion in 2011 and it is 24th in the world. The official exchange rate GD P 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. â€Å"). 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. â€Å"2012 Index of Economic Freedom. â€Å"). 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 â€Å" 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. â€Å"Middle East: Saudi Arabia. â€Å"). 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, tomatoes, melons, dates, citrus, chickens, eggs and milk. The 67% GDP of the industries are from crude oil production, petroleum refining, basic petrochemicals, ammonia, industrials gases, cement and construction. The industrial production rate in 7. 7% in 2011 (online. â€Å"Middle East: Saudi Arabia. â€Å"). Saudi Arabia’s exports contribute to 350. 7 billion to the economy during 2011. 90% of the commodities are petroleum and petroleum products. The Kingdom’s main export countries are Japan at 14. 3%, China at 13. %, United States at 13%, South Korea at 8. 8%, India at 8. 3% and Singapore at 4. 5% since the 2010 census. Saudi’s import system spends $106. 5 billion since 2011. The main import commodities are machinery and equipment, foodstuff, chemicals, motor vehicles, and textiles. Their import partners are United States at 12. 4%, China at 11. 1%, Germany at 7. 1%, Japan at 6. 9%, France at 6. 1%, India a t 4. 7% and South Korea at 42% since 2010 census (online. â€Å"Middle East: Saudi Arabia. â€Å"). The United States is the Kingdom’s largest trading partner and is the number 1 source of FDI. Saudi Arabia is among the top 20 recipients of the FDI in the world and is the 15th largest trading partners with the United States Saudi Arabia has a stable and profitable banking system and it is regulated by the Saudi Arabia Monetary Fund (SAMA). The banks follow Islamic law, by keeping out interest payments. No bank has ever failed in the Kingdom. The banking industry is the safest in the Middle East. Saudi Arabia received a Banking Industry Country Risk Assessment rating of 2 in 2011. The banking sector is composed of 13 Saudi owned banks and 8 foreign banks. The National Commercial Banks is the country’s largest bank, which is controlled by the government and follows Islamic laws. As well as commercial banks, there are 5 government credit establishments to help the private and corporate financing requirements. The currency is Riyals, so 1 U. S. dollar equals 3. 75 Riyals. The Saudi stock exchange is the largest in the Arab world (online. â€Å"Country Profile: Saudi Arabia. â€Å"). In Saudi Arabia, Arabic is the official language but English is spoken in business settings and schools. The religion is 100% Muslim. Islam is practiced by all Saudis and controls their political, legal, economic, and person lives. The Quan and the action of the Prophet are used as basic principles for Muslims. Muslims pray at least 5 times a day, at dawn, noon, afternoon, sunset and evening. The holy day for Muslims is Friday and everything is closed and most business have Thursday off also making the weekend Thursday and Friday. During Muslim holy month Ramaden, all Muslims fast from dawn to dusk and are only allowed to work 6 hours a day. Expatriates are not required to fast but they must eat, drink, chew gum or smoke in public. Family and or tribe are the most important and the basis of their social life. Saudis take their responsibilities and pride in their family seriously. Families tend to be large and extended family is close. Businessmen tend to hire family and friends because trust is the greatest importance. The Kingdom’s etiquette is quite unique. Men shake hands when greeting one another but they will shake and kiss a close friend when meeting. Men and women do not greet each other public. When Saudis meet they take their time and talk about general things. Gift giving is not the norm just like in other countries. If you are invited to a Saudis house bring something small to say thank you, flowers are only given from a women her hostess. Never bring alcohol unless you are positive they partake and gifts are never opened when received. Take off your shoes, arrive on time and accept Arabian coffee even if you don’t drink coffee. If the meal is on the floor, sit cross-legged or on one knee, eat only with your right hand since the left is considered unclean, try a little bit of everything served and meals are served family style. Saudis socialize in restaurants and hotels when meeting foreigners they do not know well. Generally entertainment is separate for men and women if both sexes are included. Always greet the elder first to show respect, dress conservatively and arrive on time (online. â€Å"Saudi Arabia†). Saudi Arabia’s economic freedom score is 62. 5, making it 74th freest in the 2012 index. Forming a business has become less time consuming, and the licensing necessities have become simpler. With no minimum capital required, starting a business takes only three procedures and five days. There is no government minimum wage, but wage increases have improved the production (online. â€Å"2012 Index of Economic Freedom. ). The 1st step in starting a business in Saudi Arabia is to find a Saudi sponsor to enter the country. The sponsor acts as the middleman and arranges appointments with the right individuals in the business world. Saudis prefer to work with people they know and trust and will spend a lot of time getting to know you. Most Saudis will judge you on your appearance so dress and present yourself well. Most Saudis wear long white thobes. You will be expected to wear a suite. Businesswomen should make certain that their collarbones and knees are covered and that their clothes are not form fitting. Make sure appointments are several weeks to one month in advance, try to schedule in the morning, arrive on time, although it is accepted to keep a foreigner waiting, and it is not uncommon to have the meeting cancelled once you have arrived. Meetings are never private until a relationship of trust is acquired. That means you will expect interruptions and make sure you do not bring the topic back to the original discussion until the new person has left. Business meetings never start with talking about business first, there will be inquires about health and family. Never ask about a Saudis wife. Decisions are made slowly and do not rush the process. Saudis are great negotiators and the highest-ranking person makes the decisions (online. â€Å"Saudi Arabia†). Women rights and sponsorship are two main issues in Saudi Arabia that are seen as disadvantages with doing business in Saudi. Women are treated differently in the Kingdom compared with the United States and Europe. Saudi women and foreign women are not allowed to drive a car, sit in the front seat of the car and have to be covered from head to toe basically. They have to travel with a male at all times. The male is usually the husband, father or brother or whomever makes the important decisions on behave of the woman. There are no current women in office for the government. The most influential women today in Saudi Arabia believe that the Kingdom will never progress with the real and full participation of women. Sponsorship of foreign labor has reportedly had a few problems with the way they have been treated. The system is no longer conventional to the life in the 21st century and fails to provide foreign workers with basic human rights. Today foreign worker want a new system that integrates a comprehensive and flexible legal framework for employer and employee (online. Alnowaiser, Dr. Khalid. ). In the end doing business in Saudi Arabia has positive and negative situations. The good out shines the bad. The best businesses to get into right now would be involved with power generation, telecommunication, natural gas exploration and petrochemical sectors. As long as you see patients as a virtue and are willing to make deals, doing business in Saudi Arabia is the right place to start or branch out your company. How to cite Saudi Arabia, Papers Saudi Arabia Free Essays Saudi Arabia is a deeply conservative country in the Middle East rooted in Islamic laws and traditions that degrade women in the society. The laws have roots in both the traditions and Islam. And to a large extent, the country has suffered slow growth as only half of its economy is productive. We will write a custom essay sample on Saudi Arabia or any similar topic only for you Order Now It is evident that when women are empowered there will be a tremendous growth in the economy, and as such, gender parity should be perceived as a moral obligation which will stimulate economic stability and give women a chance out of social bondage. WHY THE LAWS SHOULD BE CHANGED There is a great need for the country to adjust its laws to accommodate all the citizens, both male and female. The kind of discrimination and social degradation women face is the worst ever. Women are forced to obtain permission from men, including from their sons to be able to travel, get jobs and enroll for higher education. Even after the progress which had been made during the colonial period, the country has found itself back to its original position,at work places, the education sectors and leadership. For the women, discrimination has become the norm. During job applications and recruitments, they don’t get the same opportunities as men (Vogelstein, 2018). With the men’s narrow conservative perception, women are even denied promotions, others dismissed. Thus, this has led to constant disputes with their male colleagues. The result being slow progress in their personal development stemming adverse realities for them. This perspective doesn’t regard women as having the necessary skills and abilities for pursuing leadership roles although there are economic reformations, there are still numerous challenges.The academic leadership roles of women has been crippled by organizational and administrative challenges they face in their work environment (Alsubh, 2018). Women are barred from taking superior positions due to lack of their training and education. This coupled with inadequate financial allocation and patriarchal mindset has affected women leadership, which directly impacts on the institutional achievement. Other challenges hindering their capabilities are caused by uncooperative behavior of their subordinates, excess workload with very long working hours due to absence of positional power.Most women trying to break away from the societal norms and expectations find themselves in very tight schedules(Alsubh, 2018). They are expected to take charge of their families. This translates to less time attending to work, in severe cases a promotion may lead to separation from her family.Some opt to drop their jobs altogether. With constrains in time, they are barely able to get enough experience. Most cannot withstand the pressure and end up with low self-confidence, thereby unable to adapt to the dynamics of work environment. This significantly bars implementation of the strategic leadership technique. More than often, over the years, the workplace has always been considered to be a masculine domain(Alsubh, 2018). Men are perceived to be more productive than women, which has created conflicts among women and fellow workers or even their bosses. Women are made to appear unfit and even within the right qualifications they still find it hard convincing their seniors. Sadly, most loose the opportunities. Women empowerment is therefore suppressed. CONCLUSION Saudi Arabia having developed its laws from Islamic laws and traditions, is a highly patriarchal society where women are utterly discouraged from formal jobs in the public sphere. For the better part of history, this has been the story over and over again. The government has finally come to terms with the fact that it cannot develop without the input from women, thus it’s in the process of creating a friendlier environment for the women, although amidst challenges. Women are also citizens who need equal opportunities just like men, How to cite Saudi Arabia, Papers Saudi Arabia Free Essays string(49) " in resentment about being treated unequal ally\." The Kingdom of Saudi Arabia is the heart of the Middle East which is well known among many foreign countries for its oil production. Saudi Arabia is known as the land covered by immense deserts and insignificant amount of rainfall. The country is rich with oil and natural gas resources. We will write a custom essay sample on Saudi Arabia or any similar topic only for you Order Now At the time of its independence, Saudi Arabia was relatively poor country because at that time its oil resources were not discovered. In 1950’s, Saudi Arabia’s economy improved because of its proper utilization of oil. Saudi Arabia is the largest country occupying the Arabian Peninsula, with the Red Sea and the Gulf of Aqaba to the west and the Persian Gulf to the east. Saudi Arabia is surrounded by Jordan, Iraq, Kuwait, Qatar, Bahrain, United Arab Emirates, Sultanate of Oman and Yemen. The Kingdom is often termed as â€Å"The Land of the Two Holy Mosques† in reference to the two holy cities, Mecca and Medina. The foundation of The Kingdom was established by Abdul Aziz bin Saud in 1902, when he was successful in taking control of his ancestral home, the city of Riyadh. In 1932, The Kingdom was declared and recognized as Kingdom of Saudi Arabia. The present form of government in Saudi Arabia is Monarchy with Council of Ministers and Consultative Council (Adams, 2003). The estimated population of Saudi Arabia is 27. 6 million. Its size is about 2,150,000 square km. The religion followed in Saudi Arabia is Islam, which is also its birth place. The official language of Saudi Arabia is Arabic, which is used by most of the population. English is the second language which is used in government, trade sector, the media, and among non Arab emigrants. The social atmosphere in Saudi Arabia is extremely conservative. The country holds firm establishment of the meaning and significance of Islamic religious law. Cultural arrangement must correspond to assiduously clear principles and values of ethics. Men and women are not allowed to be present at community organized functions together and are separated in working organizations and firms. The majority Saudis are native Arab. Some are of assorted ethnic origin and are descendants of Turks, Iranians, Indonesians, Indians, Africans, and others. Indians, Pakistanis, Bangladeshis, Indonesians emigrants are also residing in Saudi Arabia. Natural Resources of Saudi Arabia The natural resources of Saudi Arabia mainly comprise of petroleum, natural gas, iron ore, gold, copper, zinc. Other mineral resources include Phosphate High-grade silica sand, feldspar and nepheline syenite, kaolin, basalt and scoria, gypsum and anhydrite, quartz, limestone and dolomite, marble, decorative limestone, granite, gabbro and others (Arjomand, 2003). Saudi Arabia’s Relation with United States of America Saudi Arabia’s exceptional and distinctive position in the Arab and Islamic world, its assets of the world’s biggest oil resources and its location make its alliance significant to the United States. In 1933, ambassadorial relations were instituted between the two countries and also Standard Oil of California was signed. The U. S. embassy was initiated in Jeddah in 1944. In 1984, the embassy repositioned to Riyadh. The former embassy in Jeddah was converted into U. S. consulate. The United States and Saudi Arabia share mutual interests on issues of regional defense and safety, oil trade and sustainable expansion and progress. Close discussions and conference between U. S. and Saudi Arabia have been increased on global, economic and advancement concerns such as Middle East issues and communal welfare and benefits in the Middle East. The constant accessibility to resources of oil from Saudi Arabia continues to be imperative to the affluence of the United States. Saudi Arabia is the primary leader in field of oil trade for the United States, supplying more than one million barrels of oil per day. The U. S. is Saudi Arabia’s chief dealing collaborator and Saudi Arabia is the main U. S. export promoter in the Middle East. Saudi Arabia and U. S. also maintain longstanding security associations. However, the first difference of opinion between the two countries occurred when U. S. ecognized Israel as a separate sovereign independent state in 1948. The Saudi government refused to recognize the country of Israel. In 1953, a U. S. military training mission was founded in Dhahran. The aim of this group was to offer training and encouragement in the usage of weapons and other safety measure assistance to the Saudi military. Many military aircrafts, air defense weapons, armored vehicles, etc have been sold to Saudi A rabia’s military by the United States. The Saudi’s authority showed concern in Israel-US relations that became cordial in 1970s and 1980s when U. S. sold military arms and weapons to Israel but didn’t sell arms to Saudi Arabia. The reason why U. S. stopped its supply of arms to Saudi Arabia on basis that Saudi Arabia will use them against Israel. These divergent interests had an unfavorable affect on US-Saudi relations, indicating that United States had no concern to protect Saudi Arabia. However in 1990, the Iraq conflict made Saudi Arabia guaranteed them of their significance and worth to the United States of America. Saddam Hussein had attacked Kuwait. Saddam Hussein also had the intentions to attack Saudi Arabia. Because of this, United States of America was promised proliferation of oil control (Ayoob, 1999). United States of America sent out more than 400,000 troops to the area to prevent aggression and hostility by Hussein and drove him back to Iraq. The United States mission was an instant success, due to support of Saudi Arabia. Saudi Arabia was used as an initiation pad for both land and air troops to be sent into Iraq. The military arms and weapons were sold to Saudi Arabia were used during the operation. Distinctively, the four high tech advanced AWACS aircrafts loaned by Jimmy Carter to Saudi Arabia. After the end of the operation, the Saudi government intended to buy 20 million dollar worth U. S. military equipment but the request was denied. This denial of request resulted in resentment about being treated unequal ally. You read "Saudi Arabia" in category "Papers" According to Thomas L. Friedman editorial column of August 12, 1990, the U. S intentions of providing protection to Saudi Arabia was not because of their cordial relations but because of economic benefits. The United States did not send the troops to the Saudi to defend and maintain autonomous egalitarian principles. The form of government in Saudi Arabia is monarchy which is a feudal regime. The American policy is not to make a better and safe place for feudalism. The main ambition of U. S is to secure its economy which is harbored by the Saudi’s oil reserve. Saudi Arabia and United States relations tensed after September 11, 2001 terrorist attacks in which total of 15 suicide bombers had Saudi nationality. Saudi Arabia condemned the 11th September attack by calling it an action against humanity. However, when U. S. waged war against Iraq the United States had to vacate its army stationed in Saudi Arabia in August 2003 (Bloomfield, 2004). . The Current State of Saudi Arabia The current form of government in Saudi Arabia is monarchy with Council of Ministers and Consultative Council. Sharia, the holy law of Islam, is the basis of all the legislative and officially authorized system, which is inferred according to the firm Hanbali rite by the educated and scholarly religious elders. Saudi Arabia is defined as an independent Arab, Islamic state whose foundation is the Quran and Sunna of the Holy Prophet. The standard of the administration are affirmed to be righteousness, fair, dealing, parity fairness, equal opportunity and consultation in accordance with the Sharia. The responsibility and obligation of the government is to shield Islam, human rights and offer public services and protection to all citizens in accordance to the Sharia. The leader is in command of the government and religious administrator of Saudi Arabia is the King. Saudi Arabia has no independent legislature and no political groups. The Consultative Council has no legislative rights but it has the authority to assemble and call ministers for inquiry and to submit proposal and advice to the king (Bosworth, 2004). Saudi’s Support for Palestine The Kingdom of Saudi Arabia has been a staunch supporter of Palestine since the era of King Abdul Aziz Saud. This permanent long term support was first acknowledged in 1935, at the conference on the Palestinian issue. The Saudi government has assisted the Palestine in all its different stages because the Kingdom firmly considers that these supporting efforts are part of Islamic duty and obligation. The Saudi government has played a principal and idiosyncratic role in supporting the Palestine issue and strengthening the Palestinians to achieve their objective and ambition to found an independent sovereign Islamic state. The Kingdom of Saudi Arabia accepted all declarations of global organizations with regard to the issue of Palestine. It involved in various conferences on this issue since Madrid conference. It exerts maximum in getting in touch with the West, welcoming nations and the U. S. government to force and compel Israel for considering international declarations that call for complete Israeli removal from all the occupied Arab regions. The Saudi government has assisted Palestinian issues at financially levels as well. The Kingdom presented financial assistance to the Palestinians in the Al Khartoum Arab summit in 1967. At various summits, the Saudi government has offered financial assistance to Palestinians. Additionally, the Kingdom organized Saudi Development Fund for a Palestinian Development Program that looks after the health, education and housing divisions in the Palestinian territories. The Saudi financial assistance to the Palestinians is the major share between all other Arab contributors. The Kingdom of Saudi Arabia condemned the cultural and ethnic segregation wall that Israel is building on Palestinian regions. The Kingdom protested to the International Court of Justice in Hague. The Court in Hague called upon Israel to discard this illegal wall. The UN General Assembly also passed a declaration in this regard calling upon Israel to remove the illegal war. Saudi Israel Relations Saudi Arabia’s relations with Israel are not cordial. When Israel emerged as a separate independent state in 1948, the Saudi government refused to acknowledge it. A licensed affiliate of the Arab League, Saudi Arabia fully supports the idea that Israel must vacate from Arab regions which were occupied forcefully in June 1967. Saudi Arabia with authorization supports the peaceful resolution of the Arab Israeli clash but does not accept the Camp David Accord, stating that it will violate Palestinians rights. Saudi Arabia does not maintain diplomatic relations with Israel and is active in economic embargo of Israel (Brent, 2006). Saudi’s Role in Terrorism Saudi Arabia is plays significant role in the movement of against terrorism, proving assistance in armed forces, ambassadorial and economical grounds. Saudi Arabia also discontinued acknowledging Taliban in mid November 2001. The Bush government eulogize Saudi encouragement and backing for the campaign on terrorism. The Saudis have cracked down hard on local Islamic extremist groups which were responsible for a series of terrorist bombings in 2005 and 2006. The government also announced amnesty for terrorists who surrendered their arms. Many of these former terrorists were sent to Islamic schools in which their Islamic extremist ideology was moderated. Many Islamic scholars of Saudi religious seminaries have openly condemned the use of terrorism as being against the principles of Islam. However despite extensive efforts to crack down on domestic terrorist groups, Saudi Arabia has been known to provide arms, training and support to Palestinian and other radical Islamic groups. The country has cracked down hard on local Islamic fundamentalists who have endangered the royal family but Saudi Arabia also has been accused of funding groups in Palestine, Kashmir, Chechnya, Afghanistan and Iraq. Saudi Arabia was a key supporter of the Taliban before the US invasion of Afghanistan (Brown, 1999). It has provided financial assistance to Hamas, a violent Islamic radical group responsible for numerous acts of terrorism inside Israel. How to cite Saudi Arabia, Papers