Saudi Arabia’s exports of oil contribute to ninety five percent of their economy. This is broken up into crude petroleum, refined petroleum, ethylene polymers, propylene polymers, and ethers, with crude petroleum accounting for fifty five percent (2). Saudi Arabia owns the largest proven oil reserve in the world, making up twenty five percent of the worlds known oil reserve. The after stated is how Saudi Arabia is able to accomplish exporting such a remarkable amount of
Since the country has had massive oil reserves and a low production cost, it is likely that this sector will remain a major source of government revenue for years to come. However, due to the increasing number of alternative energy sources, Saudi Arabia started losing pricing power. The price-and-revenue balance became instable, resulting in a shortfall in the usual spending habits. After the collapse in the global prices of oil in the second half of 2014, Saudi Arabia started analyzing long term fiscal plans. Enough funds existed to sustain the country on the short term; however on the long run, Saudi Arabia faced a number of policy choices.
If he succeeds he can ensure a positive future for himself and would begin the global capitalism for the rest of Saudi Arabia. The king also promises more than just a beautiful city, the laws will be less strict for women, “they’ll be able to mix more freely with the men and drive” but these are just promises (pg. 38). These differences may be enough to target a different market of consumers as well as
Strengths: The major strength of The kingdom of Saudi Arabia relies heavily on its strategic location. As it is the birthplace of prophet Mohammed and the birth of Islam, it has great antiques and history that is appreciated by Arabs, Muslims and everyone around the world, as the history of the Arab peninsula goes back to more than 1400 years. This provides tons of historic information and antiques that will attract tourists around the world. Another strength is the constant visits from Muslims throughout the year, which will motivate the Saudi government to be on a constant road to development to provide ease for visitors when performing religious rituals. Saudi Arabia holds approximately 70% of youth population, these young people will be a great asset in the success of the objectives and the vision as a whole because of the amount of enthusiasm and energy they have towards change and development.
Also, the women of Saudi Arabia have literally been fighting for these rights since the 90’s. And me personally I believe that all humans are equal. Lastly, letting women drive will increase the economy in Saudi Arabia because now women do not have keep spending their money on private drivers or paying a relative to take them work. Now they can invest that money back into their families or anything else that is essential to them. Many of the kingdoms professional and young people will welcome the change, looking at it as a step to making life in Saudi Arabia like everywhere else in the
1. To critically analyze and discuss the impact of relying only on a single type of industry for a nation’s competitive advantage (500 words) Saudi Arabia is one of the world's wealthiest countries per capita and, through ownership of a substantial offer of the world's oil assets, a financial power. Nonetheless, oil keeps on overwhelming fares, yet industrialization endeavors of the 1980s have prompted a extensive enhancement, with a scope of made products being created. The monetary achievement of Saudi Arabia is worked partially on its near points of interest and on beating its inconveniences. Despite the fact that the legislature emphatically underpins the free market economy in view of rivalry, Saudi Arabia is yet to prevail in worldwide
Additionally, the reason why Japan scores higher is that Japan has several advantages while Saudi Arabia has not, such as a larger population, an easier transportation, a greater GDP, a free market economy, a more stable society, a larger share of imports for honey products, and a lower trade barrier. Table 3: the weighted index of market potential for Japan and Saudi Arabia Variable Weighting Japan Saudi Arabia Score Adjusted Score Score Adjusted Score Economic endowment 15% 9 1.35 5 0.75 Economic stability 20% 6 1.20 8 1.60 Democratic level (economic freedom) 10% 9 0.90 4 0.40 Political stability 20% 6 1.20 5 1.00 Potential market 25% 8 2.00 6 1.50 Trade barriers (taxation & tariffs) 10% 8 0.80 5 0.50 Total 100% 46 7.45 33 5.75 6.0 Conclusion This report has outlined the economic, political and business environments in Japan and Saudi Arabia and evaluated their market potential for exporting Australian Manuka honey products. Based on this analysis and the weighted indexes, I recommend Japan as a more potential foreign market because Japan has a larger size and better features of the economy and a sounder and more stable social system for
The Kingdom of Saudi Arabia was founded in 1932 by Ibn Saud. The country has since been an absolute monarchy governed along Islamic lines. The Qur’an is declared to be the constitution of the country, which is governed on the basis of Islamic law (Shari'a). Saudi Arabia’s economy is a command economy. A system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods will be offered for sale.
Globalization in Saudi Arabia Globalization is a procedure which corporations and governments of different countries communicate and amalgamate with each other. This course of action has thought to be powered by Global trade. The Kingdom of Saudi Arabia has entered the international trade. On the 4th of March 1938, California Arabian Standard Oil Company (CASOC) found a significant amount of oil in Dammam, Saudi Arabia, this extremely important date was the start of Globalization in Saudi Arabia. The amount of oil that has been found by the CASOC was considered the “largest source of crude oil in the world”.