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GEOGRAPHICAL
FEATURES:
Because of its large area, the Kingdom has a varied topographical
structure. Along the Red Sea lies the Tihama coasal plain. It is
1,100 kilometers long, 60 kilometers wide in the south and gradually
narrows to the north until it reaches the Aqaba Gulf. To the east
of this plain lies a chain of mountains called Sarawat. These mountains
rise to 9,000 feet in the south and gradually fall to 3.000 feet in the
north. Several large valleys slope eastward and westward from
Sarawat such as Najran Valley Tathleeth Valley, Bisha Valley,
Himdh Valley, Rumah Valley, Yanbu Valley and Fatima Valley. To the
east of the chain stands the Najd Plateau which extends eastward to
Samman Desert and Dahnaa Dunes ond southward to a region penetrated by
Wadi Al-Dawaser and bordered by the Empty Quarter. The Plateau
stretches northward to Najd Plains passing through Hoel unitl combining
with the Great Nefud Desert then to the borders of Iraq and Jordan.
There are also some mountains in this plateau such as Tawabek Mountains,
Al Aradh, Aja and Salmah. The Empty Quarter, the southeastern part
of the Kingdom, occupies on estimated area of 640,000 square kilometers
composed of sandhills and lava fields. The eastern coastal plain is 610
kilometers long and consists of large sand areas.
The climate of Saudi Arabia varies from one region to another
because of its various topographical features Being under the influence
of a sub-tropical high pressure system the Kingdom is generally hot in
summer and cold in winter, and its rainfall is often in winter.
Moderate climate is seen in the southwestern part of the Kingdom, dry
hot summer and cold winter in the interior parts, and high temperature
and humidity in the coastal areas.
Population
TOTAL
ESTIMATED POPULATION 24.06 million (2003)
POPULATION GROWTH RATE 2.9%
POPULATION DISTRIBUTION BY SEX:
Male 55%
Female 45%
POPULATION DISTRIBUTION BYNATIONALITY:
Saudis 74.5%
Non-Saudis 25.5%
POPULATION DISTRIBUTION BY AGE:
14and Less 39.7%
15-64 57.9%
65+ 2.4%
POPULATION DENSITY 10.7 hab./km2
POPULATION DISTRIBUTION BYREGIONS:
Riyadh 23%
Makkah 26%
Eastern Province 15%
Asir 8 %
Madinah 6 %
Other Regions 22 %
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POLITICAL
FRAMEWORK:
Official Name: Kingdom of Saudi Arabia
Political System: Monarchy
The Kingdom of Saudi Arabia is an Islamic State
Sharia, the Islamic Code of Law based on the Holy Quran and the Sunnah,
is the foundation of the legal system of Saudi Arabia. The Holy Quran
itself is considered the constitution of the country and provides
ethical values and guidance
Executive and Legislative authority are exercised by the King and the
Council of Ministers within the framework of Islamic law. Besides, The
Consultative Council (Shura Council) has been established to advise the
King and the Council of Ministers on matters pertaining to government
programs and policies. The primary function of that Council is to assess
and modify the Kingdom’s system of laws. by-laws, contracts and
international agreements.
The Kingdom’s ministries and all other government agencies are
ultimately responsible to the King.
The Custodian of The Two Holy Mosques :King
Abdullah Bin Abdul
Aziz Al-Saud,
National
day:
Sept 23
Territorial organization of the State:
The state is divided into 13 Administrative Regions. Each region is
composed of Mohafazat There are 43 level A Mohafaza and 61 level B
Mohafaza
General
Information:
Capital: Riyadh
Main Cities: Riyadh, Jeddah, Dammam, Taif,
Makkah, Madinah
Official Religion: Islam
Official Language: Arabic but English is
commonly used especially in commercial correspondence.
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ECONOMIC
SYSTEM:
The Kingdom of Saudi Arabia achieved a rapid progress in the
last two decades. The Kingdom adopts a free trade policy. It encourages
the investment in the local economic development projects through
extensive package of incentives given to Saudi and foreign investors.
GDP
(GDP) AT
Fixed PRICE (2003) US$ 211.1 Billion
COMPONENTS OF GDP (2002):
Oil Sector 31.2%
Non-Oil Sector 68.7%
Private Sector 45%
Government Sector 23.7%
NOMINAL GROWTH IN GDP (2003) 6.4%
PER CAPITA INCOME (2003): US$ 8796
Inflation Rate (consumer price) 2003 0.6
Average of consumer price for the last 10 years 112.6
DEGREE OF
OPENING OF THE MARKET (2002)
Foreign Trade
(Exports + lmports)/ GD
55.2%
Total Imports/World Imports
0.5%
(Merchandise)
Total Exports/World Exports
1.2%
(Merchandise)
GDP BY
ECONOMIC ACTIVITIES 2002
Agriculture and Fishing 5.7%
Industry (excluding construction) 11.1%
Construction
6.7%
Utilities 1.4%
Whole sale and retail trade
8.2%
Transport, Storage and Communication 5.2%
Finance, Insurance, Real est. and Business 12.8%
Social Services
3.8%
Government Services 19.5%
Mining 27.4%
Agriculture:
Over the past decade, Saudi Arabia has fundamentally transformed
its agricultural landscape, covering desert into fertile farmland. The
country’s spectacular increase in wheat production is now considered
one of the major accomplishments of modern agriculture in the Middle
East. In the recent years, Saudi Arabia has become self-sufficient in
most basic foods; it has even begun to export wheat, dates, dairy
products, vegetables, eggs, fish and poultry to markets around the
world.
Industry:
Industry in Saudi Arabia is very important to diversify its
economic base, to reduce its dependence on the production and export of
crude oil, to increase the private sector’s participation in the
development process, to create new job opportunities, to develop the
National manpower resources and to establish a solid technological base.
The cumulative number of operating industrial units, licensed under the
Regulation for Protection and Promotion of National Industries and the
Foreign Capital Investment Regulation in the Kingdom, reached 3,110 at
1998, with a total capital investment of $61.4 billion. In view of the
importance given by the Kingdom for the availability of basic
infrastructure for the industrial sector to accelerate the pace of
manufacturing, the two major industrial cities at Jubail and Yanbu, were
established by the Royal Commission for Jubail and Yanbu. These cities
are primarily targeted at developing basic industries related to oil
derivatives, petrochemicals and minerals, as well as to spur development
of secondary industries derived from these basic industries, in addition
to the associated support industries. In pursuit of the balanced
regional development objective, and in an effort to stimulate the
Industrial sector, the Ministry of Industry and Electricity has
established 15 adequately developed industrial cities, with various
utilities and services necessary for the establishment of factories.
Services:
Services provide a great contribution to GDP and to employment
in Saudi Arabia.
Services
in Saudi Arabia include:
commerce, tourism, standardization and specification, and statistical
services. The commercial services which include the wholesale and retail
trades, hotels, and restaurant is the most important because of its
essential role in achieving the general objectives and strategic
principles of the Saudi Socioeconomic Plans by providing goods,
materials, and services to citizens in all regions of the Kingdom and
enhancing the sources of National income. The cumulative number of
companies existing in the Kingdom and licensed by the Ministry of
Commerce reached 8,963. Joint stock companies, numbered 94, with total
paid-up capital of US$ 22.95 billion in 1997
Banks:
The Saudi Arabian Monetary Agency - SAMA - is the country’s
central bank.
The
commercial bonks in Saudi Arabia are:
• The National Commercial Bank
• The Riyad Bank
• ALBank AlSaudi Al-Fronsi
• The Saudi American Bank
• The Saudi British Bank
• Al-Bank Al-Saudi Al-Hollandi
• The Al-Jazirah Bank
• Al-Rajhi Banking and Investment Company
• Arab National Bank
• The Saudi Investment Bonk
Roads:
The Kingdom’s road network consists of 44,100 km. of asphalted
roads. Nearly all towns and cities as well as most of the villages of
the Kingdom are now linked by at least two lane roads.
Railways:
The number of passengers who travelled dbay the railways durig
1997 totaled 608 thousand and the volume of goods carried by it during
the same period amounted to 2.5 million tons.
Airports:
The number of airports operating in the Kingdom reached 25, of
which 3 were international. The number of passengers arriving at
airports in the Kingdom is 13.1 million in 1997, and the number of
passengers departing from all airports in the Kingdom is 13 million in
1997. Outgoing cargo at all airports in the Kingdom carried by all
airlines reached 175.9 thousand tons in 1997
Seaports:
There are Eight commercial and industrial seaports in the
Kingdom handling an increased volume of goods every year. The total
volume of Exports and Imports (excluding crude oil) amounted to 88.8
million tons in 199d7. The number of berths in the commercial
ports amounted to 183 in 1997 and the industrial ports amounted to 46
berths.
Post:
The number of Post Offices operating in the Kingdom in 1997 was
626. The number of domestic correspondence was 338.8 million, and the
number of incoming and outgoing postal materials was 596.7 million items
in 1997
Telephone
lines:
The number of operating telephone lines reached 2.3million in
1997 the telephone service in the Kingdom is currently covering 893
cities and villages.
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MARKET
ACCESSIBILITY:
TRADE SYSTEM:
The Kingdom of Saudi Arabia is dedicated to the concept of free
trade based on competition There are no foreign exchange controls
quantitative restrictions or tariff barriers No price restrictions or
quotas are imposed on importers except for few products which are
prohibited. Customs duties are very low, whereas some essential
items enter duty free. Imports, wholesale and retail trade are in
the hands of the Saudi private sector The government supports the
expansion of the private sector as the cornerstone of economic
diversification by assigning to it a major role in handling domestic and
foreign trade. The
Kingdom s foreign trade strategy is directed towards the
attainment of an adequate balance in the financial and merchandises
trade flow between the Kingdom and other countries Investment
system:
The Saudi government has developed an extensive package of incentives to
attract local and foreign investors
The Foreign Capital Investment Law issued in 1979 has been specially
introduced to provide a set of incentives for foreign investors wishing
to invest in the Kingdom Foreign Capital enjoys the same privileges as
Saudi Capital under the National Industries Protection and Encouragement
Regulations - items such as low cost financing duty
free equipment and row materials 10-yeor tax holidays and free
repatriation of Capital and Profits made
the Kingdom an attractive potential magnet for local and foreign
investment Tariffs:
Tariff levels on imports of a wide variety of Products are 12%
Membership of trade and economic organizations:
Kingdom of Saudi Arabia is a member in many world trade and economic
organizations such as
• World Bank (WB)
• International Monetary Fund IMF
• Arab Monetary Fund (AM)
• Inter-Arab Investment Guarantee Corporation
• Cooperation Council for the Arab states of the Gulf (GCC)
• Inter-Arab Free Trade Zone
• Standing Committee for Economic and Commercial Cooperation
• Islamic Development Bank (IDB)
and ii is worth to say that the Kingdom is now on the way to be a member
of the World Trade Organization (WTO)
Protection
of Patents and Trade Marks:
In consistent with international standards the Kingdom enacted Copyright
Law in 1989 and has acceded to the Universal Copyright Convention
Similarly Saudi Arabia s trade mark low and regulations generally follow
internationally accepted norms
Visa
Formalities:
No visas are required by nationals of Kuwait Bahrain Oman Qatar and the
UAE All other nationals should obtain visas Prom Saudi Embassies or
Consulates abroad Applicators via trade associabons Chambers of Commerce
etc are recommended supported by an invitation from the host company in
Saudi Arabia
Business
Hours:
Govt Offices
7: 30 to 14: 30
Banks
8 :30 to 12 00 and 17: 00 to 19: 0015at to Wed)
8 :30 to 11: 30 (Thursday)
Business
Vary from business to business and from place to place During
Ramadan most businesses open in the evening after sunset
Currency:
Saudi Royal (SR) divided into 100 Hal alas
Currency
regulation:
There is no restriction on the amount of currency, which a traveller
may take into or out of Saudi Arabia
Electricity:
Both 110 V and 240 V 60 Cycles AC
Official
holidays:
Weekend holidays: Thursday and Friday Eid
Al Fitr : From 25th Ramadan to 5th Showwal
Eid Al Adha: From 5th Dhul Hajj to 15th Dhul Hajj All government
institutions and departments are closed during these
holidays But in private sector it differs from business to business
International
Dialing:
+966 plus the area code;
1 Riyadh 2 Jeddah 3 Dammam/ Dhahron/ AI Khobar
Key
Contacts:
| Government
Ministries: |
Tel: |
Fax: |
| -
Ministry of Agriculture and Water |
966-1401
-2777 |
966-1403-1415 |
| -
Ministry of Commerce |
966-1401-2222 |
966-1403-8421 |
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Ministry of Finance and National Economy |
966-1405-0000 |
966-1405-9202 |
| -
Ministry of Foreign Affairs |
966-1406-7777 |
966-1403-0159 |
| -
Ministry of Industry and Electricty |
966-1477-6666 |
966-1477-5451 |
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Council
of Saudi Chambers of Commerce and Industry
P.O. Box: 16683, Riyadh 11474,
Tel: 4053200, Fax: 4024747,
Webpage:HTPP://www.Saudichambers.org.sa
E-mail: info@saudichamber.org.sa
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