Businesses and Jobs in Saudi Arabia - Essay Example

Businesses in Saudi Arabia According to the annual “Doing Business” report (Reuters) issued by the International Finance Corporation (IFC)-World Bank for 2010, the kingdom of Saudi Arabia was listed as the world’s 13th most economically competitive country. In addition, as per the Reuters report, the country has been considered as a potential region for business operations in the Arab World and the entire Middle East (Reuters). “Saudi Arabian companies dominate 2009’s “MEED 100”, with companies listed on the Tadawul accounting for 29 out of the region’s 100 biggest publicly quoted companies ranked by market capitalization” (Economy of Saudi Arabia).

While analyzing the major business sectors of Saudi Arabia, the petroleum production, natural gas, chemicals, cement, fertilizer, plastics, and construction are the major industrial segments of the country. Among this, petroleum industry provides large scale business opportunities in the country. As Alyousef and Abu-ebid point out, statistical data show that Saudi Arabian petroleum sector accounts for nearly 55% of the GDP, 90% of export revenues, and 45% of budget earnings. In addition, private sector represents roughly 40% of the GDP.

As of 2002, over 95% of the Kingdom’s oil business was initiated by the parastatal giant Saudi Aramco on behalf of the country’s government. . As per the Saudi Gazette, the country’s exports of chemical products increased from $10.8 million in 2005 to $16.2 million in 2008 (Saudi Gazette). For more details on the KSA’s international trade see figure 11. The above diagram indicates Saudi Arabia’s international trade over the last few years. The graph clearly indicates that value of Saudi Arabia’s total exports is always less than that of the country’s total imports.

The country’s business sector has been showing greater improvements since Saudi Arabia became the member of WTO in 2005. Oil and petroleum industries have a significant influence on the country’s international trade. According to the information released by the International Trade Center, Saudi Arabia’s total exports represented $213.4 billion in 2010. With 17.2% of the Kingdom’s exports, United States is ranked as the country’s biggest exporter partner. Saudi Arabia has significant trade relationship with countries like Japan, South Korea, and Taiwan also.

Jobs in Saudi Arabia Historically, the Kingdom of Saudi Arabia provides extensive employment opportunities to the country’s citizens and immigrants. Statistical data indicate that KSA economy is currently employing nearly five and a half million foreign workers. It seems that the KSA government encourages the country’s private sector growth with intent to meet the employment needs of swelling Saudi population. However, the economic downturn in 2009 led to unemployment hike in the Saudi Arabia.

In order to overcome the adverse impacts of the economic downturn, the KSA government adopted a new employment strategy in 2009. However, recent reports indicate that the company is gradually improving its