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Saudi Arabia. العربية السعودية. Strengths. Education. Saudi Arabia Education system under Government agencies of Ministry of Education The Ministry of Higher Education General Organization for Technical Education and Vocational Training Education starts at 6 years old
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Saudi Arabia • العربيةالسعودية
Education • Saudi Arabia Education system under • Government agencies of Ministry of Education • The Ministry of Higher Education • General Organization for Technical Education and Vocational Training • Education starts at 6 years old • Examination at end of the 6th grade
Education (cont.) • Schools are not co-educational • Women are prevented from studying • Engineering • Journalism • Architecture • Saudi Arabia literacy rates • 85% among males • 70% among females
Economics • Growth in GDP • 80% between 2009-2011 • 5% growth in U.S • Ease of Doing Business • Named 11 out of 183 in Annual Report
WTO Member • Trade negotiations • Implementations and monitoring • Dispute settlement • Building trading capacity • Outreach
Road, Rail, & Port Infrastructure There is a new road being established in Saudi Arabia called the Atlantic Route Corridor. It will start in northern Saudi Arabia stretching due south, and then east to Westford.
Road, Rail, & Port Infrastructure Currently the kingdom has 1,200 km of rail ways. When the project is finished in 2015, the kingdom will have 7,000 km of rail roads.
Road, Rail, & Port Infrastructure 15 Ports in Saudi Arabia. The Majority of them are located in Eastern and Southern Saudi Arabia, for a total of 9 major ports.
Political Forces Outside Saudi Arabia • Political Unrest in the Middle East • Revolts • Terrorism
Geographic Location Because of the recent unrest in the Middle East, problems may arise from exposing the company to this location.
Culture • Religion • Schedule of prayers • Month of Ramadan • Women’s social standing • Pork-free diet • Advertisements aimed at Men
Favorable Taxes • Joint ventures – five year tax holiday • Agricultural – ten year tax exemption • Company tax ratesbetween 25 and 45 percent • Foreign employees not taxed on income • Zakat religious tax
U.S. – Saudi Arabia Relations • Ancestral ties and shared values • 9/11 Attacks • Both take the stance Saudi Arabia wasn’t involved
Promising Economic Growth • Privatization • Laws to Encourage Investment • Capital Markets Law • Foreign Investment Law
Limited Competition • Consumes 45% of all feed barley in global markets • Import millions of sheepeach year • Pilgrimage to Mecca • 2 million people • Government provides food all month
Unemployment • Unemployment Rate • 10.9% • Production Capacity • Potential Opportunity
Terrorism in Saudi Arabia • New wave of youth activism • Government reinforces strict limits on political activism • Related Developments • Internet – social media tools • “Reform stimulus” package - $37 billion • Municipal council elections
Terrorism – 9/11 Attack Company ABC is thinking about moving into Country XYZ. Recently, XYZ has been found to be involved in funding terroristic attacks. • Would you still buy from them? • If you were an investor, would you still invest or sell your stock?
Strengths • Education • Economy • WTO Member • Road, Rail, & Port Infrastructure
Weaknesses • Political Forces outside Saudi Arabia • Culture
Opportunities • Favorable Taxes • U.S. and Saudi Arabia Relations • Promising Economics Growth • Limited Competition
Threats • Unemployment • Terrorism
Recommendation Saudi Arabia does have considerable downsides such as terrorism, extremely high unemployment rates, and migration. However, Saudi Arabia does have a promising growth in economic areas and Saudi Arabia continues to have strong ties with the U.S. as far as trade relations and investments. The lower corporate taxes, the ability to move products and services freely throughout the Middle East, and limited competition in the food and beverage industries have lead Team Saudi Arabia to recommend in favor of moving forward and expanding business to Saudi Arabia.
Saudi Arabia • العربيةالسعودية