Business in Saudi Arabia
Having twenty five percent of the world’s oil reserves and with the capability of producing more than 10 million barrels per day, Saudi Arabia is not somewhere our energy dependent society can afford to overlook. The number one oil producer in the world is a strong trade partner of the US & EU. The absolute monarchy of Saudi Arabia has strong economic ties with the West. Mecca and Madinah are two of the world’s holiest places in Islam, with more than two million Muslims making the pilgrimage to Mecca each year.
Economists forecast continued real GDP growth to remain at approximately 4.9% per annum through 2016 given continued Government of Saudi Arabia spending and constant private sector growth given major infrastructure, economic cities and other major projects.
Apparently Saudi Arabia seems a tough market to penetrate, and partnerships can be difficult to establish, the size and continued growth of the Saudi economy, the fact that the Saudi currency SAR is pegged to the U.S. dollar and the pro-western outlook of Saudi business circles, all make Saudi Arabia an indispensable partner for foreign companies who are serious about doing business in Saudi Arabia.