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SAUDI ARABIA
2016
COUNTRY NOTE BOOK
BY: MUHAMMAD ADNAN
REG : 13-NTU-5004
|
NATIONAL TEXTILE UNIVERSTY FAISALABAD PAKISTAN
1
Contents
Culture analysis:.............................................................................................................................. 6
Introduction ................................................................................................................................ 6
Brief discussion of the country’s relevant history .......................................................................... 6
Geographical setting....................................................................................................................... 6
Location....................................................................................................................................... 6
Climate........................................................................................................................................ 6
Topography ................................................................................................................................. 7
Social institutions............................................................................................................................ 8
Family.............................................................................................................................................. 8
The nuclear family....................................................................................................................... 8
The extended family ................................................................................................................... 8
Education ........................................................................................................................................ 9
1. The role of education in society........................................................................................... 9
Primary education (quality, levels of development, etc.) .......................................................... 9
Secondary education (quality, levels of development, etc.) .................................................... 10
Higher education (quality, levels of development, etc.) .......................................................... 10
2. Literacy rates...................................................................................................................... 10
C. Political system ......................................................................................................................... 10
Executive Branch:...................................................................................................................... 10
Legislative Branch: .................................................................................................................... 11
3. Political parties................................................................................................................... 11
4. Stability of government ..................................................................................................... 11
4. Special taxes.............................................................................................................................. 12
5. Role of local government...................................................................................................... 12
Legalsystem.................................................................................................................................. 12
1. Organization of the judiciary system..................................................................................... 12
Sharia courts ............................................................................................................................. 13
Non-Sharia tribunal................................................................................................................... 13
Code, common, socialist, or Islamic-law country ......................................................................... 13
Participation in patents, trademarks, and other conventions...................................................... 13
Applications for a protection document must be filed at the
Directorate in the Arabic language, and must include: ............................. 15
2
Copyright.............................................................................................................................. 16
E. Social organizations................................................................................................................... 17
1. Group behavior .................................................................................................................. 17
2. Social classes...................................................................................................................... 18
F. Business customs and practices............................................................................................ 18
V. Religion and aesthetics......................................................................................................... 20
Religion and other belief systems................................................................................................. 20
Relationship with the people .................................................................................................... 20
Which religions are prominent? ............................................................................................... 21
5. Membership of each religion............................................................................................. 21
B. Aesthetics.................................................................................................................................. 21
1. Visual arts (fi ne arts, plastics, graphics, public art, colors, etc.).......................................... 21
2. Music.................................................................................................................................. 21
Folklore and relevant symbols.................................................................................................. 22
VI. Living conditions .................................................................................................................. 22
A. Diet and nutrition ..................................................................................................................... 22
1. Meat and vegetable consumption rates............................................................................... 22
3. Typical meals...................................................................................................................... 22
4. Malnutrition rates.............................................................................................................. 23
Housing ......................................................................................................................................... 23
2. Do most people own or rent?............................................................................................... 23
Clothing ......................................................................................................................................... 23
1. National dress .................................................................................................................... 23
2. Types of clothing worn at work ......................................................................................... 24
D. Recreation, sports, and other leisure activities........................................................................ 24
1. Types available and in demand............................................................................................. 24
E. Social security............................................................................................................................ 26
F. Healthcare................................................................................................................................. 26
Language....................................................................................................................................... 26
A. Offi cial language(s)............................................................................................................ 26
B. Dialects.................................................................................................................................. 26
VIII. Executive summary................................................................................................................ 26
ECONOMIC ANALYSIS.................................................................................................................... 27
3
Introduction .............................................................................................................................. 27
II. Population ................................................................................................................................. 27
Total .......................................................................................................................................... 27
Growth rates ............................................................................................................................. 27
Number of live births ................................................................................................................ 27
3 Birthrates................................................................................................................................ 27
Distribution of population ............................................................................................................ 27
1. Age ..................................................................................................................................... 27
2. Sex...................................................................................................................................... 27
3. Geographic areas ............................................................................................................... 28
4. Migration rates and patterns............................................................................................. 28
5. Ethnic groups......................................................................................................................... 28
Economic statistics and activity.................................................................................................... 28
Gross national product (GNP or GDP)........................................................................................... 28
1.Total ....................................................................................................................................... 28
2. Rate of growth GDP .............................................................................................................. 28
B. Personal income per capita .................................................................................................. 28
Average Annual income per capita............................................................................................... 28
Distribution of wealth ................................................................................................................... 28
E. Minerals and resources............................................................................................................. 28
Surface transportation.................................................................................................................. 29
G. Communication systems .......................................................................................................... 30
H. Working conditions................................................................................................................... 30
Working Hours & Overtime ........................................................................................... 31
I. Principal industries................................................................................................................ 31
J. Foreign investment.................................................................................................................... 32
International trade statistics......................................................................................................... 32
Balance-of-payments situation..................................................................................................... 33
Exchange rates.............................................................................................................................. 33
Trade restrictions .......................................................................................................................... 33
• Counterfeiting ........................................................................................................................ 36
• Arab League Boycott .............................................................................................................. 36
Labor force .................................................................................................................................... 36
4
Inflation rates................................................................................................................................ 37
Developments in science and technology .................................................................................... 37
V. Channels of distribution............................................................................................................ 37
Retailers .................................................................................................................................... 37
Wholesale middlemen .............................................................................................................. 39
VI. Media....................................................................................................................................... 39
MARKET AUDIT AND COMPETITIVE MARKET ANALYSIS............................................................... 40
THE PRODUCT ........................................................................................................................... 40
RELATIVE ADVANTAGE.............................................................................................................. 40
COMPATIBILITY......................................................................................................................... 40
COMPLEXITY.............................................................................................................................. 40
TRIALABILITY AND OBSERVABILITY........................................................................................... 40
MAJOR ISSUES........................................................................................................................... 40
THE MARKET ................................................................................................................................. 41
GEOGRAPHICAL REGION............................................................................................................... 41
FORMS OF TRANSPORTATION AND COMMUNICATION AVAILABLE IN KSA ................................ 41
CONSUMER BUYING HABITS......................................................................................................... 41
PRODUCT-USE PATTERNS............................................................................................................. 41
PRODUCT FEATURE PREFERENCES ............................................................................................... 41
DISTRIBUTION OF THE PRODUCT.................................................................................................. 41
TYPICAL RETAIL OUTLETS.............................................................................................................. 42
ADVERTISING AND PROMOTION.................................................................................................. 42
SALES PROMOTION....................................................................................................................... 42
PRICING STRATEGY........................................................................................................................ 42
CUSTOMARY MARKUPS ................................................................................................................ 42
TYPES OF DISCOUNTS AVAILABLE................................................................................................. 42
OUR COMPETITOR ----Bata shoes................................................................................................. 43
COMPETITOR'S PROMOTION AND ADVERTISING METHODS AND THEIR DISTRIBUTION
CHANNELS..................................................................................................................................... 43
OUR MARKET SIZE......................................................................................................................... 43
GOVERNMENT PARTICIPATION AND AGENCIES THAT CAN HELP US........................................... 43
REGULATIONS ............................................................................................................................... 44
Premilery markete plan ................................................................................................................ 44
5
OBJECTIVE................................................................................................................................. 44
TARGET MARKET....................................................................................................................... 44
MARKET PENETRATION............................................................................................................. 44
PROMOTION MIX.......................................................................................................................... 44
ADVERTISING............................................................................................................................. 44
MEDIA MIX ................................................................................................................................ 44
MESSAGE................................................................................................................................... 45
COSTS OF MEDIA EXPENSES...................................................................................................... 45
SALES PROMOTIONS................................................................................................................. 45
DISTRIBUTION............................................................................................................................... 45
PORT SELECTION....................................................................................................................... 45
MODE SELECTION ..................................................................................................................... 45
PACKING.................................................................................................................................... 45
DOCUMENTATION REQUIRED....................................................................................................... 45
CHANNELS OF DISTRIBUTION - RETAILERS................................................................................... 46
PRICE DETERMINATION ................................................................................................................ 46
6
Culture analysis:
Introduction
Servis Shoes is a global footwear manufacturer and retailer with its acting head office
in Gulberg, Lahore, Pakistan.[1]The brand is working under the Servis Industries Limited (SIL). It
was established in January 1928 in Gulberg which was later shifted to Gujrat. Servis has seven
brands which are Calza, Cheetah, Don Carlos, Liza, Skooz, Soul and Toz .Service comoany export
shoes to The Kingdom Of Saudi Arabia .
Brief discussion of the country’s relevant history
Saudi Arabia, officially known as the Kingdom of Saudi Arabia, is the largest Arab state in
Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-
largest in the Arab world (after Algeria). It is bordered by Jordanand Iraq on the north and
northeast, Kuwait, Qatar, Bahrain and the United Arab Emirates on the east, Oman on the
southeast, and Yemen on the south. The Red Sea lies to its west, and the Persian Gulf lies to the
east. Saudi Arabia has an area of approximately 2,250,000 km2(870,000 sq mi), and it has an
estimated population of 27 million, of which 9 million are registered foreign expatriates and an
estimated 2 million are illegal immigrants. Saudi nationals comprise an estimated 16 million
people.
The Kingdom of Saudi Arabia was founded by Abdul-Aziz bin Saud (known for most of his career
as Ibn Saud) in 1932, although the conquests which eventually led to the creation of the
Kingdom began in 1902 when he captured Riyadh, the ancestral home of his family, the House
of Saud, referred to in Arabic as Al Saud. The Saudi Arabian government, which has been an
absolute monarchy since its inception, refers to its system of government as being Islamic,
though this is contested by many due to its strong basis in Wahhabismand Salafism, which are
minority schools of thought in Islam. The kingdom is sometimes called "The Land of the Two
Holy Mosques" in reference to Al-Masjid al-Haram (in Mecca), and Al-Masjid al-Nabawi (in
Medina), the two holiest places in Islam.
Saudi Arabia has the world's second largest oil reserves which are concentrated largely in the
Eastern Province and oil accounts for more than 95% of exports and 70% of government
revenue. This facilitates the creation of a welfare state although the share of the non-oil
economy is growing recently. It has also the world's sixth largest natural gas reserves
Geographical setting
Location
Middle East, bordering the Persian Gulf and the Red Sea, north of Yemen
Climate
The months January, February, March, November and December have nice weather with a
good average temperature. Hot season / summer is in April, May, June, July, August, September
and October. Most rainfall (rainy season) is seen in October. Riyadh has dry periods in January,
February, March, May, June, July, August and September. On average, the warmest month is
7
August. On average, the coolest month is January. October is the wettest month. This month
should be avoided if you don't like to much rain. June is the driest month.
Topography
On the peninsula, the eastern line of the Great Rift fault is visible in the steep and, in places,
high escarpment that parallels the Red Seabetween the Gulf of Aqaba and the Gulf of Aden. The
eastern slope of this escarpment is relatively gentle, dropping to the exposed shield of the
ancient landmass that existed before the faulting occurred. A second lower escarpment, the
Jabal Tuwayq, runs north to south through the area of Riyadh.
In the south, a coastal plain, the Tihamah, rises gradually from the sea to the
mountains. Hejaz extends southward to the borders of mountainous Yemen. The central
plateau, Najd, extends east to the Jabal Tuwayq and slightly beyond. A long, narrow strip of
desert known as Ad Dahna separates Najd from eastern Arabia, which slopes eastward to the
sandy coast along the Persian Gulf. North of Najd a larger desert, An Nafud, isolates the heart of
the peninsula from the steppes of northern Arabia. South of Najd lies one of the largest sand
deserts in the world, the Rub al Khali.
8
Social institutions
The Social Institutions and Gender Index (SIGI) measures gender-based discrimination in social
norms, practices and laws across 160 countries. The SIGI comprises country profiles, a
classification of countries and a database; it serves as a research, policy and advocacy tool for
the development community and policy makers.
The SIGI covers five dimensions of discriminatory social institutions, spanning major socio-
economic areas that affect women’s lives: discriminatory family code, restricted physical
integrity, son bias, restricted resources and assets, and restricted civil liberties. The SIGI’s
variables quantify discriminatory social institutions such as unequal inheritance rights, early
marriage, violence against women, and unequal land and property rights.
In the Social Institutions and Gender Index 2014 Edition , Saudi Arabia was not classified in the
SIGI due to lack of full dataset. It has lower discrimination in restricted access to resources and
assets and higher discrimination in restricted civil liberties. Read the full country profile and
access the data here
Family
The nuclear family
With the passage of time, the ratio of nuclear families in Middle East is increased
.Economic revolution, technology and globalization of world tends people to the
individualism .Everyone wants freedom for doing something and enjoy the life
Therefore nuclear families systemincreased in Saudi Arabia and UAE.
The extended family
Despite the furious pace of change and modernization that has occurred in Saudi Arabia over
the last half century, the traditional extended family – parents, siblings, aunts and uncles,
cousins and grand and great grandparents still form the basic unit of the society. Within the
extended family, traditional respect for age, gender roles of men outside the home as providers
and women in the dominant role inside the home are changing but still intact. The influence of the
extended family thus carries over into social life, business and politics. Socially, the Saudis still tend
to socialize, marry, and conduct business together.
A major reason for the resilience of the traditional extended family structure is the extraordinary
strength of traditional Islamic social, economic and political values. Although behavioral patterns
have changed with mind-numbing speed, these basic values are deeply held and are not likely to
change rapidly over time.
3. Dynamics of the family
9
4. Female/male roles (changing or static?)
Women are taught to participate in roles that affect life inside the household such as managing
the house, taking care of the children, and some decisions regarding the children’s upbringing.
They are not restricted to these roles, as is demonstrated by the increasing number of
successful business women. In Saudi Arabia, “the role of women [is] basic to maintaining the
structure of the family and therefore of society” (Country Studies). This is due in large part to
the fact that women are controlled more by men, keeping their chastity, and therefore their
family honor, in check, which, in turn, makes the family’s bonds and society stronger.
Women are taught to participate in roles that affect life inside the household such as managing
the house, taking care of the children, and some decisions regarding the children’s upbringing.
They are not restricted to these roles, as is demonstrated by the increasing number of
successful business women. In Saudi Arabia, “the role of women [is] basic to maintaining the
structure of the family and therefore of society” (Country Studies). This is due in large part to
the fact that women are controlled more by men, keeping their chastity, and therefore their
family honor, in check, which, in turn, makes the family’s bonds and society stronger..
Education
1. The role of education in society
Education is free at all levels. The school system is composed of elementary, intermediate, and
secondary schools. A large part of the curriculum at all levels is devoted to Islam, and, at the
secondary level, students are able to follow either a religious or a technical track. The rate of
literacy is 90.4% among males and is about 81.3% among females.[5] Classes are segregated by
sex. Higher education has expanded rapidly, with large numbers of Universities and colleges
being founded particularly since 2000. Institutions of higher education include the country's
first university, King Saud University founded in 1957, the Islamic University at Medina founded
in 1961, and the King Abdulaziz University in Jeddah founded in 1967. Other colleges and
universities emphasize curricula in sciences and technology, military studies, religion, and
medicine. Institutes devoted to Islamic studies, in particular, abound. Women typically receive
college instruction in segregated institutions
Primary education (quality, levels of development, etc.)
Primary education in Saudi Arabia lasts six years, and children at the age of 6 enter the first
grade of primary education. All national primary schools are day schools and are not co-
educational. In order to move on to intermediate education, children must pass the
examination at the end of Grade 6 of primary school and obtain the Elementary Education
Certificate.[6]
According to government data, 2,442,482 students (1,255,117 male and 1,187,365 female) are
in primary education in 2007 and the number of teachers totals 217,555 (107,227 male and
110,328 female) in 2007.[9] According to UNESCO, the gross enrollment ratio for boys is 99.9
percent, gross enrollment ratio for girls is 96.3 percent, and the total gross enrollment ratio is
98.1 percent in 200
10
Secondary education (quality, levels of development, etc.)
Intermediate education in Saudi Arabia lasts three years.[6]
According to government data,
1,144,548 students (609,300 male and 535,248 female) are in intermediate education in 2007
and the number of teachers totals 108,065 (54,034 male and 54,031 female) in
2007.[9]
According to gross enrollment the total rate is 95.9 percent in 2007.[6]
Secondary education in Saudi Arabia lasts three years and this is the final stage of general
education. After the intermediate education, students have the opportunity for both general
and specialized secondary education. Technical secondary institute which provide technical and
vocational education and training programs lasts three years in the fields of industry, commerce
and agriculture
Higher education (quality, levels of development, etc.)
Higher education is available in the Kingdom of Saudi Arabia through universities, women’s
colleges, teacher-training colleges, and an institute of public administration. The results of the
General Secondary Education Certificate Examination determine admission into such
institutions. Universities provide two types of education. The first type is a traditional Islamic
education, which concentrates on Islamic law, Quranic studies, Arabic language, and social
sciences. The other type reflects more of the Western approach to education, with many more
diverse fields of study. Additionally, there have been recent increases in opportunities for Saudi
Arabian students to study abroad
2. Literacy rates
Definition: Youth literacy rate is the percentage of people ages 15-24 who can both read and
write with understanding a short simple statement about their everyday life. total
population: 94.7% ,male: 97% and female: 91.1% (2015 est.)
C. Political system
1. Political structure
The modern Kingdom of Saudi Arabia, which was founded in 1932 by Abdulaziz bin Abd al-Rahman
Al Saud (Ibn Saud), is a monarchy. Saudi Arabia is a hereditary monarchy. Ibn Saud's son, King
Abdullah bin Abdulaziz Al Saud has been the ruler since 2005, though he had been regent from
1996, due to the illness of his brother King Fahad. The King's heir apparent (as of June 2012) is
Crown Prince Salman bin Abdulaziz al-Saud, who also holds the title of Deputy Prime Minister, and
who is a half-brother of the King. The document known as the Basic Law of Governance, which
articulates the government's rights and responsibilities, was established by royal decree in 1992.
Executive Branch:
The King is also the prime minister, chief of state, the head of government, and commander in
chief of the military of Saudi Arabia. The monarchy is hereditary, so there are no elections for the
11
role. The King's Cabinet, or Council of Ministers, is appointed by the King every four years, and
includes many family members. There are 22 government ministries that are part of the Cabinet.
In February 2009, King Abdullah appointed Norah Al-Fayez to be the first female cabinet-level
official, a deputy minister for women's education. She had formerly had worked as an official in
the Saudi Institute for Public Administration.
Legislative Branch:
This is made up of a Consultative Council (also known as Majlis as-Shura or Shura Council) advises
the King on issues that are important to Saudi Arabia. The Consultative Council currently consists
of 150 members appointed by the King for a four-year renewable term. Based on their experience,
members are assigned to committees. There are 12 committees that deal with human rights,
education, culture, information, health and social affairs, services and public utilities, foreign
affairs, security, administration, Islamic affairs, economy and industry, and finance. In October
2003, the Council announced its intent to start elections for half of the members of the local and
provincial assemblies (there are 13 provinces, each with a governor and deputy and its own
council made up of at least 10 citizens), and one-third of the members of the Consultative Council
incrementally over a period of four to five years. No elections have yet been announced. In
September 2011, King Abdullah announced that women would have the right to be appointed to
the Consultative Council. And, in January 2013, the King appointed 30 women to serve four-year
terms on the Council, following passing of a law stating that women should constitute at least 20%
of the Council's membership.
3. Political parties
There are no politicale parties, but oil companies and religious leaders are the politicle
pressure groups
4. Stability of government
Saudi Arabia remains stable despite the turmoil caused by the Arab Spring, but it faces at least
five long-term challenges that even the world’s top oil exporter can’t solve with money alone
The five steps are :
 Restive Shiite Minority
 Uncertainty Over Royal Succession
 Resistance to Reform
 Youth Unemployment
 Heavy Dependence on Oil
12
4. Special taxes
5. Role of local government
There are three levels of local government in the Kingdom of Saudi Arabia: the city council, the
municipal council and the municipality. The city council is the highest level of local government.
The municipal councils began in 2005 and is the second level of local government. The
municipality is the third level of local government. There are 178 municipalities across the
kingdom. The first began in Jeddah during the Othmanic period. Each municipality is run by its
city's mayor. As a collective the kingdom's municipalities make up the Ministry of Municipality
and Rural Affairs (MoMRA)
Legal system
The legal system of Saudi Arabia is based on Sharia, Islamic law derived from the Qu'ran and
the Sunnah (the traditions) of theIslamic prophet Muhammad. The sources of Sharia also
include Islamic scholarly consensus developed after Muhammad's death. Its interpretation by
judges in Saudi Arabia is influenced by the medieval (Islamic Golden Age) texts of the
literalist Hanbali school ofIslamic jurisprudence. Uniquely in the Muslim world, Sharia has been
adopted by Saudi Arabia in an uncodified form. This, and the lack of judicial precedent, has
resulted in considerable uncertainty in the scope and content of the country's laws. The
government therefore announced its intention to codify Sharia in 2010, but this is yet to be
implemented. Sharia has also been supplemented byregulations issued by royal decree
covering modern issues such as intellectual property and corporate law. Nevertheless, Sharia
remains the primary source of law, especially in areas such
as criminal, family, commercial and contract law, and the Qu'ran and the Sunnah are declared
to be the country's constitution. In the areas of land and energy law the extensive proprietorial
rights of the Saudi state (in effect, the Saudi royal family) constitute a significant feature.
The current Saudi court systemwas created by King Abdul Aziz, who founded the Kingdom of
Saudi Arabia in 1932, and was introduced to the country in stages between 1927 and 1960. It
comprises general and summary Sharia courts, with some administrative tribunals to deal with
disputes on specific modern regulations. Trials in Saudi Arabia are bench trials. Courts in Saudi
Arabia observe few formalities and the country's first criminal procedure code, issued in 2001,
has been largely ignored. King Abdullah, in 2007, introduced a number of significant judicial
reforms, although they are yet to be fully implemented
1. Organization of the judiciary system
The judiciary of Saudi Arabia is a branch of the government of Saudi Arabia that
interprets and applies the laws of Saudi Arabia. The legal systemis based on the Islamic
code of Sharia, with its judges and lawyers forming part of the country's religious
leadership or ulama. There are also non-Sharia government tribunals which handle
disputes relating to specific royal decrees. Final appeal from both Sharia courts and
13
government tribunals is to the King of Saudi Arabia and all courts and tribunals follow
Sharia rules of evidence and procedure
Sharia courts
The Sharia courts have general jurisdiction over most civil and criminal cases. At present, there
are two types of courts of first instance: general courts and summary courts dealing with lesser
cases. Cases are adjudicated by single judges, except criminal cases if the potential sentence is
death, amputation or stoning when there is a panel of three judges. There are also two courts
for the Shia minority in the Eastern Province dealing with family and religious
matters. Appellate courts sit in Mecca and Riyadh and review decisions for compliance with
Sharia.
Non-Sharia tribunal
There are also non-Sharia courts covering specialized areas of law, including the Board of
Grievances,[6]:23 the Specialized Criminal Court, created in 2008,[7] and the Supreme
Court.[8][9] The Board of Grievances was originally created to deal with complaints against the
government, but also gained jurisdiction over commercial and some criminal cases, such as
bribery and forgery, and acts as a court of appeal for a number of non-Sharia government
tribunals.[4]:161 These administrative tribunals, referred to as "committees", deal with specific
issues regulated by royal decrees, such as labor and commercial law.[4]:146
Code, common, socialist, or Islamic-law country
Saudi Arabia Islamic (sharia) legal systemwith some elements of Egyptian, French, and
customary law; note – several secular codes have been introduced; commercial disputes
handled by special committees
Participation in patents, trademarks, and other conventions
Saudi Arabia has ratified the Berne Convention for the Protection of Literary and Artistic
Works of 1886, revised in Paris on 24th July 1971 and the Paris Convention for the
Protection of Industrial Property of 1883, both with effect from 11th March 2004. Three
government authorities have authority to protect and enforce intellectual property
rights: the Ministry of Commerce and Industry for trademarks, the Ministry of Culture
and Information for copyright, and King Abdulaziz City for Science and Technology for
patents.
Trademarks:
Trademarks are governed by the Trademarks Regulation, Royal Decree No. M/21 of
28th Jumada Awal 1423 Hejra corresponding to 8th August 2002 Gregorian, and its
Implementing Rules of the same year. Applications for registration must be made to the
14
Trademarks Office of the Ministry of Commerce and Industry which applies the ‘Nice
Classification’ in accordance with the Agreement Concerning the International
Classification of Goods and Services for the Purposes of the Registration of Marks of
1957.
Applications must contain the following particulars:
01. A copy of the trademark required to be registered.
02. Name, title, address, nationality and trade name of the applicant (if any). If the
applicant is a juristic person, the name, address of the head office and nationality must
be stated.
03. Where the application is submitted by an attorney, his name, title and address must
be stated.
04. Description of the trademark required to be registered.
05. The products or services in respect of which the trademark is required to be
registered, and the classification thereof.
06. Signature of the applicant or the attorney thereof.
07. Ten representations of the trademark identical to the trademark sample shown in
the application for registration.
08. A copy of the power of attorney together with the original for verifying purposes
must be attached where the application was submitted by an attorney of the person
concerned.
09. Evidence of payment of application fees as stipulated in the Trademarks Regulation.
It is not permitted to register in Saudi Arabia, by other than its rightful owner, a
trademark that is similar to an internationally known mark. Registration of a trademark
allows holders protection for ten years from the date of application, renewable for
similar periods. Any renewal must be specifically applied for before the end of the last
year of expiry of the registration, and the procedure for renewal is the same as the one
for the initial registration of the trademark. Service marks are included in the definition
of trademarks. A trademark is deemed owned by the person who effects the
registration. Once the registration is effected in the trademarks register, the party who
has registered the trademark shall be considered the owner thereof to the exclusion of
others.
A trademark can be licensed, pledged or transferred by the rightful owner. The
trademark may be deleted or cancelled if it is not used for five consecutive years.
15
Penalties for infringement of a valid trademark include imprisonment for a period of not
more than one year and a fine of not less than SR50,000 and not more than
SR1,000,000. Any civil or criminal disputes arising from the infringement are settled by
the Board of Grievances.
Patents:
There are at present two overlapping patents systems in Saudi Arabia. The GCC Patents
of Inventions Regulation of 2001, which is an amendment of an earlier statute of 1992,
was approved in Saudi Arabia by Royal Decree No. M/28 of 2001. This permits the
registration of patents with effect throughout the GCC countries. The GCC Patent Office
is based in Riyadh.
Under Saudi Arabian law, patents are governed by the Layout Designs of Integrated
Circuits, Plant Varieties, and Industrial Models Regulation, Royal Decree No. M/27 of
20th Jumada Awal 1425 Hejra corresponding to 17th July 2005 Gregorian, which gives
effect to the Paris Convention for the Protection of Industrial Property under Saudi
Arabian domestic law.
A protection document is granted by the General Directorate of Patents at King
Abdulaziz City for Science and Technology, which gives full protection within the
Kingdom to an invention, a layout design of an integrated circuit, a plant variety, or an
industrial design. The protection document grants the owner the right to commercially
exploit the subject matter of protection.
Applications for a protection document must be filed at the
Directorate in the Arabic language, and must include:
01. Names and addresses of the applicant(s) and inventor(s);
02. Name and address of the local agent and the authorization, if the applicant resides
outside the Kingdom;
03. A brief title of the subject matter of the application, an original copy and certified
copies of the complete specification and certified copies of other relevant details
thereof like examination and research reports;
04. Priority and disclosure information including previous filings; and
05. Evidence of payment of the filing fee at a designated bank, stipulated by the
16
Directorate.
The protection document is the personal right of the owner and he may transfer or
assign it or grant a contractual licence to others to commercially exploit the subject
matter of protection. Protection is granted to the owner for a duration of 20 years for
an invention, 10 years for an industrial design and a layout design of an integrated
circuit, and 20 to 25 years for a new plant variety. The above periods are renewable, for
an annual fee.
Copyright
The Copyright Regulation, Royal Decree No. M/41 of 2nd Rajab 1424 Hejra
corresponding to 30th August 2003 Gregorian and its Implementing Rules, Resolution of
the Minister of Commerce and Industry No. M/W/1788/1 of 10th Rabi Thani 1425 Hejra
corresponding to 30th May 2004 Gregorian, define copyright protection to include
architectural designs, speeches, theatrical, musical, photographic and cinematographic
works, as well as works for radio and television, maps, video tapes and computer
software. Copyright protection is not subject to any registration or renewal. The
Regulation gives the author financial and moral rights, to print or publish the work, to
make amendments or to delete his work, to withdraw it from circulation, and to assign
it as he wishes.
In general the duration of protection afforded to different types of Copyright works is as
follows:
01. The period of protection of copyright for the author of a work shall be for the
duration of his life and for a period of fifty years following his death.
02. The period of protection for works where the author is a corporate entity, or if the
author’s name is unknown, shall be fifty years from the date of the first publication of
the work.
03. The protection period for sound works, audio-visual works, films, collective works
and computer programs is fifty years from the date of the first show or publication of
the work, regardless of republication.
04. The protection period for applied art (handcrafted or manufactured) and photographs
shall be twenty-five years from the date of publication.
05. The protection period for broadcasting organizations shall be twenty years from the
date of the first transmission of program or broadcast materials.
A special Copyright Violations Committee under the authority of the Ministry of Culture
17
and Information presides over copyright infringement issues and it has broad powers to
punish the infringer of a valid copyright including a fine of up to SR250,000 in the case
of first time offenders, and this can be raised to SR500,000 if there is repeated
infringement. The Committee may issue injunctions in certain cases and also order
imprisonment of an offender. Any decision of the Violations Committee can be appealed
by filing a claim with the Board of Grievances
E. Social organizations
Al-Nahda is a charitable women's society dedicated to empowering women socially and
economically through the execution of numerous projects and programs. Our origins were
built on volunteer efforts spent on general social service but with time we developed into a
charitable institution committed to women's social and cultural development in accordance
with Islamic law and guided by the goal of sustainable development. The Society was founded
in Riyadh in 1962 under the patronage of the late Queen Effat Al-Thunayan, the wife of H.M.
the late King Faisal Al-Saud. It was spearheaded by a group of pioneering women including
H.R.H. Princess Sarah Al-FaisalAl-Saud H.R.H. Princess Lateefah Al-FaisalAl-Saud, the late Mrs.
Samira Khashoggi and the late Mrs. MuzaffarAdham. Since our foundation we have
implemented a myriad of development projects in linewith Saudi Arabia's development plans.
Some of these projects were in the fields of social welfare, family health, special needs, early
childhood and cultural artifact preservation. Among our strongest projects in which we
continue to contribute are in the fields of human capital development and the promotion of
female employment. With the benefit of experience gainedfrom almost fifty years in the field
of social service, we have set our strategic focus on the quality, efficiency and relevance of
our projects that are based on actual studied needs in order to achieve our goal of sustainable
female development.
Our Vision:
For women to be active partners in the development of Saudi Arabian society.
Our Mission:
We are a non-profit organization that aims to empower women socially and economically
through financial and social support, training, and employment.
1. Group behavior
It is common to remove your shoes before entering a building. Follow the lead of your
host. Alcohol and pork are illegal. In the Muslim world, Friday is the day of rest. There
18
are several styles of greetings used; it is best to wait for your counterpart to initiate the
greeting. Men shake hands with other men. Some men will shake hands with a woman;
it is advisable for a businesswoman to wait for a man to offer his hand. A more
traditional greeting between men involves grasping each other’s right hand, placing the
left hand on the other’s right shoulder and exchanging kisses on each cheek. The left
hand is considered unclean and reserved for hygiene avoid gestures with the right hand.
Do not point at another person and do not eat with the left hand. Men walking hand in
hand is a sign a friendship. Try not to cross your legs when sitting. Never show the
bottom of your feet. The "thumbs up" gesture is offensive. Gifts are not necessary, but
appreciated. Avoid admiring an item too much, you host may feel obligated to give it to
you. When offered a gift, it is impolite to refuse. Women in Saudi Arabia are not
permitted to drive vehicles.
2. Social classes
The Saudi population is characterized by a high degree of cultural homogeneity and by an
equally high degree of social stratification. The territory that in 1992 constituted the Kingdom
of Saudi Arabia consisted of four distinct regions and diverse populations. Each region has
sustained some measure of nomadic and seminomadic population: as recently as 1950, at least
one-half the total population of the kingdom was estimated to be nomadic. Tribal identities
were paramount among the nomadic population and among those in towns and villages who
recognized a tribal affiliation. The Eastern Province had a substantial Shia population with
cultural links to Iran, Bahrain, and other places in the gulf region, as well as an Indian, Yemeni,
and black African component. Asir was more closely linked to Yemen than to Saudi Arabia both
by population and geography. Najd was geographically divided into three regions, with town
centers that functioned almost as independent city-states until the early twentieth century.
Until the era of development began in the 1960s, Najd remained relatively isolated, located as
it was in the center of the peninsula in the midst of three deserts and a mountain chain, but its
towns, too, had populations linked to the gulf, the Hijaz, and Africa.
3. Clubs, other organizations
Football is the most popular sport in Saudi Arabia. Football in Saudi Arabia is governed by Saudi
Arabia Football Federation. It was founded in the year of 1956. It performs the function of
administering both the club competitions and the national football team of Saudi Arabia.The
founder of Saudi Arabia Football Federation is Prince Abdullaha Bin Fasal al Saud.
4. Race, ethnicity, and subcultures
Arab 90%, Afro-Asian 10%
F. Business customs and practices
Knowledge of Saudi etiquette and the personal manner in which they conduct their
business is imperative for starting any commercial venture in the country. Patterns of
rank and status, which can be based on age and gender for example, are strictly
observed in all social and business situations. Though Saudis tend to be comparatively
19
relaxed about punctuality they never allow meetings to encroach on their time of
prayer. As business in Saudi Arabia is still based on personal reference, establishing trust
can be the starting point.
First Contact
Appointments are necessary and should be made several weeks in advance followed by
verbal confirmation a couple of days ahead of the meeting.
Greetings
Address your Saudi Arabian counterparts with the appropriate titles Doctor, Shaikh
(chief), Mohandas (engineer), and Ustadh (professor), followed by his or her first name.
Arabs traditionally use the right hand for all public functions, including shaking hands,
eating, drinking and passing objects to another person.
How to Present Yourself
Arabs prefer addressing people by their first names.
Business Relations
It is important to develop a degree of trust and familiarity before starting a business
relationship. Thus face-to-face meetings and leisure meetings play an important role.
Though the modern Saudi Arabia has adopted many of the business methods and styles
of the West, differences remain. Considerable time may be spent exchanging courtesies,
and several visits may be needed to establish a business relationship.
Gifts
Gift giving is appreciated but is not necessary. Gifts are generally exchanged only
between close friends and are seen as rather personal in nature.
Business Communication
During a business meeting, people use body language and eye-contact rather than
direct words. During the conversation people make assumptions about what is not said.
Particular emphasis is placed on tone of voice, the use of silence, and facial cues. It is
vital to be aware of these non-verbal aspects of communication in any business setting
in order to avoid misunderstandings. For instance, silence is often used for
contemplation and one should not feel obliged to speak during these periods.
Dress Code
Dress code is monitored by the regional police who are responsible for the enforcement
of a modest dress-code in accordance with Islamic law. Visitors to Saudi are expected to
dress in a conservative, smart fashion.
Men should wear suits and ties for business meetings, despite the heat. Women should
wear business suits with full length skirt and scarf. Visitors should not wear traditional
Saudi attire.
Most Saudi locals wear a traditional dress. Broadly the ensemble consists of three items:
Body garment, Head Scarf and Head Rope.
20
Visiting Cards
Business cards are common but not essential to business culture. If you choose to
present business cards, it is advisable that you have the information printed in both
English and Arabic.
V. Religion and aesthetics
We may experience numerous distressing events in the relations we establish with others. We
may be distressed by some people’s selfishness, by the lack of understanding of others, or by
still others’ obstinacy, inability to listen, mocking jokes or affectation. One issue, which most
people may never think about, lies at the basis of this common unease — lack of quality.
Quality is vital in Islam. A lifestyle devoid of love, understanding, art and beauty predominates
in many Islamic countries today. Although this totally conflicts with the fine and clean lifestyle
that Allah describes in the Qur’an, it is still regarded as largely legitimate by those societies. Yet
a lifestyle devoid of quality and a way of thinking devoid of beauty are unbecoming of a
Muslim.
This lifestyle devoid of quality spreads over a wide sphere involving all of life, from the way a
person thinks to their pleasures, from their goals to their conception of beauty and humor,
from their deportment to their speech and what they eat and drink. When quality is not valued
and when concepts such as beauty are missing from people’s lives, the world literally comes to
resemble hell.
The importance of quality, cleanliness and fastidiousness instead of living a coarse lifestyle is
revealed with particular emphasis in the Qur’an. In the verse, “Purify your clothes. Shun all
filth” (Surat Al-Muddaththir, 4-5) Allah reveals that Muslims must use all their means to live a
spotlessly clean life. Quality must therefore be one of the main features of Muslim
communities.
Religion and other belief systems
Muslim (official; citizens are 85-90% Sunni and 10-15% Shia), other (includes Eastern Orthodox,
Protestant, Roman Catholic, Jewish, Hindu, Buddhist, and Sikh) (2012 est.)
Despite having a large expatriate community of various faiths (more than 30% of the
population), most forms of public religious expression inconsistent with the government-
sanctioned interpretation of Sunni Islamare restricted; non-Muslims are not allowed to have
Saudi citizenship and non-Muslim places of worship are not permitted (2013)
1. Orthodoxdoctrines and structures
Relationship with the people
As Muslims, Saudi Arabians participate in a community (ummah) in which issues of race,
ethnicity, and national origin should be of no significance and never form the basis for social
21
action, political behavior, and economic organization. The identity of Muslim transcends the
borders of states and ideally takes precedence over all other identities.
Socially, however, the concept of origin (asl)is strong among many Saudi Arabians. Some
people, mainly in Hijaz, are recognized descendants of Muhammad and are known asAshraf.
Many others throughout the kingdom assertpatrilineal descentfrom eponymous ancestors
from ancient Arab tribes. Still others stress Arabian origins but without tribal connections.
However, Saudi citizenship embraces people with historical origins outside the Arabian
Peninsula. Considerations of origin are important markers and influence social interaction,
including marriage, but do not translate directly into economic or power differentials in the
national society. Moreover, the social significance of such considerations is waning, especially
among younger people
Which religions are prominent?
Saudi Arabia is the birth place of Islam. Therefore prominent religion is Islam.
5. Membership of each religion
The official form of Islam is Sunni of the Hanbali school, in its Salafi version.[citation needed]
According to
official statistics, 85-95% of Saudi citizens are Sunni Muslims, 10-15% areShia.[9]
(More than 30% of
the population is made up of foreign workers[9]
who are predominantly but not entirely Muslim.) It is
unknown how many Ahmadi Muslims there are in the country.[10]
The two holiest cities of
Islam, Mecca and Medina, are in Saudi Arabia. For many reasons, non-Muslims are not permitted to
enter the holy cities although some Western non-Muslims have been able to enter, disguised as
Muslims . The large number of foreign workers living in Saudi Arabia (8 million expatriates out
of a total population of 27 million[13]) includes non-Muslims.
6. Any powerfulor info entail cults?
Islam is the state religion of Saudi Arabia. The connection between Islamand Saudi Arabia (or
at least the western Hejaz region of the country) is uniquely strong. The kingdom, which
sometimes is called the "home of Islam",[1]
is the location of the cities of Mecca and Medina,
where Muhammad, the messenger of the Islamic faith, lived and died, and attracts millions of
Muslim Hajj pilgrims annually, and thousands of clerics and students who come from across
the Muslim world to study. The official title of the King of Saudi Arabia is "Custodian of the Two
Holy Mosques"—the two being Al-Masjid al-Haram in Mecca and Al-Masjid al-Nabawi in
Medina—which are considered the holiest in Islam
B. Aesthetics
1. Visual arts (fi ne arts, plastics, graphics, public art, colors, etc.)
Tribal symbols referred to as "wusum" were carved by Bedouins during prehistoric times and
are found as rock art in the hills and deserts of Arabia.
2. Music
The music of Saudi Arabia includes both Western and traditional music. The most
distinguished musician in recent Saudi history is Tariq Abdulhakeem, who composed hundreds
of famous Saudi songs for himself as well as for other singers. Saraj Omar has become a very
22
prominent composer after composing the music for the Saudi national anthem. In 1999, the 1st
Arab Pioneers Festival, which was held in Cairo under the patronage of the Arab League,
honored four of the lead composers in Saudi Arabia: Tariq Abdulhakeem, Ghazi Ali, Mohamed
Abdu, Saudi Arabia's first pop star, and the late Talal Maddah, known as the "Sound of the
Earth", who died in August 2000 while singing in the summer festival on the stage of Al-Muftaha
Theatre in the southern region of Saudi Arabia. Of the same generation are
the 'ud virtuoso Abadi al Johar, Rabeh Saqer andAbdul-Majeed Abdullah
Folklore and relevant symbols
Folk art gives the Kingdom of Saudi Arabia an exquisite distinctiveness that differs from
province to province. Such beautiful folk art enriches the Kingdom’s heritage, adding a touch of
fun and charm to its solemnity. Saudi Arabian folk art is varied and diverse, and people are
encouraged to both view and appreciate it as well as participate in creating it. Perhaps one of
the most important characteristics of Saudi Arabia is that due to the Kingdom’s important
strategic location its ancient history contains many varieties of folklore that have been passe
on through the generations. The Kingdom was the scene of many cultures, battles and historic
events, and all of these integrated into a variety of folk art. The Kingdom is replete with many
types of folk art, which vary according to the geographic diversity of the environment. From the
sea to the mountains to the desert, as well as the agricultural plain areas, each resulted in a
tremendous amount of folklore that was created in the conditions prevalent in that location
and period of time.
VI. Living conditions
If you are living within Saudi Arabia you will be aware of the many rules that you have to abide
by, restrictions that would be challenged in any court in the west. But this is Saudi Arabia, the
birth place of the Muslim religion and the Saudi interpretation of the rules is extreme. Prayers
are observed 5 times per day and everything stops, I mean everything; stores close, businesses
stop and everyone goes to pray in the mosque, in the office or even in the street. If you time
your visit to the supermarket wrongly you will find yourself with a full trolley and a 30 to 40
minute wait before the checkout staff return. But despite the rules, the heat (sometimes 50
degrees), Saudi working practices and the frequent encounters with people you want to
strangle; I have found living in Saudi Arabia to be one of the best experiences of my life
A. Diet and nutrition
1. Meat and vegetable consumption rates
Meat consumption Rate. 203(1000MT CWE) 2016est. F&V consumption in the students of
university of Dammam is far less than the WHO recommended level. There is a dire need to
educate Saudi youth about the importance of F&V in their diet for a healthier life
3. Typical meals
The Arabian people have consumed the same type of food for thousands of years. Some of the
common food items in Saudi Arabian cuisine include wheat, rice, lamb, chicken, yogurt,
23
potatoes and dates. Shawarma and Falafel are two common dishes which are originally
Levantine and Egyptian dishes respectively.
4. Malnutrition rates
Malnutrition rates in KSA is 2.33.
Housing
In 2000, there were about 3,427,670 occupied households in the country, serving about
20,846,884 people. About 32% of all occupied housing units were apartments, 29.8% were
traditional single-family houses, and 20% were single-household villas. Most housing is
constructed of concrete and brick. About 44.5% of all occupied housing is owner occupied.
The continuing influx of rural people to towns and cities, coupled with the rise in levels of
expectation among the urban population, has created a serious housing problem; improvement
in urban housing is one of Saudi Arabia's foremost economic needs. Some 506,800 dwelling
units were built in the period 1974–85: 389,000 by the private sector, with the help of the Real
Estate Development Fund, and 117,800 by the Deputy Ministry of Housing and other
government agencies. In the oil districts, Aramco, through loans and other assistance, has
encouraged construction of private homes and has built accommodations for its unmarried
Saudi staff members. The Real Estate Development Fund, established in 1975, continues to
provide interest-free loans for home construction to individuals as well as private companies.
2. Do most people own or rent?
The Population Statistic Center at King Saud University (KSU) in Riyadh recently published a
study that shows that 52 percent of Saudis who live in Riyadh do not own their houses.
The overall rate of Saudis who own homes in the Kingdom was estimated at 60 percent, while
35 percent of Saudis live in rented houses. The remaining 5 percent gets their housing provided
by their employers.
In small cities and villages, like Baha, Jazan, Abha, Jubail, more Saudis tend to own a house, due
to their high purchasing power and social traditions.
Clothing
1. National dress
All women are required to wear a long black cloak that covers all but the hands and face called
an abaya in public. (Modest dress is compulsory for women in Islambut the color black for
women and white for men is apparently based on tradition not religious scripture.[43]
) Saudi
women also normally wear a full face veil, such as a niqāb. Women's clothes are often
decorated with tribal motifs, coins, sequins, metallic thread, and appliques. Foreign women are
required to wear an abaya, but don't need to cover their hair.
24
Saudi men and boys, whatever their job or social status, wear the traditional dress called
a thobe or thawb, which has been called the "Wahhabi national dress".[46]
During warm and hot
weather, Saudi men and boys wear white thobes. During the cool weather, wool thobes in dark
colors are not uncommon. At special times, men often wear a bisht or mishlah over the thobe.
These are long white, brown or black cloaks trimmed in gold. A man's headdress consists of
three things: the tagia, a small white cap that keeps the gutra from slipping off the head;
the gutra itself, which is a large square of cloth; and the igal, a doubled black cord that holds
the gutra in place. Not wearing an igal is considered a sign of piety. The gutra is usually made of
cotton and traditionally is either all white or a red and white checked. The gutra is worn folded
into a triangle and centred on the head.
2. Types of clothing worn at work
The main item of business clothing for Saudi Arabian men is the thawb, a long white robe that
covers the body from the neck to ankles. They also don a white or red-and-white-checked
headscarf, or ghutrah. A head rope, or agal, holds this scarf in place. Saudi Arabian men
commonly wear leather, open-toed sandals with this outfit. Foreign men are free to wear
traditional business clothing should they choose.
The main item of business attire, or indeed any attire in a public setting, is the abaya, a long,
black flowing robe similar to the thawb which covers the body entirely from neck to ankles. In
addition to a veil, or boshiya, which covers the lower part of the face, Saudi Arabian women
also wear a head scarf. Any kind of formal footwear is appropriate. Foreign women are free to
wear traditional business clothing should they choose
D. Recreation, sports, and other leisure activities
1. Types available and in demand
Popular types of leisure activities include horse/camel racing and falconry. Sports, adventure
and recreation in Saudi Arabia is an indispensable part of the day-to-day lifestyle of the Saudi
Arabians. Some of these sports are included in Saudi Arabia’s famous festivals like the annual
Jenadriyah National Culture and Heritage Festival which includes camel racing.
Camel Racing
Camels from around the country are brought to the sporting ground for the race. Camel racing
is much more than just a sporting event to the Saudis; it is a token of honour. The winning
camel is worth thousands of riyals and also brings pride to both the trainer and its owner. Thus,
competition and rivalry among the camel owners is intense. Camel races are often held in the
King Fahd International Stadium during winters. King’s Camel Race, the world’s largest camel
race is held there too, attracting spectators from worldwide.
Falconry
Falconry is yet another traditional sport which originated centuries ago. The Art of Falconry is a
challenging feat and it is time consuming as the falconer must tame the falcon. Training a falcon
is time-consuming and requires enormous patience since the falconer must carry the bird on his
25
arm for several hours each day. The falcon hunting season in Saudi Arabia is from October to
March. The two most popular falcons are the Saker and the Peregrine.
Soccer
Soccer has become one of the most popular modern sports among Saudis of all ages, from
children scrimmaging on play- grounds to international matches battled out in spectacular
modern stadiums. Friends and families often watch at home or at stadiums to embrace their
love for this sport and to support their favorite teams. The professional Saudi soccer league is
wildly popular among Saudis. The highlight of the Saudi soccer league is its championship
tournament known as the King’s Cup. Fans also enthusiastically follow the Saudi Arabian
national soccer team in World Cup competition.
Golf
The interest shown by the Saudi Arabian people in the sport of golf has also been growing ever
since about twenty years ago. Saudi Arabia has a number of first-class golf courses. One of
them is the Dirab Golf Course, found in Riyadh in the Dirab valley. It is Saudi Arabia’s first ever
18 holes championship quality golf course, situated near the Mountain Escarpment of Tuwaiq.
Outdoor Recreation
Saudis enjoy a wide range of leisure activities. Families can relax at hundreds of parks,
campsites, picnic grounds and other facilities throughout the country. Long stretches of coast
and spectacular coral reefs make water sports such as snorkeling and wind surfing accessible.
Saudi Arabia has established a network of national parks and reserves. One of the most
prominent national parks in Saudi Arabia is the 1.1 million acre Asir National Park where visitors
can hike, camp, climb hills and enjoy other outdoor activities. Saudi Arabia’s largest
protectorate is Al Khunfah, where visitors can observe wildlife such as gazelles and Oryx in their
natural habitats. In the cities, people can relax in hundreds of urban parks. There are 50 public
parks in Riyadh. The waterfront of Jeddah and Dammam are also popular places for picnics,
swimming, fishing and other water sports. Camping is a popular activity among Saudis. Families
pitch tents in the middle of the desert, along the coast or in one of Saudi Arabia’s parks, and
enjoy the beauty of nature. These camping trips are popular during the Eid holidays and for
family reunions, especially after the rainy season when the desert blooms.
Wildlife
Saudi Arabia is home to a variety of animals including the Arabian Oryx, a type of antelope
native to the Arabian Peninsula that roams freely in Saudi Arabia’s large desert. Other animals
found in Saudi Arabia include gazelles, the ibex (a type of wild mountain goat) the bustard, and
the swift saluki hound, a dog named for an ancient city in southern Arabia. The saluki is
generally considered to be the world’s oldest domesticated dog. The famous purebred Arabian
horse is one of the most popular breeds in the world; with a bloodline that dates back
thousands of years. The Arabian’s fine shape and extraordinary stamina and speed make it ideal
for racing and breeding. There are also many camels in Saudi Arabia. They have been used as a
means of transportation for thousands of years. Today, camel racing is a popular sport. Saudi
26
Arabia has taken major steps to preserve its native wild and marine life and established
preserves.
E. Social security
Saudi Arabia has an extensive social security system which provides old age, disability and
survivor benefits for its employed and self-employed nationals. There are no statutory benefits
for sickness and maternity, but the law requires employers with more than 20 employees to
pay sick leave to their employees. Foreign workers are excluded from this system.
F. Healthcare
The Ministry of Health (MOH) is the major government agency entrusted with the provision
of preventive, curative and rehabilitative health care for the Kingdom’s population. The
Ministry provides primary health care (PHC) services through a network of health care
centers (comprising 1,925 centers)[1] throughout the kingdom. It also adopts the referral system
which provides curative care for all members of society from the level of general practitioners
at health centers to advanced technology specialist curative services through a broad base of
general and specialist hospitals (220 hospitals).[1] The MOH is considered the lead Government
agency responsible for the management, planning, financing and regulating of the health care
sector. The MOH also undertakes the overall supervision and follow-up of health care related
activities carried out by the private sector. Therefore, the MOH can be viewed as a national
health service (NHS) for the entire population.
Language
A. Offi cial language(s)
The formal version of the Arabic language, known as Classical Arabic or Fus-ha, is the language
in which the Qur’an is written and is considered by most linguistics to be the foundation of the
syntactic and grammatical norms of the Arabic language. The Classical formof Arabic remains
widely used by religious scholars and is taught in colleges and universities around the
world. Today, however, Classical Arabic is considered almost exclusively a written language,
rather than a spoken one
B. Dialects
Hejazi Arabic, spoken in Saudi Arabia along the coast of the Red Sea, especially in the cities of
Mecca and Jeddah. Strictly speaking, there are two distinct dialects spoken in the Hejaz region,
one by the Bedouin rural population and another by the urban population.
VIII. Executive summary
After completing all of the other sections, prepare a two-page (maximumlength)
summary of the major points and place it at the frontof the report. The purpose
of an executive summary is to give the reader a brief glance at the critical points
of your report. Thoseaspects of the culture a reader should know to do business
27
in the country but would not be expected to know or would fi nd differentbased
on his or her SRC should be included in this summary.
IX. Sources of information
ECONOMIC ANALYSIS
Introduction
II. Population
Total
31,000,000 M (2016January)
Growth rates
1.49% (2014)
Number of live births
56900
3 Birthrates
18.78 births/1,000 population (2014)
Distribution of population
1. Age
0–14 years 27.6%
15–64 years 69.2%
65 and over 3.2%
2. Sex
At birth 1.05 male(s)/female
Under 15 1.05 male(s)/female
15–64 years 1.22 male(s)/female
65 and over 1.08 male(s)/female
28
3. Geographic areas
Geographically, Saudi Arabia is divided into four (and if the Rub al-Khali is included, five) major
regions. The first is the Central region, a high country in the heart of the Kingdom; secondly,
there is the Western region, which lies along the Red Sea coast. The Southern region, in the
southern Red Sea-Yemen border area, constitutes the third region. Fourthly, there is
the Eastern region, the sandy and stormy eastern part of Saudi Arabia, the richest of all the
regions in petroleum
4. Migration rates and patterns
-0.59 migrant(s)/1,000 population (2014 est.)
5. Ethnic groups
Arab 90%, Afro-Asian 10%
Economic statistics and activity
Gross national product (GNP or GDP)
1.Total
$653.2 billion (2015 est.
2. Rate of growth GDP
3.60 PERCENT
B. Personal income per capita
$53,600 (2015 est.
Average Annual income per capita
The average Saudi per capita annual income of SR 93,472 ($ 24,925) is one of the highest in the
Middle East and North Africa region, Standard and Poor’s said.
However, the credit rating agency put Saudi Arabia as the fourth among GCC countries.
S&P also said the Kingdom needs to diversify its economy away from oil.
Dubai has the highest income among GCC countries, the agency said.
Ibrahim Al-Assaf, the minister of finance, said the Kingdom should rank higher than the
Standard and Poor’s rating
Distribution of wealth
Country
Wealth per
capita
Wealth per
adult
Share of world
wealth (%)
Wealth
Gini
Saudi
Arabia
22025 43046 0.29 0.737
E. Minerals and resources
In addition to its vast oil and gas reserves, the Kingdom is rich in mineral deposits.Gold mining
began in Saudi Arabia some 5,000 years ago. Since then, there have been periods
29
when gold mining has been pursued vigorously (e.g. in the Islamic Abbasid period between the
8th and 13th centuries CE). Three thousand years ago, the mine known as the Cradle
of Gold (Mahad Al-Dhahab), some 180 miles north ofJiddah, was a rich source of gold, silver
and copper.
According to the Fourth Five Year Plan, gold had been discovered at some 600 sites around the
Kingdom and a total of 29 prospects have been drilled. The Mahad Al-Dhabab gold mine was
re-opened by Petromin with the intention of developing a high-grade underground gold mine
with a capacity of 400 tons of ore per day. This venture encouraged further exploration
for gold elsewhere in the Kingdom.
All known gold deposits in the Kingdom are located in the Pre-Cambrian rocks of the Arabian
Shield which lies in the western region of Saudi Arabia.
Silver and base metal deposits (bauxite, copper, iron, lead, tin and zinc), as well asnon-metallic
minerals (bentonite, diatomite, fluorite, potash and high-purity silica sand) have all been
discovered, attesting to the wealth that remains, still largely unexploited, beneath the
Kingdom's soil
Surface transportation
Until recent decades, the camel was the chief means of transportation in Saudi Arabia, but
enormous strides have been made since the early 1970s. By 2002, there were 146,524 km
(91,050 mi) of highway, of which 44,104 km (27,406 mi) were paved. Modern roads link Jeddah,
Mecca, Medina, Aţ Tā'if, and Riyadh. A new highway connects Saudi Arabia with Jordan, and a
causeway completed in 1986 offers a direct connection with Bahrain. In 2003, there were
2,889,384 passenger cars and 1,720,910 commercial vehicles registered for use. Most within-
country freight is hauled by truck. The Saudi Government Railroad, which operates between Ad
Dammām and Riyadh over a length of 575 km (357 mi), was built by the Arabian American Oil
Co. (ARAMCO) during the 1950s. As of 2004, railroad lines totaled 1,392 km (865 mi) of
standard-gauge track.
In 2004, there were an estimated 201 airports. As of 2005, a total of 73 had paved runways, and
there were also six heliports. Major airports include Dhahran International at Dhahran, King
Abdul Aziz at Jeddah, and King Khaled International at Riyadh. The government-owned Saudi
Arabian Airlines (Saudia) operates regular domestic and foreign flights to major cities. Because
of the large distances that separate the main cities, air travel is preferred within the kingdom. In
2003, about 13.882 million passengers were carried on scheduled domestic and international
flights.
Jeddah, on the Red Sea, is the chief port of entry for Muslim pilgrims going to Mecca. Saudi
Arabia has the largest seaport network in the Near East, with eight major ports with 183 piers
and three smaller ports. Ports include Ad Dammām, Yanbu' al-Bahr, Jizan, Duba, Jeddah, Jizan,
Rabigh, Ra's al Khafji, Mishab, Ras Tanura, Madinat Yanbu' al Sinaiyah, and Jubail (Al-Jubayl). In
30
2005, there were 64 ships of 1,000 GRT or more, totaling 1,306,706 GRT in the merchant fleet.
The traditional dhow is still used for coastal trade.
G. Communication systems
This article is about telecommunications in Saudi Arabia which includes fixed and cellular
phones, internet as well as radio and television broadcasting and issues relating to the provision
of these services. Saudi Telecom Company (STC) is the first company in Saudi Arabia, and then
allowed Communications Commission to compete with other companies in Saudi Arabia and
then it becomes a number of telecom companies in Saudi Arabia four companies: (1). STC
Mobile: It STC includes landlines and mobile, and includes a mobile (phone), (Sawa) and (us).
(2) Integrated Telecom Company (ITC) second operator after STC, established in 2005 and offers
internet, broadband, connectivity and satellite services for businesses, consumers and
wholesale (3). Mobily: the UAE's telecommunications company, which is the mobile and
internet Fabraupetk (Fiber Optic) New Ground. (4). ZIN Zain: a Kuwaiti company, which is the
only mobile (5). GO ATHEEB: a Saudi modern, with an Internet connection line is similar to
Ground.
H. Working conditions
But because the region has no personal taxation, net income is usually much
greater, which is one of the major attractions of working in Saudi Arabia. In the past,
remuneration packages were split into various elements: basic salary, car provision
or allowance, housing provision or allowance, medical cover, education for children
and air tickets for home visits. Today, however, employers tend just to pay a salary,
which covers all these expenses, although in some cases there are performance or
other bonuses.
In addition to their salary, contract workers are awarded an ‘indemnity’ at the end of
the contract period. Saudi Arabia legislates that the indemnity is based on the value
of the entire remuneration package including performance bonuses (where
applicable). The indemnity can be a significant amount of money if you’ve been
working in Saudi Arabia for a long time, and many people manage either to
accumulate a reasonable financial cushion or to live the high life. If you’re clever and
disciplined, you should be able to do some of both. The indemnity has nothing to do
with insurance but is an end-of-contract bonus which is required by law to be paid to
expatriate workers as a sort of ‘thank-you’ for being of service to the state. (It’s also
known as ‘end of service benefits’.) Indemnity scales usually amount to 15 (in some
31
cases 20) days of basic pay per year of employment for the first three years and
thereafter a month’s salary per year of employment.
Note that some Arab companies regularly delay the payment of salaries, cash flow
problems being passed on to their staff. In this event, you have little alternative but
to wait.
Working Hours & Overtime
The working week in Saudi Arabia tends to vary between 40 and 48 hours, depending on the
particular company’s policy. In the month of Ramadan, the working day is reduced to six hours
and legally this should apply to all staff, but many companies only apply it to Muslims, who fast
during daylight hours. There are no differences in timekeeping between summer and winter
Office hours vary, ranging from 7.30am - 8am until noon, then from 3.30pm - 4pm until 7pm -
8pm. Although there are some offices which may close at 6pm. Keep in mind that most
government offices are open from 7.30am to 2.30pm and general banking hours are from 8 am
until noon, and then from 5pm until 8pm. It is important to take into account the five daily
prayer times, as well as Islamic holidays.
Friday is the Muslim day of rest and if your company has a five-day working week, your other
day off would probably have been either Thursday or Saturday. Saudi Arabia now enjoys a
Sunday-Thursday work week, with Friday-Saturday its official weekend. Saturday used to be the
more popular choice for international companies, as taking Thursday off would mean a
reduction in the number of operational days in common with much of the rest of the world.
Conversely, other companies insisted on Thursday, as the school ‘weekend’ is Thursday and
Friday. The decision to implement Saturday as the second day off was made by the government
to make sure that companies do not miss out on economic opportunities on Thursdays,
especially regarding international businesses
I. Principal industries
Saudi oil reserves are the second largest in the world, and Saudi Arabia is the world's leading oil
exporter and second largest producer. Proven reserves, according to figures provided by the
Saudi government, are estimated to be 260 billion barrels (41 km3), about one-quarter of world
oil reserves. Petroleum in Saudi Arabia is not only plentiful but under pressure and close to the
earth's surface. This makes it far cheaper and thus far more profitable to extract petroleum in
Saudi Arabia than in many other places.[18]
The petroleum sector accounts for roughly 92.5% of
Saudi budget revenues,[17]
97% of export earnings, and 55% of GDP.
Another 40% of GDP comes from the private sector. An estimated 7.5 (2013) million foreigners
work legally in Saudi Arabia,[19]
playing a crucial role in the Saudi economy, for example, in the oil
and service sectors. The government has encouraged private sector growth for many years to
32
lessen the kingdom's dependence on oil, and to increase employment opportunities for the
swelling Saudi population. In recent decades the government has begun to permit private
sector and foreign investor participation in sectors such as power generation and telecom, and
acceded to the WTO. During much of the 2000s, high oil prices[20]
enabled the government to
post budget surpluses, boost spending on job training and education, infrastructure
development, and government salaries. More than 95% of all Saudi oil is produced on behalf of
the Saudi Government by the parastatal giant Saudi Aramco, and the remaining 5% by similar
parastatal companies as of 2002
J. Foreign investment
In recent years, FDI flows to Saudi Arabia have followed a downward trend. According to
the 2015 World Investment Report published by UNCTAD, the country is now only the third
largest FDI recipient in Western Asia, after Turkey and the United Arab Emirates. In 2014, FDI
flux declined by 9.6% compared to 2013, rising to USD 8 billion. Political and social tensions,
reduced access to credit and the policy of "Saudisation," which started in 2011 and favours a
domestic labour force, have all been obstacles to FDI. Still, the Government has invested heavily
in national infrastructure to attract investment, and FDI is seen as one of the most effective
ways to diversify the economy and provide employment for younger generations. The
Government recently announced the opening of theretail and wholesale
sectors to 100% foreign ownership. The authorities welcome FDI due to its ability to transfer
technology, employ and train the national workforce, foster economic development and
enhance local raw materials. The country's controlled inflation and relatively stable exchange
rate, openness to foreign capital in upstream gas, as well as extensive privatisation programmes
are among the advantages attracting investors to the country. The dynamic performance of the
banking sector is driving the growth of the non-oil sector. Lastly, access to the world's largest oil
reserves, very low energy costs and a high standard of living are decisive factors for foreign
investors
International trade statistics
Exports $224.6 billion (2015 est.) [5]
Export goods petroleum and petroleum products 90%
Main export
partners
United States 14.3% China 13.7% Japan 13.7% South Korea 9.9% India
8.2% Singapore 4.3% (2012 est.)
Imports $136.8 billion (2012 est.
33
Balance-of-payments situation
The net financial account shows net acquisition and disposal of financial assets and
liabilities. It measures how net lending to or borrowing from nonresidents is financed,
and is conceptually equal to the sum of the balances on the current and capital
accounts. Data are in current U.S. dollars
Date Value Change, %
2015 63,985,985,600 -49.43 %
2014 126,532,893,333 3.58 %
2013 122,157,286,667 10.68 %
Exchange rates
1 PKR = 0.0357820 SAR 1 SAR = 27.9470 PKR
Trade restrictions
In 2005, Saudi Arabia became the 149th country to join the World Trade Organization (WTO).
As part of WTO commitments, the country’s trade regime should become more transparent
and more accommodating to non-Saudi businesses.
As of the date of this report, Saudi business and laws still favor Saudi citizens, and Saudi Arabia
still has trade barriers, mainly regulatory and bureaucratic practices, which restrict the level of
trade and investment.
Nevertheless, the Government has liberalized the wholesale, retail, and franchise sectors,
allowing foreign investors to establish joint ventures and retain a 51% share. The foreign
partner’s capital requirement is set at $5.3 million (SR 20 million) and his equity share can be
increased to 75% after 3 years from the contract date. All industrial enterprises are open to
non-Saudis, and they can also trade in the products they manufacture. Restrictions on
individual professions also are in force, such as who can practice law, medicine, accounting and
financial services, architect and engineers, and other similar professions. A Saudi joint venture
partner is a requirement for any entity or individual to practice the above-mentioned
professional services.
Other trade barriers include:
34
• Commercial Disputes Settlement
There is not yet a transparent, comprehensive legal framework in place for resolving
commercial disputes. Saudi commercial law is still developing, but in 1994 the Saudis took the
positive step of joining the New York Convention of 1958 on the Recognition and Enforcement
of Foreign Arbitral Awards. Saudi Arabia is also a member of the International Center for the
Settlement of Investment Disputes (also known as the Washington Convention). However,
dispute settlement in Saudi Arabia continues to be time-consuming and uncertain. Even after a
decision is reached in a dispute, effective enforcement of the judgment can still take years.
Generally, the Board of Grievances has jurisdiction over disputes with the government and over
commercial disputes.
In October 2007, King Abdullah issued a royal decree to overhaul the Kingdom’s judicial system,
including allocating 7 billion SAR (approximately $1.9 billion) to train judges and build new
courts. The decree establishes two Supreme Courts, a general court and an administrative
court, and specialized labor and commercial tribunals - although implementation has been
slow. On February 4, 2009, the King reshuffled the Government appointing a new Minister of
Justice, a new President of the Grievance Board, and a new Chairman of the Supreme Judicial
Council. Industry sources expect the reshuffle to expedite the overhaul of the Kingdom’s judicial
system.
• Business Visas
All visitors to Saudi Arabia must have a Saudi sponsor in order to obtain a business visa to enter
Saudi Arabia. Business visitors and foreign investors can apply through the Saudi Arabian
General Investment Authority (SAGIA) for a visitor visa at the Saudi Embassy or Consulates in
the United States. Saudi Arabia has also begun to implement a decree stating that sponsorship
for certain business visas is no longer required. Based on new instructions, the issuance of a
visitor’s visa should be affected within 24 hours from the application date.
While most business visas are valid for only one entry for a period of up to three months, the
Saudi Embassy in Washington has begun issuing a 5-year multiple entry visa for selected
business people, taking into consideration the principle of reciprocity. Finally, the Saudi
Ministry of Foreign Affairs is currently examining the issuance of a visitor’s visa at ports of entry
for selected nationalities.
• Delayed Payments
This issue is an important concern for affected American companies. The Government, due to
past fiscal constraints, had in the past fallen into arrears on payments to private contractors,
both Saudi and foreign. Some companies carried Saudi Government receivables for years
35
before being paid. The Government appears committed to clearing remaining arrears, but the
problem persists. U.S. companies should check with the U.S. Embassy or Consulates if a
problem arises.
• Intellectual Property Protection
Saudi Arabia recently undertook a comprehensive revision of its laws covering intellectual
property rights to bring them in line with the WTO agreement on Trade Related Aspects of
Intellectual Property Rights (TRIPs). The Saudi legal systemprotects and facilitates acquisition
and disposition of all property rights, including intellectual property. The Saudi Government
recently updated their Trademark Law (2002), Copyright Law (2003), and Patent Law (2004)
with the dual goals of TRIPs-compliance and effective deterrence against violators. In 2008 the
Violations Review Committee created a website and has populated it with information on
current cases. The government also endorsed the country’s joining the “Paris Convention for
Protection of Industrial Property” and the “Berne Convention for the Protection of Literary and
Artistic Works”. Though intellectual property protection has steadily increased in the Kingdom,
piracy remains a problem.
The current Law on Patents, Layout Designs of Integrated Circuits, Plant Varieties and Industrial
Designs has been in effect since September 2004. Largely due to a lack of adequate resources
and technical expertise, when this law went into effect the patent office had issued just over 40
patents and had a large backlog (more than 9,000 applications dating back to issuance of Saudi
Arabia’s first patent law in 1989). The office has since streamlined its procedures, hired more
staff, and reduced this backlog. Protection is available for product and product-by-process. The
term of protection was increased from 15 years to 20 years under the new law, but patent
holders can no longer apply for a routinely granted five-year extension. However, SPO applied
the new law retroactively thus disallowing and rejecting hundreds of pending patent
applications including those pertaining to pharmaceutical products. While the new law is being
retroactively applied, patents in the Kingdom of Saudi Arabia may be easily exposed to
infringements.
Trademarks are protected under the Trademark Law. The Rules for Protection of Trade Secrets
came into effect in 2005. Saudi Arabia has one of the best trademarks laws in the region, but
enforcement still lags and procedures are inconsistent.
American firms that wish to sell products in Saudi Arabia should work through their local
representative to register their trademarks with the Ministry of Commerce and Industry,
copyrighted products with the Ministry of Information, and patents with KACST or the GCC
Patent Office. Although these government entities are responsible for IPR protection in their
36
respective areas, any reported incident of piracy or infringement may not entail immediate and
decisive action by the concerned government entity.
The Saudi Government has revised its Copyright Law, is devoting increased resources to
marketplace enforcement, and is seeking to impose stricter penalties on copyright violators.
The Saudi Government has stepped up efforts to force pirated printed material, recorded
music, videos, and software off the shelves of stores. These efforts included stepping up raids
on shops selling pirated goods in 2008. However, many pirated materials are still available in
the marketplace. An Islamic ruling, or “fatwa,” stating that software piracy is “forbidden” backs
enforcement efforts. Saudi Arabia remains on the Special 301 Watch List for 2008.
Saudi Arabia has not signed and ratified the WIPO internet treaties.
• Counterfeiting
Manufacturers of consumer products and automobile spare parts are particularly concerned
about the widespread availability of counterfeit products. Anti-counterfeiting laws exist, and
the U.S. Government has urged the Saudi authorities to step up enforcement actions against
perpetrators. In some popular consumer goods, manufacturers estimate that as much as 50%
of the entire Saudi market is counterfeit. In order to restrict the entry of counterfeit products,
the Saudi Customs Authority recently implemented a new directive requiring all imported
goods to clearly display the “Country of Origin” or “Made in ….” on the items in an irremovable
manner either by engraving, knitting, printing, or pressing based on the nature of the imported
items.
• Arab League Boycott
The Gulf Cooperation Council (Saudi Arabia, Kuwait, Bahrain, Oman, Qatar and the United Arab
Emirates) announced in the fall of 1994 that its members would no longer enforce the
secondary and tertiary aspects of the Arab League Boycott. The primary boycott against Israeli
companies and products still applies. Advice on boycott and anti-boycott related matters are
available from the U.S. Embassy or from the Office of Anti-Boycott Compliance in Washington,
D.C. at (202) 482-2381
Labor force
11.67 million
About 80% of the labor force is non-national (2015 est.)
37
Inflation rates
Consumer prices in Saudi Arabia rose 4.1 percent year-on-year in May of 2016, slowing from a
4.2 percent increase in April. Transportation cost went up 11.3 percent (12.5 percent in April)
and food and non-alcoholic beverages edged up 0.3 percent (0.8 percent in April). In contrast,
prices of housing and utilities climbed at a faster 7.7 percent (7.5 percent in April). On a
monthly basis, consumer prices were flat, following a 0.2 percent increase in April. Inflation
Rate in Saudi Arabia averaged 2.79 percent from 2000 until 2016, reaching an all time high of
11.10 percent in July of 2008 and a record low of -2 percent in January of 2001. Inflation Rate in
Saudi Arabia is reported by the Central Department of Statistics & Information, Saudi Arabia
Developments in science and technology
King Abdulaziz City for Science and Technology (also KACST; Arabic: ‫للعلوم‬ ‫عبدالعزيز‬ ‫الملك‬ ‫مدينة‬
‫)والتقنية‬ in Riyadh, Saudi Arabiais an organization established in 1977 as the Saudi Arabian
National Center for Science & Technology (SANCST); in 1985, it was renamed King Abdulaziz
City for Science and Technology.
V. Channels of distribution
There are three major distribution and sales regions in Saudi Arabia: the Western Region, with
the commercial center of Jeddah; the Central Region, where the capital city of Riyadh is
located; and the Eastern Province, where the oil and gas industry is heavily concentrated.
Dammam is the capital city of the Eastern Province, and includes Dhahran. Each city has a
distinct business community and cultural flavor, and there are only a few truly “national”
companies dominant in more than one region.
American exporters may find it advantageous to appoint different agents or distributors for
each region having significant market potential. Multiple agencies and distributorships may also
be appointed to handle diverse product lines or services. Multiple agencies and distributors can
present logistical and management difficulties, so U.S. firms, particularly in the franchise sector,
often choose to appoint a master franchisor or distributor for states of the Gulf region, which
includes Saudi Arabia, Kuwait, Qatar, Bahrain, Oman, and the UAE.
While there is no statutory requirement that distributorships be granted on an exclusive basis,
it is clearly the policy of the Saudi Ministry of Commerce and Industry that all arrangements be
exclusive with respect to either product line or geographic region
This section reports data on all channel middlemen available within the market.
Later, you will select a specifi c channel as partof your distribution strategy.
Retailers
The Kingdom of Saudi Arabia is the largest retail market in the Gulf Co-operation Council (GCC).
The economy is oil-based, with strong government controls over major economic activities. The
Countery note book of saudi arabia
Countery note book of saudi arabia
Countery note book of saudi arabia
Countery note book of saudi arabia
Countery note book of saudi arabia
Countery note book of saudi arabia
Countery note book of saudi arabia
Countery note book of saudi arabia
Countery note book of saudi arabia

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Countery note book of saudi arabia

  • 1. SAUDI ARABIA 2016 COUNTRY NOTE BOOK BY: MUHAMMAD ADNAN REG : 13-NTU-5004 | NATIONAL TEXTILE UNIVERSTY FAISALABAD PAKISTAN
  • 2. 1 Contents Culture analysis:.............................................................................................................................. 6 Introduction ................................................................................................................................ 6 Brief discussion of the country’s relevant history .......................................................................... 6 Geographical setting....................................................................................................................... 6 Location....................................................................................................................................... 6 Climate........................................................................................................................................ 6 Topography ................................................................................................................................. 7 Social institutions............................................................................................................................ 8 Family.............................................................................................................................................. 8 The nuclear family....................................................................................................................... 8 The extended family ................................................................................................................... 8 Education ........................................................................................................................................ 9 1. The role of education in society........................................................................................... 9 Primary education (quality, levels of development, etc.) .......................................................... 9 Secondary education (quality, levels of development, etc.) .................................................... 10 Higher education (quality, levels of development, etc.) .......................................................... 10 2. Literacy rates...................................................................................................................... 10 C. Political system ......................................................................................................................... 10 Executive Branch:...................................................................................................................... 10 Legislative Branch: .................................................................................................................... 11 3. Political parties................................................................................................................... 11 4. Stability of government ..................................................................................................... 11 4. Special taxes.............................................................................................................................. 12 5. Role of local government...................................................................................................... 12 Legalsystem.................................................................................................................................. 12 1. Organization of the judiciary system..................................................................................... 12 Sharia courts ............................................................................................................................. 13 Non-Sharia tribunal................................................................................................................... 13 Code, common, socialist, or Islamic-law country ......................................................................... 13 Participation in patents, trademarks, and other conventions...................................................... 13 Applications for a protection document must be filed at the Directorate in the Arabic language, and must include: ............................. 15
  • 3. 2 Copyright.............................................................................................................................. 16 E. Social organizations................................................................................................................... 17 1. Group behavior .................................................................................................................. 17 2. Social classes...................................................................................................................... 18 F. Business customs and practices............................................................................................ 18 V. Religion and aesthetics......................................................................................................... 20 Religion and other belief systems................................................................................................. 20 Relationship with the people .................................................................................................... 20 Which religions are prominent? ............................................................................................... 21 5. Membership of each religion............................................................................................. 21 B. Aesthetics.................................................................................................................................. 21 1. Visual arts (fi ne arts, plastics, graphics, public art, colors, etc.).......................................... 21 2. Music.................................................................................................................................. 21 Folklore and relevant symbols.................................................................................................. 22 VI. Living conditions .................................................................................................................. 22 A. Diet and nutrition ..................................................................................................................... 22 1. Meat and vegetable consumption rates............................................................................... 22 3. Typical meals...................................................................................................................... 22 4. Malnutrition rates.............................................................................................................. 23 Housing ......................................................................................................................................... 23 2. Do most people own or rent?............................................................................................... 23 Clothing ......................................................................................................................................... 23 1. National dress .................................................................................................................... 23 2. Types of clothing worn at work ......................................................................................... 24 D. Recreation, sports, and other leisure activities........................................................................ 24 1. Types available and in demand............................................................................................. 24 E. Social security............................................................................................................................ 26 F. Healthcare................................................................................................................................. 26 Language....................................................................................................................................... 26 A. Offi cial language(s)............................................................................................................ 26 B. Dialects.................................................................................................................................. 26 VIII. Executive summary................................................................................................................ 26 ECONOMIC ANALYSIS.................................................................................................................... 27
  • 4. 3 Introduction .............................................................................................................................. 27 II. Population ................................................................................................................................. 27 Total .......................................................................................................................................... 27 Growth rates ............................................................................................................................. 27 Number of live births ................................................................................................................ 27 3 Birthrates................................................................................................................................ 27 Distribution of population ............................................................................................................ 27 1. Age ..................................................................................................................................... 27 2. Sex...................................................................................................................................... 27 3. Geographic areas ............................................................................................................... 28 4. Migration rates and patterns............................................................................................. 28 5. Ethnic groups......................................................................................................................... 28 Economic statistics and activity.................................................................................................... 28 Gross national product (GNP or GDP)........................................................................................... 28 1.Total ....................................................................................................................................... 28 2. Rate of growth GDP .............................................................................................................. 28 B. Personal income per capita .................................................................................................. 28 Average Annual income per capita............................................................................................... 28 Distribution of wealth ................................................................................................................... 28 E. Minerals and resources............................................................................................................. 28 Surface transportation.................................................................................................................. 29 G. Communication systems .......................................................................................................... 30 H. Working conditions................................................................................................................... 30 Working Hours & Overtime ........................................................................................... 31 I. Principal industries................................................................................................................ 31 J. Foreign investment.................................................................................................................... 32 International trade statistics......................................................................................................... 32 Balance-of-payments situation..................................................................................................... 33 Exchange rates.............................................................................................................................. 33 Trade restrictions .......................................................................................................................... 33 • Counterfeiting ........................................................................................................................ 36 • Arab League Boycott .............................................................................................................. 36 Labor force .................................................................................................................................... 36
  • 5. 4 Inflation rates................................................................................................................................ 37 Developments in science and technology .................................................................................... 37 V. Channels of distribution............................................................................................................ 37 Retailers .................................................................................................................................... 37 Wholesale middlemen .............................................................................................................. 39 VI. Media....................................................................................................................................... 39 MARKET AUDIT AND COMPETITIVE MARKET ANALYSIS............................................................... 40 THE PRODUCT ........................................................................................................................... 40 RELATIVE ADVANTAGE.............................................................................................................. 40 COMPATIBILITY......................................................................................................................... 40 COMPLEXITY.............................................................................................................................. 40 TRIALABILITY AND OBSERVABILITY........................................................................................... 40 MAJOR ISSUES........................................................................................................................... 40 THE MARKET ................................................................................................................................. 41 GEOGRAPHICAL REGION............................................................................................................... 41 FORMS OF TRANSPORTATION AND COMMUNICATION AVAILABLE IN KSA ................................ 41 CONSUMER BUYING HABITS......................................................................................................... 41 PRODUCT-USE PATTERNS............................................................................................................. 41 PRODUCT FEATURE PREFERENCES ............................................................................................... 41 DISTRIBUTION OF THE PRODUCT.................................................................................................. 41 TYPICAL RETAIL OUTLETS.............................................................................................................. 42 ADVERTISING AND PROMOTION.................................................................................................. 42 SALES PROMOTION....................................................................................................................... 42 PRICING STRATEGY........................................................................................................................ 42 CUSTOMARY MARKUPS ................................................................................................................ 42 TYPES OF DISCOUNTS AVAILABLE................................................................................................. 42 OUR COMPETITOR ----Bata shoes................................................................................................. 43 COMPETITOR'S PROMOTION AND ADVERTISING METHODS AND THEIR DISTRIBUTION CHANNELS..................................................................................................................................... 43 OUR MARKET SIZE......................................................................................................................... 43 GOVERNMENT PARTICIPATION AND AGENCIES THAT CAN HELP US........................................... 43 REGULATIONS ............................................................................................................................... 44 Premilery markete plan ................................................................................................................ 44
  • 6. 5 OBJECTIVE................................................................................................................................. 44 TARGET MARKET....................................................................................................................... 44 MARKET PENETRATION............................................................................................................. 44 PROMOTION MIX.......................................................................................................................... 44 ADVERTISING............................................................................................................................. 44 MEDIA MIX ................................................................................................................................ 44 MESSAGE................................................................................................................................... 45 COSTS OF MEDIA EXPENSES...................................................................................................... 45 SALES PROMOTIONS................................................................................................................. 45 DISTRIBUTION............................................................................................................................... 45 PORT SELECTION....................................................................................................................... 45 MODE SELECTION ..................................................................................................................... 45 PACKING.................................................................................................................................... 45 DOCUMENTATION REQUIRED....................................................................................................... 45 CHANNELS OF DISTRIBUTION - RETAILERS................................................................................... 46 PRICE DETERMINATION ................................................................................................................ 46
  • 7. 6 Culture analysis: Introduction Servis Shoes is a global footwear manufacturer and retailer with its acting head office in Gulberg, Lahore, Pakistan.[1]The brand is working under the Servis Industries Limited (SIL). It was established in January 1928 in Gulberg which was later shifted to Gujrat. Servis has seven brands which are Calza, Cheetah, Don Carlos, Liza, Skooz, Soul and Toz .Service comoany export shoes to The Kingdom Of Saudi Arabia . Brief discussion of the country’s relevant history Saudi Arabia, officially known as the Kingdom of Saudi Arabia, is the largest Arab state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second- largest in the Arab world (after Algeria). It is bordered by Jordanand Iraq on the north and northeast, Kuwait, Qatar, Bahrain and the United Arab Emirates on the east, Oman on the southeast, and Yemen on the south. The Red Sea lies to its west, and the Persian Gulf lies to the east. Saudi Arabia has an area of approximately 2,250,000 km2(870,000 sq mi), and it has an estimated population of 27 million, of which 9 million are registered foreign expatriates and an estimated 2 million are illegal immigrants. Saudi nationals comprise an estimated 16 million people. The Kingdom of Saudi Arabia was founded by Abdul-Aziz bin Saud (known for most of his career as Ibn Saud) in 1932, although the conquests which eventually led to the creation of the Kingdom began in 1902 when he captured Riyadh, the ancestral home of his family, the House of Saud, referred to in Arabic as Al Saud. The Saudi Arabian government, which has been an absolute monarchy since its inception, refers to its system of government as being Islamic, though this is contested by many due to its strong basis in Wahhabismand Salafism, which are minority schools of thought in Islam. The kingdom is sometimes called "The Land of the Two Holy Mosques" in reference to Al-Masjid al-Haram (in Mecca), and Al-Masjid al-Nabawi (in Medina), the two holiest places in Islam. Saudi Arabia has the world's second largest oil reserves which are concentrated largely in the Eastern Province and oil accounts for more than 95% of exports and 70% of government revenue. This facilitates the creation of a welfare state although the share of the non-oil economy is growing recently. It has also the world's sixth largest natural gas reserves Geographical setting Location Middle East, bordering the Persian Gulf and the Red Sea, north of Yemen Climate The months January, February, March, November and December have nice weather with a good average temperature. Hot season / summer is in April, May, June, July, August, September and October. Most rainfall (rainy season) is seen in October. Riyadh has dry periods in January, February, March, May, June, July, August and September. On average, the warmest month is
  • 8. 7 August. On average, the coolest month is January. October is the wettest month. This month should be avoided if you don't like to much rain. June is the driest month. Topography On the peninsula, the eastern line of the Great Rift fault is visible in the steep and, in places, high escarpment that parallels the Red Seabetween the Gulf of Aqaba and the Gulf of Aden. The eastern slope of this escarpment is relatively gentle, dropping to the exposed shield of the ancient landmass that existed before the faulting occurred. A second lower escarpment, the Jabal Tuwayq, runs north to south through the area of Riyadh. In the south, a coastal plain, the Tihamah, rises gradually from the sea to the mountains. Hejaz extends southward to the borders of mountainous Yemen. The central plateau, Najd, extends east to the Jabal Tuwayq and slightly beyond. A long, narrow strip of desert known as Ad Dahna separates Najd from eastern Arabia, which slopes eastward to the sandy coast along the Persian Gulf. North of Najd a larger desert, An Nafud, isolates the heart of the peninsula from the steppes of northern Arabia. South of Najd lies one of the largest sand deserts in the world, the Rub al Khali.
  • 9. 8 Social institutions The Social Institutions and Gender Index (SIGI) measures gender-based discrimination in social norms, practices and laws across 160 countries. The SIGI comprises country profiles, a classification of countries and a database; it serves as a research, policy and advocacy tool for the development community and policy makers. The SIGI covers five dimensions of discriminatory social institutions, spanning major socio- economic areas that affect women’s lives: discriminatory family code, restricted physical integrity, son bias, restricted resources and assets, and restricted civil liberties. The SIGI’s variables quantify discriminatory social institutions such as unequal inheritance rights, early marriage, violence against women, and unequal land and property rights. In the Social Institutions and Gender Index 2014 Edition , Saudi Arabia was not classified in the SIGI due to lack of full dataset. It has lower discrimination in restricted access to resources and assets and higher discrimination in restricted civil liberties. Read the full country profile and access the data here Family The nuclear family With the passage of time, the ratio of nuclear families in Middle East is increased .Economic revolution, technology and globalization of world tends people to the individualism .Everyone wants freedom for doing something and enjoy the life Therefore nuclear families systemincreased in Saudi Arabia and UAE. The extended family Despite the furious pace of change and modernization that has occurred in Saudi Arabia over the last half century, the traditional extended family – parents, siblings, aunts and uncles, cousins and grand and great grandparents still form the basic unit of the society. Within the extended family, traditional respect for age, gender roles of men outside the home as providers and women in the dominant role inside the home are changing but still intact. The influence of the extended family thus carries over into social life, business and politics. Socially, the Saudis still tend to socialize, marry, and conduct business together. A major reason for the resilience of the traditional extended family structure is the extraordinary strength of traditional Islamic social, economic and political values. Although behavioral patterns have changed with mind-numbing speed, these basic values are deeply held and are not likely to change rapidly over time. 3. Dynamics of the family
  • 10. 9 4. Female/male roles (changing or static?) Women are taught to participate in roles that affect life inside the household such as managing the house, taking care of the children, and some decisions regarding the children’s upbringing. They are not restricted to these roles, as is demonstrated by the increasing number of successful business women. In Saudi Arabia, “the role of women [is] basic to maintaining the structure of the family and therefore of society” (Country Studies). This is due in large part to the fact that women are controlled more by men, keeping their chastity, and therefore their family honor, in check, which, in turn, makes the family’s bonds and society stronger. Women are taught to participate in roles that affect life inside the household such as managing the house, taking care of the children, and some decisions regarding the children’s upbringing. They are not restricted to these roles, as is demonstrated by the increasing number of successful business women. In Saudi Arabia, “the role of women [is] basic to maintaining the structure of the family and therefore of society” (Country Studies). This is due in large part to the fact that women are controlled more by men, keeping their chastity, and therefore their family honor, in check, which, in turn, makes the family’s bonds and society stronger.. Education 1. The role of education in society Education is free at all levels. The school system is composed of elementary, intermediate, and secondary schools. A large part of the curriculum at all levels is devoted to Islam, and, at the secondary level, students are able to follow either a religious or a technical track. The rate of literacy is 90.4% among males and is about 81.3% among females.[5] Classes are segregated by sex. Higher education has expanded rapidly, with large numbers of Universities and colleges being founded particularly since 2000. Institutions of higher education include the country's first university, King Saud University founded in 1957, the Islamic University at Medina founded in 1961, and the King Abdulaziz University in Jeddah founded in 1967. Other colleges and universities emphasize curricula in sciences and technology, military studies, religion, and medicine. Institutes devoted to Islamic studies, in particular, abound. Women typically receive college instruction in segregated institutions Primary education (quality, levels of development, etc.) Primary education in Saudi Arabia lasts six years, and children at the age of 6 enter the first grade of primary education. All national primary schools are day schools and are not co- educational. In order to move on to intermediate education, children must pass the examination at the end of Grade 6 of primary school and obtain the Elementary Education Certificate.[6] According to government data, 2,442,482 students (1,255,117 male and 1,187,365 female) are in primary education in 2007 and the number of teachers totals 217,555 (107,227 male and 110,328 female) in 2007.[9] According to UNESCO, the gross enrollment ratio for boys is 99.9 percent, gross enrollment ratio for girls is 96.3 percent, and the total gross enrollment ratio is 98.1 percent in 200
  • 11. 10 Secondary education (quality, levels of development, etc.) Intermediate education in Saudi Arabia lasts three years.[6] According to government data, 1,144,548 students (609,300 male and 535,248 female) are in intermediate education in 2007 and the number of teachers totals 108,065 (54,034 male and 54,031 female) in 2007.[9] According to gross enrollment the total rate is 95.9 percent in 2007.[6] Secondary education in Saudi Arabia lasts three years and this is the final stage of general education. After the intermediate education, students have the opportunity for both general and specialized secondary education. Technical secondary institute which provide technical and vocational education and training programs lasts three years in the fields of industry, commerce and agriculture Higher education (quality, levels of development, etc.) Higher education is available in the Kingdom of Saudi Arabia through universities, women’s colleges, teacher-training colleges, and an institute of public administration. The results of the General Secondary Education Certificate Examination determine admission into such institutions. Universities provide two types of education. The first type is a traditional Islamic education, which concentrates on Islamic law, Quranic studies, Arabic language, and social sciences. The other type reflects more of the Western approach to education, with many more diverse fields of study. Additionally, there have been recent increases in opportunities for Saudi Arabian students to study abroad 2. Literacy rates Definition: Youth literacy rate is the percentage of people ages 15-24 who can both read and write with understanding a short simple statement about their everyday life. total population: 94.7% ,male: 97% and female: 91.1% (2015 est.) C. Political system 1. Political structure The modern Kingdom of Saudi Arabia, which was founded in 1932 by Abdulaziz bin Abd al-Rahman Al Saud (Ibn Saud), is a monarchy. Saudi Arabia is a hereditary monarchy. Ibn Saud's son, King Abdullah bin Abdulaziz Al Saud has been the ruler since 2005, though he had been regent from 1996, due to the illness of his brother King Fahad. The King's heir apparent (as of June 2012) is Crown Prince Salman bin Abdulaziz al-Saud, who also holds the title of Deputy Prime Minister, and who is a half-brother of the King. The document known as the Basic Law of Governance, which articulates the government's rights and responsibilities, was established by royal decree in 1992. Executive Branch: The King is also the prime minister, chief of state, the head of government, and commander in chief of the military of Saudi Arabia. The monarchy is hereditary, so there are no elections for the
  • 12. 11 role. The King's Cabinet, or Council of Ministers, is appointed by the King every four years, and includes many family members. There are 22 government ministries that are part of the Cabinet. In February 2009, King Abdullah appointed Norah Al-Fayez to be the first female cabinet-level official, a deputy minister for women's education. She had formerly had worked as an official in the Saudi Institute for Public Administration. Legislative Branch: This is made up of a Consultative Council (also known as Majlis as-Shura or Shura Council) advises the King on issues that are important to Saudi Arabia. The Consultative Council currently consists of 150 members appointed by the King for a four-year renewable term. Based on their experience, members are assigned to committees. There are 12 committees that deal with human rights, education, culture, information, health and social affairs, services and public utilities, foreign affairs, security, administration, Islamic affairs, economy and industry, and finance. In October 2003, the Council announced its intent to start elections for half of the members of the local and provincial assemblies (there are 13 provinces, each with a governor and deputy and its own council made up of at least 10 citizens), and one-third of the members of the Consultative Council incrementally over a period of four to five years. No elections have yet been announced. In September 2011, King Abdullah announced that women would have the right to be appointed to the Consultative Council. And, in January 2013, the King appointed 30 women to serve four-year terms on the Council, following passing of a law stating that women should constitute at least 20% of the Council's membership. 3. Political parties There are no politicale parties, but oil companies and religious leaders are the politicle pressure groups 4. Stability of government Saudi Arabia remains stable despite the turmoil caused by the Arab Spring, but it faces at least five long-term challenges that even the world’s top oil exporter can’t solve with money alone The five steps are :  Restive Shiite Minority  Uncertainty Over Royal Succession  Resistance to Reform  Youth Unemployment  Heavy Dependence on Oil
  • 13. 12 4. Special taxes 5. Role of local government There are three levels of local government in the Kingdom of Saudi Arabia: the city council, the municipal council and the municipality. The city council is the highest level of local government. The municipal councils began in 2005 and is the second level of local government. The municipality is the third level of local government. There are 178 municipalities across the kingdom. The first began in Jeddah during the Othmanic period. Each municipality is run by its city's mayor. As a collective the kingdom's municipalities make up the Ministry of Municipality and Rural Affairs (MoMRA) Legal system The legal system of Saudi Arabia is based on Sharia, Islamic law derived from the Qu'ran and the Sunnah (the traditions) of theIslamic prophet Muhammad. The sources of Sharia also include Islamic scholarly consensus developed after Muhammad's death. Its interpretation by judges in Saudi Arabia is influenced by the medieval (Islamic Golden Age) texts of the literalist Hanbali school ofIslamic jurisprudence. Uniquely in the Muslim world, Sharia has been adopted by Saudi Arabia in an uncodified form. This, and the lack of judicial precedent, has resulted in considerable uncertainty in the scope and content of the country's laws. The government therefore announced its intention to codify Sharia in 2010, but this is yet to be implemented. Sharia has also been supplemented byregulations issued by royal decree covering modern issues such as intellectual property and corporate law. Nevertheless, Sharia remains the primary source of law, especially in areas such as criminal, family, commercial and contract law, and the Qu'ran and the Sunnah are declared to be the country's constitution. In the areas of land and energy law the extensive proprietorial rights of the Saudi state (in effect, the Saudi royal family) constitute a significant feature. The current Saudi court systemwas created by King Abdul Aziz, who founded the Kingdom of Saudi Arabia in 1932, and was introduced to the country in stages between 1927 and 1960. It comprises general and summary Sharia courts, with some administrative tribunals to deal with disputes on specific modern regulations. Trials in Saudi Arabia are bench trials. Courts in Saudi Arabia observe few formalities and the country's first criminal procedure code, issued in 2001, has been largely ignored. King Abdullah, in 2007, introduced a number of significant judicial reforms, although they are yet to be fully implemented 1. Organization of the judiciary system The judiciary of Saudi Arabia is a branch of the government of Saudi Arabia that interprets and applies the laws of Saudi Arabia. The legal systemis based on the Islamic code of Sharia, with its judges and lawyers forming part of the country's religious leadership or ulama. There are also non-Sharia government tribunals which handle disputes relating to specific royal decrees. Final appeal from both Sharia courts and
  • 14. 13 government tribunals is to the King of Saudi Arabia and all courts and tribunals follow Sharia rules of evidence and procedure Sharia courts The Sharia courts have general jurisdiction over most civil and criminal cases. At present, there are two types of courts of first instance: general courts and summary courts dealing with lesser cases. Cases are adjudicated by single judges, except criminal cases if the potential sentence is death, amputation or stoning when there is a panel of three judges. There are also two courts for the Shia minority in the Eastern Province dealing with family and religious matters. Appellate courts sit in Mecca and Riyadh and review decisions for compliance with Sharia. Non-Sharia tribunal There are also non-Sharia courts covering specialized areas of law, including the Board of Grievances,[6]:23 the Specialized Criminal Court, created in 2008,[7] and the Supreme Court.[8][9] The Board of Grievances was originally created to deal with complaints against the government, but also gained jurisdiction over commercial and some criminal cases, such as bribery and forgery, and acts as a court of appeal for a number of non-Sharia government tribunals.[4]:161 These administrative tribunals, referred to as "committees", deal with specific issues regulated by royal decrees, such as labor and commercial law.[4]:146 Code, common, socialist, or Islamic-law country Saudi Arabia Islamic (sharia) legal systemwith some elements of Egyptian, French, and customary law; note – several secular codes have been introduced; commercial disputes handled by special committees Participation in patents, trademarks, and other conventions Saudi Arabia has ratified the Berne Convention for the Protection of Literary and Artistic Works of 1886, revised in Paris on 24th July 1971 and the Paris Convention for the Protection of Industrial Property of 1883, both with effect from 11th March 2004. Three government authorities have authority to protect and enforce intellectual property rights: the Ministry of Commerce and Industry for trademarks, the Ministry of Culture and Information for copyright, and King Abdulaziz City for Science and Technology for patents. Trademarks: Trademarks are governed by the Trademarks Regulation, Royal Decree No. M/21 of 28th Jumada Awal 1423 Hejra corresponding to 8th August 2002 Gregorian, and its Implementing Rules of the same year. Applications for registration must be made to the
  • 15. 14 Trademarks Office of the Ministry of Commerce and Industry which applies the ‘Nice Classification’ in accordance with the Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks of 1957. Applications must contain the following particulars: 01. A copy of the trademark required to be registered. 02. Name, title, address, nationality and trade name of the applicant (if any). If the applicant is a juristic person, the name, address of the head office and nationality must be stated. 03. Where the application is submitted by an attorney, his name, title and address must be stated. 04. Description of the trademark required to be registered. 05. The products or services in respect of which the trademark is required to be registered, and the classification thereof. 06. Signature of the applicant or the attorney thereof. 07. Ten representations of the trademark identical to the trademark sample shown in the application for registration. 08. A copy of the power of attorney together with the original for verifying purposes must be attached where the application was submitted by an attorney of the person concerned. 09. Evidence of payment of application fees as stipulated in the Trademarks Regulation. It is not permitted to register in Saudi Arabia, by other than its rightful owner, a trademark that is similar to an internationally known mark. Registration of a trademark allows holders protection for ten years from the date of application, renewable for similar periods. Any renewal must be specifically applied for before the end of the last year of expiry of the registration, and the procedure for renewal is the same as the one for the initial registration of the trademark. Service marks are included in the definition of trademarks. A trademark is deemed owned by the person who effects the registration. Once the registration is effected in the trademarks register, the party who has registered the trademark shall be considered the owner thereof to the exclusion of others. A trademark can be licensed, pledged or transferred by the rightful owner. The trademark may be deleted or cancelled if it is not used for five consecutive years.
  • 16. 15 Penalties for infringement of a valid trademark include imprisonment for a period of not more than one year and a fine of not less than SR50,000 and not more than SR1,000,000. Any civil or criminal disputes arising from the infringement are settled by the Board of Grievances. Patents: There are at present two overlapping patents systems in Saudi Arabia. The GCC Patents of Inventions Regulation of 2001, which is an amendment of an earlier statute of 1992, was approved in Saudi Arabia by Royal Decree No. M/28 of 2001. This permits the registration of patents with effect throughout the GCC countries. The GCC Patent Office is based in Riyadh. Under Saudi Arabian law, patents are governed by the Layout Designs of Integrated Circuits, Plant Varieties, and Industrial Models Regulation, Royal Decree No. M/27 of 20th Jumada Awal 1425 Hejra corresponding to 17th July 2005 Gregorian, which gives effect to the Paris Convention for the Protection of Industrial Property under Saudi Arabian domestic law. A protection document is granted by the General Directorate of Patents at King Abdulaziz City for Science and Technology, which gives full protection within the Kingdom to an invention, a layout design of an integrated circuit, a plant variety, or an industrial design. The protection document grants the owner the right to commercially exploit the subject matter of protection. Applications for a protection document must be filed at the Directorate in the Arabic language, and must include: 01. Names and addresses of the applicant(s) and inventor(s); 02. Name and address of the local agent and the authorization, if the applicant resides outside the Kingdom; 03. A brief title of the subject matter of the application, an original copy and certified copies of the complete specification and certified copies of other relevant details thereof like examination and research reports; 04. Priority and disclosure information including previous filings; and 05. Evidence of payment of the filing fee at a designated bank, stipulated by the
  • 17. 16 Directorate. The protection document is the personal right of the owner and he may transfer or assign it or grant a contractual licence to others to commercially exploit the subject matter of protection. Protection is granted to the owner for a duration of 20 years for an invention, 10 years for an industrial design and a layout design of an integrated circuit, and 20 to 25 years for a new plant variety. The above periods are renewable, for an annual fee. Copyright The Copyright Regulation, Royal Decree No. M/41 of 2nd Rajab 1424 Hejra corresponding to 30th August 2003 Gregorian and its Implementing Rules, Resolution of the Minister of Commerce and Industry No. M/W/1788/1 of 10th Rabi Thani 1425 Hejra corresponding to 30th May 2004 Gregorian, define copyright protection to include architectural designs, speeches, theatrical, musical, photographic and cinematographic works, as well as works for radio and television, maps, video tapes and computer software. Copyright protection is not subject to any registration or renewal. The Regulation gives the author financial and moral rights, to print or publish the work, to make amendments or to delete his work, to withdraw it from circulation, and to assign it as he wishes. In general the duration of protection afforded to different types of Copyright works is as follows: 01. The period of protection of copyright for the author of a work shall be for the duration of his life and for a period of fifty years following his death. 02. The period of protection for works where the author is a corporate entity, or if the author’s name is unknown, shall be fifty years from the date of the first publication of the work. 03. The protection period for sound works, audio-visual works, films, collective works and computer programs is fifty years from the date of the first show or publication of the work, regardless of republication. 04. The protection period for applied art (handcrafted or manufactured) and photographs shall be twenty-five years from the date of publication. 05. The protection period for broadcasting organizations shall be twenty years from the date of the first transmission of program or broadcast materials. A special Copyright Violations Committee under the authority of the Ministry of Culture
  • 18. 17 and Information presides over copyright infringement issues and it has broad powers to punish the infringer of a valid copyright including a fine of up to SR250,000 in the case of first time offenders, and this can be raised to SR500,000 if there is repeated infringement. The Committee may issue injunctions in certain cases and also order imprisonment of an offender. Any decision of the Violations Committee can be appealed by filing a claim with the Board of Grievances E. Social organizations Al-Nahda is a charitable women's society dedicated to empowering women socially and economically through the execution of numerous projects and programs. Our origins were built on volunteer efforts spent on general social service but with time we developed into a charitable institution committed to women's social and cultural development in accordance with Islamic law and guided by the goal of sustainable development. The Society was founded in Riyadh in 1962 under the patronage of the late Queen Effat Al-Thunayan, the wife of H.M. the late King Faisal Al-Saud. It was spearheaded by a group of pioneering women including H.R.H. Princess Sarah Al-FaisalAl-Saud H.R.H. Princess Lateefah Al-FaisalAl-Saud, the late Mrs. Samira Khashoggi and the late Mrs. MuzaffarAdham. Since our foundation we have implemented a myriad of development projects in linewith Saudi Arabia's development plans. Some of these projects were in the fields of social welfare, family health, special needs, early childhood and cultural artifact preservation. Among our strongest projects in which we continue to contribute are in the fields of human capital development and the promotion of female employment. With the benefit of experience gainedfrom almost fifty years in the field of social service, we have set our strategic focus on the quality, efficiency and relevance of our projects that are based on actual studied needs in order to achieve our goal of sustainable female development. Our Vision: For women to be active partners in the development of Saudi Arabian society. Our Mission: We are a non-profit organization that aims to empower women socially and economically through financial and social support, training, and employment. 1. Group behavior It is common to remove your shoes before entering a building. Follow the lead of your host. Alcohol and pork are illegal. In the Muslim world, Friday is the day of rest. There
  • 19. 18 are several styles of greetings used; it is best to wait for your counterpart to initiate the greeting. Men shake hands with other men. Some men will shake hands with a woman; it is advisable for a businesswoman to wait for a man to offer his hand. A more traditional greeting between men involves grasping each other’s right hand, placing the left hand on the other’s right shoulder and exchanging kisses on each cheek. The left hand is considered unclean and reserved for hygiene avoid gestures with the right hand. Do not point at another person and do not eat with the left hand. Men walking hand in hand is a sign a friendship. Try not to cross your legs when sitting. Never show the bottom of your feet. The "thumbs up" gesture is offensive. Gifts are not necessary, but appreciated. Avoid admiring an item too much, you host may feel obligated to give it to you. When offered a gift, it is impolite to refuse. Women in Saudi Arabia are not permitted to drive vehicles. 2. Social classes The Saudi population is characterized by a high degree of cultural homogeneity and by an equally high degree of social stratification. The territory that in 1992 constituted the Kingdom of Saudi Arabia consisted of four distinct regions and diverse populations. Each region has sustained some measure of nomadic and seminomadic population: as recently as 1950, at least one-half the total population of the kingdom was estimated to be nomadic. Tribal identities were paramount among the nomadic population and among those in towns and villages who recognized a tribal affiliation. The Eastern Province had a substantial Shia population with cultural links to Iran, Bahrain, and other places in the gulf region, as well as an Indian, Yemeni, and black African component. Asir was more closely linked to Yemen than to Saudi Arabia both by population and geography. Najd was geographically divided into three regions, with town centers that functioned almost as independent city-states until the early twentieth century. Until the era of development began in the 1960s, Najd remained relatively isolated, located as it was in the center of the peninsula in the midst of three deserts and a mountain chain, but its towns, too, had populations linked to the gulf, the Hijaz, and Africa. 3. Clubs, other organizations Football is the most popular sport in Saudi Arabia. Football in Saudi Arabia is governed by Saudi Arabia Football Federation. It was founded in the year of 1956. It performs the function of administering both the club competitions and the national football team of Saudi Arabia.The founder of Saudi Arabia Football Federation is Prince Abdullaha Bin Fasal al Saud. 4. Race, ethnicity, and subcultures Arab 90%, Afro-Asian 10% F. Business customs and practices Knowledge of Saudi etiquette and the personal manner in which they conduct their business is imperative for starting any commercial venture in the country. Patterns of rank and status, which can be based on age and gender for example, are strictly observed in all social and business situations. Though Saudis tend to be comparatively
  • 20. 19 relaxed about punctuality they never allow meetings to encroach on their time of prayer. As business in Saudi Arabia is still based on personal reference, establishing trust can be the starting point. First Contact Appointments are necessary and should be made several weeks in advance followed by verbal confirmation a couple of days ahead of the meeting. Greetings Address your Saudi Arabian counterparts with the appropriate titles Doctor, Shaikh (chief), Mohandas (engineer), and Ustadh (professor), followed by his or her first name. Arabs traditionally use the right hand for all public functions, including shaking hands, eating, drinking and passing objects to another person. How to Present Yourself Arabs prefer addressing people by their first names. Business Relations It is important to develop a degree of trust and familiarity before starting a business relationship. Thus face-to-face meetings and leisure meetings play an important role. Though the modern Saudi Arabia has adopted many of the business methods and styles of the West, differences remain. Considerable time may be spent exchanging courtesies, and several visits may be needed to establish a business relationship. Gifts Gift giving is appreciated but is not necessary. Gifts are generally exchanged only between close friends and are seen as rather personal in nature. Business Communication During a business meeting, people use body language and eye-contact rather than direct words. During the conversation people make assumptions about what is not said. Particular emphasis is placed on tone of voice, the use of silence, and facial cues. It is vital to be aware of these non-verbal aspects of communication in any business setting in order to avoid misunderstandings. For instance, silence is often used for contemplation and one should not feel obliged to speak during these periods. Dress Code Dress code is monitored by the regional police who are responsible for the enforcement of a modest dress-code in accordance with Islamic law. Visitors to Saudi are expected to dress in a conservative, smart fashion. Men should wear suits and ties for business meetings, despite the heat. Women should wear business suits with full length skirt and scarf. Visitors should not wear traditional Saudi attire. Most Saudi locals wear a traditional dress. Broadly the ensemble consists of three items: Body garment, Head Scarf and Head Rope.
  • 21. 20 Visiting Cards Business cards are common but not essential to business culture. If you choose to present business cards, it is advisable that you have the information printed in both English and Arabic. V. Religion and aesthetics We may experience numerous distressing events in the relations we establish with others. We may be distressed by some people’s selfishness, by the lack of understanding of others, or by still others’ obstinacy, inability to listen, mocking jokes or affectation. One issue, which most people may never think about, lies at the basis of this common unease — lack of quality. Quality is vital in Islam. A lifestyle devoid of love, understanding, art and beauty predominates in many Islamic countries today. Although this totally conflicts with the fine and clean lifestyle that Allah describes in the Qur’an, it is still regarded as largely legitimate by those societies. Yet a lifestyle devoid of quality and a way of thinking devoid of beauty are unbecoming of a Muslim. This lifestyle devoid of quality spreads over a wide sphere involving all of life, from the way a person thinks to their pleasures, from their goals to their conception of beauty and humor, from their deportment to their speech and what they eat and drink. When quality is not valued and when concepts such as beauty are missing from people’s lives, the world literally comes to resemble hell. The importance of quality, cleanliness and fastidiousness instead of living a coarse lifestyle is revealed with particular emphasis in the Qur’an. In the verse, “Purify your clothes. Shun all filth” (Surat Al-Muddaththir, 4-5) Allah reveals that Muslims must use all their means to live a spotlessly clean life. Quality must therefore be one of the main features of Muslim communities. Religion and other belief systems Muslim (official; citizens are 85-90% Sunni and 10-15% Shia), other (includes Eastern Orthodox, Protestant, Roman Catholic, Jewish, Hindu, Buddhist, and Sikh) (2012 est.) Despite having a large expatriate community of various faiths (more than 30% of the population), most forms of public religious expression inconsistent with the government- sanctioned interpretation of Sunni Islamare restricted; non-Muslims are not allowed to have Saudi citizenship and non-Muslim places of worship are not permitted (2013) 1. Orthodoxdoctrines and structures Relationship with the people As Muslims, Saudi Arabians participate in a community (ummah) in which issues of race, ethnicity, and national origin should be of no significance and never form the basis for social
  • 22. 21 action, political behavior, and economic organization. The identity of Muslim transcends the borders of states and ideally takes precedence over all other identities. Socially, however, the concept of origin (asl)is strong among many Saudi Arabians. Some people, mainly in Hijaz, are recognized descendants of Muhammad and are known asAshraf. Many others throughout the kingdom assertpatrilineal descentfrom eponymous ancestors from ancient Arab tribes. Still others stress Arabian origins but without tribal connections. However, Saudi citizenship embraces people with historical origins outside the Arabian Peninsula. Considerations of origin are important markers and influence social interaction, including marriage, but do not translate directly into economic or power differentials in the national society. Moreover, the social significance of such considerations is waning, especially among younger people Which religions are prominent? Saudi Arabia is the birth place of Islam. Therefore prominent religion is Islam. 5. Membership of each religion The official form of Islam is Sunni of the Hanbali school, in its Salafi version.[citation needed] According to official statistics, 85-95% of Saudi citizens are Sunni Muslims, 10-15% areShia.[9] (More than 30% of the population is made up of foreign workers[9] who are predominantly but not entirely Muslim.) It is unknown how many Ahmadi Muslims there are in the country.[10] The two holiest cities of Islam, Mecca and Medina, are in Saudi Arabia. For many reasons, non-Muslims are not permitted to enter the holy cities although some Western non-Muslims have been able to enter, disguised as Muslims . The large number of foreign workers living in Saudi Arabia (8 million expatriates out of a total population of 27 million[13]) includes non-Muslims. 6. Any powerfulor info entail cults? Islam is the state religion of Saudi Arabia. The connection between Islamand Saudi Arabia (or at least the western Hejaz region of the country) is uniquely strong. The kingdom, which sometimes is called the "home of Islam",[1] is the location of the cities of Mecca and Medina, where Muhammad, the messenger of the Islamic faith, lived and died, and attracts millions of Muslim Hajj pilgrims annually, and thousands of clerics and students who come from across the Muslim world to study. The official title of the King of Saudi Arabia is "Custodian of the Two Holy Mosques"—the two being Al-Masjid al-Haram in Mecca and Al-Masjid al-Nabawi in Medina—which are considered the holiest in Islam B. Aesthetics 1. Visual arts (fi ne arts, plastics, graphics, public art, colors, etc.) Tribal symbols referred to as "wusum" were carved by Bedouins during prehistoric times and are found as rock art in the hills and deserts of Arabia. 2. Music The music of Saudi Arabia includes both Western and traditional music. The most distinguished musician in recent Saudi history is Tariq Abdulhakeem, who composed hundreds of famous Saudi songs for himself as well as for other singers. Saraj Omar has become a very
  • 23. 22 prominent composer after composing the music for the Saudi national anthem. In 1999, the 1st Arab Pioneers Festival, which was held in Cairo under the patronage of the Arab League, honored four of the lead composers in Saudi Arabia: Tariq Abdulhakeem, Ghazi Ali, Mohamed Abdu, Saudi Arabia's first pop star, and the late Talal Maddah, known as the "Sound of the Earth", who died in August 2000 while singing in the summer festival on the stage of Al-Muftaha Theatre in the southern region of Saudi Arabia. Of the same generation are the 'ud virtuoso Abadi al Johar, Rabeh Saqer andAbdul-Majeed Abdullah Folklore and relevant symbols Folk art gives the Kingdom of Saudi Arabia an exquisite distinctiveness that differs from province to province. Such beautiful folk art enriches the Kingdom’s heritage, adding a touch of fun and charm to its solemnity. Saudi Arabian folk art is varied and diverse, and people are encouraged to both view and appreciate it as well as participate in creating it. Perhaps one of the most important characteristics of Saudi Arabia is that due to the Kingdom’s important strategic location its ancient history contains many varieties of folklore that have been passe on through the generations. The Kingdom was the scene of many cultures, battles and historic events, and all of these integrated into a variety of folk art. The Kingdom is replete with many types of folk art, which vary according to the geographic diversity of the environment. From the sea to the mountains to the desert, as well as the agricultural plain areas, each resulted in a tremendous amount of folklore that was created in the conditions prevalent in that location and period of time. VI. Living conditions If you are living within Saudi Arabia you will be aware of the many rules that you have to abide by, restrictions that would be challenged in any court in the west. But this is Saudi Arabia, the birth place of the Muslim religion and the Saudi interpretation of the rules is extreme. Prayers are observed 5 times per day and everything stops, I mean everything; stores close, businesses stop and everyone goes to pray in the mosque, in the office or even in the street. If you time your visit to the supermarket wrongly you will find yourself with a full trolley and a 30 to 40 minute wait before the checkout staff return. But despite the rules, the heat (sometimes 50 degrees), Saudi working practices and the frequent encounters with people you want to strangle; I have found living in Saudi Arabia to be one of the best experiences of my life A. Diet and nutrition 1. Meat and vegetable consumption rates Meat consumption Rate. 203(1000MT CWE) 2016est. F&V consumption in the students of university of Dammam is far less than the WHO recommended level. There is a dire need to educate Saudi youth about the importance of F&V in their diet for a healthier life 3. Typical meals The Arabian people have consumed the same type of food for thousands of years. Some of the common food items in Saudi Arabian cuisine include wheat, rice, lamb, chicken, yogurt,
  • 24. 23 potatoes and dates. Shawarma and Falafel are two common dishes which are originally Levantine and Egyptian dishes respectively. 4. Malnutrition rates Malnutrition rates in KSA is 2.33. Housing In 2000, there were about 3,427,670 occupied households in the country, serving about 20,846,884 people. About 32% of all occupied housing units were apartments, 29.8% were traditional single-family houses, and 20% were single-household villas. Most housing is constructed of concrete and brick. About 44.5% of all occupied housing is owner occupied. The continuing influx of rural people to towns and cities, coupled with the rise in levels of expectation among the urban population, has created a serious housing problem; improvement in urban housing is one of Saudi Arabia's foremost economic needs. Some 506,800 dwelling units were built in the period 1974–85: 389,000 by the private sector, with the help of the Real Estate Development Fund, and 117,800 by the Deputy Ministry of Housing and other government agencies. In the oil districts, Aramco, through loans and other assistance, has encouraged construction of private homes and has built accommodations for its unmarried Saudi staff members. The Real Estate Development Fund, established in 1975, continues to provide interest-free loans for home construction to individuals as well as private companies. 2. Do most people own or rent? The Population Statistic Center at King Saud University (KSU) in Riyadh recently published a study that shows that 52 percent of Saudis who live in Riyadh do not own their houses. The overall rate of Saudis who own homes in the Kingdom was estimated at 60 percent, while 35 percent of Saudis live in rented houses. The remaining 5 percent gets their housing provided by their employers. In small cities and villages, like Baha, Jazan, Abha, Jubail, more Saudis tend to own a house, due to their high purchasing power and social traditions. Clothing 1. National dress All women are required to wear a long black cloak that covers all but the hands and face called an abaya in public. (Modest dress is compulsory for women in Islambut the color black for women and white for men is apparently based on tradition not religious scripture.[43] ) Saudi women also normally wear a full face veil, such as a niqāb. Women's clothes are often decorated with tribal motifs, coins, sequins, metallic thread, and appliques. Foreign women are required to wear an abaya, but don't need to cover their hair.
  • 25. 24 Saudi men and boys, whatever their job or social status, wear the traditional dress called a thobe or thawb, which has been called the "Wahhabi national dress".[46] During warm and hot weather, Saudi men and boys wear white thobes. During the cool weather, wool thobes in dark colors are not uncommon. At special times, men often wear a bisht or mishlah over the thobe. These are long white, brown or black cloaks trimmed in gold. A man's headdress consists of three things: the tagia, a small white cap that keeps the gutra from slipping off the head; the gutra itself, which is a large square of cloth; and the igal, a doubled black cord that holds the gutra in place. Not wearing an igal is considered a sign of piety. The gutra is usually made of cotton and traditionally is either all white or a red and white checked. The gutra is worn folded into a triangle and centred on the head. 2. Types of clothing worn at work The main item of business clothing for Saudi Arabian men is the thawb, a long white robe that covers the body from the neck to ankles. They also don a white or red-and-white-checked headscarf, or ghutrah. A head rope, or agal, holds this scarf in place. Saudi Arabian men commonly wear leather, open-toed sandals with this outfit. Foreign men are free to wear traditional business clothing should they choose. The main item of business attire, or indeed any attire in a public setting, is the abaya, a long, black flowing robe similar to the thawb which covers the body entirely from neck to ankles. In addition to a veil, or boshiya, which covers the lower part of the face, Saudi Arabian women also wear a head scarf. Any kind of formal footwear is appropriate. Foreign women are free to wear traditional business clothing should they choose D. Recreation, sports, and other leisure activities 1. Types available and in demand Popular types of leisure activities include horse/camel racing and falconry. Sports, adventure and recreation in Saudi Arabia is an indispensable part of the day-to-day lifestyle of the Saudi Arabians. Some of these sports are included in Saudi Arabia’s famous festivals like the annual Jenadriyah National Culture and Heritage Festival which includes camel racing. Camel Racing Camels from around the country are brought to the sporting ground for the race. Camel racing is much more than just a sporting event to the Saudis; it is a token of honour. The winning camel is worth thousands of riyals and also brings pride to both the trainer and its owner. Thus, competition and rivalry among the camel owners is intense. Camel races are often held in the King Fahd International Stadium during winters. King’s Camel Race, the world’s largest camel race is held there too, attracting spectators from worldwide. Falconry Falconry is yet another traditional sport which originated centuries ago. The Art of Falconry is a challenging feat and it is time consuming as the falconer must tame the falcon. Training a falcon is time-consuming and requires enormous patience since the falconer must carry the bird on his
  • 26. 25 arm for several hours each day. The falcon hunting season in Saudi Arabia is from October to March. The two most popular falcons are the Saker and the Peregrine. Soccer Soccer has become one of the most popular modern sports among Saudis of all ages, from children scrimmaging on play- grounds to international matches battled out in spectacular modern stadiums. Friends and families often watch at home or at stadiums to embrace their love for this sport and to support their favorite teams. The professional Saudi soccer league is wildly popular among Saudis. The highlight of the Saudi soccer league is its championship tournament known as the King’s Cup. Fans also enthusiastically follow the Saudi Arabian national soccer team in World Cup competition. Golf The interest shown by the Saudi Arabian people in the sport of golf has also been growing ever since about twenty years ago. Saudi Arabia has a number of first-class golf courses. One of them is the Dirab Golf Course, found in Riyadh in the Dirab valley. It is Saudi Arabia’s first ever 18 holes championship quality golf course, situated near the Mountain Escarpment of Tuwaiq. Outdoor Recreation Saudis enjoy a wide range of leisure activities. Families can relax at hundreds of parks, campsites, picnic grounds and other facilities throughout the country. Long stretches of coast and spectacular coral reefs make water sports such as snorkeling and wind surfing accessible. Saudi Arabia has established a network of national parks and reserves. One of the most prominent national parks in Saudi Arabia is the 1.1 million acre Asir National Park where visitors can hike, camp, climb hills and enjoy other outdoor activities. Saudi Arabia’s largest protectorate is Al Khunfah, where visitors can observe wildlife such as gazelles and Oryx in their natural habitats. In the cities, people can relax in hundreds of urban parks. There are 50 public parks in Riyadh. The waterfront of Jeddah and Dammam are also popular places for picnics, swimming, fishing and other water sports. Camping is a popular activity among Saudis. Families pitch tents in the middle of the desert, along the coast or in one of Saudi Arabia’s parks, and enjoy the beauty of nature. These camping trips are popular during the Eid holidays and for family reunions, especially after the rainy season when the desert blooms. Wildlife Saudi Arabia is home to a variety of animals including the Arabian Oryx, a type of antelope native to the Arabian Peninsula that roams freely in Saudi Arabia’s large desert. Other animals found in Saudi Arabia include gazelles, the ibex (a type of wild mountain goat) the bustard, and the swift saluki hound, a dog named for an ancient city in southern Arabia. The saluki is generally considered to be the world’s oldest domesticated dog. The famous purebred Arabian horse is one of the most popular breeds in the world; with a bloodline that dates back thousands of years. The Arabian’s fine shape and extraordinary stamina and speed make it ideal for racing and breeding. There are also many camels in Saudi Arabia. They have been used as a means of transportation for thousands of years. Today, camel racing is a popular sport. Saudi
  • 27. 26 Arabia has taken major steps to preserve its native wild and marine life and established preserves. E. Social security Saudi Arabia has an extensive social security system which provides old age, disability and survivor benefits for its employed and self-employed nationals. There are no statutory benefits for sickness and maternity, but the law requires employers with more than 20 employees to pay sick leave to their employees. Foreign workers are excluded from this system. F. Healthcare The Ministry of Health (MOH) is the major government agency entrusted with the provision of preventive, curative and rehabilitative health care for the Kingdom’s population. The Ministry provides primary health care (PHC) services through a network of health care centers (comprising 1,925 centers)[1] throughout the kingdom. It also adopts the referral system which provides curative care for all members of society from the level of general practitioners at health centers to advanced technology specialist curative services through a broad base of general and specialist hospitals (220 hospitals).[1] The MOH is considered the lead Government agency responsible for the management, planning, financing and regulating of the health care sector. The MOH also undertakes the overall supervision and follow-up of health care related activities carried out by the private sector. Therefore, the MOH can be viewed as a national health service (NHS) for the entire population. Language A. Offi cial language(s) The formal version of the Arabic language, known as Classical Arabic or Fus-ha, is the language in which the Qur’an is written and is considered by most linguistics to be the foundation of the syntactic and grammatical norms of the Arabic language. The Classical formof Arabic remains widely used by religious scholars and is taught in colleges and universities around the world. Today, however, Classical Arabic is considered almost exclusively a written language, rather than a spoken one B. Dialects Hejazi Arabic, spoken in Saudi Arabia along the coast of the Red Sea, especially in the cities of Mecca and Jeddah. Strictly speaking, there are two distinct dialects spoken in the Hejaz region, one by the Bedouin rural population and another by the urban population. VIII. Executive summary After completing all of the other sections, prepare a two-page (maximumlength) summary of the major points and place it at the frontof the report. The purpose of an executive summary is to give the reader a brief glance at the critical points of your report. Thoseaspects of the culture a reader should know to do business
  • 28. 27 in the country but would not be expected to know or would fi nd differentbased on his or her SRC should be included in this summary. IX. Sources of information ECONOMIC ANALYSIS Introduction II. Population Total 31,000,000 M (2016January) Growth rates 1.49% (2014) Number of live births 56900 3 Birthrates 18.78 births/1,000 population (2014) Distribution of population 1. Age 0–14 years 27.6% 15–64 years 69.2% 65 and over 3.2% 2. Sex At birth 1.05 male(s)/female Under 15 1.05 male(s)/female 15–64 years 1.22 male(s)/female 65 and over 1.08 male(s)/female
  • 29. 28 3. Geographic areas Geographically, Saudi Arabia is divided into four (and if the Rub al-Khali is included, five) major regions. The first is the Central region, a high country in the heart of the Kingdom; secondly, there is the Western region, which lies along the Red Sea coast. The Southern region, in the southern Red Sea-Yemen border area, constitutes the third region. Fourthly, there is the Eastern region, the sandy and stormy eastern part of Saudi Arabia, the richest of all the regions in petroleum 4. Migration rates and patterns -0.59 migrant(s)/1,000 population (2014 est.) 5. Ethnic groups Arab 90%, Afro-Asian 10% Economic statistics and activity Gross national product (GNP or GDP) 1.Total $653.2 billion (2015 est. 2. Rate of growth GDP 3.60 PERCENT B. Personal income per capita $53,600 (2015 est. Average Annual income per capita The average Saudi per capita annual income of SR 93,472 ($ 24,925) is one of the highest in the Middle East and North Africa region, Standard and Poor’s said. However, the credit rating agency put Saudi Arabia as the fourth among GCC countries. S&P also said the Kingdom needs to diversify its economy away from oil. Dubai has the highest income among GCC countries, the agency said. Ibrahim Al-Assaf, the minister of finance, said the Kingdom should rank higher than the Standard and Poor’s rating Distribution of wealth Country Wealth per capita Wealth per adult Share of world wealth (%) Wealth Gini Saudi Arabia 22025 43046 0.29 0.737 E. Minerals and resources In addition to its vast oil and gas reserves, the Kingdom is rich in mineral deposits.Gold mining began in Saudi Arabia some 5,000 years ago. Since then, there have been periods
  • 30. 29 when gold mining has been pursued vigorously (e.g. in the Islamic Abbasid period between the 8th and 13th centuries CE). Three thousand years ago, the mine known as the Cradle of Gold (Mahad Al-Dhahab), some 180 miles north ofJiddah, was a rich source of gold, silver and copper. According to the Fourth Five Year Plan, gold had been discovered at some 600 sites around the Kingdom and a total of 29 prospects have been drilled. The Mahad Al-Dhabab gold mine was re-opened by Petromin with the intention of developing a high-grade underground gold mine with a capacity of 400 tons of ore per day. This venture encouraged further exploration for gold elsewhere in the Kingdom. All known gold deposits in the Kingdom are located in the Pre-Cambrian rocks of the Arabian Shield which lies in the western region of Saudi Arabia. Silver and base metal deposits (bauxite, copper, iron, lead, tin and zinc), as well asnon-metallic minerals (bentonite, diatomite, fluorite, potash and high-purity silica sand) have all been discovered, attesting to the wealth that remains, still largely unexploited, beneath the Kingdom's soil Surface transportation Until recent decades, the camel was the chief means of transportation in Saudi Arabia, but enormous strides have been made since the early 1970s. By 2002, there were 146,524 km (91,050 mi) of highway, of which 44,104 km (27,406 mi) were paved. Modern roads link Jeddah, Mecca, Medina, Aţ Tā'if, and Riyadh. A new highway connects Saudi Arabia with Jordan, and a causeway completed in 1986 offers a direct connection with Bahrain. In 2003, there were 2,889,384 passenger cars and 1,720,910 commercial vehicles registered for use. Most within- country freight is hauled by truck. The Saudi Government Railroad, which operates between Ad Dammām and Riyadh over a length of 575 km (357 mi), was built by the Arabian American Oil Co. (ARAMCO) during the 1950s. As of 2004, railroad lines totaled 1,392 km (865 mi) of standard-gauge track. In 2004, there were an estimated 201 airports. As of 2005, a total of 73 had paved runways, and there were also six heliports. Major airports include Dhahran International at Dhahran, King Abdul Aziz at Jeddah, and King Khaled International at Riyadh. The government-owned Saudi Arabian Airlines (Saudia) operates regular domestic and foreign flights to major cities. Because of the large distances that separate the main cities, air travel is preferred within the kingdom. In 2003, about 13.882 million passengers were carried on scheduled domestic and international flights. Jeddah, on the Red Sea, is the chief port of entry for Muslim pilgrims going to Mecca. Saudi Arabia has the largest seaport network in the Near East, with eight major ports with 183 piers and three smaller ports. Ports include Ad Dammām, Yanbu' al-Bahr, Jizan, Duba, Jeddah, Jizan, Rabigh, Ra's al Khafji, Mishab, Ras Tanura, Madinat Yanbu' al Sinaiyah, and Jubail (Al-Jubayl). In
  • 31. 30 2005, there were 64 ships of 1,000 GRT or more, totaling 1,306,706 GRT in the merchant fleet. The traditional dhow is still used for coastal trade. G. Communication systems This article is about telecommunications in Saudi Arabia which includes fixed and cellular phones, internet as well as radio and television broadcasting and issues relating to the provision of these services. Saudi Telecom Company (STC) is the first company in Saudi Arabia, and then allowed Communications Commission to compete with other companies in Saudi Arabia and then it becomes a number of telecom companies in Saudi Arabia four companies: (1). STC Mobile: It STC includes landlines and mobile, and includes a mobile (phone), (Sawa) and (us). (2) Integrated Telecom Company (ITC) second operator after STC, established in 2005 and offers internet, broadband, connectivity and satellite services for businesses, consumers and wholesale (3). Mobily: the UAE's telecommunications company, which is the mobile and internet Fabraupetk (Fiber Optic) New Ground. (4). ZIN Zain: a Kuwaiti company, which is the only mobile (5). GO ATHEEB: a Saudi modern, with an Internet connection line is similar to Ground. H. Working conditions But because the region has no personal taxation, net income is usually much greater, which is one of the major attractions of working in Saudi Arabia. In the past, remuneration packages were split into various elements: basic salary, car provision or allowance, housing provision or allowance, medical cover, education for children and air tickets for home visits. Today, however, employers tend just to pay a salary, which covers all these expenses, although in some cases there are performance or other bonuses. In addition to their salary, contract workers are awarded an ‘indemnity’ at the end of the contract period. Saudi Arabia legislates that the indemnity is based on the value of the entire remuneration package including performance bonuses (where applicable). The indemnity can be a significant amount of money if you’ve been working in Saudi Arabia for a long time, and many people manage either to accumulate a reasonable financial cushion or to live the high life. If you’re clever and disciplined, you should be able to do some of both. The indemnity has nothing to do with insurance but is an end-of-contract bonus which is required by law to be paid to expatriate workers as a sort of ‘thank-you’ for being of service to the state. (It’s also known as ‘end of service benefits’.) Indemnity scales usually amount to 15 (in some
  • 32. 31 cases 20) days of basic pay per year of employment for the first three years and thereafter a month’s salary per year of employment. Note that some Arab companies regularly delay the payment of salaries, cash flow problems being passed on to their staff. In this event, you have little alternative but to wait. Working Hours & Overtime The working week in Saudi Arabia tends to vary between 40 and 48 hours, depending on the particular company’s policy. In the month of Ramadan, the working day is reduced to six hours and legally this should apply to all staff, but many companies only apply it to Muslims, who fast during daylight hours. There are no differences in timekeeping between summer and winter Office hours vary, ranging from 7.30am - 8am until noon, then from 3.30pm - 4pm until 7pm - 8pm. Although there are some offices which may close at 6pm. Keep in mind that most government offices are open from 7.30am to 2.30pm and general banking hours are from 8 am until noon, and then from 5pm until 8pm. It is important to take into account the five daily prayer times, as well as Islamic holidays. Friday is the Muslim day of rest and if your company has a five-day working week, your other day off would probably have been either Thursday or Saturday. Saudi Arabia now enjoys a Sunday-Thursday work week, with Friday-Saturday its official weekend. Saturday used to be the more popular choice for international companies, as taking Thursday off would mean a reduction in the number of operational days in common with much of the rest of the world. Conversely, other companies insisted on Thursday, as the school ‘weekend’ is Thursday and Friday. The decision to implement Saturday as the second day off was made by the government to make sure that companies do not miss out on economic opportunities on Thursdays, especially regarding international businesses I. Principal industries Saudi oil reserves are the second largest in the world, and Saudi Arabia is the world's leading oil exporter and second largest producer. Proven reserves, according to figures provided by the Saudi government, are estimated to be 260 billion barrels (41 km3), about one-quarter of world oil reserves. Petroleum in Saudi Arabia is not only plentiful but under pressure and close to the earth's surface. This makes it far cheaper and thus far more profitable to extract petroleum in Saudi Arabia than in many other places.[18] The petroleum sector accounts for roughly 92.5% of Saudi budget revenues,[17] 97% of export earnings, and 55% of GDP. Another 40% of GDP comes from the private sector. An estimated 7.5 (2013) million foreigners work legally in Saudi Arabia,[19] playing a crucial role in the Saudi economy, for example, in the oil and service sectors. The government has encouraged private sector growth for many years to
  • 33. 32 lessen the kingdom's dependence on oil, and to increase employment opportunities for the swelling Saudi population. In recent decades the government has begun to permit private sector and foreign investor participation in sectors such as power generation and telecom, and acceded to the WTO. During much of the 2000s, high oil prices[20] enabled the government to post budget surpluses, boost spending on job training and education, infrastructure development, and government salaries. More than 95% of all Saudi oil is produced on behalf of the Saudi Government by the parastatal giant Saudi Aramco, and the remaining 5% by similar parastatal companies as of 2002 J. Foreign investment In recent years, FDI flows to Saudi Arabia have followed a downward trend. According to the 2015 World Investment Report published by UNCTAD, the country is now only the third largest FDI recipient in Western Asia, after Turkey and the United Arab Emirates. In 2014, FDI flux declined by 9.6% compared to 2013, rising to USD 8 billion. Political and social tensions, reduced access to credit and the policy of "Saudisation," which started in 2011 and favours a domestic labour force, have all been obstacles to FDI. Still, the Government has invested heavily in national infrastructure to attract investment, and FDI is seen as one of the most effective ways to diversify the economy and provide employment for younger generations. The Government recently announced the opening of theretail and wholesale sectors to 100% foreign ownership. The authorities welcome FDI due to its ability to transfer technology, employ and train the national workforce, foster economic development and enhance local raw materials. The country's controlled inflation and relatively stable exchange rate, openness to foreign capital in upstream gas, as well as extensive privatisation programmes are among the advantages attracting investors to the country. The dynamic performance of the banking sector is driving the growth of the non-oil sector. Lastly, access to the world's largest oil reserves, very low energy costs and a high standard of living are decisive factors for foreign investors International trade statistics Exports $224.6 billion (2015 est.) [5] Export goods petroleum and petroleum products 90% Main export partners United States 14.3% China 13.7% Japan 13.7% South Korea 9.9% India 8.2% Singapore 4.3% (2012 est.) Imports $136.8 billion (2012 est.
  • 34. 33 Balance-of-payments situation The net financial account shows net acquisition and disposal of financial assets and liabilities. It measures how net lending to or borrowing from nonresidents is financed, and is conceptually equal to the sum of the balances on the current and capital accounts. Data are in current U.S. dollars Date Value Change, % 2015 63,985,985,600 -49.43 % 2014 126,532,893,333 3.58 % 2013 122,157,286,667 10.68 % Exchange rates 1 PKR = 0.0357820 SAR 1 SAR = 27.9470 PKR Trade restrictions In 2005, Saudi Arabia became the 149th country to join the World Trade Organization (WTO). As part of WTO commitments, the country’s trade regime should become more transparent and more accommodating to non-Saudi businesses. As of the date of this report, Saudi business and laws still favor Saudi citizens, and Saudi Arabia still has trade barriers, mainly regulatory and bureaucratic practices, which restrict the level of trade and investment. Nevertheless, the Government has liberalized the wholesale, retail, and franchise sectors, allowing foreign investors to establish joint ventures and retain a 51% share. The foreign partner’s capital requirement is set at $5.3 million (SR 20 million) and his equity share can be increased to 75% after 3 years from the contract date. All industrial enterprises are open to non-Saudis, and they can also trade in the products they manufacture. Restrictions on individual professions also are in force, such as who can practice law, medicine, accounting and financial services, architect and engineers, and other similar professions. A Saudi joint venture partner is a requirement for any entity or individual to practice the above-mentioned professional services. Other trade barriers include:
  • 35. 34 • Commercial Disputes Settlement There is not yet a transparent, comprehensive legal framework in place for resolving commercial disputes. Saudi commercial law is still developing, but in 1994 the Saudis took the positive step of joining the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards. Saudi Arabia is also a member of the International Center for the Settlement of Investment Disputes (also known as the Washington Convention). However, dispute settlement in Saudi Arabia continues to be time-consuming and uncertain. Even after a decision is reached in a dispute, effective enforcement of the judgment can still take years. Generally, the Board of Grievances has jurisdiction over disputes with the government and over commercial disputes. In October 2007, King Abdullah issued a royal decree to overhaul the Kingdom’s judicial system, including allocating 7 billion SAR (approximately $1.9 billion) to train judges and build new courts. The decree establishes two Supreme Courts, a general court and an administrative court, and specialized labor and commercial tribunals - although implementation has been slow. On February 4, 2009, the King reshuffled the Government appointing a new Minister of Justice, a new President of the Grievance Board, and a new Chairman of the Supreme Judicial Council. Industry sources expect the reshuffle to expedite the overhaul of the Kingdom’s judicial system. • Business Visas All visitors to Saudi Arabia must have a Saudi sponsor in order to obtain a business visa to enter Saudi Arabia. Business visitors and foreign investors can apply through the Saudi Arabian General Investment Authority (SAGIA) for a visitor visa at the Saudi Embassy or Consulates in the United States. Saudi Arabia has also begun to implement a decree stating that sponsorship for certain business visas is no longer required. Based on new instructions, the issuance of a visitor’s visa should be affected within 24 hours from the application date. While most business visas are valid for only one entry for a period of up to three months, the Saudi Embassy in Washington has begun issuing a 5-year multiple entry visa for selected business people, taking into consideration the principle of reciprocity. Finally, the Saudi Ministry of Foreign Affairs is currently examining the issuance of a visitor’s visa at ports of entry for selected nationalities. • Delayed Payments This issue is an important concern for affected American companies. The Government, due to past fiscal constraints, had in the past fallen into arrears on payments to private contractors, both Saudi and foreign. Some companies carried Saudi Government receivables for years
  • 36. 35 before being paid. The Government appears committed to clearing remaining arrears, but the problem persists. U.S. companies should check with the U.S. Embassy or Consulates if a problem arises. • Intellectual Property Protection Saudi Arabia recently undertook a comprehensive revision of its laws covering intellectual property rights to bring them in line with the WTO agreement on Trade Related Aspects of Intellectual Property Rights (TRIPs). The Saudi legal systemprotects and facilitates acquisition and disposition of all property rights, including intellectual property. The Saudi Government recently updated their Trademark Law (2002), Copyright Law (2003), and Patent Law (2004) with the dual goals of TRIPs-compliance and effective deterrence against violators. In 2008 the Violations Review Committee created a website and has populated it with information on current cases. The government also endorsed the country’s joining the “Paris Convention for Protection of Industrial Property” and the “Berne Convention for the Protection of Literary and Artistic Works”. Though intellectual property protection has steadily increased in the Kingdom, piracy remains a problem. The current Law on Patents, Layout Designs of Integrated Circuits, Plant Varieties and Industrial Designs has been in effect since September 2004. Largely due to a lack of adequate resources and technical expertise, when this law went into effect the patent office had issued just over 40 patents and had a large backlog (more than 9,000 applications dating back to issuance of Saudi Arabia’s first patent law in 1989). The office has since streamlined its procedures, hired more staff, and reduced this backlog. Protection is available for product and product-by-process. The term of protection was increased from 15 years to 20 years under the new law, but patent holders can no longer apply for a routinely granted five-year extension. However, SPO applied the new law retroactively thus disallowing and rejecting hundreds of pending patent applications including those pertaining to pharmaceutical products. While the new law is being retroactively applied, patents in the Kingdom of Saudi Arabia may be easily exposed to infringements. Trademarks are protected under the Trademark Law. The Rules for Protection of Trade Secrets came into effect in 2005. Saudi Arabia has one of the best trademarks laws in the region, but enforcement still lags and procedures are inconsistent. American firms that wish to sell products in Saudi Arabia should work through their local representative to register their trademarks with the Ministry of Commerce and Industry, copyrighted products with the Ministry of Information, and patents with KACST or the GCC Patent Office. Although these government entities are responsible for IPR protection in their
  • 37. 36 respective areas, any reported incident of piracy or infringement may not entail immediate and decisive action by the concerned government entity. The Saudi Government has revised its Copyright Law, is devoting increased resources to marketplace enforcement, and is seeking to impose stricter penalties on copyright violators. The Saudi Government has stepped up efforts to force pirated printed material, recorded music, videos, and software off the shelves of stores. These efforts included stepping up raids on shops selling pirated goods in 2008. However, many pirated materials are still available in the marketplace. An Islamic ruling, or “fatwa,” stating that software piracy is “forbidden” backs enforcement efforts. Saudi Arabia remains on the Special 301 Watch List for 2008. Saudi Arabia has not signed and ratified the WIPO internet treaties. • Counterfeiting Manufacturers of consumer products and automobile spare parts are particularly concerned about the widespread availability of counterfeit products. Anti-counterfeiting laws exist, and the U.S. Government has urged the Saudi authorities to step up enforcement actions against perpetrators. In some popular consumer goods, manufacturers estimate that as much as 50% of the entire Saudi market is counterfeit. In order to restrict the entry of counterfeit products, the Saudi Customs Authority recently implemented a new directive requiring all imported goods to clearly display the “Country of Origin” or “Made in ….” on the items in an irremovable manner either by engraving, knitting, printing, or pressing based on the nature of the imported items. • Arab League Boycott The Gulf Cooperation Council (Saudi Arabia, Kuwait, Bahrain, Oman, Qatar and the United Arab Emirates) announced in the fall of 1994 that its members would no longer enforce the secondary and tertiary aspects of the Arab League Boycott. The primary boycott against Israeli companies and products still applies. Advice on boycott and anti-boycott related matters are available from the U.S. Embassy or from the Office of Anti-Boycott Compliance in Washington, D.C. at (202) 482-2381 Labor force 11.67 million About 80% of the labor force is non-national (2015 est.)
  • 38. 37 Inflation rates Consumer prices in Saudi Arabia rose 4.1 percent year-on-year in May of 2016, slowing from a 4.2 percent increase in April. Transportation cost went up 11.3 percent (12.5 percent in April) and food and non-alcoholic beverages edged up 0.3 percent (0.8 percent in April). In contrast, prices of housing and utilities climbed at a faster 7.7 percent (7.5 percent in April). On a monthly basis, consumer prices were flat, following a 0.2 percent increase in April. Inflation Rate in Saudi Arabia averaged 2.79 percent from 2000 until 2016, reaching an all time high of 11.10 percent in July of 2008 and a record low of -2 percent in January of 2001. Inflation Rate in Saudi Arabia is reported by the Central Department of Statistics & Information, Saudi Arabia Developments in science and technology King Abdulaziz City for Science and Technology (also KACST; Arabic: ‫للعلوم‬ ‫عبدالعزيز‬ ‫الملك‬ ‫مدينة‬ ‫)والتقنية‬ in Riyadh, Saudi Arabiais an organization established in 1977 as the Saudi Arabian National Center for Science & Technology (SANCST); in 1985, it was renamed King Abdulaziz City for Science and Technology. V. Channels of distribution There are three major distribution and sales regions in Saudi Arabia: the Western Region, with the commercial center of Jeddah; the Central Region, where the capital city of Riyadh is located; and the Eastern Province, where the oil and gas industry is heavily concentrated. Dammam is the capital city of the Eastern Province, and includes Dhahran. Each city has a distinct business community and cultural flavor, and there are only a few truly “national” companies dominant in more than one region. American exporters may find it advantageous to appoint different agents or distributors for each region having significant market potential. Multiple agencies and distributorships may also be appointed to handle diverse product lines or services. Multiple agencies and distributors can present logistical and management difficulties, so U.S. firms, particularly in the franchise sector, often choose to appoint a master franchisor or distributor for states of the Gulf region, which includes Saudi Arabia, Kuwait, Qatar, Bahrain, Oman, and the UAE. While there is no statutory requirement that distributorships be granted on an exclusive basis, it is clearly the policy of the Saudi Ministry of Commerce and Industry that all arrangements be exclusive with respect to either product line or geographic region This section reports data on all channel middlemen available within the market. Later, you will select a specifi c channel as partof your distribution strategy. Retailers The Kingdom of Saudi Arabia is the largest retail market in the Gulf Co-operation Council (GCC). The economy is oil-based, with strong government controls over major economic activities. The