The document discusses Saudi Arabia's membership in the World Trade Organization (WTO). It provides background on the establishment of the WTO in 1995 following previous attempts to facilitate global trade. Saudi Arabia joined the WTO in 2005 after 12 years of negotiations to gain the benefits of access to trade agreements and protection from discriminatory policies. Saudi Arabia's purpose in joining was to diversify its economy away from dependence on oil as prices fluctuated. Membership required Saudi Arabia to reduce tariffs and discriminatory practices while opening its markets to foreign investment and trade. Since joining, Saudi Arabia has seen gradual growth in its non-oil private sector and GDP.

1. WTO and Saudi Arabia
Student: Aljoharah Albasri
Instructor :Dr.Rehana Parveen

2. The WTO

3. Background
• There was the Great Depression and World
War II.
– Protectionism  World trade suffered.
– World powers got together to put an end to that.
• First attempt  the General Agreement on
Tariffs and Trade (GATT) in 1948.
• Second attempt  the World Trade
Organization (WTO) in 1995.

4. Establishment
• The WTO facilitates trade between nations.
• Located in Geneva, and it came into being on
January 1 1995.
• The WTO is the only international organization
that produces binding international law for its
members.
• Its objectives:
1. Reduction of tariffs;
2. Reduction of other forms of trade barriers; and
3. Elimination of discrimination.

5. Saudi Arabia

6. Saudi Arabia’s Purpose of Joining the
WTO
• The country knew the the prices of oil would
eventually drop  need for diversification.
• Benefits of joining the The WTO:
1. Access to trade agreements with the other 148
WTO members;
2. Protection against discriminatory trade policies
of other countries; and
3. Economic reform.

7. Saudi Arabia’s accession to the WTO
• Saudi Arabia became 149th member of WTO on
11 December 2005 after 12 years of negotiations.
• Before membership  Saudi Arabia had an
"Observer" status.
• After membership, Saudi Arabia signed an
agreement with the WTO that consisted of:
1. Schedule of Concession and Commitments on
Goods;
2. Schedule of Specific Commitments in Services; and
3. Report of the Working Party.

8. The Main WTO membership
requirements from Saudi Arabia
• Intellectual property rights;
• Decreasing tariffs;
• Eliminating discriminatory practices;
• Access to the Kingdom’s markets;
• Equal treatment between foreign and local
investors;
• Foreign participation in service sectors; and
• Transparency in trade issues;

9. The impact of the WTO membership
on the Saudi Arabian economy
• Non-oil private sector activity.
• Gross Domestic Product (GDP)
• Gradual growth seen in the development of non-oil private
sector over the years:

10. Thank you for listening!