Saudi Arabia

MARKET OF SAUDI ARABIA

SAUDI ARABIA'S MARKET OVERVIEW

Saudi Arabia is the largest country in West Asia and is one of the largest producers and exporters of crude Oil‎ in the world. Saudi Arabia is rich in natural resources such as gold and copper, crude Oil‎, natural gas, and iron. Air and Rail transport ways are a major role in the Saudi Arabia's trade. Saudi Arabia is the 18th largest economy in the world and the largest economy in the Middle East and North Africa. The customs inspector places the consignment (passenger) on the inspection device and all Saudi lines are responsible for keeping the cargo in storage. Goods whose import is prohibited in Saudi Arabia.

Where is Saudi Arabi?

Saudi Arabia, officially the Kingdom of Saudi Arabia (Arabic: المملکة العربیة السعودیة), is the largest country in West Asia‎. It covers most of the Arabian Peninsula to the north with Iraq, Jordan, and Kuwait to the east with the United Arab Emirates, Qatar, and the Persian Gulf to the southeast with Oman. It is bordered by Yemen to the south and the Red Sea to the west. There are important Muslim religious sites such as the Kaaba, Baqiya Cemetery, the Prophet's Mosque, and the tomb of the Prophet of Islam in this country.

With an area of ​​2,149,000 square kilometers, Saudi Arabia is the largest country in West Asia‎ (Middle East) and the second-largest Arab country after Algeria. The country has a population of more than 34.7 million, including 21.5 million indigenous people and more than 13 million immigrants.

New Saudi Arabia (Kingdom of Saudi Arabia) was founded in 1932 by King Abdulaziz. However, the wars and conflicts that led to the formation of the country began in 1902 with the capture of Riyadh, the ancestral home of Al Saud, by King Abdul Aziz. Saudi Arabia is an absolute monarchy. The religion of Islam has emerged in this country.

Saudi Arabia is one of the largest producers and exporters of crude Oil‎ in the world. It holds about one-fifth of the world's proven Oil‎ reserves. Oil‎ accounts for 95% of exports and 70% of government revenues. Recently, however, non-Oil‎ exports have increased. Saudi Arabia's energy resources have made this desert kingdom one of the richest countries in the world. Extensive Oil‎ revenues have led to the country's rapid modernization and the creation of a welfare state. Saudi Arabia also has the sixth-largest natural gas reserves in the world.

Natural resources and Industry of Saudi Arabia

The country is rich in natural resources such as gold and copper, crude Oil‎, natural gas, and iron. However, in terms of forests and forest areas, deforestation and agriculture are poor. Most plants grow in oases. With more than 260 billion barrels of Oil‎, Saudi Arabia holds more than 14% of the reserves of this vital substance. 

This figure is equivalent to 33% of the total reserves of other member countries of the Organization of Petroleum Exporting Countries (OPEC). Saudi mines are mostly located in the Hejaz Mountains and the Asir region and the Najd region. The two industrial cities of Yanbu on the Red Sea coast and Al-Jubail on the Persian Gulf coast have been built to regulate the state of Saudi resources and mines.

Saudi Arabia's uranium mineral reserves are large enough to allow it to produce nuclear fuel without the need for imports. Saudi Arabia, the largest Arab economy and the economic hub of the Persian Gulf, is governed by Oil‎ revenues and is the largest producer of the Organization of Petroleum Exporting Countries (OPEC). The country has reaped huge benefits from Oil‎ exports (especially after the sudden rise in Oil‎ prices in 1973-74). 

Saudi Arabia uses Oil‎ revenues to implement long-term plans for its economic infrastructure and the development of modernism, as well as health, social and educational development. A large part of the Saudi government's budget is allocated to the armed forces and the purchase of advanced weapons from abroad. Public employment and subsidies for production and consumption have also been part of the country's expenditures. 

The largest economic sectors and the maintenance of a high standard of living depend entirely on government subsidies. Of course, borrowing from foreign banks has been on the agenda since the late 1980s, and the need for economic reform is felt at times when Oil‎ prices are falling. The Saudi royal family favors a free, Western-leaning economy. It relies on Western and Japanese investments in many economic sectors, especially Oil‎

Therefore, in many economic sectors, Western management has a significant share. But at the same time, the share of the Saud tribe, especially in the Oil‎ and gas industry, has been increasing in recent years. Most of Saudi Arabia's workforce is foreign. In recent years, Saudi Arabia's economic structure has been based on Oil‎ conversion and refining industries, as well as non-Oil‎ exports, and long-term plans have been drawn up.

Industry of Saudi Arabia
Saudi Arabia has increased its share of crude Oil‎ revenues in the development of industrial projects. Saudi Arabia's industrialization program focuses on building Oil‎ and gas refineries. At the end of 2005, Saudi Arabia estimated its proven gas reserves at 1.2 trillion cubic meters, ranking fourth in the world. 

The country's proven Oil‎ reserves are estimated at 7 billion barrels. The main projects are being implemented under cooperation agreements between the government and foreign companies. The share of manufacturing factories in GDP in 2004 was 94,962 million rials and the average annual production between the years 2004-2009 was 4.8 percent. Manufacturing plants, which accounted for 9.5 percent of GDP in 2005, have invested more than $ 66,000 million since the mid-1980s.

What are the transport ways of Saudi Arabia?

Air transport to Saudi Arabia plays a major role in the country's trade. In a way that is considered as one of the characteristics of people's economic growth. The development and expansion of this type of transportation can improve the cultural and social services, the expansion of economic activities, increase the level of regional employment, and the development and expansion of tourism in the world today.

The development and expansion of air transport depend on natural, economic, and social factors, and legal, political decisions, and the work of financial regulations and social and executive regulations play a decisive role in it. To this end, one of the major factors in the airline's operations around the world has been the review of legislation and the removal of many administrative restrictive laws and regulations.

The pace of change and advancement of aviation technology is now inevitable with the expansion and development of aviation industry technology in infrastructure planning. Cargo or air transport includes commercial shipments that are sent by special planes from one country to another. 

Air transportation to Saudi Arabia is one of the best services provided by famous Trading companies. The construction of the railway network in Saudi Arabia dates back to 1951, during which 571 km of the line was opened. This line starts from Dammam port and ends in Riyadh after passing Zahran, Baqiq, Hafouf, Harz, and Kharj. In 1985, another 332-kilometer branch line was built from the city of Hafouf and continued to Riyadh. Currently, the Saudi railways amount to 2,785 kilometers, which also includes fork lines. Saudi Arabia is a member of the UIC, DGMO, and CMO.

Saudi Railway Network
The standard width (1435 mm) is used in the Saudi railway. The distance of 140 km of the current railway lines (from Dammam to Hauff) is two-lane and the maximum speed on it is 120 km per hour. 

The standard width (1435 mm) is used in the Saudi railway. The 308 km of lanes are designed for speeds of 150 km, which are used only for passenger transportation. Another two-lane route runs from Hauff to Riyadh (416 km), which passes through the city of Kharj. It should be noted that the old Dammam-Hauff-Riyadh line is used only for cargo transportation. This line transports goods imported from Dammam port to Riyadh. 

Also, the transfer of petroleum products from Dhahran to Hauff and expenditure, the transportation of grain, especially wheat from Riyadh silos, and the export to Dammam for export outside Saudi Arabia, the transportation of imported grain, especially barley, from Dammam to Riyadh and expenditure through this route.

What are the economy indexes in Saudi Arabia?

Export amount of Saudi Arabia
Despite the large Oil‎ exports, Saudi Arabia is not among the top 20 exporting countries in the world but is ranked 22nd after India.

The dairy industry of Saudi Arabia
It may seem strange to you, but the largest dairy factory is located in this country. 95,000 lactating cows are kept in this factory. Saudi Arabia produces one billion liters of milk daily.

Per capita income of Saudi Arabia
Per capita income in Saudi Arabia until the end of 2017 was equivalent to 59 thousand 170 dollars per year. This is 2.9 times less than the per capita income of American citizens.

Foreign immigration of Saudi Arabia
There are currently six million foreign nationals working in Saudi Arabia, and it is estimated that 15% of the country's total population are foreigners.

The unemployment rate of Saudi Arabia
Despite its economic size, Saudi Arabia also has one of the highest unemployment rates in the region. The country's unemployment rate in 2018 reached 12.9 percent.

The most profitable company in the world is in Saudi Arabia 
Saudi Aramco is the world's most profitable company with a reported profit of $ 111 billion in 2018. The state-owned Oil‎ company also had a higher net income than Apple Corps, Amazon, and Alphabet. Although Oil‎ now accounts for 90% of its economy, no Oil‎ had been discovered there until 1938.

Although Saudi Arabia is said to be rich in what it calls the world's second-largest Oil‎ reserves, no Oil‎ was discovered before 1938. It was not until 1938 that the Oil‎ exploration team of a California Oil‎ company discovered one of Saudi Arabia's Oil‎ reserves. The California Oil‎ company was in charge of managing Saudi Oil‎ production until 1980, the Saudi dynasty took over. More than 90 percent of Saudi Arabia's national wealth now comes from Oil‎ production.

Saudi Arabia's position in the list of GDP per capita in the Middle East, although Saudi Arabia ranks 18th in the world in terms of GDP, it ranks fourth in the Middle East in this regard. It houses the largest farm in the world

Al-Mara's farm in Saudi Arabia is the largest dairy farm in the world. On this farm, about 95,000 lactating cows are kept and about one billion liters of milk are produced daily.

The annual income of an American is more than twice the annual income of a Saudi
In 2017, the annual income of each American was $ 56,160. While the annual income of each Saudi was $ 20,090 in the same year, which is 9.2 times lower than the annual income rate in the United States.

One of its Oil‎ fields has enough Oil‎ that can fill 77.4 million swimming pools for the Olympics.

Enforcement of the offending cargo law in Saudi Arabia

If a consignment is found to be in violation, a security label is affixed to it. The shipping company, then warehouses of the cargo under its responsibility inform people, its owner can be present to receive it. All Saudi lines are responsible for keeping the cargo in storage. When the owner arrives, the consignment is handed over to him in the presence of the customs inspector - who is responsible for issuing the security label, or lead seal and then inspected and the process is completed. 

If the owner of the infringing consignment does not come, the consignment will be transferred to a place announced by the carrier company. Then, for inspection, it is sent to the customs in the presence of the company's representative by its owner and then exported abroad. In case of detection of prohibited substances, or with special conditions, or subject to duties, customs laws and instructions shall apply to them.

The annual income of an American is more than twice the annual income of a Saudi. In 2017, the annual income of each American was $ 56,160. While the annual income of each Saudi was $ 20,090 in the same year, which is 9.2 times lower than the annual income rate in the United States. One of its Oil‎ fields has enough Oil‎ that can fill 77.4 million swimming pools for the Olympics.

The customs inspector places the consignment (passenger) on the inspection device and if a consignment is found to be in violation, a security label is affixed to it. The shipping company then warehouses the cargo under its responsibility so that its owner can be present to receive it. All Saudi lines are responsible for keeping the cargo in storage. When the owner arrives, the consignment is handed over to him in the presence of the customs inspector - who is responsible for issuing the security label, or lead seal - and then inspected and the process is completed.

If the owner of the infringing consignment does not come, the consignment will be transferred to a place announced by the carrier company. Then, for inspection, it is sent to the customs in the presence of the company's representative by its owner and then exported abroad. In case of detection of prohibited substances, or with special conditions, or subject to duties, customs laws and instructions shall apply to them.

What are Forbidden goods in Saudi Arabia?

First: Goods whose import is prohibited:

  1. Pork (meat, fat, fluff, blood, and pig intestines, and whatever is extracted from it).
  2. Dogs, other than hunting, guard, and blind dogs, shall provide a certificate from an official in the exporting country with confirmation from the Saudi Embassy that the dog is intended for guarding, hunting, or used for the blind. In addition, it must be offered in veterinary quarantine.
  3. Frog meats.
  4. Types of drugs with their forms and names. In addition, substances such as shameh (1), soika (2), and noshogh (3) are also considered drugs.
  5. Other types of food are made from animal blood.
  6. All kinds of wine and intoxicants with all their types. And wine distillers and materials are used only in wine distillation.
  7. The Holy Quran in commercial volume.
  8. White invoices with the name of foreign companies abroad.
  9. Smoky materials with all its types.
  10. A cross or any commodity on which are pictures or motifs or watercolors or expressions which express the contents of magazines, books, and other presses and films and tapes; Which is contrary to Islamic beliefs and customs or the law of the press.
  11. Shame: Tobacco is smokeless; which is mixed with other materials such as soil, cement, salt, ash, henna, and flour. These additives change their color and shape, for example, it is said: black, red, green, yellow, and white. This substance mixes the mouth badly. In addition to jaundice and tooth decay, it also causes bad breath.
  12. Soke: It is the tobacco leaves that are ground and other substances such as sodium bicarbonate, ash, sand, cadmium, lead, arsenic, fiberglass, hydrazine, nickel, and more than thirty metals are added to it. There are different types of soybeans, such as white soybean, which is a type of flour with the addition of flour. There is also a red sock, which is a kind of candle mixed with red henna. The yellow suit is also without additives.
  13. Nashuq (errhine), or Saut, or Bernouti (as the name implies in Iraq) are the same as chopped tobacco leaves. The empty glass is imported from the outside to use it. And its purpose is to be a foreign producer.
  14. Images that are in conflict with the rules of Shari'a and are contrary to public customs. And enters the commercial volume for sale. Gambling tools, devices, and devices in all its types, old and new tires (covers).
  15. Birthday trees.
  16. Weapons and military equipment in all its types and components and reserves except for use in special government departments.
  17. Night vision cameras can be used to see in the dark as well as cameras that shoot at night and target cameras.
  18. Explosive and explosive substances and crackers and gunpowder salt in all its types and potassium chlorides except an official license.
  19. Types of fireworks.
  20. Drugs that do not have a logo or label that indicates the quality of the composition and amount of each substance based on the profession of pharmacy, and the trade of drugs and medical supplies.
  21. Documents and coupons for sacrifice, redemption, and charity.
  22. Cameras that show the body without clothes.
  23. Massage devices that are offered politely.
  24. Empty bags containing markings or descriptions of foodstuffs, or cement or markings of cement companies; Except for what domestic companies import.
  25. Transparent women's tents even if for personal use.
  26. Special shapes of knives are made for hostile purposes. For example, it has two edges or a handle.
  27. Ampule-shaped pens.
  28. Items that have the flags of foreign countries openly.
  29. Substances that excite the body's organs.
  30. Goods containing the names and photos of celebrities.
  31. Devices that broadcast wireless applications.
  32. Videotelephony devices.
  33. Bags with radios, tape recorders, or alarm devices.
  34. Greeting cards that have a small music device so that music is played when the card is moved.
  35. Car antennas are similar to security car antennas as well as cordless phones.
  36. Counterfeit money.
  37. Potassium bromate, which is used as a supplement in bread production.
  38. Devices for changing the sound.
  39. Perforated glasses with rays
  40. Cameras that show the body without clothes.
  41. Massage devices that are offered politely.
  42. Empty bags containing markings or descriptions of foodstuffs, or cement or markings of cement companies; Except for what domestic companies import.
  43. Transparent women's tents even if for personal use.
  44. Special shapes of knives are made for hostile purposes. For example, it has two edges or a handle.
  45. Ampule-shaped pens.
  46. Items that have the flags of foreign countries openly.
  47. Substances that excite the body's organs.
  48. Goods containing the names and photos of celebrities.
  49. Devices that broadcast wireless applications.
  50. Video telephony devices.
  51. Bags with radios, tape recorders, or alarm devices.
  52. Greeting cards that have a small music device so that music is played when the card is moved.
  53. Car antennas are similar to security car antennas as well as cordless phones.
  54. Counterfeit money.
  55. Potassium bromate, which is used as a supplement in bread production.
  56. Devices for changing the sound.
  57. Perforated glasses that work with laser beams.
  58. Optical shoes in which mercury is used.
  59. Hunting weapons, cold steel, and firearms (except with the consent of the relevant authorities).
  60. Metal detectors.
  61. Detection devices for counterfeit banknotes (except with the consent of the relevant authorities).
  62. Remote control aircraft.
  63. Fishing boats.
  64. Tools and equipment for making, repairing, and reproducing the key (except with the consent of the relevant authorities).

Second: Goods whose import is conditional:
The following materials are based on the decision of the Council of Ministers No. 50 dated 3/17/1410 AH. To be identified, refer to the plant and veterinary quarantines at the Ministry of Agriculture and Water:

  1. Snake-eating animals with all their types.
  2. Live, predatory and non-domestic animals.
  3. Ornamental birds with all their types.
  4. Types of poultry, rabbits, and baby snakes with all its types.
  5. Ornamental fish with all its types.
  6. Incubation eggs.
  7. Sperm.
  8. Types of veterinary fertilization.
  9. Veterinary medicines.
  10. Skin, fur, and wool that has an animal origin and no action has been done on it.

Smuggling of alcoholic beverages
Despite Saudi Arabia's legal ban on trade, and the production of alcohol, and despite tight controls at border and customs crossings, as well as the role of the Board of Enjoining the Good and Forbidding the Bad in dealing with lawbreakers, only in 2007, the number of 120,000 bottles of alcohol have been discovered in this country.

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