Saudi Arabia

Overview

U.S. exports to Saudi Arabia were up 25% in 1998,totaling over $10.5 billion.
Saudi Arabia depends on the export of its oil and petrochemicals. 25% of the world's proven oil resources are within its borders.
The Asian crisis has resulted in a sharp drop in petroleum prices, which has hurt the Saudi Arabian economy in recent years.
Although the corporate tax rates have been as high as 45% in years past, recent deregulation and privatization have made Saudi Arabia a much more attractive destination for foreign direct investment.
The political relationship between Saudi Arabia and the United States has been very strong in the recent past, and should remain so in the foreseeable future.

Opportunities

Telecommunications equipment
Electrical power systems
Water desalination equipment
Computer software
Auto parts and services equipment
Computers and peripherals
Medical equipment
Education and training services
Oil and gas equipment and services
Pollution control equipment
Security and safety equipment
Mining equipment
Apparel
Agricultural goods (including corn, soybean products, rice, processed fruits and vegetables)

Marketing Tips

Advertisements are increasingly popular. Ads should be brightly colored and avoid the use of female models, particularly in suggestive poses.
Advertising and marketing literature should be in English and Arabic whenever possible.
Stable pricing is important to Saudi buyers because of the level of U.S. market penetration.
Above average customer support and services is expected, due to the openness of the Saudi market. A physical presence in Saudi Arabia is perceived as a sign of long term commitment and greatly appreciated by Saudi buyers.

Business Culture

Corruption is fairly common. Many Americans firms have identified corruption as an obstacle to doing business in Saudi Arabia.
Business will only be conducted after a degree of trust and familiarity has been established. Schedule itineraries to allow for long meetings and social functions.
Religion is very important to most Saudis. Most businesses will close for thirty minutes each day to observe the Muslim custom of prayer. Prayer times are published in the local newspaper.
Gender separation is prevalent in Saudi culture. Women should dress very conservatively and will often not be invited to social functions.
Although Saudi customs are quite different from Western customs, many business people have traveled to America and are aware of the differences.

Dos	Don'ts
Be respectful of your host. A good relationship will go far in business dealings. Accept drinks or other offerings upon meeting a client. It is customary to drink three to four cups of traditional Saudi coffee before business dealings.	Wear provocative clothing, especially if you are female. Ask about someone's wife or daughters. This can be misinterpreted.

Legal Environment

Saudi Arabia's legal system is based on Shari'a law, which is derived from the Qur'an and the traditional sayings (Hadith) of the Prophet Muhammad, and interpreted by the ulama, a body of religious experts. Penalties for drug offenses can be very harsh, including death. Customs inspections are very thorough, and violations of customs laws can lead to severe penalties.