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 Investors
 2007 

    Bahrain 447     Kuwait 192     Oman 9
    Qatar 24     Saudi 189     UAE 1146
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Countries:
Bahrain 753
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Saudi Arabia 317
UAE 1916

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Country Profiles

Saudi Arabia UAE Kuwait Qatar Bahrain Oman

  
Saudi Arabia

Saudi Arabia's flag
The oil discovery in 1938 was the reason behind the economic growth that transferred this piece of desert to one of the wealthiest nations on earth.

  • Full name: Kingdom of Saudi Arabia
  • Population: 25.6 million (UN, 2005)
  • Capital: Riyadh
  • Area: 2.24 million sq km (864,869 sq miles)
  • Major language: Arabic
  • Major religion: Islam
  • Life expectancy: 70 years (men), 74 years (women) (UN)
  • Monetary unit: 1 Riyal = 100 halalah
  • Main exports: Oil, gas, cereals
  • GNI per capita: U.S. $11,770 (World Bank, 2006)
  • Internet domain: .sa
  • International dialling code: +966
  • Head of state, prime minister: King Abdullah Bin-Abd-al-Aziz Al Saud

  • Location

The Kingdom of Saudi Arabia is the largest country on the Arabian Peninsula. It is bordered by Jordan on the northwest, 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, with the Persian Gulf to its northeast and the Red Sea to its west.

  • Climate

Saudi Arabia is known for its extremely hot and aridity weather as the temperature can reach above 50 degree centigrade during the summer. In the winter; however, the temperature usually ranges between 8 and 20 degree centigrade. The Kingdom is also popular for rain, which falls usually between January and May in Riyadh and between November and January in Jeddah.

  • History

Saudi Arabia was established in 1932, when the principal regions of Al-Hasa, Qatif, Nejd and Hejaz were unified by King Abdul Aziz, known as the Lion of Najd.

The oil discovery in 1938 was the reason behind the economic growth that transferred this piece of desert to one of the wealthiest nations on earth. 

Even though King Abdul Aziz adopted the isolation policy for his country, he took part in regional politics first by being the founding member of the Arab League and then by joining the United Nations.

The king’s eldest son, Saud, took the throne after Abdul Aziz’s death in 1953. However, by 1960, the Kingdom failed economically and politically with Middle East challenges, which led to a deposition of Saud for the favor of his younger brother Faisal in 1964.

The throne was then handed from one family member to another until King Abdullah in 2005.

Even though the country holds no recognized elections, 2005 witnessed the first local elections, where participation was reserved to male citizens only.

Beside these authority changes, Saudi kings managed to achieve and maintain the country’s prosperity through the years as a more developed and modernized Saudi Arabia surfaced.

  • Economy

The Kingdom holds around 25% of the world’s oil reserves; that’s probably why it accounts for around 90% of its exports.

The oil industry contributed hugely in the Kingdom’s welfare as it’s said to be capable of producing more than 10 million barrels a day, a production level expected to rise in the coming years.

The Saudi government is also planning to promote growth in the private sector by privatizing industries such as power and telecom.

As a member of OPEC, the kingdom’s oil production is based on its proven resources.

Saudi Arabia’s reserves have been flat with the exception of an increase of about 100 billion barrels between 1987 and 1988.

  • Culture

The culture of the Saudi kingdom revolves around religion as it holds two of the most revered and most visited Islamic holy places on earth, Makkah and Medina.

Therefore the kingdom follows strictly the Islamic dress code, like the Hijab, which is mandatory for women in public places there.

Pork and alcohol are totally forbidden in the country along with movies and public theatres. 

  • Leaders

King Abdullah Saud was born in Riyadh to Ibn Saud's wife, Fahda bint Asi Al Shuraim of the Abde section of the Shammar tribe as the fifth son (out of 37 sons) of King Abdulaziz bin Abdulrahman Al Saud, the founder of modern Saudi Arabia, to ascend to the throne.

He was given the position of Commander of the Saudi Arabian National Guard in August 1962, the position of Second Deputy Prime Minister in March 1975 and the position of First Deputy Prime Minister in June 1982.

Despite the fact that King Abdullah officially succeeded late King Fahd in August 2005, he has been taking a part in the Kingdom’s ruling since the 1990s when the former King was suffering from a stroke.

Known of his Arab support, he has, on many occasions, criticised the American support to Israel and the continued Israeli occupation of Palestinian territories.

  • Taxation

Although income taxes were cancelled in Saudi Arabia in 1975, all Saudi citizens and Saudi companies must pay a religious tax, zakat, of 2.5% annually on profits and on the assessable amount for individuals.

Saudi law also requires that all foreign and Saudi companies pay a tax on profits earned in the country.

Companies with joint-ventures having at least 25% Saudi ownership are exempt from income tax for a period of ten years.

Different tax rates are applied to companies working in petroleum or hydrocarbon industries.

  • Labour

The Kingdom hosts many foreign laborers, mostly from South, Southeast and East Asia, East Africa and the Middle East.

Labour law in Saudi Arabia, in effect since 1969, requires every foreign workers to be under contract with and guaranteed by a sponsor.

It is the responsibility of sponsors to secure employment visas from the Saudi government for the foreign workers they wish to hire.

After the visas are obtained, many sponsors turn to manpower recruitment agencies to identify the workers and bring them legally to the kingdom.

  • Cost of Living

The cost of living in the Kingdom varies in accordance to your standard of living as the cost of imported food is relatively high; local meat, fish and veggies are both of good quality and reasonable prices.

Residents of the kingdom also benefit from the low cost of petrol and vehicle prices.

Many expatriates can find that their cost of living is relatively lower than the residents provided their subsidized and all-inclusive housing costs and the fact that there are no cinemas, theatres, or other entertainment facilities.

However, the cost of living in Saudi Arabia increased by 2.9 percent in April 2007 compared to the same period last year, according to a report from the general statistical information department of the ministry of economy and planning

  • Visa issuance

* Tourist visa requirements:

  • A valid passport with at least 6 months validity remaining.
  • One application form fully completed and signed.
  • One passport type photograph.
  • A copy of the Green Card or a valid visa back to the U.S. if the applicant is not a U.S. citizen.
  • The sponsor in Saudi Arabia must apply for the invitation through the Ministry of Foreign Affairs. Once the request is granted, the Ministry of Foreign Affairs will send the invitation and authorization directly to the Saudi Embassy in Washington. Proof of relationship with the sponsor (a copy of the marriage certificate for a wife, a copy of the birth certificate for the child). The authorization No. and the date of issue for the invitation obtained by the Ministry of Foreign Affairs.
  • Onward/Return ticket or confirmed itinerary.

* Business visa requirements:

  • A valid passport with at least 6 months validity remaining.
  • One application form, fully completed and signed.
  • One passport type photograph.
  • A copy of the Green Card or a valid visa back to the U.S. if the applicant is not a U.S. citizen.
  • An original cover letter from a registered company or firm based in the U.S. indicating the name of the Saudi Arabian company, the nature of the applicant's visit, length of stay and financial responsibility. The letter must bear the company's stamp or seal.
  • An application from the sponsor in the Kingdom on the applicant's behalf to the Ministry of Foreign Affairs, or an original letter of invitation from the company in Saudi Arabia. This letter must be signed and sealed by the company and stamped by the Saudi Chamber of Commerce. For businesswomen, the invitation must come from the Saudi Ministry of Foreign Affairs.
  • Onward/Return ticket or confirmed itinerary.
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