Essay On Saudi Arabia

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When determining whether a country could be a suitable partner to establish business relations with, many factors must be taken into consideration before making a decision. Some of these factors include the characteristics of the country, the demographics of the market place and supply base, and the country’s infrastructure. These traits directly affect how a company will adapt to a local environment and how a supply chain manager will make their decision on whether to establish relations with the country. The country that will be analyzed in this paper with all these characteristics taken into consideration will be Saudi Arabia. Through the information provided, we will determine whether Saudi Arabia can fit into the future global supply chain and if there are any particular commodities that can be sourced from the country.

Country and Regional Characteristics
“Saudi Arabia was established in 1932 by King Abd-al-Aziz - known as the Lion of Najd - who took over Hijaz from the Hashemite family and united the country under his family's rule” (Saudi Arabia Profile, 2013). The country is located in the Middle East and borders the Red Sea and the Persian Gulf. Ironically, it is the largest country (in geographic size) without a river. Saudi Arabia is the largest country within the Arabian Peninsula and neighbors Yemen, Iraq, Jordan, Oman, the United Arab Emirates, Kuwait, and Qatar. The capital of Saudi Arabia is Riyadh and is split into 13 different provinces.
The country is believed to be the birthplace of the Islamic religion, holding two important shrines within the country known as the Makkah and Ka’abah. The climate varies by region and season, such that “temperatures can reach over 110 degrees Fahrenheit in the desert in the s...

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... that Saudi Arabia exports to these countries are petroleum and petroleum products, making 90% of their exports. Other exports include copper, aluminum, and jewelry, but these products account for a fraction of a percentage. Japan, China, and the United States are Saudi Arabia’s main exporting partners, as they each account for 15% of the country’s exports. Regarding the countries imports, due to Saudi Arabia’s commitment to oil and gas, the country must purchase certain commodities from other countries that can produce this equipment more frequently and cheaper than Saudi Arabia. Imports include machines and equipment, chemicals, automobiles, clothing, and food. Their primary importer is China, accounting for nearly 20% of their imports. According to the CIA, Saudi Arabia collected $376.3 billion in export revenue and spent $147 billion on imports in the year 2013.

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