SAUDI

ARABIA
SUBMITTED BY:

MUHAMMED RAZEEN SHA. K

PGDBM
THE B-SCHOOL INTERNATIONAL
KOTTAKKAL

DATE OF SUBMISSION: 09/12/2009

 Introduction about Saudi Arabia
The Kingdom of Saudi Arabia is located in
Southwest Asia on a wide area of the Arabian
Peninsula. Its western limit is defined by the Red Sea.
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The Kingdom of Saudi Arabia was officially

established on the corresponding to 22 September
1932 A.D. This state lasted (75) years governed
successively by nine individuals and in the fifth
day of Shawwal in the year 1319 A.H.
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His Majesty King Abed Al-Aziz. Saudi

Arabia, officially known as Kingdom of
Saudi Arabia. Riyadh is the capital and Jeddah
is the principal port of Saudi Arabia.
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The climate is usually hot and dry,

although the humidity along the coasts is
high. Saudi Arabia has at least one quarter of
the world's oil reserves, and the oil industry
dominates the economy.
 History about Saudi Arabia
Arabia has been inhabited for thousands of
years by nomadic Semitic tribes. With the birth
(AD 570) of Muhammad, in Mecca, Arabia was
briefly the centre of Islam.
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By the end of the 7th century the area of

Saudi Arabia was disunited. Modern Saudi
Arabia owes its existence to Ibn Saud, an
adherent of the Wahhabi Muslim section.
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Beginning in 1902 he conquered the Nejd, Al

Hasa, and Hejaz regions, and in 1932 he proclaimed
himself king of a united Saudi Arabia. Oil was
discovered in the year 1936 and commercial
production began in 1938.
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King Fahd was Saudi Arabia’s ruler since

1982. He died in the year 2005, August 01. He
died at the age of 84, and now KSA was
succeeded by Abdullah.
 Kingdom’s Currency:

The main currency in the Kingdom of Saudi Arabia

is the Saudi riyal that is equal to 100 halalas and is
exchangeable for other currencies. One US dollar
equals around 3.75 Saudi riyals.
 Measures and Gauges:
The Kingdom of Saudi Arabia adopts the
metric system and the kilogram in weight.
 Date:
The Kingdom of Saudi Arabia adopts the Hijra
calendar based on the Hijra of the Messenger of God
(peace be upon him) from Holy Mecca to Medina.
The number of days in the lunar Hijra year is 354
days divided into twelve lunar months.
 Kingdom’s Flag:

The flag of the Kingdom of Saudi Arabia is

rectangular; its width is equal to one third of its length
and the Shahada (There is No God but Allah,
Mohammad is the Messenger of Allah) is located in
the middle with a third line, underneath it is located an
Arab sword whose grip is directed toward the
flagpole.
 The Kingdom’s Slogan:
The slogan of the Kingdom of Saudi Arabia is
composed of two intersecting bent Arab swords
with a palm tree. The two swords symbolize
strength, force and sacrifice, whereas the palm tree
symbolizes vitality, development and welfare.
 Timing:
The timing of the Kingdom of Saudi Arabia is
3 hours ahead of Greenwich Time.
 The Kingdom’s International
Phone Code:
+ 966 then the region’s code (1) Riyadh, (2)
Jeddah, (3) Dammam/Al-Dhahran/Al-Khobar.
 Constitution
The Constitution of the Kingdom of Saudi
Arabia is the Holy Quran, the Sunnah of the Prophet
Mohammad and all of the legislative rules and
regulations inspired by these two sources.
 Governing Regime
The governing regime in the Kingdom of Saudi
Arabia is the royal regime. The Council of Ministers
and the King constitute the state’s executive and
legislative authority and the Shoura Council
expresses its opinion in the state’s general policies
referred to it by the Prime Minister.
 Culture of Saudi Arabia
The cultural setting of Saudi Arabia is Arab and
Muslim. Many proscriptions of behaviour and dress
are enforced. For example, alcohol and beverages are
prohibited, and there is no theatre or public exhibition
of films.
 Food Customs at Ceremonial
Occasions
The arrival of a guest at one's home is an
event that leads to a special meal in honour of the
visitor. Traditional etiquette required that sheep,
goat, or camel be sacrificially slaughtered, and this
is still often done.
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Male guests and older men gather around the

tray and eat first, using the right hand; they are
followed by younger men and finally boys.
Women and girls eat separately.
 Music and dance
One of Saudi Arabia's most compelling folk
rituals is the Al Ardha, the country's national dance.
This sword dance is based on ancient Bedouin
traditions: drummers beat out a rhythm and a poet
chants verses while sword-carrying men dance
shoulder to shoulder.
 Film and theatre
Public theatres and cinemas had been prohibited
for over three decades, as Wahhabi tradition deemed
those institutions to be incompatible with Islam.
However, an IMAX theatre is available, and in
private compounds such as Dhahran and Ras Tanura
public theatres can be found.
 Clothes
The clothes that are commonly in Saudi Arabia
display the rich culture of Saudi Arabia. The men in
this region wear thobe (white gown), ghutra (white
headdress), and bisht (black overcoat). Women Clothes
in Saudi Arabia are the traditional burkhas, and cover
their heads and bodies
 RELIGION
Religious Beliefs. All Saudi Arabian citizens are
Muslims. Except for a small minority of Shia, Saudi
Arabians are Sunni and mainly follow the Handbali
school of Islamic law (madhab). Half or more of the
immigrants are also Muslims. Non-Muslim faiths are
not allowed to practice in Saudi Arabia.
 Language
Arabic is the official language of Saudi Arabia. It is
the language of the Qur’an (the holy book of Islam).
Through its eloquence and the spread of Islam, Arabic
has become one of the most widely used languages of
the world.
Saudi Society & Culture
 Islam
Islam is practised by all Saudis and
governs their personal, political, economic
and legal lives. Islam was born in Saudi
Arabia and thus is visited by millions of
Muslims every year.
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The Prophet Muhammad is seen as the last of

God's prophet to bring revelation to mankind. The
Prophet Muhammad brought the last book, the
Quran. The Quran and the actions of the Prophet
(the Sunnah) are used as the basis for all guidance
in the religion. 
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During the holy month of Ramadan all Muslims

must fast from dawn to dusk and are only permitted to
work six hours per day. Fasting includes no eating,
drinking, cigarette smoking, or gum chewing.
Expatriates are not required to fast; however, they must
not eat, drink, smoke, or chew gum in public.
 Etiquette and Customs
 Men shake hands. Good friends may greet
each other with a handshake and a kiss on
each cheek.
 Women generally hug and kiss close friends.
 Men and women would not greet each other
in public or from outside the family.
 When Saudis greet each other they take their
time and converse about general things.
 Economic Factors in Saudi Arabia
Saudi Arabia is ranked 8th out of 17 countries in the
Middle East/North Africa region, and its overall score
is above the world average. Saudi Arabia scores very
well in fiscal freedom, labour freedom, and business
freedom and slightly less well in trade freedom and
government size.
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There is a special tax on hydrocarbon and oil

production. Government expenditure is just under
30 percent of GDP. The labour market is flexible.
 Government Size
Total government expenditures, including
consumption and transfer payments, are moderate.
In the most recent year, government spending
equaled 29.8 percent of GDP. State participation in
the economy remains substantial. Oil exports
generate more than 70 percent of government
revenues.
 Investment Freedom
Foreign investment is generally welcome, but
foreign investors must take local partners in certain
sectors. Minimum capital requirements have generally
been eliminated. All foreign investors must be licensed
by the General Investment Authority, and licenses for
other projects may be required.
 Labour Freedom
Saudi Arabia's relatively flexible labour regulations
enhance overall employment and productivity growth.
The non-salary cost of employing a worker is low, and
dismissing a redundant employee is not burdensome.
Regulations relating to the number of work hours are
relatively flexible.
 GDP(Gross Domestic Product)
According to official statistics, GDP grew 7.05
percent in nominal terms in 1997 to $145 billion. The non-
oil private sector grew by 4.5 percent and comprised
34percent of GDP, a sign that Saudi Government efforts to
broaden economic activity beyond oil are making
progress. 
 Inflation
Inflation in Saudi Arabia is forecast to reach a
record annual average of 6.5 per cent in 2008 because
of an expected new wave of interest rate cuts and a
surge in rents and food prices.
 Saudi Arabia is famous for
Saudi Arabia is famous as a country with:
1. Oil rich reserve:- Saudi Arabia is most famous
for being the world's largest exporter of oil, as
it holds the largest amounts of oil in the entire
world.
2.With a large area of desert.
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3. An Islamic country whose government is based

on the teaching of the Holy Quran and is headed
by a King as the custodian of the Holy Mosques
Makah and Medina and at the same time, the
Prime Minister . Presently, the king is King
Abdullah bin Abdul Aziz al - Saud.
4. A generally peaceful country.
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5. The world largest airport in its capital city of

Riyadh, the King Abdul Aziz International
Airport.
6. It has rich natural resources and unspoiled
mountains and seas (like the Red Sea).
7. Various tastes of dates.
8. Famous Muslim pilgrimage Hajj.
 CONCLUSION
In services, Saudi Arabia is offering commitments in a
large number of sectors such as telecommunication, courier,
construction, distribution, environmental, banking, insurance,
news agency, transport services and temporary movement of
professionals. Commitments have been obtained on cross border
provision and commercial establishment. These commitments by
Saudi Arabia will guarantee the European service providers
improved market access and more predictable conditions for
conducting business.
 Thank
you