Product Type: Market Research Report
Published by: Icon Group International, Inc.
Published: October 2000
Product Code: R307-16752Description This report puts executives and strategic planners on the fast track. The first chapter describes the study's methodology. The second chapter gives an overview of how to strategically access the market, mid-term forecasts of latent demand and accessibility benchmarks. The remaining nine chapters are not industry specific, but instead discuss economic fundamentals, marketing & distribution options, export and direct investment options, and full risk assessments (political, cultural, legal, human resources). Combined, the information provided in this market study is a "one-stop" shop for the strategic planner. Ample statistical benchmarks and comparative graphs are given.
Excerpt: The primary audience for this report is managers involved with the highest levels of the strategic planning process, and consultants who help their clients with this task. The user will not only benefit from the hundreds of hours that went into the methodology and its application, but also from its alternative perspective on strategic planning in Saudi Arabia.
This report helps executives evaluate strategic investment and entry alternatives in Saudi Arabia. In order to evaluate Saudi Arabia, Icon Group International, Inc. draws on a methodology developed by Professor Philip Parker at INSEAD in Fontainebleau, France. The methodology decomposes a country's strategic potential along two key dimensions: (1) latent demand, and (2) accessibility. A country may have very high latent demand, yet have low accessibility, making it a less attractive market than many smaller potential countries having higher levels of accessibility.
This report provides a strategic profile of Saudi Arabia along these lines. Throughout the discussion, literally hundreds of statistics on Saudi Arabia are benchmarked against regional and global averages. The reader can thus quickly understand where Saudi Arabia fits into the regional and global perspective. The report first investigates the economic fundamentals affecting Saudi Arabia. These fundamentals are the source for Saudi Arabia's latent demand. Then, the subsequent chapters detail Saudi Arabia's accessibility. This evaluation covers a number of entry alternatives, including export strategies, and local direct investment strategies. If a firm decides to have a local presence in Saudi Arabia, this requires a strategic understanding of local business conditions. The conditions investigated in this report include local marketing (advertising, distribution, pricing issues) and entry strategies (opening an office, joint venturing, etc.), as well as human resources management (labor laws, costs, regulations). Because local presence can increase exposure, the report next assesses a number of factors affecting business risks in Saudi Arabia (again, benchmarked against regional and global averages). These include: political risks, legal risks, cultural/demographic risks. Risks can only be evaluated within a historical context; history, alas, often repeats itself. The final chapters summarize Saudi Arabia's economic, political and social history. In doing so, the reader has a full appreciation of history's role in shaping Saudi Arabia's current potential.
Table of Contents 1 Introduction & Methodology
1.1 What does this report cover?
1.2 Evaluating Saudi Arabia
1.3 Latent Demand and Accessibility in Saudi Arabia
2 Industrial Security
2.1 Latent Demand and Accessibility: Background
2.2 Latent Demand: Aspects of Interest
2.2.1 Market Profile
2.2.2 Statistical Data
2.2.3 Best Sales Prospects
2.3 Accessibility: The Structure of Competition
2.3.1 Local Production
2.3.2 Third-Country Imports
2.3.3 U.S. Presence
2.3.4 End-User Analysis
2.4 Accessibility: Key Factors
2.4.1 Import Climate
2.4.2 Distribution Practices
2.4.3 Financing
2.5 Key Contacts
2.5.1 Companies
2.5.2 Vendor Liaison Units at Saudi Aramco
2.5.3 Trade Promotion Opportunities
2.5.4 Publications
3 The Economics Of Latent Demand In Saudi Arabia<
3.1 Executive Summary
3.2 Economic Issues in Saudi Arabia
3.2.1 Economic Dynamics
3.2.2 Banking and Finance
3.2.3 Water Desalination
3.2.4 Insurance
3.2.5 Government Intervention Risks
3.2.6 Trade Deficit Risks
3.2.7 Inflation
3.2.8 Infrastructure Development
4 Export Accessibility In Saudi Arabia
4.1 Executive Summary
4.2 Exporting to Saudi Arabia
4.2.1 Trade Regulations and Standards
4.2.2 Trade Barriers
4.2.3 Business Visas
4.2.4 Intellectual Property Protection
4.2.5 Counterfeiting
4.2.6 Arab League Boycott
4.2.7 Protective Tariffs and Non-Tariff Trade Barriers
4.2.8 Customs Valuation
4.2.9 Import Licenses
4.2.10 Export Controls
4.2.11 Import/Export Documentation
4.2.12 Temporary Entry
4.2.13 Labeling and Marking Requirements
4.2.14 Prohibited Imports
4.2.15 Standards (Including ISO 9000 Usage)
4.2.16 Regulating Products
4.2.17 Free Trade Zones/Warehouses
4.2.18 Membership in Free Trade Arrangements
4.2.19 The Banking System
4.2.20 Exchange Control Risks
4.2.21 Availability of Local Financing
5 Direct Investment Accessibility In Saudi Arabia
5.1 Executive Summary: Infrastructure
5.2 Executive Summary: Natural Resources
5.3 Executive Summary: Industry
5.4 Direct Investment in Saudi Arabia
5.4.1 Trade Zones & Free Ports
5.4.2 Incentives and Requirements
5.4.3 Transparency of Regulatory System
5.4.4 Attitudes toward Foreign Direct Investment
5.4.5 Private Ownership Risks
5.4.6 Protecting Property
5.4.7 Patents
5.4.8 Copyrights
5.4.9 Trademarks
5.4.10 Adequacy of Laws and Regulations Governing Commercial Transactions
5.4.11 The Local Labor Market
5.4.12 Capital Market Risks
5.4.13 Currency Conversion and Transfer Risks
5.4.14 Expropriation Risks
5.4.15 Dispute Settlement and Enforcement of Foreign Arbitral Awards
5.4.16 Political Violence Risks
5.4.17 Capital Outflow Policy Guidelines
5.4.18 Large Foreign Direct Investments
6 Marketing & Distribution In Saudi Arabia
6.1 Executive Summary
6.2 Marketing and Distribution in Saudi Arabia
6.2.1 Valuations on Imports
6.2.2 Entering Temporary Imports
6.2.3 Special Import/Export Requirements and Certifications
6.2.4 Marketing Strategies
6.2.5 Three Major Marketing Regions in Saudi Arabia
6.2.6 Typical Product Pricing Structures
6.2.7 Agents/Distributors
6.2.8 Franchising Activities
6.2.9 Direct Marketing Options
6.2.10 Joint Venture and Licensing Options
6.2.11 The Process for Establishing a Joint Venture
6.2.12 Creating a Sales Office
6.2.13 Selling Strategies
6.2.14 Advertising and Trade Promotion
6.2.15 Pricing Issues
6.2.16 Supplying Customer Service
6.2.17 Public Sector Marketing
6.2.18 Intellectual Property Risks
6.2.19 Hiring Local Counsel
6.2.20 Performing Due Diligence/Checking Bona Fides
6.3 Leading Sectors
6.3.1 Telecommunications Equipment (TEL)
6.3.2 Electrical Power Systems (ELP)
6.3.3 Water Desalination Equipment (WRE)
6.3.4 Computer Software (CSF)
6.3.5 Auto Parts and Service Equipment (APS)
6.3.6 Computers and Peripherals (CPT)
6.3.7 Medical Equipment (MED)
6.3.8 Education and Training Services (EDS)
7 Human Resource Assessment In Saudi Arabia
7.1 Executive Summary
7.2 Human Resources in Saudi Arabia
7.2.1 Collective Bargaining in Saudi Arabia
7.2.2 Workweek and Minimum Wages in Saudi Arabia
7.2.3 Forced Labor in Saudi Arabia
7.2.4 Working Ages and Child Labor in Saudi Arabia
8 Political Risk Assessment In Saudi Arabia
8.1 Executive Summary: Government
8.2 Executive Summary: Military Organization
8.3 Democracy in Saudi Arabia
8.4 Political Issues in Saudi Arabia
8.4.1 Politics and the Business Environment
8.4.2 The Legal System
9 Legal Risk Assessment In Saudi Arabia
9.1 Executive Summary
9.2 Legal Issues in Saudi Arabia
9.2.1 Privacy, Search and Seizure
9.2.2 Trial Justice in Saudi Arabia
9.2.3 Excessive Punishment in Saudi Arabia
10 Cultural And Demographic Risks In Saudi Arabia
10.1 Executive Summary
10.2 Cultural Issues in Saudi Arabia
10.2.1 Racial, Ethnic and Discrimination Issues in Saudi Arabia
10.2.2 Women's Rights and Gender Issues in Saudi Arabia
10.2.3 Religion in Saudi Arabia
10.2.4 Fundamental Human Rights in Saudi Arabia
11 Historical Background
11.1 Social and Political History
11.1.1 Overview of Key Historical Events
11.1.2 Political and Governmental History
11.1.3 Economic History
11.1.4 Historical International Relations
11.2 Business Customs in Saudi Arabia
11.2.1 Climate and Clothing
11.2.2 Telecommunications
11.2.3 Transportation
11.2.4 Holidays
11.2.5 Business Infrastructure
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