A Subsidiary of an MNC in Saudi Arabia

A Subsidiary of an MNC in Saudi Arabia Research Paper example
College
Research Paper
Finance & Accounting
Pages 4 (1004 words)
Download 0
A subsidiary of an MNC in Saudi Arabia Introduction Regional outlook of nations surrounding Saudi Arabia (that is, North Africa and Middle East) indicates that the region has a number of wealthy oil generating countries. The region is characterized instances of regional violence and regional instability…

Introduction

Best Company, Inc, 2011). All these factors are set to affect political and financial stability of Saudi Arabia. The paper will look into the political and financial risks that will affect a subsidiary of an MNC coming to do business in Saudi Arabia for the first time. Political Risk The political risk in Saudi Arabia is moderate. Saudi Arabia is among the six countries that frame the Gulf Cooperation Council (GCC). The objectives of GCC are formulation of consistent regulatory environment, cooperation of the private sector, and the establishment of a common currency. The regional political unrest, mainly in Bahrain, is a major concern for Saudi Arabia. There are expectations that King Abdullah will go on with his reform agendas in the next few years (A.M. Best Company, Inc, 2011). There are pressures mounting on the ruling House of Saud and several factors are set to compromise the political stability of the Kingdom. The first factor is the long-term implications of the population explosion in the Kingdom in the past 25 years. Population explosion linked with rapid urbanization, insufficient education system, persistent and increase in the numbers, and the lack of employment opportunities is straining the Saudi Arabia social fabric. ...
Download paper
Not exactly what you need?

Related papers

Influence of Oil Price on Non-Oil Sector Stocks in Saudi Arabia
Appendix: Tadawul stocks and sectors distribution 25 XII. Appendix: Stocks to be used for Analysis 26 I. Introduction Oil is one of the most important economic resources in world’s economy today. Fluctuations and shocks in oil prices have been studied intensively by many leading economists and several theories in economics point to the impact of oil price changes in world economies. The context…
Do Oil Prices influence Non-Oil Sector Stocks in Saudi Arabia?
Saudi Arabia has proven oil reserves of 264.52 billion barrels of oil (OPEC, 2011) and recently surpassed by Venezuela who claimed their oil reserves had risen to 269.5 billion barrels of oil. In terms of oil production, Saudi Arabia has a quota allocation of just over 30% of production among Organisation of the Petroleum Exporting Countries (OPEC) countries. The Saudi Arabian oil production in…
Do Oil Prices influence Non-Oil Sector Stocks in Saudi Arabia?
Appendix: Tadawul stocks and sectors distribution.30 Abstract This paper aims to study the relationship between oil companies’ stocks with non-oil sector of Tadawul All Share Index which is the major index of Saudi Arabia. The purpose of this paper is to contribute literature review by studying the relationship between different oil sector companies with the non oil sector companies. Saudi…
The Impact of Corporate Governance Disclosure on the Financial Reporting Practices in a Developing Country: Saudi Arabia.
Nevertheless, lately the definition of corporate governance has gained a broader connotation and is denoted as the legal as well as corporate set of regulations and measures that symbolize the principles and procedures which are exercised to govern the corporate organizations. The standards of corporate governance by and large assist in making sure that the aspects of the allocation of power in an…
Summary of findings Saudi Arabia
In the study, findings reveal that the users of IFR in Saudi Arabia belong to the investors, businessmen and the professional class, who comprise the opinion leaders of the Saudi Arabian society. Reliance upon IFR and regular patronage of financial reports in company websites by this class of society constitutes the penultimate stage when the public would generally come to rely on IFR. It is even…
Do Oil Prices Influence Non-Oil Sector Stocks in Saudi Arabia?
The research will also investigate the role of the country’s oil dependence on the stock market in Saudi Arabia too as it has been previously confirmed by research. Besides, the research is also going to confirm whether the dependence of the Saudi Arabian economy on oil is much higher than in the US, as it has been established before that contrary to the finding of this report for US, a higher…
Role of Banks in Real Estate Financing in Saudi Arabia
The real estate boom in the Kingdom of Saudi Arabia has attracted banks to fund the projects in this sector. Banks financing real estate create a win-win scenario for the owners as well as the banks. There are other financiers in real estate including the Saudi Arabia Government. The terms and conditions for the banks and other real estate financiers vary depending on the project and location.…