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. The extensive unemployment among the young males is because of the education system that has failed to equip them with the necessary skills required to match the “Saudi Arabia’s requirements for a modern economic, commercial and industrial workplace” (Corbett, 2006). The labor market of Saudi Arabia is unable to sustain the huge number of new entrants together with the increasing number of educated women looking for employment. The state education system has failed to generate productive members in the society and thus, it has underpinned the employment problem. Primary and secondary education is based on the religious curriculum and this education material has been under criticism because it has encouraged students to be prejudiced towards the other religions apart from Islam. The resultant effect has been that some Saudi Arabians have become vulnerable to radicalization and terrorist recruitment. Political instability fears are due to the succession issues and, perhaps, they may be a western obsession that is frequently accompanied by the failure to acknowledge how senior princes of the Kingdom have achieved collaboration in the past years. The succession debate has put a lot of pressure on the political stability of the nation. The debate is focusing on the time the leadership will go to the next generation. Despite the present pressures, Saudi Arabia is proving its resilience and it has started adapting to the challenges. As the reforms gather speed, the projections for long-term stability are improving. Short-term measures include effective measures to contain terrorism threat. In the meantime, the royal family “will continue to work towards addressing the underlying causes of instability, attempting to reinvigorate confidence in its leadership among the Saudi Arabian public” (Corbett, 2006). Financial Risk The financial system risk in Saudi Arabia is low. Saudi Arabia business environment is average and the reliability and availability of corporate financial data or information varies widely. The collection of debt sometimes proves to be difficult because of the poor administration framework. The
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…
The veil occurs in different forms such as the Hijab that occurs in the form of a head scarf and covers the hair for both men and women; Niqab that covers all the body parts except the eyes; and Burqa that covers the whole face with the exception of see-through opening that exposes the eyes.
The social and cultural bondage was virtually absent, among such tribes, during those days. This can be judged from the reading about pre-Islamic history of Saudi Arabia, as given below. The magnetic attraction of Prophet towards people of different backgrounds helped the unification of all Arabian communities, which resulted in the creation of Saudi Arabia, as a political entity, in 1932.
Introduction From the ancient days, the Kingdom of Saudi Arabia has developed from a land full of nomads to a modern nation. Led by a man whom Janin and Besheer (5) say not to have any formal education since its true birth in 1932, the country has experienced tremendous achievements.
There was a big need to bring in millions of foreign workers to work in various economic sectors. Saudi culture and society has always been very open and welcoming of foreign workers from all parts of the world. Currently, there are more than six million foreign workers in the country and this represents 50% of the total workforce.
Although this country is often perceived to be a totalitarian state by many people in America, its political system has worked for the last century and not only has it done this, but it has also led to a great deal of development for its people. The Saudi
Evaluation of these six aspects of Saudi Arabia can assist policymakers to design an effective communication campaign and understand how one communicates with the public. This paper follows the framework described in the ‘In-awareness approach
Though the population of the country grows at a fast pace, its GDP growth in 2007 was about 4.7 percent, and its GDP per capita was 9,227.81 USD in the same year. The Saudi economy is heavily reliant on the production of oil and
5 pages (1250 words)Research Paper
Hire a pro to write a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you an essay for FREE
Contact us via Live Chat, call us at +16312120006or send an email to email@example.com