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Country Fact Sheet: Saudi Arabia

The Kingdom of Saudi Arabia is located in the heart of the Middle East between the Persian Gulf and the Red Sea, bordering Iraq, Jordan, Yemen, Oman, United Arab Emirates, Qatar, and Kuwait. Saudi Arabia is about 1/5 the size of the US and covers an area of 2,149,690 sq. kilometers.  The total population is 28.68 million and is growing at a rate of 1.848% with 82% living in urban areas.  The capital of Riyadh has a population of 4.3 million with other main cities including Jeddah (3.4 mil) and Makkah (1.6 mil). The people are governed by a monarchy and are 100% Muslim. The official language is Arabic and the local currency is the Saudi Riyal which is pegged at a fixed rate of 3.75 SAR to the US dollar. Saudi Arabia is one of the world’s leading producer’s of oil and natural gas and holds more than 20% of the world’s proven reserves.

Saudi Arabia has an oil-based economy where 90% of its exports and 45% of its GDP come from the petroleum sector.  In order to ensure future economic growth and lessen the dependence on oil exports, the Saudi Arabian government is encouraging private sector growth in new industries and also has recently joined the WTO to encourage foreign investment.  Saudi Arabia’s main trade partners include the US, Japan, China, South Korea, Germany, Taiwan, Singapore, Italy, and UK. Its primary imports are machinery and equipment, chemicals, foodstuffs, motor vehicles, and textiles. Exports are dominated by petroleum and petroleum products. Saudi Arabia’s GDP (Purchasing Power Parity) is $582.8 billion and is growing at a real rate of 4.2% with an inflation rate of 10.3%. Saudi Arabia ranked 11th out of 183 countries in the World Bank Group’s Ease of Doing Business Ranking.

 

 

Demographic Data  

                    

Economic Data  

                     

Cultural & Other Data  

  

  

 

GDP (PPP, $bn) 

582.8

Capital 

Riyadh

Area (sq. km.) 

2,149,690

GDP Real 

Growth (%) 

4.2

Other Large Cities 

Jeddah, Makkah

Population (million) 

28.68

PerCap GDP ($) 

20,700

Primary Language 

Arabic

Population 

Growth % 

1.848

Central Bank 

Discount Rate (%) 

2.5

Urban 

Population % 

82

% Population 

Under 15yrs 

38

Inflation Rate% 

10.3

Urban Growth % 

2.5

Population below 

poverty line (%) 

NA

Unemployment%*** 

8.8

Literacy 

(% of population) 

78.8

Agricultural Workers 

 (% of population) 

7

Foreign Direct 

Investment($bn) 

NA

Education spending 

 as % of GDP 

6.8

Industrial Workers 

(% of population) 

21

Debt-External 

($bn) 

63.2

CPI Score 

(1-10)* 

3.5

Service Workers 

(% of population) 

72

Exports ($bn) 

311.1

Corporate Income Tax % 

20

Labor Force (mil)**** 

6.74

Imports ($bn) 

92.4

Ease of Doing 

Business Ranking ** 

13

 

 

 

CURRENCY EXCHANGE RATE                                                                              

07/14/11                                  $1 = 3.75 SAR (fixed rate)                

 

Franchising Laws Overview 

Disclosure laws:

  • None.

Relationship laws & registration laws: 

  • Franchise agreements may be subject to the Commercial Agency Regulations (the "Agency Law"), which requires registration, and regulates the parties’ relationship.

 

Click the links below for articles with more information on Franchising in Saudi Arabia

Doing Business in Saudi Arabia (2010)

US Commercial Service Market Report - Saudi Arabia (2009)

Franchising’s Appeal: Market Growth in Saudi Arabia (2008)

Franchising Industry Expected to Expand in Middle East  (2008)

Riyadh, Saudi Arabia to Host First Franchise Expo and Conference  (2008)

Franchising in the Middle East, Dubai, and Beyond (2007)

 

* CPI Score is published by Transparency International and relates to the perceptions of the degree of corruption as seen by business people and country analysts and ranges between 10 (highly clean) and 0 (highly corrupt).

**Ease of Doing Business Ranking is determined by the World Bank Group and is ranked out of a possible 181 countries.

***Unemployment is 8.8% among Saudi males only (local bank estimate; some estimates range as high as 25%)

****about 1/3 of the population in the 15-64 age group is non-national

Most recent statistics have been taken from the CIA World Factbook unless otherwise noted.

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