Swot Analysis of Saudi Arabia Market Overview: Continuity
Swot Analysis of Saudi Arabia Market Overview: Continuity
Market overview
Strength
Saudi Arabia is the largest construction industry in the middle east and it is
expected to continue its growth in the next few years with the value of the projects
planned and under way estimated at over USD1 Trillion Covering Transport.
infrastructure, utilities, education, healthcare and many other sectors. This makes it
the perfect location for job hunting (Saudi Build, 2015)
Continuity
One of the most important aspect of your career is continuity. If you are employed, it
doesn’t mean that your job is eternal. You need to make sure that you are employed with a
successful company that is constantly opening new projects and new projects mean that
you are more likely to stay longer in your job. As shown above, Saudi Arabia constantly
growing construction market will guarantee you continuity and security for your
professional career.
Peace and Security Saudi Arabia is among the few countries that has high control
over risks and security threats. I can assure you that you will safe from the moment you
step on its land.
Happiness at work
Now more than ever, companies in Europe and America are going all out to to provide a
wonderful experience for their workers. Ensuring that they’re happy, engaged, and having
fun at work. Work-life integration is becoming common for companies of all sizes.
However, this is not yet the case in Saudi Arabia. Unfortunately, the mentality is more
headed towards increasing workloads and reducing overhead.
Therefore, if you are good at your job, you are more likely to receive tasks than
appreciation.
Weakness
Even if you have spare time after your work, be ready to limit your maximum levels of
entertainment with home cooking, restaurants and cafes because literally there is nothing
else you can do.
Opportunities
Professional network
Saudi Arabia is simply a talent magnet. In line with this multi-level growth, the government
plans to invest approximately US$ 400 billion between 2015 and 2020 under the
provisions of its tenth 5-year economic development plan. Therefore, more talented
professionals will come to the country and this means that you will more likely end up
meeting new professionals every day.
Saving Unlike United Arab Emirates and Qatar this country will give you the opportunity
to save more out of your income. You can rent an apartment, a studio, or even a villa with a
garden with reasonably cheap price comparing to other locations, due to its enormous size,
real estate is available anywhere around multiple cities. In, addition, and i am sure
everyone knows that the price of gasoline is cheaper than water.
Saving more money means multiple opportunities to invest and increase your income.
Threats
Losing interest
Constant pressure, low entertainment, physical inactivity, less time to socialize, all of the
threats might lead to spontaneous moments of depression. This might lead you to losing
interest in your job or even reducing your productivity levels.
Market Analysis
Saudi Arabia is the largest country in the Gulf region with a population of 33
million, and the largest economy in the Arab World with a GDP of $ 782 billion. It
is the only G-20-member country in the region. The Saudia Arabian Government
exercises control over main economic activities of the country’s oil-based
economy. Saudi Arabia has almost 16 percent of the world's proven petroleum
reserves, plays a principal role in OPEC, is one of the world’s largest producer and
exporter of crude oil, and is a large-scale oil refiner and producer of natural gas.
Political Conditions
The kingdom has never had a written constitution, although in 1992 the king issued
a document known as the Basic Law of Government, which provides guidelines for
how the government is to be run and sets forth the rights and responsibilities of
citizens. The king combines legislative, executive, and judicial functions. As prime
minister, he presides over the Council of Ministers. The council is responsible for
such executive and administrative matters as foreign and domestic
policy, defense, finance, health, and education, which it administers through
numerous separate agencies.
Appointment to and dismissal from the council are prerogatives of the king. The
Consultative Council has the power to draft legislation and, along with the Council
of Ministers, promote it for the king’s approval. Decisions are made through a
consensus of opinion that is sought primarily within the royal family , many of
whom hold sensitive government posts.
Currency
O Business Monitor International Ltd Page 9 Qatar contains the world's third
largest natural gas reserves base, behind Russia and Iran, and the largest non-
associated gas field in the world. The country's policy of economic diversification
has led to a surge in investment in projects for the export of LONG and
petrochemicals. An estimated total of SIS$ban has been invested in the Qatar oil
industry in the past decade. Qatar took a decision in 2005 to stall new projects
because of concern that too rapid development of LONG exports might damage the
North Field's reservoir.
Market Analysis
The Qatar cosmetic products market is projected to grow at a CAGR of 5.2%
during the forecast period. This trend caters to the ever-increasing demand for
natural or organic cosmetic products among customers. These cosmetic products
are labeled and manufactured according to the regulations specified by government
bodies to guarantee product safety. Moreover, consumer demand for enhanced
functionality and eco-friendliness in cosmetic design is resulting in exciting
innovations in the packaging and design of cosmetics products.
Currency Of Qatar
Qatari Riyal (20.14 in Indian rupees)
Symbol- QR, ق.ر
Kuwait’s small and open economy is undiversified and almost fully based on the
oil sector which is a source of financial strength but also a serve structural
weakness. Kuwait holds the sixth largest proven oil reserve in the world enough to
sustain current production of 3m bpd for 90 days Kuwait is the world’s eighth
largest oil producer.
Kuwait has estimated population of 4.225 million in the year 2016 and expected to
research 4.982 million by 2022 growing at a CAGR of 2.79 % Kuwait’s
unemployment rate was estimated to be 2.072% of total labor force which is
expected to remain same till 2022.
Kuwait’s real gross domestic product (GDP) was around KWD 41.795 billion in
2016 whereas the nominal GDP was KWD 33.342 billion. This resulted in GDP
deflator 79.776 per capita GDP was estimated at USD 26004.71 whereas
purchasing power parity (PPP) based per capita GDP was estimated to be at USD
71887.33
Product Analysis
About one-third of an estimated population of 4.5 million are Kuwaiti
nationals. The oil industry accounts for over half of GDP and 94.4% of
government revenues. In 2010, the parliament passed a five-year $104 billion
development plan that aimed to upgrade infrastructure and diversify the economy
away from oil. In 2015, the government adopted a new development plan that
focused on economic reform and the implementation of several long-stalled mega-
strategic projects that were not implemented under the preceding plan.
While government-funded major projects move slowly, some major projects have
been expedited in recent years. Kuwait imports most of its capital
equipment, processed foods, manufacturing equipment, and consumer
goods. Almost half of the country’s imports originate from China, the United
States, the UAE, Japan, and Germany, while over 50% of Kuwait’s export earnings
are attributable to South Korea, China, India, Japan, and the United States. The
United States remains a leading and strategic trade partner.
The government hopes to increase production capacity to 4 million barrels per day
by 2020. In order to reach this goal, Kuwait must continue spending heavily on
upgrading downstream facilities as well as on upstream oil development.
Political Condition
In 1999, in his celebrated study on Middle Eastern monarchies All in the
Family, political scientist Michael Herb came up with the useful term ‘dynastic
monarchy’. Instead of ruling sovereignly from within the relative isolation of the
traditional court, Gulf rulers govern as heads of extensive dynastic families which
have come to control and personalize the state. The Al Sabah of Kuwait first
pioneered this particular type of ‘dynastic’ government. When it proved effective
in administrating an autocratic, modern welfare state based on large oil
revenues, other Gulf rulers copied the main principles of the Kuwaiti blueprint.
Currency
Kuwaiti Dinar (243.64 Indian rupees)
Symbol- KD, ك.د
Notes-1/4,1/2,1,5,10,20 dinars
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Strengths
Market share
Economies of scale
High quality
Leadership & management skills financial resources
Brand reputation
Protected IP
Distribution network
Employee skills
High productivity
Flexibility of production
Weaknesses
Inefficient plant
Outdated technology
Poor quality
Lack of innovation
High costs
Undeferential product
Inadequate distribution
Quality problems
Low productivity
Skills gap
De-motivated staff
Opportunities
Technological innovation
New demand
Market growth
Trade liberalization
EU enlargement
Threats
Demographic change
New regulations
Economic downturn