International Market Development

International market development | Comprehensive analysis of Saudi Arabia's economy and market conditions

Author : Bozhou Marine

Update time : 2020-12-21 14:07:28

Picture | Pixabay

In this article, we mainly introduce the basic situation of the Saudi Arabian market. Including: geographic location, major cities, population status, ethnicity, major festivals, natural resources, major industries, GDP, foreign exchange reserves, employment status, prices, corporate income tax, personal tax rates, etc.

  Introduction

The Kingdom of Saudi Arabia (Arabic: مملكة عربية سعودية), commonly known as Saudi Arabia, referred to as Saudi Arabia. The Arabian Peninsula is located in southwestern Asia. It borders the Persian Gulf to the east and the Red Sea to the west. It borders Jordan, Iraq, Kuwait, the United Arab Emirates, Oman, Yemen, Bahrain, Qatar and other countries.

  Capital

Riyadh (foreign name رياض; Riyadh) is the capital and largest city of Saudi Arabia in West Asia. It is the capital of Riyadh province. It is located in the plain of the Hanifa Valley in the middle of the Arabian Peninsula. Riyadh means "courtyard" in Arabic and is a typical An oasis city, an international metropolis, the largest city in the Arabian Peninsula, with a population of more than 6 million.

  Main City

Riyadh

The capital of Saudi Arabia, the largest city, is the seat of Saudi political and cultural center and government agencies. Located in central Saudi Arabia, it has a population of 5.25 million (2012) and an area of 1,800 square kilometers. Summers are hot and dry, sometimes scraping dust, and winters are mild with a small amount of rainfall. "Riyadh" Awen means "a garden with lush flowers and plants". Because of the abundant groundwater, it has been green since ancient times. There are many modern highways and overpasses in the urban area. It is the main transportation and communication hub in Shah. The main industries are petrochemical, electric power, cement and leather processing. There is a railway connection with the eastern region.

Jeddah

Saudi Arabia's second largest city and financial and trade center, an important port in the Red Sea, enjoys the reputation of "Red Sea Bride". Located in the middle of the western coast of Saudi Arabia, it is under the jurisdiction of Mecca, with a population of 3.2 million (2012) and an area of 1,200 square kilometers. Because the Shah and other major members of the royal family work or take vacations in Jeddah every summer, they are known as the "summer capital". Various government ministries have branches here, and some important international conferences are often held here. There are currently 55 foreign consulates, 21 honorary consulates and permanent offices of some international organizations in Jeddah. China established its consulate general in Jeddah in April 1993. Jeddah is also an important land, sea and air transportation route for Muslims from all over the world to enter Mecca and Medina for hajj.

Dammam

Dammam is an important port in the Persian Gulf, the second largest port city in Shah, and the capital of the eastern region. It is connected to the capital Riyadh by railway. Import and export goods from eastern and central parts of Saudi Arabia are mainly transshipped here. The city has a beautiful environment, neat streets, and row upon row of modern buildings. King Fahd Park, the largest park in the sand, is located in the city, covering an area of 273,000 square meters.

Dammam Images | Pixabay

Mecca

Located in the west of Saudi Arabia, 72 kilometers away from Jeddah and about 400 kilometers away from Medina. Mecca is the birthplace of the Prophet Muhammad of Islam and the place where he founded Islam, thus becoming the first holy place of Islam, also known as the "Holy City" and "Holy Capital". Non-Muslims are not allowed to enter. For the past two decades, more than 3 million Muslim pilgrims from all over the world have poured into the city during the Hajj season each year. In addition, more than 4 million Muslims come here every year as Umrah. Due to this special background, the real estate industry in Mecca has always been very developed and commercial activities have been active. Especially during the Hajj, the city's business has entered the golden season and has become a veritable commercial city that never sleeps. The headquarters of the Islamic World League is in Mecca.

Medina City

It is the second holiest place of Islam. It is located in the western part of Saudi Arabia, surrounded by mountains and 620 meters above sea level. It is a mountainous plateau city. The city covers an area of 500,000 square kilometers and has a permanent population of about 500,000. The city of Medina is the capital of the Medina region. Mecca is more than 400 kilometers southeast of it, and Jeddah is 424 kilometers south of it. Medina was the center of political and religious activities in the early days of Islam, the prophet of Islam, Muhammad, and his burial place. There is an ancient mosque built around the cemetery of Mohammed, called the "Temple of the Prophet" (also known as the "Holy Temple"). Non-Muslims are prohibited from entering the downtown area of Medina.

  Jet Lag

Saudi Arabia time is 5 hours behind Beijing time.

  Population & Ethnicity

The population is 34.2 million, of which Saudi citizens account for about 62%.

  Language

The official language is Arabic

  Main Holiday

1. Eid al-Fitr
The time is October 1st in the Islamic calendar. Muslims fast in Ramadan (9th month). Look for the new moon on the last day of Ramadan. If you break the fast on the next day of the month, it is Eid al-Fitr. If the new moon is not seen, the fast will continue. More than 3 days.

2. Eid al Adha
Also known as the Eid al-Adha, the Eid al-Adha is an important festival in the Kingdom of Saudi Arabia. The time is: December 10th in the Iraqi calendar.

3. Festival celebration
Refers to getting up early in the morning, bathing, brushing your teeth, using beautiful incense, and dressing neatly in the early morning of the two major festivals. Especially in the early morning of the two major festivals, getting up early in the morning, bathing, brushing your teeth, using beautiful incense, and dressing neatly and neatly. Islam is in Eid al-Fitr and Eid al-Adha (i.e. Festival) one of the etiquette during the period. Also known as Mustahab for the festival.

4. Holy Scripture
Also known as the Holy Taboo Day, the birth and death of Muhammad (approximately 570-632) are on March 12th in the Islamic calendar. In order to commemorate the restoration of Islam by the Prophet Muhammad, Muslims held religious gatherings on the day of his birth and death. Gradually evolved into one of the three major Islamic religious festivals.

5. Ashura
One of the Islamic Remembrance Days. The time is on the 10th of January in the Islamic calendar. Sunni Muslims believe that this day is related to the major activities of 10 prophets such as Adan, Nuha, Ibrahim, Yunus, and Isa before the birth of Islam, and is a precious and auspicious day.

6. Supper
One year before the Islamic Era, the Islamic saint Muhammad flew to the Far Mosque of Jerusalem from the Al-Haram Mosque in Mecca on the 27th eve of the month of Raizab. The 27th night of the month was set as the memorial day of the Ascension Night, and the Ascension Festival was born from this.

7. Bailat Night
One of the Memorial Days of Silanism. The time is the night of August 15th in the Islamic calendar. According to the teaching method, this night Allah opens the door of forgiveness, sums up everyone's merits and demerits in a year, and replaces the papers that record the major events of the year, so it is also called the night of paper exchange.

8. Fatuma, also known as Fatima's death day. The time is September 14th in the Islamic calendar. Because she has been well-instructed by her parents since she was a child, she is intelligent and virtuous, and she excels in character and learning. She dedicated all her knowledge to the cause of holy religion and tried her best to promote and promote the development of Islam.

9. Gaidel
Islamic holiday. Gaidel’s night is the night of pre-decision and nobleness. In the Islamic calendar Ramadan (September). According to Islam, Allah begins to drop Quranic verses on this night. Muhammad once said to his disciples: You must estimate the Gadr’s Night in the odd days at the end of Ramadan. According to the opinions of most scholars, it should be on the 27th night of Ramadan.

Picture | Pixabay

  Natural Resources

The proven reserves of crude oil are 36.35 billion tons, accounting for 16% of the world's reserves, ranking second in the world. The natural gas reserves are 8.2 trillion cubic meters, ranking sixth in the world. In addition, there are also mineral deposits of gold, copper, iron, tin, aluminum, zinc, and phosphate. Saudi Arabia is the world's largest producer of desalinated seawater, and its desalination accounts for about 20% of the world's total.

  Main Industry

Industry

Petroleum and petrochemical industries are the lifeblood of Saudi Arabia's economy. Oil revenues account for 87% of the country’s fiscal revenue and 42% of GDP. In recent years, the Saudi government has made full use of the country’s rich oil and natural gas resources, actively introduced foreign advanced technology and equipment, and vigorously developed non-oil industries such as steel, aluminum smelting, cement, seawater desalination, power industry, agriculture, and service industries. The single economic structure has changed.

Agriculture

70% of Saudi Arabia's area is semi-arid wasteland or low-grade grassland, and arable land only accounts for 1.6% of the land area, about 3.5 million hectares (2015). The permanent grassland is about 3.785 million hectares, accounting for 1.9% of the land area. The forest coverage rate is very low, and the forest area only accounts for 0.45% of the total land (2015). Cultivated land is concentrated in the southwestern region where rainfall is abundant. Due to scarce precipitation in most areas, the development of Saudi agriculture is greatly restricted. Although Saudi Arabia does not have an advantage in agricultural production, it has achieved gratifying results. At present, the main agricultural products of Saudi Arabia are: wheat, rice, corn, dates, citrus, grapes, pomegranate, etc. Saudi Arabia's grain self-sufficiency rate is relatively low, only over 20%, and relying on large amounts of imports to meet domestic demand. Saudi Arabia is the world's largest importer of barley, with an average annual import of about 8.5 million tons (2017). The fruit self-sufficiency rate reaches 60%. The livestock industry mainly includes sheep, goats, and camels.

  Economic Slowdown

The total real GDP of Saudi Arabia in 2019 was 2.639 trillion riyals (approximately US$703.8 billion), an increase of 0.33%. Among them, the oil economy is 1.096 trillion rials (approximately US$292.3 billion), a decrease of 6.04%

Saudi Arabia's GDP growth rate trend chart over the years | TRADING ECONOMICS

Saudi Minister of Finance Mohammed Jadan predicted that Saudi Arabia's GDP growth rate in 2020 will be about -3.2%.

Foreign exchange reserves have fallen too fast

Saudi Arabia's foreign exchange reserves trend chart over the years | TRADING ECONOMICS

The foreign exchange reserves of the Saudi Central Bank fell by nearly 27 billion U.S. dollars to approximately 464.5 billion U.S. dollars in March this year, the fastest rate of decline in the past 20 years.

The unemployment rate skyrocketed

Saudi Arabia's employment population trends over the years | TRADING ECONOMICS

Saudi Arabia's unemployment rate trend chart over the years | TRADING ECONOMICS

Impacted by the 2020 epidemic, the unemployment rate in Saudi Arabia has skyrocketed, with the unemployment rate reaching 11.8% in the first quarter.

Prices have risen linearly and inflation has risen

Saudi Arabia's consumer price index CPI trend chart over the years | TRADING ECONOMICS

From 2018 to 2019, the CPI of Saudi Arabia's consumer price index showed a clear downward trend, but in 2020, prices rose sharply.

Saudi Arabia's inflation rate trend chart over the years | TRADING ECONOMICS

From 2011 to 2020, Saudi Arabia's inflation rate fluctuated significantly. In 2018 and 2019, it once fell to a negative number, and the economic growth rate dropped significantly.

Corporate income tax 20%

Saudi Arabia's corporate income tax trends over the years | TRADING ECONOMICS

In 2020, the Saudi corporate income tax rate is 20%.

No personal income tax

Saudi Arabia does not levy personal income tax.

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