Saudi Arabia

Saudi Arabia’s economy is petroleum-based; roughly 75% of budget revenues and 90% of export earnings come from the oil industry. The oil industry comprises about 45% of Saudi Arabia’s gross domestic product, compared with 40% from the private sector (see below). Saudi Arabia officially has about 260 billion barrels (4.1?1010 m3) of oil reserves, comprising about 24% of the world’s proven total petroleum reserves.The government is attempting to promote growth in the private sector by privatizing industries such as power and telecom. Saudi Arabia announced plans to begin privatizing the electricity companies in 1999, which followed the ongoing privatization of the telecommunications company. Shortages of water and rapid population growth may constrain government efforts to increase self-sufficiency in agricultural products.

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 **

16

CURRENCY EXCHANGE RATE

05/14/09 $1 = 3.75 SAR

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.
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