PESTLE Analysis of Saudi Arabia 2016, June 2016
The Saudi Arabian economy is dominated by the industrial sector, which contributed approximately 62.8% to the total GDP in 2015. The country has gone through the global recession in 2009, but strong fundamentals have led the country to survive the crisis. Mining and quarrying mainly contributed to 26.8% of GDP in 2015. Saudi Arabia has excellent infrastructure and a positive business environment, which provide opportunities for global multinational investment in the country. Saudi Arabia’s government has diversified the economy from the oil sector to the non-oil sector. The non-oil sector, such as the retail, healthcare, education, residential housing, and banking and financial sectors, is expected to drive Saudi Arabia’s economic growth during the forecast period.
Lucintel, a leading global management consulting and market research firm, has analyzed the political, economic, social, technological, legal, and environmental factors of Saudi Arabia and has come up with a comprehensive research report, “PESTLE Analysis of Saudi Arabia 2016.” This report provides an analysis of the Saudi Arabian economy from historical, current, and future perspectives. SWOT analysis, scenario analysis, and risk analysis of Saudi Arabia is also included in the report. The report also includes forecast for Saudi Arabia’s economic growth through 2021.
The report highlights various drivers and challenges which have influence on investment decisions in the economy. Saudi Arabia is a politically stable country, which follows absolute monarchy. Saudi Arabia has the second largest oil reserves and sixth largest natural gas reserves in the world. It is the second-largest petroleum exporter in the world. Saudi Arabia has strong international assessments of the business environment. Industrial is the main sector, which is driving the economic growth of Saudi Arabia. The country, however, is facing social challenges, such as increasing crime rate, which is raising the level of corruption. Saudi Arabia is highly dependent on oil revenue, which is one of the main challenges. If oil prices go down, it directly affects the country’s GDP. Another challenge for Saudi Arabia is low R&D investment.
This unique report from Lucintel will provide you with valuable information, insights, and tools needed to identify new growth opportunities and operate your business successfully in this market. This report will save hundreds of hours of your own personal research time and will significantly benefit you in expanding your business in this market. In today’s stringent economy, you need every advantage that you can find.
Lucintel, a leading global management consulting and market research firm, has analyzed the political, economic, social, technological, legal, and environmental factors of Saudi Arabia and has come up with a comprehensive research report, “PESTLE Analysis of Saudi Arabia 2016.” This report provides an analysis of the Saudi Arabian economy from historical, current, and future perspectives. SWOT analysis, scenario analysis, and risk analysis of Saudi Arabia is also included in the report. The report also includes forecast for Saudi Arabia’s economic growth through 2021.
The report highlights various drivers and challenges which have influence on investment decisions in the economy. Saudi Arabia is a politically stable country, which follows absolute monarchy. Saudi Arabia has the second largest oil reserves and sixth largest natural gas reserves in the world. It is the second-largest petroleum exporter in the world. Saudi Arabia has strong international assessments of the business environment. Industrial is the main sector, which is driving the economic growth of Saudi Arabia. The country, however, is facing social challenges, such as increasing crime rate, which is raising the level of corruption. Saudi Arabia is highly dependent on oil revenue, which is one of the main challenges. If oil prices go down, it directly affects the country’s GDP. Another challenge for Saudi Arabia is low R&D investment.
This unique report from Lucintel will provide you with valuable information, insights, and tools needed to identify new growth opportunities and operate your business successfully in this market. This report will save hundreds of hours of your own personal research time and will significantly benefit you in expanding your business in this market. In today’s stringent economy, you need every advantage that you can find.
1. EXECUTIVE SUMMARY
2. SAUDI ARABIA’S POLITICAL ANALYSIS
2.1: Structure and Stability of Government
2.2: Government Policy Agenda
2.2.1: Policy Agenda
3. SAUDI ARABIA’S ECONOMIC ANALYSIS
3.1: Sectoral Contribution to the GDP and GDP Growth Rate
3.2: Economic Forecast and Scenario Analysis (2016-2021)
3.3: Pricing Trends: Inflation and Interest Rates
3.4: Consumption, Saving, and Investment Trends
3.5: International Trade and Its Contribution to the GDP
3.6: Foreign Direct Investment (FDI) by Industry
4. SAUDI ARABIA’S ECONOMIC AND BUSINESS RISK ANALYSIS
4.1: Risk in Current Account Balance
4.2: Risk in Balance of Payment
4.3: Risk in Fiscal Balance
4.4: Risk in Foreign Exchange Reserves and Exchange Rate
4.5: Risk in External Sector
4.5.1: External Debt and Default Risk
4.6: Credit Rating of Countries
5. SAUDI ARABIA’S SOCIAL ANALYSIS
5.1: Social and Demographic Analysis
5.2: Labor Market
5.3: Social Development Index
6. SAUDI ARABIA’S R&D AND TECHNOLOGICAL FACTORS
6.1: R&D Expenditure in the Saudi Arabia
6.2: Impact of Technology in Industry
6.3: Technology Policy
7. SAUDI ARABIA’S LEGAL ANALYSIS
7.1: Company Law
7.2: Labor Law
7.3: Tax Law
7.4: Recent Economic Policies
7.5: Doing Business in Saudi Arabia in 2016
8. SAUDI ARABIA’S ENVIRONMENTAL ANALYSIS
8.1: Government Action against Environmental Issues
8.2: Environmental Policy
9. SAUDI ARABIA’S SWOT ANALYSIS
2. SAUDI ARABIA’S POLITICAL ANALYSIS
2.1: Structure and Stability of Government
2.2: Government Policy Agenda
2.2.1: Policy Agenda
3. SAUDI ARABIA’S ECONOMIC ANALYSIS
3.1: Sectoral Contribution to the GDP and GDP Growth Rate
3.2: Economic Forecast and Scenario Analysis (2016-2021)
3.3: Pricing Trends: Inflation and Interest Rates
3.4: Consumption, Saving, and Investment Trends
3.5: International Trade and Its Contribution to the GDP
3.6: Foreign Direct Investment (FDI) by Industry
4. SAUDI ARABIA’S ECONOMIC AND BUSINESS RISK ANALYSIS
4.1: Risk in Current Account Balance
4.2: Risk in Balance of Payment
4.3: Risk in Fiscal Balance
4.4: Risk in Foreign Exchange Reserves and Exchange Rate
4.5: Risk in External Sector
4.5.1: External Debt and Default Risk
4.6: Credit Rating of Countries
5. SAUDI ARABIA’S SOCIAL ANALYSIS
5.1: Social and Demographic Analysis
5.2: Labor Market
5.3: Social Development Index
6. SAUDI ARABIA’S R&D AND TECHNOLOGICAL FACTORS
6.1: R&D Expenditure in the Saudi Arabia
6.2: Impact of Technology in Industry
6.3: Technology Policy
7. SAUDI ARABIA’S LEGAL ANALYSIS
7.1: Company Law
7.2: Labor Law
7.3: Tax Law
7.4: Recent Economic Policies
7.5: Doing Business in Saudi Arabia in 2016
8. SAUDI ARABIA’S ENVIRONMENTAL ANALYSIS
8.1: Government Action against Environmental Issues
8.2: Environmental Policy
9. SAUDI ARABIA’S SWOT ANALYSIS
LIST OF FIGURES
CHAPTER 3. SAUDI ARABIA’S ECONOMIC ANALYSIS
Figure 3.1: Global Economic Scenarios
Figure 3.2: Trends of the Real GDP Growth Rate
Figure 3.3: Forecast of the Real GDP Growth Rate
Figure 3.4: GDP Sectoral Contribution
Figure 3.5: Share of Different Sectors to the GDP
Figure 3.6: Trends of Per capita income
Figure 3.7: Trends of Per Capita Income
Figure 3.7: Annual Trends of Inflation and Interest Rate
Figure 3.8: Inflation Rate of Saudi Arabia
Figure 3.9: Interest Rate of Saudi Arabia
Figure 3.10: Trends of Savings and Investments as Percentage of the GDP
Figure 3.11: Trends of Consumption Expenditure as Percentage of the GDP
Figure 3.12: Trends of International Trade Structure
Figure 3.13: Saudi Arabia Exports by Commodity, 2015
Figure 3.14: Saudi Arabia Exports by Commodity, 2010
Figure 3.15: Saudi Arabia Imports by commodity, 2015
Figure 3.16: Saudi Arabia Imports by Commodity, 2010
Figure 3.17: Saudi Arabia Exports by country, 2015
Figure 3.18: Saudi Arabia Exports by country, 2010
Figure 3.19: Saudi Arabia Imports by country, 2015
Figure 3.20: Saudi Arabia Imports by country, 2010
Figure 3.21: Exports and Imports as Percentage of the GDP
Figure 3.22: Foreign Direct Investment Inflows by Industry
CHAPTER 4. SAUDI ARABIA ECONOMIC AND BUSINESS RISK
Figure 4.1: Trends of Current Account Balance and Percentage of the GDP
Figure 4.2: Terms of Trade of Saudi Arabia
Figure 4.3: Trends of Balance of Payment
Figure 4.4: Trends of Government Revenue and Expenditure as Percentage of the GDP
Figure 4.5: Trends of Fiscal Balance as Percentage of the GDP
Figure 4.6: Trends of Foreign Exchange Reserves and Exchange Rate
Figure 4.7: Trends of Gross Government Debt as Percentage of the GDP
CHAPTER 5. SAUDI ARABIA’S SOCIAL ANALYSIS
Figure 5.1: Political Map of Saudi Arabia
Figure 5.2: Trends of Population and Population Growth Rate in the Saudi Arabia
Figure 5.3: Population Age Structure
Figure 5.4: Trends of Unemployment Rate in Saudi Arabia
CHAPTER 6. SAUDI ARABIA’S R&D AND TECHNOLOGICAL FACTORS
Figure 6.1: Trends of R&D Expenditure in Saudi Arabia
CHAPTER 3. SAUDI ARABIA’S ECONOMIC ANALYSIS
Figure 3.1: Global Economic Scenarios
Figure 3.2: Trends of the Real GDP Growth Rate
Figure 3.3: Forecast of the Real GDP Growth Rate
Figure 3.4: GDP Sectoral Contribution
Figure 3.5: Share of Different Sectors to the GDP
Figure 3.6: Trends of Per capita income
Figure 3.7: Trends of Per Capita Income
Figure 3.7: Annual Trends of Inflation and Interest Rate
Figure 3.8: Inflation Rate of Saudi Arabia
Figure 3.9: Interest Rate of Saudi Arabia
Figure 3.10: Trends of Savings and Investments as Percentage of the GDP
Figure 3.11: Trends of Consumption Expenditure as Percentage of the GDP
Figure 3.12: Trends of International Trade Structure
Figure 3.13: Saudi Arabia Exports by Commodity, 2015
Figure 3.14: Saudi Arabia Exports by Commodity, 2010
Figure 3.15: Saudi Arabia Imports by commodity, 2015
Figure 3.16: Saudi Arabia Imports by Commodity, 2010
Figure 3.17: Saudi Arabia Exports by country, 2015
Figure 3.18: Saudi Arabia Exports by country, 2010
Figure 3.19: Saudi Arabia Imports by country, 2015
Figure 3.20: Saudi Arabia Imports by country, 2010
Figure 3.21: Exports and Imports as Percentage of the GDP
Figure 3.22: Foreign Direct Investment Inflows by Industry
CHAPTER 4. SAUDI ARABIA ECONOMIC AND BUSINESS RISK
Figure 4.1: Trends of Current Account Balance and Percentage of the GDP
Figure 4.2: Terms of Trade of Saudi Arabia
Figure 4.3: Trends of Balance of Payment
Figure 4.4: Trends of Government Revenue and Expenditure as Percentage of the GDP
Figure 4.5: Trends of Fiscal Balance as Percentage of the GDP
Figure 4.6: Trends of Foreign Exchange Reserves and Exchange Rate
Figure 4.7: Trends of Gross Government Debt as Percentage of the GDP
CHAPTER 5. SAUDI ARABIA’S SOCIAL ANALYSIS
Figure 5.1: Political Map of Saudi Arabia
Figure 5.2: Trends of Population and Population Growth Rate in the Saudi Arabia
Figure 5.3: Population Age Structure
Figure 5.4: Trends of Unemployment Rate in Saudi Arabia
CHAPTER 6. SAUDI ARABIA’S R&D AND TECHNOLOGICAL FACTORS
Figure 6.1: Trends of R&D Expenditure in Saudi Arabia
LIST OF TABLES
CHAPTER 1. EXECUTIVE SUMMARY
Table 1.1: Factor Affecting Business in the Saudi Arabia
CHAPTER 2. SAUDI ARABIA’S POLITICAL ANALYSIS
Table 2.1: Political Factors and Their Impact on Business
CHAPTER 3. SAUDI ARABIA’S ECONOMIC ANALYSIS
Table 3.1: Factors Affecting Industrial Growth
Table 3.2: FDI Limits by Industry
Table 3.3: Economic Factors and Their Impact on Business
CHAPTER 4. SAUDI ARABIA ECONOMIC AND BUSINESS RISK
Table 4.1: Credit Rating of Countries by Moody’s, Fitch, and S&P
CHAPTER 5. SAUDI ARABIA’S SOCIAL ANALYSIS
Table 5.1: Corruption, GINI, Homicide, and Human Development Index
Table 5.2: Social Factors and Their Impact on Business
CHAPTER 6. SAUDI ARABIA’S R&D AND TECHNOLOGICAL FACTORS
Table 6.1: Technological Factors and Their Impact on Business
CHAPTER 7. SAUDI ARABIA’S LEGAL ANALYSIS
Table 7.1: Indicators for Starting a Business
Table 7.2: Ranking in 2016 for Ease of Doing Business
Table 7.3: Legal Factors and Theirs Impact on Business
CHAPTER 8. SAUDI ARABIA’S ENVIRONMENTAL ANALYSIS
Table 8.1: Environmental Factors and Their Impact on Business
CHAPTER 1. EXECUTIVE SUMMARY
Table 1.1: Factor Affecting Business in the Saudi Arabia
CHAPTER 2. SAUDI ARABIA’S POLITICAL ANALYSIS
Table 2.1: Political Factors and Their Impact on Business
CHAPTER 3. SAUDI ARABIA’S ECONOMIC ANALYSIS
Table 3.1: Factors Affecting Industrial Growth
Table 3.2: FDI Limits by Industry
Table 3.3: Economic Factors and Their Impact on Business
CHAPTER 4. SAUDI ARABIA ECONOMIC AND BUSINESS RISK
Table 4.1: Credit Rating of Countries by Moody’s, Fitch, and S&P
CHAPTER 5. SAUDI ARABIA’S SOCIAL ANALYSIS
Table 5.1: Corruption, GINI, Homicide, and Human Development Index
Table 5.2: Social Factors and Their Impact on Business
CHAPTER 6. SAUDI ARABIA’S R&D AND TECHNOLOGICAL FACTORS
Table 6.1: Technological Factors and Their Impact on Business
CHAPTER 7. SAUDI ARABIA’S LEGAL ANALYSIS
Table 7.1: Indicators for Starting a Business
Table 7.2: Ranking in 2016 for Ease of Doing Business
Table 7.3: Legal Factors and Theirs Impact on Business
CHAPTER 8. SAUDI ARABIA’S ENVIRONMENTAL ANALYSIS
Table 8.1: Environmental Factors and Their Impact on Business
