Essay on Growth of Saudi Arabia

Introduction

The Saudi Arabian kingdom is experiencing some changes in some of their sectors like technology, women empowerment, culture, political atmosphere and innovation. The growth of Saudi Arabia is supported by the industrial sector which happens to be the backbone of the Saudi Arabia economy. The changes in Saudi Arabia may have been caused by some environmental factors like social, political, economic, legal and technological factors. However, the changes have a positive and negative impact on the Saudi Arabian organizations (Business Wire, 2016). Saudi Arabia is ruled by a monarchy thus it is politically stable. Their government is very supportive to the organizations thus they are granted operation without interference through their business-friendly rules.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

On the economic factor, oil revenue is their main support thus in the case of oil prices fluctuations the GDP of the country goes down (Business Wire, 2016). The Saudi Arabian government permits global trade to entice foreign investment and thus different organizations can invest in various sectors. Technology is embraced in Saudi Arabia and thus making many organizations to embrace and use the technological trends that are most needed by their customers. Technology has been a key factor in the success of many economic sectors in Saudi Arabia (Al-Asaker, 2018). Although Saudi Arabia uses some commercial legal system basics, their main base for the civil legal system is the sharia laws from the Quran (Digital Journal, 2018). Employees' registration is thus easy for any organizations as employees can very well follow their employment law as per the given guidelines.

Nevertheless, due to the rise in corruption crime rates have increased thus making the issue the main social challenge the state is facing. It might be very expensive for organizations to set up businesses in areas with high crime rates since they end up incurring extra security cost (Garrison, Noreen, Brewer & McGowan, 2010). There is also need for the organizations in Saudi Arabia to research on the market for the sake of development opportunities, growth opportunities and successful operation of their businesses. Moreover, since some businesses fit in some areas than others the investors can use the information to know their strategic business areas.

References

Al-Asaker, B. (2018). Saudi Arabia is harnessing technology for the future - now is the moment to embrace change. Retrieved from https://www.telegraph.co.uk/business/2016/12/04/saudi-arabia-harnessing-technology-future-now-time-embrace/

Business Wire; Research Markets (2016). Retrieved on September 9, 2018 from https://www.businesswire.com/news/home/20160725005591/en/PESTLE-Analysis-Saudi-Arabia-2016---Research

Digital Journal (2018). Press Release. Retrieved on September 9, 2018 from http://www.digitaljournal.com/pr/3466728

Garrison, R. H., Noreen, E. W., Brewer, P. C., & McGowan, A. (2010). Managerial accounting. Issues in Accounting Education, 25(4), 792-793.