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Pest Analysis Saudi Arabia

2545 words - 11 pages

Saudi Arabia
PEST analysis Policital factors Saudi Arabia is politically a very stable country in the Middle East since it is ruled by the Al Saud dynasty's which main goal is to concentrate on modernization and on developing the country's role as a regional power. It is general known that Saudi Arabia is the biggest petroleum exporter in the world which was discovered on March 3rd 1938. Before that the country was only a trade-based economy. The Kingdom is besides a member of the OPEC, the Organization of Petroleum Exporting Countries. It is of importance to mention that Saudi joined the WTO – the World Trade Organization - on 11th December 2005. This well-known organization reviewed the ...view middle of the document...

The intellectual property law contains three basic articles, the protection of trademarks, copyright and patents. “Saudi Arabia is a member of the Paris Convention for the Protection of Industrial Property and follows the International Classification of Goods and Services for the Purposes of the Registration of Marks under the Nice Agreement, with revisions and additions adopted as of January 1, 2002.”3 Trademarks are protected and registered by the Trademark Act. A registration is valid for 10 years from the registration date and can be extended for another 10 years on and on. The procedure can take up to 12-14 month from the hand over until it is registered. There are no trademark cover on alcohol products, pork meat and Christmas articles.4 Since September 19th, 2003 the copyright law takes effect and covers original work, especially from authors and intellectual works, for a limit of time by giving them selected rights. Any violation will be strictly followed and punished. The last point to mention is the declaration of a patent applying since September 6, 2004. The Directorate of Patents at King Abdul Aziz City of Science and Technology (KACST) is taking care of the requests and if granted the patent will be covered for 20 years.


Economic factors Overview of the economic Important are the market value of all finished goods and services produced in the Kingdom in the last years, called the Gross Domestic Product (GDP) in US $ Dollar currency. In this case graph 1 shows: Saudi Arabia’s GDP is still moderate increasing from 315.580 million US Dollar in 2005 until 576.824 million US Dollar in 2011, which can be seen on the black trend line above. But in 2009 the global financial crisis arrived Saudi Arabia. All sectors remained moderatly the same. Only the bank sectors were attacked lightly by the financial crisis. After the financial crisis the GDP growth rate grew up from 0 % to 5 % from 2009 to 2010. In the year 2011 the real GDP growth rate was 7 %, which shows that the economy health of the kingdom is really robust and grows enormously every year. Another aspect that should be concerned is the GDP per capita on Power Purchasing Product in current US $. Again you can see on the trend line that the GDP per capita PPP is growing moderate slow and stays solid. In 2005 the inflation rate of the Kingdom was really low. The Prices started to rise reaching a peak in 2008 with his highest inflation rate. After that prices fall again from 2009 till 2011 the inflation rate remains mostly stable. Social factors To give you a short overview, Saudi Arabia has approximately 26,534,504 inhabitants estimated in 2012 and was last announced with 12.77 people per square kilometer in 2010. The estimated population growth rate in 2012 is about 1,523%. If you consider all inhabitants in the Kingdom, there is a labor force of 7,63 Million and from this number 80% are non – national workers, which is very high comparing to other countries. The reason for...

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