Doing business in Saudi Arabia

The Kingdom of Saudi Arabia is the largest market in the Arabian Gulf region and, despite current political and economic uncertainties, offers investors and exporters many opportunities in a wide variety of business sectors. Key factors driving economic policy include the desire to reduce the dependence on oil, and the need to provide jobs, housing, and services to citizens in a time of rapid population growth. The foreign investment law of 2000 significantly changed the rules for foreign investors, permitting 100% ownership of projects. There is a streamlined foreign investment application process with various investment incentives. Important policies are privatization, economic diversification (such as the development of a tourism sector), and the education and training of Saudi workers. Although lifestyle in the kingdom is ultramodern and high‐tech, Saudi Arabia is an extremely conservative country and many of its citizens desire to preserve their religious values and ancient traditions. The Saudi culture is influenced by two dimensions: Islam and the Bedouin tradition. Foreign executives doing business in Saudi Arabia must be prepared to conduct thorough preliminary research, visit the kingdom regularly, show genuine concern for Saudi development goals and culture, be patient in business negotiations, and adapt carefully to the Saudi environment. © 2004 Wiley Periodicals, Inc.     

Foreign direct investment: A strategic move toward sustainable free enterprise and economic development in Saudi Arabia

Foreign direct investment (FDI) has been viewed in many circles as one of the key drivers for economic development. Irrespective of their ideological differences, most countries around the world have been competing to attract FDI. China, for example, is a country formally characterized by communist ideology. It has been highly proactive in formulating policies amenable to FDI so much so that in 2003, China overtook the United States as the biggest recipient of FDI, having attracted U.S. $53 billion from Organisation for Economic Co‐operation and Development (OECD) countries and elsewhere. In this article, an attempt is made to critically examine aspects of FDI, especially with reference to economic development in Saudi Arabia. The research study in this article reports new research findings based on a survey of Saudi managers/enterprises that highlight the current status of FDI in the Kingdom of Saudi Arabia. In particular, the study finds that while Saudi managers generally welcome FDI into the country, at the same time, they do retain ambivalent attitudes toward its perceived benefits.     

International briefing 11: Training and development in Saudi Arabia

The people of the Kingdom of Saudi Arabia are, just like the citizens of any other country, the most valuable resource potential it possesses (Al‐Dogether, 1993). Thus, in its development plans the Kingdom makes all possible efforts to spend its wealth on preparing the citizen for his expected role in modern development (GOTEVOT, 1996). The current government policy thrust is to expand technical education and industrial training to meet the labour market requirements. This article explores the training and development strategies and practices in Saudi Arabia.     

Japanese Women in Management: Getting Closer to ‘Realities’ in Japan

Women managers are seldom seen in Japan. Female legislators, senior officials and managers are only 9 per cent of the total. It is also one of the main factors that have created the significant gender wage gap; female workers earned just 66.5 per cent of male worker earnings in 2002. This contribution explores reasons for the persistent phenomenon of very few female managers in the Japanese workplace despite economic and political factors favourable for ‘empowering’ women. To what extent is this situation explained by the cliché that women lack the ‘will’ to be promoted? The common explanation is that women ‘choose’ not to be promoted or leave their jobs because of their ‘attitude’ to marriage, birth and family responsibilities. Is that all? A recent study on work organization revealed the mechanism of constructing female private ‘attitudes’ and ‘choice’ within the organization. Although this new approach seems promising, this contribution argues that its local-oriented approach should be combined with macro analysis, especially focusing on the institutionalized practices beyond each workplace.     

Barriers to Franchising in Saudi Arabia

Franchising has rapidly grown in Saudi Arabia since 2005, yet a small number of the large companies dominate the market with mostly foreign brands. Therefore, the aim of this study is to investigate the barriers that Saudi small and medium enterprises and startups face when striving to become franchisors or franchisees. These barriers are investigated through the use of semi-structured interviews with people who belong to the franchise community either as administrators, franchise committee members, franchise developers, franchisees–franchisors, or prospective franchisees and franchisors. The results of this study show that there are several barriers standing against using franchising as a mode of expansion and investment by small and medium enterprises and startups, such as lack of legal, financial, institutional, marketing, development, and educational services support, and other key factors related to international franchisors' preferences and domestic franchising.     

Developing human resources for the technical workforce: a comparative study of Korea and Thailand

Asian countries face significant and growing shortages of technically skilled workers. Vocational‐technical systems are key components of national human resource development. Using labor market data from Thailand and Korea, this paper analyzes the economic payoff for individual investment in vocational‐technical education, and subsequent employment in a related occupation. The results are mixed, showing that relatively few men or women end up working in areas that they are trained for, but that for men in Korea and women in Thailand, employment in a related field pays off in terms of higher monthly earnings. As governments move toward workforce policy created in conjunction with firms and education, the results of this study reinforce the need for national development plans that address the relatively weak relationship between initial training and employment in Asian countries.     

Us consumer product marketing in Saudi Arabia: Comparative perceptions

The period between 1970 and 1990 has seen a steady decline of the market share of US products in Saudi Arabia. This article deals with the differing perceptions of US exporters and Saudi importers regarding factors that might have contributed to this decline. These factors include the marketing environment, the product, the price, the distribution, US business practices, advertising, trade policies and the market situation in Saudi Arabia, and the role played by the US government. An analysis of these factors has led to a series of recommendations to respective governments and businesses.     

Saudi women entrepreneurs: A growing economic segment

The purpose of this study is to explore the sources of knowledge and support for Saudi Arabian women entrepreneurs when starting or operating a new venture. The study examines factors relevant to knowledge base, family support, and external support from outside sources that may influence venture creation. The findings reveal that women are the principal in the majority (55%) of women-owned businesses. A total of 70% of the women own more than 51% of the business and 42% started the business by themselves. Saudi Arabian businesswomen are highly educated, receive strong support from family and friends, and rate themselves as excellent in people skills and innovation. Further research should focus on qualities that contribute to successful women-owned firms in Saudi Arabia. The current study contributes to the literature by focusing on Saudi women entrepreneurs. The understanding of entrepreneurship around the world grows through these findings from a Saudi Arabian context. The results show that Chang, Memili, Chrisman, Kellermanns, and Chua's (2009) model of venture creation is applicable to the broader entrepreneurial and family business population. A discussion of the implications relevant to the business environment, challenges, and opportunities in Saudi Arabian women's entrepreneurship brings this paper to a close.     

The development of consumer protection in Saudi Arabia

The development of consumer protection in Saudi Arabia is of interest for a number of reasons. First, Saudi Arabia presents a unique combination of size, stage of development of the economy and wealth, coupled with strictness of Islamic observance. Second, consumer protection in the Saudi context has received very little attention from researchers. Despite the richness of Islamic teachings on the conduct of business and trade, very little has been written on consumer protection in Islamic societies other than discussions of financial markets and consumer credit and monopoly. This article briefly explores the background to the emergence of consumer protection in Saudi Arabia. Consumer credit and financial markets are excluded from the discussion. Islamic (Shari’ah) law is analysed as a basis for the regulation of consumer affairs; this system of law is then compared in its major outcomes for consumers with legal systems in advanced Western economies. The development of secular commercial law during recent times in Saudi Arabia is also considered as a parallel development to those in Shari’ah. Both strands of development are then set in the context of Saudi Arabia's 5‐year development plans and the changing position of consumer policy issues is tracked through successive plans. The institutional location of consumer policy within the Saudi government system is discussed before finally considering the changing nature of the Saudi consumer and the possible future for consumer protection in the country.     

新时期农民工在就业中的教育问题分析

随着城市化进程的加快,我国农民工群体日益扩大,逐渐成为城市中一个特殊而重要的群体,农民工在流动就业过程中产生的大量需求,催生了一个巨大的就业服务市场,同时也给过去主要面向城市劳动者的就业服务和职业培训工作带来了挑战.正是在这样的背景下,以农民工对象的就业服务和职业培训应运而生.从技术培训的实效性、就业导向的前瞻性和职业精神的思想性等方面分析研究现实情况的各种问题,并提出调整改进措施.为解决好农民工的培训问题提供参考.     

Source Country Characteristics and the Inflow of Foreign Direct Investment into Saudi Arabia

The paper examines the impact of source country characteristics on the inflow of FDI into Saudi Arabia using a gravity‐type model including economic, distance and socio‐political variables. A unique database listing all new investments involving foreign ownership is used to construct a panel of 33 countries in the period 1980–2005. To account for many country–year observations with zero FDI, the negative binomial regression, the Tobit regression and the Heckman selection procedure are used. The conclusions drawn from the analysis employing panel‐based techniques differ from the results obtained from pooled regression models. Also, the determinants of FDI differ depending on whether foreign investment is measured in terms of investment expenditure or the number of individual foreign projects. The Heckman selection results reveal that there are a large number of factors affecting the decision to invest in Saudi Arabia, compared with relatively few determinants of the actual size of investment. Traditional size and distance characteristics hold to a great extent but the relationship between FDI and bilateral trade is unclear and there is some evidence that the countries that export to Saudi Arabia do not invest there. In terms of scope for possible spillovers, there is mixed evidence on whether the investment comes from more technologically advanced economies but volume‐wise important investments originate from countries characterised by high income per capita.     

沙特阿拉伯纺织品服装合格评定技术指标比对研究

本文梳理沙特阿拉伯《纺织产品技术法规》关键技术指标,分通用要求、标签要求和安全项目要求与我国强制性标准进行对比,针对超过我国的要求进行重点风险提示,为企业组织生产和出口贸易提供指引。     

The Women in Management Research Program at the national centre for management research and development

NCMRD initiated the Women in Management Research Program in January 1988. One of the objectives of the program is to help managers and policy makers deal with issues arising from women's increased participation in managerial and professional jobs backing research to help arrive at solutions to the problems being encountered both by institutions and by women themselves. Significant research funds have been raised from the private sector and ten projects have been funded to date. This article describes the early development of the Program and its research mandate.Ronald J. Burke is the Imperial Life Professor in Organizational Behavior and Senior Fellow at the National Centre for Research and Development, School of Business Administration, The University of Western Ontario. He conducts research in the areas of organizational behavior and human resources management.Dorothy Mikalachki is a researcher and case-writer working at the School of Business Administration. She served for three years on the Board of Directors of an employment counselling agency for women. She is the author and co-author of a number of business articles, the most recent ones being concerned with women's issues. She has just completed a series of eight cases on Significant Women's Issues in Business.     

Explaining differing perceptions of employees’ skill needs: the case of garment workers in Ethiopia

The Ethiopian economy has grown significantly and the government has prioritized industrial skills development and expanded technical and vocational education and training (TVET). However, mismatches between the skills available and the skills required are widespread and the unemployment rate for TVET graduates is high. Little scholarly effort has been made to empirically identify the exact types and domains of skills in which these supply–demand mismatches happen. The present study relies on interviews with 30 vocational trainers, 19 employees, 13 factory managers and 3 garment industry experts. To measure the perception gaps between the supply and demand sides of worker skills and explain why mismatches occur, we conducted an assessment in which assessors from among the factory managers and vocational trainers along with the three industry experts concurrently graded the garment‐manufacturing vocational skills of the same workers. For this purpose, we developed a unique instrument that captures the knowledge and skills of workers in real work environments. The analysis reveals that TVET trainers expect students to have comprehensive skills and grade the skills of workers more generously, whereas factory managers expect not variety but quality, and score workers’ performance more critically. Differences in the educational backgrounds and practical experience of assessors contribute to these gaps. The evidence from this study suggests that the vocational skills assessment instrument we have developed for our research is valid and can serve as a basis for future large‐scale performance assessments.     

More guilt re services: toward a more inclusive view

It appears to be implicit in most research about the service sector that services are only produced in the private sector. This brief note submits that to calculate service output for the whole economy, the services produced in the public sector by national, regional and local governments must of necessity be included. This enhanced calculation demonstrates that service-producing industries are a much larger proportion of total economic activity than has been realised, and may, in the US for example, constitute around 80 per cent of total employment.     

Contemporary outer dress and clothing market source use of Middle Eastern women

Contemporary Qatari women's outer dress and clothing market source use were explored using Hamilton's¹ dress as a cultural subsystem metatheory. Data were gathered by interviewing 50 Qatari female nationals. Dependent variables were traditionalism of outer dress worn in public and private situations and clothing information and acquisition sources. Independent variables were demographic characteristics of age, education, socioeconomic status, work status and travel. Analyses included correlations and t-tests. Outer dress was traditional in most public, but less so in private, situations. As age increased, clothing traditionalism increased. The most used market sources were store displays, TV, video, tailors and the suq. Store display use increased with age, while use of video, TV and salespersons increased as education decreased. Women travelled outside Qatar to acquire clothing and when travelling, most women wore non-traditional outer dress. Findings were compared with a study completed in Saudi Arabia,² Qatari women's contemporary outer dress was less traditional and they used both traditional and non-traditional information sources and traditional acquisition sources more than Saudi women.     

Technical and non‐technical education and the employability of engineering graduates: an Indian case study

India's substantial growth in recent years has resulted in a significant increase in demand for engineers. Information technology companies, now a major part of the Indian private sector, have been prominent in such recruitment, but the competences they seek in engineering students appear to be different in terms of priorities from those sought by engineering firms. Against this background, and Indian employers' general dissatisfaction with graduates' skills, the present study aims to investigate the importance of technical and non‐technical education, respectively, in the employability of undergraduate engineering students. Employability was determined according to students' success in campus recruitment drives by information technology companies, that is, whether they received an offer of employment. The study used a sample of two cohorts consisting of more than 500 undergraduate engineers in total, drawn from one of the leading engineering colleges in South India. Independent variables consisted of marks scored at the higher education admission stage, grades in engineering at graduation and performance in non‐technical education. The last named comprised verbal reasoning, logical reasoning and soft skills. The dependent variable was whether or not they were offered employment. The results, obtained through correlation and ordinal regression, revealed that the performance of students in non‐technical education was a stronger predictor of employability than was grade obtained in technical education. The findings will be of relevance to engineering colleges because they can be used in the formulation of a strategy to improve the employability of their students. The context is a concern in many countries that those leaving higher education are not properly equipped for the world of work.     

Characterisitcs of Exporting and Nonexporting Joint Ventures in Saudi Arabia

The study profiled 83 exporting and onexporting manufacturing joint ventures (JVs) in Saudi Arabia. This represents about one-fourth of all manufacturing JVs in operation at the end of 1987. Stepwise discriminant analysis showed that a set of 9 characteristics representing 4 factors were signficant in differentiating the two groups. Exporting JVs tend to be larger, produce industrial goods in more technology intensive industrial sectors, and be more leveraged than nonexporting JVs. Potential limitations of these findings, and their implications for the policy makers are also discussed.     

Management training for women: International experiences and lessons for Canada

In Canada, there is growing recognition that women play an increasingly important role in the working world. Management training programs for women have been considered as a route to prepare women to be more effective managers. This paper highlights some of the major issues and concerns being discussed outside Canada by those engaged in management education and training for women — objectives and content of programs, nature of participants, training methods, choice of trainers, organization and evaluation of programs. References are made to a few international programs to illustrate how some of these concerns have been addressed. Implications for training programs in Canada, from both practical as well as research points of view, are discussed.Natalie Lam teaches organizational behaviour, human resources management, and organizational communication at the University of Ottawa. Research interests in cross-cultural management, women in management, and inter-disciplinary research (e.g. organizational issues of physical distribution and materials management). Consultant for private and public sector organizations, such as the Canadian International Development Agency, Bell Northern Research, Institute of Canadian Bankers, and the Canadian Police College.     

In green consumption,why consumers do not walk their talk: A cross cultural examination from Saudi Arabia and UK

Green consumption is evolving and has received much attention from retailers and academic. Previous studies reveal a gap among green purchase intention and green purchase actual behaviour under different cultural contexts. This intention-behaviour gap is unresearched in the green consumption context. Therefore, our examination seeks to plug this gap by exploring the mediating role of implementation intention and the moderating role of action self-efficacy, environmental knowledge, coping self-efficacy, and green value on the link among intention and behaviour in two different cultural contexts. Data were gathered from two different countries (i.e., Saudi Arabia and UK) consumers who are familiar with green consumption. We analysed our data using structural equation modelling to test the suggested model. The findings revealed that implementation intentions fully mediate the relationships between purchase intentions and purchase behaviour. They also indicated that action self-efficacy, environmental knowledge, coping self-efficacy, and green value moderate the association between intention and actual behaviour. Moreover, results indicated that the influence of green purchase intentions and implementations intentions on green purchase behaviour was stronger in the UK sample than in Saudi Arabia sample. This paper provides managers and retailers with meaningful implications that show how to convert green purchase intentions into green purchase behaviour within different cultural contexts.