| HEAD OF STATE King Fahd Ibn Abdul-Aziz
(Custodian of the two Holy Mosques) Crown Prince and
Deputy Premier & Commander of the National Guard HRH
Prince Abdullah Ibn Abdul-Aziz Second Deputy Prime
Minister & Minister for Defence & Aviation &
Inspector General HRH Prince Sultan Ibn Abdul-Aziz
GOVERNMENT MINISTRIES For details on Government Ministries
- See Listing under Government Ministries &
Departments. DIPLOMATIC REPRESENTATION IN SAUDI ARABIA See
Listing under Embassies, Consulates & Legations PUBLIC
HOLIDAYS The two major holidays are:
Eid Al Fitr Eid Al
Adha ,During the month of Ramadan business
is restricted
and usually stops completely 2 days prior to Eid Al Fitr
and 5 days prior to Eid Al Adha.
IMMIGRATION All visitors
to Saudi Arabia must hold a valid
passport. Citizens of
Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates
do not require visas for entry into Saudi Arabia. All
other citizens require a valid visa. There are two types
of visa - Entry and Transit. Exit visas are also required.
For business an entry visa is mandatory since Transit
visas are only valid for 3 days. All prospective visitors
must obtain a No Objection Certificate or letter of
invitation in the first instance, issued through a local
sponsor. Visa applications should be made to Saudi
embassies abroad. Visitors’ passports should be valid
for at least three months and must be accompanied by
photographs, sponsor’s NOC or letter of invitation, and
a supporting letter from the visitors employer. Multiple
re-entry visas are not usually granted. Travel
Restrictions Travelers to the Kingdom may not carry
alcohol, firearms, pork products, religious items, or
pornographic materials. Prescription drugs should be
carried in their original labeled containers.
CLIMATE
& WEATHER Saudi Arabia is a large country and as such
has local variations in climate. Generally, the same
temperatures apply as for the Gulf States. Jeddah is hot
and humid for most of the year, with temperatures up to 48
degrees centigrade. Still higher temperatures are recorded
in Riyadh during the summer months but less humid. The
winter months are more moderate with occasional rainfall
especially in the highlands.
TRANSPORT Over the past
decade, Saudi Arabia has enjoyed sophisticated transport
and telecommunications systems which provide the necessary
infrastructure for rapid development. The communications
sector has been a key concern since the inception of the
first five-year development plan (1970-1974). By 1987,
there were 30,233 kilometers of paved roads linking all
main regions of the Kingdom as well as neighboring
countries. There were also 886 kilometers of railways
linking Riyadh to Dammam to facilitate transportation. The
transport and communications sector is expected to grow by
2.9 percent annually during the period of the sixth
development plan as a result of higher level of economic
activity and anticipated higher demand for communications
services. Airports: Most travel within the Kingdom is done
by air, given the difficult terrain and distances between
population centers. There are 23 airports, three of which
are international. King Abdul Aziz International Airport
in Jeddah opened in 1981 and is noted for its separate
terminal for pilgrims.12 miles west of the city. Tel:
6483550 King Khalid International Airport serves the
greater capital city of Riyadh. 35 km north of the city.
Tel: 2221111 (Information). King Fahad International
Airport was open late 1999, located 36 km (approximately
22 miles) Northwest of Dammam. reports by the Saudi Civil
Air Aviation estimate the total cost of this project
exceeds SR7.5 billion (U.S. $2 billion). Dhahran
International Airport - 5 miles south-east of Dhahran.
(CLOSED) Railway: Riyadh-Dammam takes four hours on new
train. Dep: 14.00 Wednesday-Saturday. One stop at Hofuf.
Air-conditioned restaurant car. Tickets should be bought
the day before. King Fahd Causeway links Al Khobar in
Saudi Arabia to Bahrain. Visa requirements for non Gulf
nationals are exactly the same as for visitors flying into
Saudi Arabia. The toll fee for a private car is one way
SR20/-. SEAPORTS: The maritime transport system of Saudi
Arabia is one of the most advanced in the world.
The
largest and busiest port is located in Jeddah. However,
expansion of the ports of Jizan and Yanbu on the Red Sea,
and Jubail and Dammam on the Arabian Gulf has relieved
some of the Kingdom’s traffic concentration at Jeddah
Islamic Port. West Coast: Jeddah Islamic Port, Tel: (02)
6471200, Fax: (02) 6475986 Yanbu Commercial Port, Tel:
(04) 3222100, Fax: (04) 3227643 King Fahd Industrial Port,
Yanbu, Tel: (04) 3967000, Fax: (04) 3967137 East Coast:
King Abdul Aziz Port, Dammam, Tel: (03) 8332500, Fax: (03)
8579223 Jubail Commercial Port, Tel: (03) 3610600, Fax:
(03) 3613337 King Fahd Industrial Port, Jubail, Tel: (03)
3578000, Fax: (03) 3416516 Al Khobar Port, Tel: (03)
8647299, Fax: (03) 8982889 RADIO Broadcasting Service of
the Kingdom of Saudi Arabia Dammam: 882 KHz; Jeddah: 648,
684, 1485, 1512 KHz; Riyadh: 585 KHz Nationwide coverage
from MF transmitters Domestic HF service (Jeddah) on 14
allocated frequencies. External (Jeddah) on 14 allocated
frequencies. External HF service on 11,855 KHz. Also FM
98.0 MHz (Riyadh); 98.0 MHz (Jeddah).
TELEVISION Saudi
Arabia Television - SECAM colour 625 lines systems B &
G Dammam - Ch 6 Jeddah - Ch 10, Riyadh - Ch 5, and 19
other stations. The launching of the Arab Satellite in
1985 and the television complex in Riyadh provide up-to-
the-minute telecommunications facilities. Access to
domestic and international telephone service is available
at varying rates and is being modernized at an estimated
cost of SR15.00 billion (U.S. $4.00 billion) to be one of
the best in the world.
Historical Background OIL &
NATURAL GAS SECTORS Saudi Arabia is a major player in the
world oil markets. Its proven oil reserves amount to
approximately 260 billion barrels equivalent of about 25%
of the total world reserves. It is also the world’s
largest exporter and second largest producer of crude oil.
If the output reaches the target of 10 million b/d during
the 1990s, by the year 2000 this will account for as much
as 15 per cent of world production and 30% of the world
trade. There are few key elements regarding the structure
and organization of the oil industry. The entire industry
is dominated by the government, which retains title to all
mineral resources in the country, sets basic policy and
makes all major decisions regarding production, investment
and domestic energy pricing. The government also holds
majority ownership interest in major operating companies
including ARAMCO, SAMAREC, the Petromin Lubricating Oil
Refining Company (LUBEREF) and the Petromin Lubricating
Oil company (PETROLUBE).
The two small foreign companies
operating in the Neutral Zone between Kuwait and Saudi
Arabia, Getty Oil company and the Arabian Oil Company of
Japan are exceptions to this rule. ARAMCO manages the oil
fields, pipelines, crude oil export facilities, crude oil
tankers and the Master Gas System throughout the country.
The company set up in 1988 as a joint venture is ranked
17th in terms of employees (43,000). SAMAREC, established
in 1988 manages three wholly-owned Saudi refineries at
Riyadh, Jeddah and Yanbu. It also controls government’s
50% interest in three joint venture export refineries at
Jubail, Yanbu and Rabiah. Saudi Arabia does not have the
dominant position in natural gas despite reserves of 186.5
trillion cubic feet. The Master Gas System which is
designed, built and operated by ARAMCO has made Saudi
Arabia, the world’s largest exporter of natural gas
liquids. Saudi Arabia accounts for 7 to 10 per cent of
annual world output of natural gas liquids (propane,
butane, and natural gasoline) and 30 per cent of the
world’s seaborne trade in LPGs (propane and butane). It
is the largest exporter of LPGs in the world. ARAMCO has
the capacity to produce about 600,000 b/d of NGLs. Apart
from Saudi Arabia’s oil and gas reserves, there are
believed to be sizeable deposits of other minerals. At
present, salt, limestone, gypsum and gold are produced
commercially, while deposits of phosphate, copper, bauxite
and uranium are considered to have economic potential.
Meanwhile, Arabian Shield Development Co. (ASDC) has
secured a licence to tap a mineral deposit in Saudi Arabia
and is negotiating a loan for half the $88 million cost.
The deposit with proven reserves for 11 years, is expected
to produce an annual 58,000 tonnes of zinc concentrates
with 54% zinc per tonne and 35,000 tonnes of copper
concentrates with 25% copper. It also expects output of
22,000 ounces of gold and 800,000 ounces of silver per
year.
INDUSTRY SECTOR The government’s industrial
strategy was originally formulated in 1974 and has been
regularly revised. Saudi industry is comprised of five
major sectors: oil refining; large scale petrochemicals
and steel industries; general manufacturing industries run
entirely by the private sector; small scale light
industries with over 20,000 workshops; and new technology
projects promoted through military offset schemes.
Petrochemical industries generate 22% of total
manufacturing value added; petroleum refining accounts for
40%; other manufacturing such as chemicals, cement,
building materials and engineering products account for
the remaining 38%. The Saudi Industrial Development Fund (SIDF)
was founded in 1974 and is the major government funding
agency for existing and new manufacturing projects. The
Saudi Arabian Basic Industries Corporation, the largest
industrial entity in the Kingdom was established in 1976
to help the private sector develop basic industries.
SABIC’s aim has been to establish downstream
petrochemical industries using mainly associated gas as
feed stock and, since its inception, it has set up local
industries mostly on a joint-venture basis with overseas
interests. It has now 5% share of the world petrochemical
market, with key areas of production in basic and
intermediate chemicals, thermoplastic polymers,
fertilizers and metals. The Royal Commission for Jubail
and Yanbu was established in 1975 to create twin
industrial cities in the eastern and western parts of the
Kingdom. In 1992, 16 primary industries covering products
such as ethylene, MTBE (methyl tertiary butyl ether) and
urea with a total invested capital of US$14 billion had
been set up in Jubail and four secondary industries and 67
support/light manufacturing industries were operational.
Saudi Arabia’s first MTBE plant was built by the
Saudi-European Petrochemical Company, an affiliate of
SABIC in Jubail and has been in production since 1988. The
country operates eight refineries, three of them are
either wholly or majority-owned by SAMAREC and oriented
towards the domestic market. Three others are large,
export-oriented refineries in which SAMAREC is a joint
venture partner with Shell, Mobil, and Petrogal. A seventh
at Ras Tanura is owned by ARAMCO. The first downstream
investment by Saudi Arabia was with Texaco in the US. The
deal, initiated in 1988, gives the Kingdom a guaranteed
market in the US for 615,000 b/d of crude oil exports.
This is the biggest export deal for any OPEC country. In
1991, Saudi ARAMCO paid US$ 470 million for a 35 per cent
stake in South Korea’s Sangyong refining company. There
has been an agreement for a third major oil deal with
Japan’s Nippon Oil Co. These three oil deals seem to set
the pattern for Saudi Arabia’s overseas partnerships.
This strategy should enable the Saudi Arabian national oil
company to become one of the largest integrated companies
in the world by the year 2000. SABIC and Mobil Corp. will
spend $2.5 billion to double the capacity of their joint
venture petrochemicals project on the Red Sea. The
expanded Saudi Yanbu Petrochemical Co. or Yanpet complex
will be one of the largest, lowest cost petrochemicals
producers in the world. They will build a new ethylene
plant with the capacity to make 800,000 tonnes a year,
doubling Yanpet’s current ethylene capacity to more than
1.6 million tonnes. The joint venture will build its first
polypropylene plant, able to make 260,000 tonnes of
plastic a year. Saudi Iron & Steel Company (Hadeed) is
the largest producer of iron and steel in the Kingdom. The
Saudi Arabian Fertilizer Company (SAFCO) started
production since 1970. Another plant, Al Jubail Fertiliser
Company (SAMAD) started production in 1983. FOREIGN
INVESTMENT CODE Only Saudi or GCC nationals, or 100%
Saudi-or GCC-owned companies may undertake trading
operations or hold commercial agencies. Foreigners cannot
engage in business under the name of a Saudi national. A
foreign company wishing to establish a representative
office may do so without a licence from the Foreign
Capital Investment Committee by registering, preferably a
Saudi agent, at the Ministry of Commerce. The Foreign
Capital Investment Law applies to all capital owned by a
non-Saudi individual or by a corporation which has
non-Saudi shareholders. The definition of capital includes
cash, securities, fixed assets, raw materials, product,
spare parts, patents and trade marks. Before the
commencement, all projects involving foreign
capital-whether for industrial purposes or for contracting
or trading purposes- must obtain a foreign capital
investment licence issued by the Ministry of Industry and
Electricity (MIE) on the recommendation of the Foreign
Capital Investment Committee. Separate licensing
procedures apply to petroleum and mineral extraction
projects, to travel and tourism companies and to certain
professions such as accounting, engineering and law.
Meanwhile, the Kingdom is reviewing its foreign capital
law to introduce more incentives to international
investors.
BANKING SECTOR On April 20, 1952, a Royal
Decree ordered the establishment of the Kingdom’s
Central Bank to be named the Saudi Arabian Monetary Agency
(SAMA) with a capital of US$ 6 million. SAMA started
operations on October 4, 1952 from its headquarters in
Jeddah. In 1956, the first Import Control Law and the
first Foreign Exchange Control Law and a Currency Law were
issued. Until 1960, SAMA’s task was to implement
currency reforms and banking business. According to a
Royal Decree issued on December 15, 1957 SAMA’s
objectives were defined as: i. To issue and strengthen the
Saudi currency and to stabilise its internal and external
value ii. To deal with the banking affairs of the
Government iii. To regulate commercial banks and exchange
dealers iv. To manage the country’s official foreign
exchange reserves During the 1970s SAMA focused on
Saudiisation of the branches of foreign banks operating in
the Kingdom. Presently, there are 12 commercial banks in
the Kingdom, three of which viz. National Commercial Bank,
Riyadh Bank and Al-Rajhi Banking and Investment
Corporation are fully Saudi-owned while the rest are joint
ventures with Saudi citizens. There are also five
specialised credit institutions in the Kingdom. Meanwhile,
five banks are considering the possibility of joining the
credit network in the Jeddah Chamber of Commerce and
Industry in an effort to recover some of their bad debts.
Meanwhile, Saudi Arabia is moving cautiously to open its
bourse to foreign investors and has no immediate plans to
link with other Gulf Arab stock markets.
AGRICULTURE
SECTOR Saudi Arabia has been among the fastest growing
food producers in the world. The agricultural sector
employs around 10% of the workforce and include fishing.
Land under cultivation totalled 1,831 million hectares. It
is the sixth largest wheat exporter and among the largest
producers of dates. Dates reached an annual production of
568,000 tons in 1996, making Saudi Arabia the world’s
largest producer of dates with 13 million date palms under
cultivation. The production is estimated to reach 620,000
tons by the year 2000. The country has achieved
self-sufficiency in agricultural crops, eggs, fish and
dairy products. The growth of agricultural output has been
mostly due to the price support policy and other
incentives provided by the government, as well as to the
adoption of modern farming techniques. In spite of extreme
climatic conditions and limited water resources,
agriculture has been given priority due to social,
economic and political factors. The greenhouse industry,
especially for the intensive production of tomatoes and
cucumbers in the ‘off season’ is growing rapidly. As
part of efforts to provide water for irrigating the farms,
more than 174 dams were built with a storage capacity of
over 1,206 million cubic metres.
MINING AND QUARRYING
There is an apparent emphasis on the role of the Saudi
private sector in the development of the mining and
quarrying sector. This sector is expected to be one of the
fastest growing sectors with an annual growth rate of
about 9 percent over the period of the sixth development
plan.
PUBLIC UTILITIES During the fifth development plan
period, a number of factors contributed to the rising cost
of public utilities. These include the rapidly growing
urban population, the strong growth in energy-intensive
production activities, and a change in consumption
patterns following the reduction of already low and highly
subsidized prices. On the 25th of Rajab 1415 H.
(corresponding to December 27, 1994) Royal decree number
M/8 was issued raising prices of refined petroleum
products, telephone services, water and electricity rates
and visa, and residence (Igama) fees. This move by the
Saudi government was a part of its efforts to bring user
charges more in line with production costs and mobilize
additional financial resources. Against this background,
the output of this sector is expected to grow at an annual
average rate of 5.5 percent.
REAL ESTATE The climax of the
Saudi real estate market in the aftermath of the 1990 Gulf
crisis subsided toward the end of the fifth development
plan period. However, the real estate sector is expected
to grow at an annual average rate of 3.3 during the sixth
development plan period 1995-1999. TRADE The increase in
population and higher level of income during the sixth
development plan will revive consumer demand for
distribution, food and recreation services. This, together
with the expected continuation of high level of general
business activities will stimulate this sector to grow at
an annual average rate of 6.2 percent CONCLUSION BASIC
FACTS ABOUT SAUDI ARABIA Business Hours Currency Geography
and Climate Government History Holidays Hijra and
Gregorian Calendar-Conversions Judicial System Language
Main Cities Population Travel Regulations BUSINESS HOURS
The Kingdom is 3 hours ahead of GMT and 8 hours ahead of
U.S. eastern standard time. The work week in Saudi Arabia
is from Saturday through Wednesday, with the weekend on
Thursday and Friday. Friday is the Muslim holy day of the
week. Government offices in the Kingdom are open Saturday
through Wednesday from 7:30 a.m. to 2:30 p.m. All
government offices and businesses close during prayer
time, which occurs five times a day. Prayer times are
listed in the daily newspapers. Banks EASTERN PROVINCE
Saturday through Wednesday, 8:00 a.m. to 11:30 a.m. and
4:00 p.m. to 6:00 p.m. Thursday, 8:00 a.m. to 11:30 a.m.
CENTRAL PROVINCE Saturday through Wednesday, 8:30 a.m. to
noon and 4:30 p.m. to 6:30 p.m. Thursday, 8:30 a.m. to
noon. WESTERN PROVINCE Saturday through Wednesday, 8:30
a.m. to noon and 5:00 p.m. to 7:00 p.m. Thursday, 8:00
a.m. to noon. Businesses and Shops Saturday through
Wednesday are official days of business. Most businesses
are also open Thursday morning. Major shopping centers and
malls are open all day Thursday, and on Friday afternoons.
During the month of Ramadan, fewer hours are worked
everywhere. Official business hours are 10:00 a.m. to 3:00
p.m., and most businesses and shops are open after sunset.
EASTERN PROVINCE 7:30 a.m. to noon and 2:30 p.m. to 10:00
p.m. CENTRAL PROVINCE 8:30 a.m to noon and 4:30 p.m. to
10:00 p.m WESTERN PROVINCE 9:00 a.m. to 11:00 a.m. and
4:30 p.m. to 10:00 p.m.
JUDICIAL SYSTEM The Kingdom’s legal system is based
on the Islamic ‘Sharia’ law and on Decrees promulgated
by the Council of Ministers. Sharia is based on the
provisions of the Holy Qur’an, the Sunnah
(the teachings
and deeds of the Prophet Muhammad), the consensus of the
‘Ulema’ (religious scholars), and legal analogy.
Telephone Codes for Major Areas in the Kingdom Country
Code for Saudi Arabia 966 Riyadh (1) Jeddah, Makkah, Taif
(2) Dammam, Dhahran, Jubail, Hofuf (3) Yanbu, Tabuk,
Madinah (4) Cellular (5) Hail, Al-Qaseem, Al-Majmaa’h
(6) Abha, Najran (7) Saudia Arabia introduction Arabia has
intrigued travellers for centuries. Its vast swathes of
desert were the swaddling clothes of infant Islam and the
birthplace of the Arab race and of Arabic, a language
considered holy by Muslims. It's also home to two of
Islam's holiest cities - Mecca and Medina - and to a host
of modern, thriving, oil-rich metropolises. Today's Saudi
Arabia has held on to its mystique by being incredibly
difficult to visit - there's no such thing as a tourist
visa in this country. But if you can find someone to
sponsor you or decide to take an expensive 'approved'
tour, it's worth coming here for the desert and mountain
scenery, and some of the Middle East's best archaeological
sites. And, of course, there's the fascinating spectacle
of a society juggling deeply conservative religious
beliefs and oil-boom modernity. Full country name: Kingdom
of Saudi Arabia Area: 2 million sq km (1.2 million sq mi)
Population: 21.5 million Capital city: Riyadh (pop 3
million) People: Arabs, Bedouins, Najdis and expats from
all over the world Language: Arabic, English Religion:
Islam Government: Monarchy Head of State: King Fahd GDP:
US$186 billion GDP per head: US$9000 Annual growth: -9%
Inflation: 0% Major industries: Oil, steel, cement, wheat
Major trading partners: Japan, United States, EU, India
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