Pre-crisis GDP level will be reached in 2022
MEDIUM RISK for enterprise
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
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GDP |
|
|
Population |
|
|
Form of state | Monarchy | |
Head of government | King SALMAN bin Abdulaziz Al Saud | |
Next elections | None |
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- Natural resource base (oil and gas)
- Strategic importance as an oil exporter and with spare capacity to increase output when needed
- Large financial asset base and strong foreign exchange reserves
- Net creditor
- Generally good relations with the U.S.
- Long-standing and stable exchange rate system
![](/content/dam/onemarketing/ehndbx/eulerhermes_com/en_gl/erd/icon/minus.png)
- Dependence on international oil prices along with a narrow economy focused on the hydrocarbon sector
- High unemployment and under-employment have the potential to fuel increased militancy, particularly among the minority Shia population
- Data transparency is below average for a high income economy
- Regional uncertainties, with land borders with Iraq and Yemen and with Iran as a close neighbor. The latter is seen by some as a competitor for regional power
Trade structure by destination/origin
(% of total)
Exports | Rank | Imports |
---|---|---|
China
7%
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1 |
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Japan
6%
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2 |
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India
5%
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3 |
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United States
5%
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4 |
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South Korea
5%
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5 |
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Trade structure by product
(% of total)
Exports | Rank | Imports |
---|---|---|
Crude Oil
72%
|
1 |
8%
N.E.S. Products
|
Refined Petroleum Products
11%
|
2 |
8%
Cars And Cycles
|
Plastic Articles
5%
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3 |
5%
Engines
|
Basic Organic Chemicals
3%
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4 |
4%
Telecommunications Equipment
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Natural Gas
2%
|
5 |
4%
Aeronautics
|
As with all GCC states, late payment is common in Saudi Arabia. In practice, the law does not regulate late payment, while late payment interest is prohibited and collection costs cannot be recovered from the debtor unless a specific agreement has been concluded by the parties. As a result, debtors will often try to negotiate discounts in exchange for prompt payment.
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Low
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Medium
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Sensitive
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High
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Payments
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Court proceedings
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Insolvency proceedings
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Payments
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Court proceedings
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Insolvency proceedings
Insolvency laws in the Middle East are not as sophisticated as in other regions and the nonexistent company rescue culture in Saudi Arabia illustrates this point.
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