The progress of Saudi Arabia and the efficiency of its administrative system owe its success to the Saudi Arabian government and its politics. Through the great efforts of the monarchial government in Saudi Arabia, this nation has been able to make tremendous steps in the framing of its relation in matters of foreign policies with countries bordering it as well as in improving its own administrative policies (Mayer & Soufi, 1991).
This and many other factors which include democracy, politics, political environment and the legal system are some of the factors that this essay will fully analyse and explore.
For over a long period of time, Saudi has tried despite the huge challenges to sustain a central government. Challenges they have encountered over a period of time include party politics though not allowed, organizations that politically oppose the existing government, political critics and even tribal and regional rebellions (Mayer & Soufi, 1991). These opposing organizations include the Hijaz, the Shiite and the Sunni Islamists.
Some of these organizations pose a huge threat to the security of the Saudi state through acts of terror and violence to state leaders and the civilians. This however is not a setback as the regime has spread royal family members all over and they are manning major posts in all sectors in the government. This helps to thwart any effort of the opposition groups from dealing a deadly blow to the government.
In 2005, after the accession of King Abdullah, a number of changes have been seen in Saudi. This has been in order to modernize the political system of this nation. An appointment for the inclusion of ministerial post for a lady has been brought up though it has received opposition from the royal decree and even a faction from the royal family (Paulson & Gezon, 2005).
This as a reform gives the women in this nation a platform to voice out their concerns on matters affecting them.Also, a democratic process through elections took place and this paved way to the legalization of political parties (Schaffer, Agusti & Earle, 2009). Also, the role of the consultative council has been and their positions increased.
In Saudi Arabia, laws on taxation have enabled the Saudi government to raise revenue for profits from taxing its citizens and even non citizens.This is collected from shareholders who are non citizens but working in local companies, or does some business in the country (Nazir & Tomppert, 2005).
These people could also be earning income in the country and are therfore to pay tax, others could be investors or those involved in the oil production centers.The law requires that the pay their taxes.
Payment of taxes vary from one sector to another like for instance, the Natural Gas Investment Tax that is paid by by the investors involved in issues dealing with gas condensates, natural gas liquids and natural gas itself is not paid by the companies involved in oil and hydrocarbon production.Taxes for non residents who are not parmanent or lack legal registration withheld by a Saudi entity under the law of withholding tax.
The country is also able to raise its revenue from fines on delay or non payment of tax. It has entered into treaties with the United States, the United Kingdom and other countries to be exempted from paying taxes for international operations involving aircraft and ship (Mayer & Soufi, 1991).Tax therefore shapes the economy of Saudi as it provides financial resources for use by the country.
Saudi Arabia has been able to regulate trade activities within and outside when trading with other nations.This has been in form of laws, trade barriers and bureaucratic and regulatory services. The trade barriers include issues like having a business visa.
One cannot travel into the Saudi state without the visa and a sponsor who must be a Saudi. This sponsor answers to the actions of the business visitor.This is a challenge as it is hard to get a sponsor (Nazir & Tomppert, 2005). Another regulation is in taxes imposed by the state.These taxes are imposed on payments received and those not recived.
Reference List
Mayer R. T. & Soufi W. A. (1991). Saudi Arabian industrial investment: an analysis of government-business relationships. Westport: Greenwood Publishing Group, Inc.
Nazir, S. & Tomppert, L. (2005). Women’s rights in the Middle East and North Africa: citizenship and justice, Maryland: Rowman and Littlefield Publishers, Inc.
Paulson, S. & Gezon, L. L. (2005). Political ecology across spaces, scales, and social groups, NJ: State University press.
Schaffer, R., Agusti, F., & Earle, B. (2009). International Business Law and Its Environment, OH: Cengage Learning, Inc.