Saudi Arabia market’ attractiveness Report

Exclusively available on Available only on IvyPanda® Made by Human No AI

Saudi Arabia is well placed in the Middle East region. The region has experienced an economic boom over the last decade. This has been due to the discovery of high levels of oil and natural gas in the country (Euromoney 1). These discoveries, coupled by a high population make the market attractive for business investment.

As the growth in population and finance from oil and natural gas exports increases, Saudi Arabia’s population has continued to enjoy a strong purchasing power (CIA 1). Strong consumer purchasing power is one of the fundamental factors which make the Saudi Arabia market more attractive to foreign investors. The market is promising since according to the current statistics the country has a GDP of 6.8 percent (CIA 1).

The level of competition in Saudi Arabia is very high. This offers investors a chance to invest wisely and come up with marketing strategies that offers them a competitive advantage over their competitors. Rapid expansion in the manufacturing industry coupled with an increase in the level of investment from both foreign and domestic investors has increased the level of competition in Saudi Arabia’s market.

A high level of competition makes the market less attractive since new investors will be required to come up with strategies which are above the current production standards. In addition, new investors (entrants) face a threat from already existing competitors and rival companies.

Saudi Arabia shares the same cultural beliefs and practices with Dubai. Therefore, by opening a branch in Saudi Arabia, cultural shock and language barrier that may hinder business success are eliminated. Moreover, sharing of culture reduces psycho-cultural conflicts between different countries (Ross 164). Geographically, Saudi Arabia is centrally placed which makes it easily accessible by any investor in the MENA region.

In addition, its geographical location provides an easy access to export market in various destinations. This makes it more attractive to foreign investors. Manufactured end products can easily be transported to the neighboring countries without any hindrance. The geographic location of Saudi Arabia also opens its market to emerging economies in Asia and Europe.

The level of current and future demand is very high making the region more attractive to investment. For instance, according to Al Adhami (3) the population of Saudi Arabia is expected to be twice the current population by 2050. The double increase in population shall affect the country’s buying power and size perspectives.

This could make Saudi Arabia the largest economic hub of the GCC region and the fastest growing economy owing to the increased buying power. Therefore, the country has a potential for future growth in terms of an increase in market demand. Saudi Arabia is a growing market which makes it even more attractive to investments.

Market viability is an important component which is considered before investing in a new market. According to Thompson (177), a market viability analysis is not limited to the market environment, distribution, competitors and availability of similar products. Saudi Arabia is the largest economy in the region which makes it sustainable to investors and consumers (CIA 1).

In addition, Saudi Arabia is a potential market and its large size makes Saudi business enjoy from large economies of scale. Foreign inventors benefit from well developed value chains and business clusters which makes it a viable market to invest into. Other sectors such as energy and transport are well developed and hence enhance the rate and degree of production.

Works Cited

Al Adhami, Saad n.d., Saudi Arabian Construction Market. Web.

CIA 2012. . 2012. 2012. Web.

n.d. International banking finance and capital markets news and analysis. Web.

Ross, Marc Howard. “Psychocultural Interpretations and Dramas: Identity Dynamics in Ethnic Conflict.” Political Psychology 22.1 (2001): 157-178. Print.

Thompson, Allan 2005. . 2005. Web.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2018, November 20). Saudi Arabia market' attractiveness. https://ivypanda.com/essays/saudi-arabia-market-attractiveness/

Work Cited

"Saudi Arabia market' attractiveness." IvyPanda, 20 Nov. 2018, ivypanda.com/essays/saudi-arabia-market-attractiveness/.

References

IvyPanda. (2018) 'Saudi Arabia market' attractiveness'. 20 November.

References

IvyPanda. 2018. "Saudi Arabia market' attractiveness." November 20, 2018. https://ivypanda.com/essays/saudi-arabia-market-attractiveness/.

1. IvyPanda. "Saudi Arabia market' attractiveness." November 20, 2018. https://ivypanda.com/essays/saudi-arabia-market-attractiveness/.


Bibliography


IvyPanda. "Saudi Arabia market' attractiveness." November 20, 2018. https://ivypanda.com/essays/saudi-arabia-market-attractiveness/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1