Saudi Arabia Case Study

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The Saudi Arabian marketplace is recovering from a declining price of oil, their number one source of income. Since the price of oil has been declining over the last few years, the oil market and therefore the county has been functioning in a deficit. Since there no personal income tax, the government relies heavily on the oil. They have been trying to get more foreign investors by and they have been doing that by selling bonds, $17.5 billion to be exact. (Kim, 2016) "Saudi Arabia has also started a new strategy dubbed Vision 2030 that aims to break the country's "addiction" to crude." (Egan, 2017) Saudi Arabia is also wanting to invest money in the United States’ economy. They did that by recently pledging $ 20 billion for American…show more content…
For that reason, the country ranked in 28 in that category. Registering property became more efficient because of the new technology making the process easier for everyone. (The World Bank, 2017)
Getting credit ranked 2 out of 12 on the strength of legal rights index. The government also made make an amendment that made secured lending more flexible. The government highly recommend that if you go through an established company like a partnership to get into business in Saudi Arabia, you will have a better chance. When it comes to protecting minority investors the country comes in the middle of the pack. They strengthened the protections of investors by strengthening ownership and control structures of companies and by increasing corporate transparency requirements. Which a great benefit for minority investors. (The World Bank, 2017)
Saudi Arabia does not a personal property tax, a benefit to their citizens; because of this, corporations are taxed at a higher rate of 20%. (Trading Economics, 2017) This can pose a problem as the country is needing outside corporations to do business within Saudi Arabia to generate income. The government also made enforcing contracts easier with an electronic filing system, which makes things contracts more accessible and they can be processed faster. When it comes to resolving insolvency, the Saudi Arabia government has made strict deadlines for bankruptcy procedures. (The World Bank, 2017)

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