The Kingdom of Saudi Arabia means different things to different people. For millions of followers of Islam across the world it is the ultimate Holy Land and pilgrimage destination. For a large number of expatriates from Asia, Europe and the United States, it is a land of opportunities. For the rest of the world, Saudi Arabia means oil – the lifeline of present and future economies. Saudi Arabia has so far lived up to all these definitions, and is now entering a new phase of its development.

On September 23, 1932, King Abdulaziz Al-Saud laid the foundation of the modern Kingdom of Saudi Arabia. Large reserves of oil were discovered soon after, and within a span of six years, commercial production of oil began. The fortune of Saudi Arabia changed forever and the Kingdom rapidly moved on the path of a modern industrial state. Today Saudi Arabia holds a 25% share of the total Arab GDP and is the world’s 25^th exporter/importer, with a foreign trade of US $78 billion. In all these years, the Kingdom has displayed remarkable political and economic stability.

Land and People

Saudi Land and people will take you through information on the historical background of the Kingdom, its political system, its main cities, its geography, its people, their culture, their language and their recreation.

Country History
The Kingdom of Saudi Arabia (KSA), ,went through some political disturbances between 1927 and 1932, accompanied by local conflicts between tribes and the influence of external forces. Nonetheless, Al-Saud managed to build a strong foundation from which to rule.

The Rise of Saudi Arabia

The history of Saudi Arabia may be divided into three periods:

· Period One (1744-1818). During the early part of the 18th century, the country faced stiff political conflict which resumed until the first country was established by the efforts of Al-Imam Mohammad Bin Saud. However, the attacks of the Otmani nation, and the Egyptian ruler, Mohammad Ali Basha, led to its fall.

· Period Two (1824-1891). In addition to internal conflict between rival tribes, the Egyptian military made moves to remove the Saudi ruling family. Despite this, the country progressed through stable guidance and systems.

· Period Three (1902-present). Saudi Arabia becomes firmly established as the first new country in the region. King Abd Al-Aziz Bin Abd Al-Rahman bin Faisal Al Saud managed to establish a country which experienced unique commercial growth through the discovery of vast oil reserves.

· On September 19th, 1932, a royal decree declared the unity of the nation and called it the Kingdom of Saudi Arabia (KSA).

· Before exploring oil, the economy was dependent on commercial exporting, agriculture, and tourism (pilgrims who came to Mecca and Madina).

· The Saudi government gave “Standard Oil of California” an area of 495,900 square miles to extract oil. A few months after signing the contract,
encouraging results came out in the “jabal thahran” area. In 1938, enough oil was extracted to start a business. The first exports took place in May 1939 from the “Ras tanora” coast.

· The increase in oil prices in the mid 1970s propelled the KSA into one of the fastest-growing economies in the world. However, its basic social codes, cultural principles, and religious aspects remain the same to this day.

Geography

Saudi Arabia, about one-fourth the size of United States, is spread over 2,150,000 square kilometers (830,000 square miles), occupying almost 80 percent of the Arabian Peninsula. Located in the southwest corner of Asia, the Kingdom is at the crossroads of Europe, Asia and Africa. It is surrounded by the Red Sea on the West, by Yemen and Oman on the South, the Arabian Gulf and the United Arab Emirates and Qatar on the East, and Jordan, Iraq and Kuwait on the North. Saudi Arabia’s Red Sea coastline stretches about 1,760 kilometers (1,100 miles) while its Arabian Gulf coastline roughly 560 kilometers (350 miles).

Desert covers more than half the total area of Saudi Arabia. A narrow coastal plain runs through the Kingdom’s western coast while a range of mountains run parallel to the coastal plain along the Red Sea. Along the Arabian Gulf in the east is a low-lying region called Al-Hasa. The mountains in the west of the Kingdom are very rich in minerals with large deposits of limestone, gypsum and sand. The eastern region has the richest reservoirs of oil in the world.

Population

Population

The total Saudi population as of September 2004 increased to 22.7 million, compared with 13 million in 1985 and 21 million in 1999. The population growth rate in the KSA stands at 3.24%, which ranks somewhere between the lowest growth in Kuwait (2%), and the highest growth rate in the UAE (5.84%). However, growth rates in the KSA figure rank above the general average of 2.37%, registered across the Arab world. The high birth rate and the low mortality rate are the result of dedicated and intensive efforts towards health care issues.

Inhabitants from Saudi origins form 72.9% of the population, which comprises 50.1% males and 49.9% females. Foreigners form 27.1% of the population (6 million people), of whom 69.5% are males, and the remaining are females.

This rising number of foreign inhabitants is an outcome of the growing interest of foreigners in the Saudi investment sectors. Furthermore, this came as a result of Saudi government policy of using its oil revenues to expand general services and build a solid infrastructure. Egyptian workforce make up the largest number of expatriates, reaching 16% of foreign workers, followed by India, Pakistan, Yemen and the Philippines.

Political System in KSA, Shoura Council

The political system in the KSA abides by Arabic and Islamic laws as a basic legislative branch. A reading for this system, which was established by King Fahd Bin Abdul Al Aziz Al Saud in 27-8-1412, shows that the true identity of the Kingdom lies in its Arabic and Islamic roots (including the Arabic language). Thus, these are the basic rules that any investor must understand.

The political system rules that the Saudi flag must never be dipped because of the words “La illah illa Allah” (There is no true God but Allah) that appear on it. It also indicates that the system in the KSA is a monarchy, where the king is the premier authority in the ruling system.

However, the inheritance of the throne is not absolute; it enforces a very important factor, which is to go with the best for the country according to Islamic principles. The crown prince represents one of the fundamental factors of this system, which states that the king chooses the crown prince, or discharges him, by a royal order.

The “Shoura” Council

The “al-shoura” council represents one of the ruling methods in the KSA. It acts as a very important decision making body. Despite the system of monarchy, the authorized persons in the council take into consideration the opinions of many other elite groups.

The council, situated in Riyadh, consists of 150 members appointed by the King who sit for a four year term of office. The members of the council must be of Saudi nationality and aged no less than 30 years. Most importantly, each member must be a highly-skilled individual to be able to handle their responsibilities.

The council makes decisions and provides opinions on general political issues, which are given to the prime minister. On specific issues, it gives the general plan for economic and social growth. It also studies the systems, lists, contracts, and agreements with other countries, and then gives suitable suggestions.

In addition, the council examines the reports given by ministers and government sectors, which represent all parties that investors deal with, and provides feedback on these reports.

As for the connection between the Royal Court and the council, the system states that the King, or his substitute, must give an annual speech in front of the council telling them the country’s internal and external policies. The council also gives its decisions to the King, who, in turn, decides which are to be given to the prime minister. If the prime minister agrees with the decisions of the council, the work starts to bring these decisions to life. Otherwise, the decisions are handed back to the council for further review.

Generally, the work of the “al-shoura” council represents an insurance regarding the work of the ministers. This also keeps the policies (including economic policies) continuously valid, abiding by the rules and practical enough to suit the demands of all different types of people.

The Municipal Elections

As part of the ongoing political process, an election took place in the Saudi system in the year 2005. There are between four and fourteen members, half of whom are elected and half who are appointed. Municipals concentrate on budget projects, contracts, undertakings, system studies, and cost evaluations. These elections give the people a part to play in decision-making and give investors an opportunity to interact with managerial parties. All this reflects the maturity of a political system which affects investors in some way or another.

Main Cities

Makkah and Madinah, Islam’s two holiest cities, are located in Saudi Arabia. Makkah is the birthplace of the Prophet Muhammad and the focal point of Hajj, the Islamic pilgrimage in which almost two million Muslims from all parts of the world participate every year. Madinah is the city where Prophet Muhammad emigrated and lived. Riyadh, located in the central province, is the capital city of Saudi Arabia. It is also the high-tech center of modern Saudi Arabia and houses the headquarters of the Gulf Cooperation Council (GCC). Jeddah, located along the eastern coast of the Red Sea, is the commercial capital of Saudi Arabia, and serves as an entrance to the rest of the peninsula. Jeddah’s ports hence become the main thoroughfares for trade.

The twin cities of Jubail and Yanbu are a symbol of the government’s vision of Saudi Arabia’s future development. Jubail lies on the Arabian Gulf in the Eastern Province of the Kingdom. It is located 80 kilometers north of Dammam, and is an ancient center and caravan junction famous for pearling. It has the world’s largest petrochemical complex. Yanbu is located on the East Coast of the Red Sea about 350 kilometers north-west of Jeddah. It houses the Directorate General of the Royal Commission for Jubail & Yanbu. It is a typical industrial fortress and a work of art in architectural engineering.

Living in Saudi Arabia

This section provides information on the quality of life and living standards in Saudi Arabia. It shows business hours in the public and private sectors, and gives a glimpse of shopping & leisure in different cities of the Kingdom.

Business Hours

Saudi Arabia's time zone is three hours ahead of Greenwich Mean Time.

Working Week and Working Hours

Government:

Official working days are Saturday thru Wednesday

Weekly days off areThursday and Friday

Working hours:

week days: 07:30 - 14:30

during Ramadan: 10:00 - 15:00

Private Sector:

Official working days are Saturday thru Thursday

The weekend starts Thursday afternoon and continues all day Friday

Working hours:

Riyadh

Morning: 08:30 – 12:00

Evening: 16:30 – 19:30

Jeddah

Morning: 09:00 – 13:30

Evening: 16:30 – 20:00

Dammam

Morning: 08:30 – 12:00

Evening: 16:30 – 17:30

Ramadan

Morning: 10:00 – 15:00

Evening: 21:00 – 23:00

Banking:

Official working days are Saturday thru Wednesday

Weekly days off: are Thursday and Friday

Working hours during week days

Morning: 08:00/08:30 - 12:00

Evening: 16:00/16:30 - 19:00/19:30

Working hours during Ramadan

Morning: 09:00 - 15:00

Evening: 21:00 - 24:00

Business and Shops:

Saturday thru Thursday: Morning: 08:00/08:30 - 12:00

Evening: 16:00/16:30 - 22:00

During Ramadan:

Morning: 10:00 - 13:30

Evening: 21:00 - 24:00

Friday is a day off but many shops do open in the evenings. Shops close their shutters for prayers three times daily for half an hour.

Banks, currency and credit cards

The Kingdom’s banking sector has developed excellent IT bases. Plenty of ATMs across the Kingdom offer wide-ranging services from cash withdrawal to utility bill payment. Saudi Riyals can be easily converted to any foreign currency (dollars, euro, etc.) at local banks. The most readily accepted credit cards are American Express, Visa and MasterCard. The Saudi Arabian Monetary Agency (SAMA) is the Central Bank of Saudi Arabia.

Entertainment

Several Arabic and English dailies are published in the Kingdom. The two English language newspapers are Arab News,and Saudi Gazette. A wide range of American and European newspapers, magazines and books are also available in bookshops and newsstands.

The overseas broadcasting services of different countries are available on short and medium wave radios in Saudi Arabia. The Kingdom’s broadcasting service provides programs in English, French and other languages.

There are four Saudi television channels available across the Kingdom. Channel One is an Arabic language station and Channel Two is in English. The English Channel provides full-length films, short features and programs from European and American television sources. Channel Three is a sports channel. Saudi Channel Four is an all-news satellite channel which was inaugurated in January 2004.

Measurements and Units in the KSA

A Royal script sets the kingdom's measuring units, based on the decimal system, to be as follows:

· Length: meter and its transcendences

· Weight:kilo and its transcendences

· Volume: liter and its transcendences

· Area: Square meter and its transcendences

Weather

Almost the entire Kingdom is arid, although there is rainfall in the north and along the mountain range to the west, especially in the far southwest, which receives the monsoon rains in summer.

Sporadic rain can also occur elsewhere, sometimes very heavily, causing serious flooding, including in Riyadh, where the air and prevailing winds tend usually to be very dry.

As a result of the general aridity and cloudless skies, temperatures can vary considerably from a mid-summer maximum of 50°C (122°F) in the shade to winter lows close to or below freezing in the mountainous areas and, sometimes, at night in the heart of the desert.

Hail and snow may also be experienced in some parts of the country during the winter months.

Humidity is a major feature of the coastal areas, although this is usually tempered by slightly lower and less variable temperatures and a steady breeze, especially in the east.

For climatic conditions in various Saudi cities, please click here

For 5 days forecast, please click here.

Infrastructure

This section provides information on the different available means of transport including Airlines, Railways, Roads and Seaports. You can also find here information relating to Telecommunications, Healthcare and Educational services.

Accomodation

Transportation

Telecommunications

Healthcare

Education

  Accommodation

The cities and towns across the Kingdom offer good housing facilities including apartments, private villas and compounds. Companies employing large numbers of expatriates normally have private facilities for their employees.

Expatriates have a marked preference for residing in compounds, although many independent villas and apartments are available.

Compounds usually offer a high level of recreational facilities and group transportation – for example for wives to visit the shopping centers and malls.                                                                            

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