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(Last updated: 16 Apr 2008)
Australian's planning to travel to, or who are in the Middle East, are urged to monitor developments that may affect their safety - through the Department of Foreign Affairs and Trade's (DFAT) current general travel advice and bulletins.
It is recommended that Australians visiting the region register with the nearest Australian Embassy (see relevant DFAT travel advisory for Saudi Arabia). To register online visit: www.orao.dfat.gov.au.
Individuals should take sensible precautions, dress and behave conservatively, strictly observe Islamic customs and ensure that travel documentation, including passports and any necessary visas, for themselves and their dependents are valid and up-to-date.
Austrade advises Australian companies with ongoing business in Saudi Arabia to maintain contact with their business partners and to clarify with their freight forwarders that the usual commercial arrangements still apply.
Austrade offices in Riyadh and Jeddah are fully operational.
Australian companies undertaking business in Saudi Arabia who are unable to travel to meet with their customers and business partners may wish to contact Austrade regarding commercial problems or issues they are facing in the Middle East.
All enquiries should be directed to, telephone: 13 28 78 (in Australia) or email: info@austrade.gov.au
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| Capital city: |
Riyadh |
| Surface area: |
2,150,000 sq km |
| Population: |
23.7 million |
| Official language(s): |
Arabic |
| Government: |
Monarchy |
| Head of State & Head of Government: |
King Abdullah bin Abdulaziz Al Saud |
| Australian exports to Saudi Arabia: |
A$2,024 million |
| Australian imports from Saudi Arabia: |
A$940 million |
| Saudi Arabia's principal export destinations: |
Japan, USA, Republic of Korea |
| Saudi Arabia's principal import sources: |
USA, Germany, China | (Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Saudi Arabia's economy is the largest in the Arabian Peninsula. It is dominated by the petroleum sector and it has the largest reserves in the world (26 per cent of the proved total). It is the largest exporter of petroleum and plays a leading role in the Organization of Petroleum Exporting Countries (OPEC). The petroleum sector accounts for roughly 75 per cent of budget revenues, 40 per cent of Gross Domestic Product (GDP) and 90 per cent of export earnings. About 35 per cent of GDP comes from the private sector.
Key economic indicators and statistics for 2007:
- GDP – US$374.5 billion
- GDP per capita – US$15,416
- Real GDP growth – 4.1 per cent
- Inflation – 3 per cent
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
The Seventh Development Plan has been published by the Saudi Government and details the economic policy plans for the next few years.
Important key growth events in Saudi Arabia include the following:
- Investments in railways, oil and gas.
- Foreign investments into various gas projects.
- Major projects for manufacturing 2006–2009.
- SAGIA investment licences increase in numbers.
- Banking sector to see further growth, is highly profitable and continues to perform well.
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Political climate
Saudi Arabia is a monarchy ruled by a King chosen from and by the Al Saud family members. King Abdullah rules through royal decrees issued in conjunction with the Council of Ministers and its members are appointed by the King.
Islamic law is the basis of the authority of the monarchy and provides the foundation of the country’s conservative customs and social practices. |
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Saudi Arabia is a member of the Gulf Co-operative Council (GCC), and Organization of Petroleum Exporting Countries.
The six countries of the Gulf Cooperation Council (Bahrain,
Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) have
announced the formation of a Customs Union that is currently being
phased in over the next few years. Reports have indicated that the
Union will eventually eliminate all fees, taxes, customs and other
obstacles to trade between the member countries. A standard tariff of
five per cent will then apply to most imports from countries outside
the GCC Customs Union.
A preliminary assessment of the customs union, based on available reporting indicates that:
- The standardisation of customs requirements and procedures will benefit exporters active in multiple GCC markets.
- The tariff will eventually be applied at any port of entry to
the customs union, which will positively impact on exporters of
transhipped goods - who may now pay only one customs duty.
- The tariff of five per cent is significantly lower than that
currently applied in some GCC markets, but is also higher than that
applied in others, with mixed implications for Australian exporters.
- It is likely that many goods currently exempt (particularly
basic foodstuffs and manufacturing inputs) will maintain their
duty-free status (where it currently exists). Though some goods
currently exempt from duty may have a five per cent duty imposed on
them.
- A list of products will be exempt from the maximum five per
cent tariff to protect local GCC industry. It is anticipated that this
list will not be finalised until 2004. Restrictions on passage of
certain products through GCC countries will also apply. For example it
is currently a requirement for meat products exported from Australia to
Saudi Arabia be shipped direct (with transhipment through Singapore
only being allowed).
- Australian exporters will not be disadvantaged vis-à-vis
competing international suppliers. GCC country suppliers will enjoy a
five per cent tariff advantage vis-à-vis Australian and other overseas
competitors in those product areas where competing GCC suppliers exist.
Very few products from Australia compete with GCC countries and so
Australia’s competitive position - even if a duty is applied - should
not be affected to any significant degree.
There remain a number of issues yet to be resolved between the six
member states. In the short-term, exporters are advised that import
requirements and procedures for many GCC markets remain unaffected.
Transition periods of two years or more exist on a range of industries.
Transition periods also exist for the implementation of general
product, and food safety standards, with a genuine common market not
anticipated until 2007.
In the longer-term, Australian exporters will be required to
develop greater brand recognition and uniformity in and between GCC
markets and will have to guard against pricing disparities between GCC
markets which might trigger competition among different GCC agents and
distributor.
The Customs Union will promote trade and investment in the Gulf
countries and is expected to continue to provide opportunities for
Australian exporters. Australian trade with the GCC shows total
exports valuing A$3.9 billion in 2003. It is also recommended that
exporters check with their customers in GCC countries, and shipping
agents to verify customs requirements.
Major Australian exports to Saudi Arabia (2006-07)
- Passenger motor vehicles – A$1,185 million
- Live animals – A$126 million
- Meat (excluding bovine) – A$93 million
- Cheese and curd – A$87 million
Major Australian imports from Saudi Arabia (2006-07):
- Crude petroleum – A$536 million
- Liquefied propane and butane – A$195 million
- Fertilisers (excluding crude) – A$92 million
- Glassware – A$8 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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