(Last updated: 31 Mar 2011)

Current business situation

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.

Country overview

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

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.

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 2008–2012.
• SAGIA investment licences increase in numbers.
• Banking sector to see further growth, in spite of the global financial crisis and continues to perform well.
• Major infrastructure projects.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

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.

Trade relations and statistics

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 formed a Customs Union. 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.

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. It is recommended that exporters check with their customers in GCC countries, and shipping agents to verify customs requirements.

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.