|
| |
CHAPTER 4
REACHING THE SAUDI ARABIAN MARKET
Saudi Arabia is a country full of actual and potential business and investment
opportunities. However, it should be noted that the Saudi Arabian market is highly
competitive and business transactions take place on the basis of quality and cost. In
addition to the availability of an advanced and continually upgraded infrastructure, the
following factors facilitate foreign investments in Saudi Arabia:
- Free entrepreneurial spirit, respect for private ownership and an energetic private
sector.
- Availability of capital, convertibility of the Saudi Riyal to hard currencies and
stability of exchange rates.
- Protection of trade marks, patents and copy rights.
- Absence of controls on capital movement and repatriation of profits.
- Availability of an advanced and excellent banking system.
- A liberal tax system.
ESTABLISHING BUSINESS CONTACTS
American individuals or firms contemplating doing business in or wishing to export
their products to Saudi Arabia are required to look for a Saudi Arabian partner, an import
agent or local representative in close proximity to the Saudi Arabian market. The standard
form of "CONTRACT OF AGENCY OR DISTRIBUTORSHIP" is presented in appendix XIII.
Establishing personal and direct contacts with the Saudi business community is the key
to business success in the kingdom. When contemplating doing business in Saudi Arabia,
potential investors are urged to make use of the following channels of business contacts:
- The Saudi Chambers of Commerce and Industry located in the major urban centers of the
Kingdom should be contacted, as a matter of priority, to find a representative,
distributor, partner or agent in Saudi Arabia. Names of various products and Saudi
importers of those products could also be obtained directly from these Chambers.
Credibility reports about prospective Saudi business partners are often available at these
Chambers. (A list of Saudi Chambers of Commerce and Industry with their addresses and
telephone numbers, is supplied in appendix IV).
- The Saudi Chambers of Commerce and Industry publish trade directories of their
respective business communities. These can be obtained by contacting the appropriate
Chamber directly.
- Various advertising agencies and newspapers in the Kingdom should be contacted to
utilize their services for advertising export products. Additionally, some of the major
Chambers of Commerce and Industry, located in important urban centers, have their own
periodicals and may publish, upon request and for a fee, information relating to
commercial offers, "Wanted" advertisements and others. (A list of Saudi Dailies,
Weeklies and Advertising Agencies is provided in appendix
VII).
- In addition to its role as a part of the Kingdom's diplomatic mission to the U.S., the
Commercial Office of the Royal Embassy of Saudi Arabia in Washington, D.C., the publisher
of this guide (see appendix II for address), provides the American business community with
information about Saudi business regulations and procedures, and means of doing business
in the Kingdom. It also facilitates commercial contacts, sponsors Saudi business shows,
exhibits and trade missions to the U.S., participates in seminars, meetings, conferences,
etc., that promote U.S.-Saudi business and trade, and mediates commercial disputes between
American and Saudi companies, if both parties are willing to cooperate in order to reach
an out-of-court amicable solution.
- U.S. firms are encouraged to take advantage of the opportunity to attend trade shows or
to participate in U.S. trade missions to Saudi Arabia. The Office of the Near East, at the
U.S. Department of Commerce (14th Street and Constitution Ave., N.W., Washington, D.C.
20230, Tel: (202)482-870) offers market information, identifies trade leads and promotes
trade shows and U.S. trade missions to Saudi Arabia. Information regarding U.S. trade with
Saudi Arabia and related Department of Commerce services is available via the automated Flash
Fax hot line, which may be accessed by dialing (202)482-1064. In addition, the
Department's District Offices provide a number of export promotion services, including the
Agent/Distributor Service, which identifies Saudi Arabian agents/distributors who
are capable of handling your business matters in the Kingdom, and the World Traders
Data Report, which evaluates potential trading partners overseas.
- It is advisable to personally visit the Kingdom to establish direct contacts with the
Saudi business community. In order to obtain a short visit business visa, normally valid
for one to three months, the nearest Saudi Arabian Royal Embassy or Consulate should be
contacted. (A list of Saudi Arabian Offices in the U.S. is provided in appendix II, and a
list of Saudi Diplomatic Missions in the rest of the world is given in appendix III).
| |
|
