Kingdom of saudi arabia

KINGDOM OF SAUDI ARABIA

Prepared by: MARY ROSE F. MONTANO

COUNTRY PROFILE: SAUDI ARABIA

Formal Name: Kingdom of Saudi Arabia (Al Mamlakah al Arabiyah as Suudiyah).

Short Form: Saudi Arabia. Term for Citizen(s): Saudi Arabian(s) or Saudi(s). Capital: Riyadh (estimated population 3.6 million). Major Cities: Population estimates for 2006 show

continued growth for Saudi Arabia’s major urban areas: Jeddah (2.9 million), Mecca (1.6 million), Ad Dammam/Khobar/Dhahran (1.6 million), and Medina (854,500). Mecca and Medina have religious significance that far outweighs their respective populations.

MAIN CITES Makah Riyadh

Jeddah Khobar

Independence: 23 September 1932 (Unification of the Kingdom)

Public Holidays: Eid al Fitr and Eid al Adha September 23 as their Independence Day.

Flag: The Saudi flag features white lettering on a green background. Below the letters, also in white, is a sword.

BACKGROUND AND LEGAL SYSTEM LEGAL SYSTEM: Islamic Law (Shari’ah).

POLITICAL SYSTEM: Monarchy.

HEAD OF STATE: King. The Saudi Arabian Basic Law mandates that the the one remain in the possession of the sons and descendants of the

kingdom’s founder. HEAD OF GOVERNMENT King.

SUBNATIONAL ENTITIES Saudi Arabia is divided into 13 provinces (mintaqat,

singular mintaqah). Each province is governed by a prince or member of the royal family. The capital city is

Riyadh, located in the province of Riyadh. SUBLOCAL ENTITIES Cities.

LANGUAGE Arabic.

POLITICAL SYSTEM • The political system abides by

Arabic and Islamic laws as a basic legislative branch.

• The King appoints a Crown Prince to help him with his duties.

• There are 22 ministries that are part of the Cabinet. Each ministry specializes in a different part of the government.

• The Cabinet is advised by a legislative body called the Consultative Council (Majlis Al-Shura), The Council proposes new laws and amends existing ones. It consists of 150 members that must be of Saudi nationality and highly-skilled to be able to handle their responsibilities.

Legislative Branch - Consultative Council or Majlis al-Shura (120 members and a chairman appointed by the monarch for four year terms)

Executive Branch - cabinet: Council of Ministers is appointed by the monarch and includes many royal family members elections: none; the monarch is hereditary

Judiciary Branch - Supreme Council of Justice.

MINISTRY OF CIVIL SERVICE

Ministry established in 1999, with Dr Muhammad bin Ali Al-Fayez as its first Minister. It is the function of the Ministry to plan the civil manpower required in the government sector and to ensure that the competence of civil servants matches the requirements of the Kingdom as it implements its various development programs.

LEGAL BASIS Royal Decree No. 49 of 1977 to promulgate

Civil Service Regulations. Um Al Qura, pp. 1-10

Ministerial Council Decree No. 178 of 2009 (1/06/1430 Hijri). Umm Al-Qura, 2009-06-19, No. 4258, pp. 5-7

Civil Service Council Decree No. 1/1352, 13/9/1429 on the Minimum Age for Specific Groups of Civil Servants. Umm Al-Qura, 2009-01-16, No. 4236, P. 7

Decree No. 1/1285 of the Council of Civil Service. Umm Al-Qura, 1008-04-18, No. 4197, P. 4

RECRUITMENT: All civil servants were ranked according to grade, and advancement depended on merit and seniority.

Promotion/Staff Evaluation Process: Each employee must aim to attain "excellent" in his/her performance evaluation.

Training: The Institute of Public Administration (IPA) mainly provides short-term in-service training for civil service employees

Gender: Most formally employed females in the Kingdom are working in the services sector, particularly in education, health and social services. While no female as yet occupy a ministerial or a legislative post in Saudi Arabia, many hold sub-cabinet and senior government positions mainly in the education, health or social services sectors.

Working Days: Saturday to Thursday

Working Hours: 7:30 AM to 2:30 PM

Official Holidays : Eid al-Fitr, Eid al-Adha and Kingdom National Day

Retirement age: 60 for men and 55 for women

Employee Benefits: Medical insurance

LEAVE BENEFITS (SAUDI LABOR LAW) Vacation/Annual Leave - a yearly fully paid

vacation of thirty-six (36) days Maternity Leave- period of sixty (60) days

minimum from date of giving birth Sick Leave - Saudi employees are entitled to full

salary sick leave of six (6) months, half salary for the second six (6) months, quarter salary for the third six (6) months and with no salary for another six (6) months within four years.

Compensatory Vacation (Eid Holiday) Regular Feast Vacations - “Eid Al Fitr” vacation

usually starts on twenty-fifth (25th) day of Ramadan, and ends on the fifth (5th) day of Shawal. “Eid Al Adha” starts on the fifth (5th) of Dhul Hijja and ends on the fifteenth (15th) of Dhul Hijja.

National Day Vacation – September 23 Educational Leave - (14) days per academic year is

given to Saudi employees and seven (7) days per academic year to contracting employees.

Emergency Leave - entitled to not more than five (5) days emergency leave in the Fiscal year

Infant Care Vacation - This vacation is for a maximum of three (3) years during her whole service in the government.

Attendance Vacation - In case a Saudi employee is obliged to accompany one of his/her relatives for treatment, he/she is entitled to take vacation if the required period is more than the due normal vacations. He/She can take extra vacation period and it will be dealt with as paid Sick Leave

Mourning Leave - In case of death of her husband, a Muslim female employee, Saudi or non Saudi, may have a fully paid leave during the whole period of mourning

External Representation Vacation

Accompanying Leave - leave is taken to accompany spouse (husband or wife) who will study outside the Kingdom; may be granted unpaid leave for a maximum of six (6) years

Study Leave - A Saudi employee who wants to complete his/her studies and his/her application for leave could not be granted may apply for study leave without pay and be given for the whole study period. His/Her job number is kept until he/she returns

Unpaid Leave - Leave without Pay results in absence beyond the number of days provided as legitimate in the employee contract.

Examination Leave - employee who is studying may be granted fully paid leave during the day/s of the examination, provided that the examination is not repeated

EMPLOYEE COMPENSATION AND ALLOWANCES

Salary - the employee monthly salary is according to the salary scale. The salary of Non Saudis employees is based on contract. Salary is paid in Saudi Riyals on the twenty fifth (25th) of each Hegira Month.

Housing Allowance - Housing allowance given is equal to three (3) months salary per year and is given all at once. It must not be less than eight thousand (8,000) Saudi Riyals and not more than fifty thousand (50,000) Saudi Riyals.

Transportation Allowance - provided to female employees who are living outside with their husband or family. Male employees are also provided with transportation allowance. The amount depends on the amount of the current basic salary.

Furnishing Allowance - The Ministry of Health pays furnishing allowance to its expatriate employees amounting to fifty per cent (50%) of their initial basic monthly salary and paid at the beginning of the contract. This allowance is not provided for employees hired locally

End of Service Reward - In case of non renewal of contract, the Ministry pays End of Service Reward to its employees. This is fifty per cent (50%) of the latest basic salary for each year of service, provided that the employee spent a minimum of three (3) consecutive years with KSMC. This reward is to a maximum of fifty thousand Saudi Riyals (50,000 SR).

Hajj Duty Compensation - The Ministry of Health pays a reward to those employees, who work during Hajj period in Holy Places. Payment is based on the current salary of the employee

EDUCATION• The education system in Saudi Arabia is free and

mandatory for males and females until the high school level.

• Undergraduate level is also free for citizens, in addition the government provide the student with monthly salary during their study at the university.

• The government allocates over 25% of the total budget to education including vocational training, and spends around 14 billion U.S. dollars on primary education and research

• The government offer a scholarship program to send young Saudi nationals to the most prestigious universities around the world for undergraduate and postgraduate studies. The program offers funds for tuition and living expenses.

• An estimated 150,000 Saudi students received government scholarships to study abroad.

Noneconomic Analysis

CULTURE VALUE • Saudi traditions are rooted in Islamic

teachings and Arab customs, which Saudis learn about at an early age from their families and in schools.

• Generosity and hospitality, is an age-old traditions have evolved over the millennia and are highly regarded.

• The simplest expression of hospitality is coffee its preparation alone is an intricate cultural tradition, and it is often served in small cups along with dates and sweets. Another gesture of hospitality is the burning of incense (oud) to welcome guests.

CULTURE VALUE - CLOTHES

• On top of it, (doubled black rope-like cord) called "Igal". Then, a full-length, loose garment with long sleeves called "Thawb“

• As for the women, there is no specific clothes since women like to follow fashion. However in public places she put over her clothes black cloak called "Abaya“ that prescribe modesty to reflect the Saudi woman’s identity.

• The types and shapes of clothes and accessories differ from one province to another. The Saudi official clothing for men consists of (triangle cloth from linen worn over the head) called "Shimaq"

CULTURE VALUE - THE FOLKLORE• The folklore in Saudi Arabia is

based on the theme of unity and groups. It is comprised of enthusiastic songs and games that express Arab customs and traditions.

• The national dance, “Ardha”, is an ancient tradition with its roots in the country’s central area. The Ardha used to be performed before a battle by soldiers and involves singing, dancing with swords and poetry. This dance is one of the key performances in Saudi Arabia’s most famous cultural event, the “Jenadriyah” Heritage and Cultural Festival.

ECONOMIC VALUE • Taxation: in Saudi Arabia the government do not

apply income tax since it is not permitted, As in view of Islam instructions “what you work hard to earned it, is yours without deduction”, rather than that people pay what is called the “Zakat” (Charity) in annual basis 2.5% assessment of a person's net personal wealth given for poor people, it is not obligated by the government, it is between each person and god.

• The Saudi Riyal “SR” is one of the most stable currencies in the world pegged to the US Dollar at a rate of 1 USD = 3.75 SR. There was no significant change in its exchange value during the last 3 decades.

• There are no restrictions on foreign currency exchange and outgoing money transfers.

Gastronomic Value

GASTRONOMIC VALUE • Some types of Saudi foods became

dominant all over the provinces despite the different social and economic segments of the Saudi community.

• Most of the cuisines have many nutritional benefits and high calories that give the body the power to work.

• Their ingredients are brought from the materials available in the local environment.

The arrival of a guest at one's home is an event that leads to a special meal in honor of the visitor.

GASTRONOMIC VALUE - DISHES• Most of Saudi cuisines contain rice, wheat, meat,

vegetables and spices that give them special flavor. The most famous dish is “Kabsa” it is prepare from rice and meat or chicken with special spices.

• Another popular dish is “Jarish” which prepared by cooking wheat and “Laban”(kind of sour milk) and adding spices to it and served with chopped hot pepper, onion and pour over with the ghee

Bean with bread

Chicken Kabsa Jarish Dates covered with nuts

SOCIETY VALUE• Saudis take their responsibilities to their family

quite seriously.

• Families tend to be large, although nowadays families became smaller, however the extended family is quite close.

• Alcoholic beverages and Pork are not allowed.

• Being generous with the guest and helping the poor are the most prominent traditions of Saudi people since they organize big feasts during occasions and invite everyone.

• Show respect for the elders by greeting them first.

• Husbands' and wives' duties are mutual responsibilities. They might not be identical duties, but the totality of rights and responsibilities are balanced.

SOCIETY VALUE - PARENTS

• The Saudis Inspired the relation with their parents, from this quote "Your Lord has decreed that you worship none but Him and that you be kind to parents. Whether one or both of them attain old age in your life, say not to them a word of contempt, nor repel them, but address them in terms of honor. And out of kindness, lower to them the wing of humility and say, "My Lord! Bestow on them Your Mercy even as they cherished me in childhood." [Noble Quran 17:23-24]

• Parents has a great status and that derived from both Arabic and Islamic culture, that commands kindness, respect and obedience to parents and specifically emphasizes and gives preference to the mother as said in a famous narration 'Paradise lies at the feet of your mother'

SOCIETY VALUE - MARRIAGE

• The full maintenance and support of the marriage are the entire responsibility of the husband, even though the wife might be richer than he is. She doesn't have to spend a penny.

• During marital life if the wife has any earnings, by way of investments of property or as a result of work, she doesn't have to spend one penny of that income on

• At the time of marriage, it is the duty of the husband, not the bride's family. He is supposed to pay for a marital gift. It is exclusively the right of the wife.

• Wife do not take her husband's name after marriage and keep the name of her father and family.

the household, it is entirely hers and the husband responsible to cover all family expenses alone, if she decide to contribute it is her choice but she is not obligated.

Banking System

BANKING SYSTEM • Saudi Arabia has a modern banking industry with 13 commercial banks. Saudi

banks provide retail and corporate banking, investment services, brokerage facilities, and derivative transactions in addition to credit cards, ATMs and point-of-sale transactions.

• There are also banks in the Kingdom that provide Islamic banking services. Islamic banking is a system of banking that is consistent with the principles of Islamic law (Shari’ah). It prohibits usury, the collection and payment of interest.

• Saudi Arabia also has a thriving stock market. The total value of shares traded annually is some SR 60 billion [US $16 billion].

• The Tadawul All-Share Index (TASI) of the Saudi stock market is one of the most highly capitalized stock exchanges in the Arab world. TASI was also one of the first exchanges globally to set up a full electronic clearing and settlement system with immediate transfer of ownership.

FINANCE SYSTEM • The banking and finance sector is overseen by several

government agencies. The Ministry of Finance

supervises economic policies. The Saudi Arabian

Monetary Association (SAMA) manages fiscal policy,

issues the country’s currency, the Saudi Riyal and

oversees the nation’s commercial banks

• The government has also established five specialized

credit institutions to provide loans to citizens for

development projects in agriculture, industry and

construction – the Saudi Industrial Development Fund

(SIDF), the Saudi Arabian Agricultural Bank (SAAB),

the Real Estate Development Fund, the Public

Investment Fund and the Saudi Credit Bank.

Economic Analysis

Data 2007 2008 2009 2010 2011 2012 2013 2014

GDP Growth 5.99% 8.43% 1.83% 7.43% 8.57% 5.81% 3.95% -

Unemployment 5.70% 5.10% 5.40% 5.40% 5.80% 5.60% 5.70% -

Inflation 4.19% 15.33% -18.93% 14.28% 17.06% 3.60% -1.90% -

Fiscal deficit 62509 164012 -17567 27349 80416 108153 65074 -

Balance of payments 93379 132322 20954 66750 158545 164764 132640 -

GDP current prices 415909 519796 429097 526811 669506 733955 748449 -

Public Debt 71140 62628 60113 44467 36149 26331 20026 -

GDP per capita current prices 16048 19714 16013 19326 24116 25945 25961

-

Trade (% GDP) 94.86% 96.10% 84.86% 82.77% 85.76% 83.74% 82.42% -

Public Debt (% GDP) 17.10% 12.05% 14.01% 8.44% 5.40% 3.59% 2.68% -

Fiscal Deficit (% GDP) 15.03% 31.55% -4.09% 5.19% 12.01% 14.74% 8.69% -

MACRO ANALYSIS 1

Corruption Index

Year Position Index

2014 55º 49

2013 63º 46

2012 66º 44

2011 57º 44

2010 50º 47

2009 63º 43

2008 80º 30

2007 79º 34

Competitiveness index

Year Position Index

2014 20º 5.1

2013 18º 5.19

2012 17º 5.17

2011 21º 4.95

2010 28º 4.75

2009 27º 4.72

2008 35º 4.55

MACRO ANALYSIS 2

Major Imports & Exports PartnersMajor Exports partners

Rank Country 20121 U.S.A. 2083392 Japan 1922013 China Mainland 1882294 South Korea 1335855 India 120841

 Major Imports partnersRank Country 2012

1 U.S.A. 787702 China Mainland 741953 Germany 413674 Japan 389895 South Korea 35467

Major Exports items  Section Title 2012

1 Mineral Products 1266389

2 Chemical Products 68342

3 Plastics & Rubber 58492

4 Transportation Equipment 13884

5 Machinery & Electrical Equipment 10743

Major Imports & Exports Items

Major Imports items  Section Title 20121 Machinery & Electrical Equipment 154096

2 Transportation Equipment 1035443 Base Metals 803764 Chemical Products 482095 Vegetables & Vegetable Products 31324

Country Saudi Arabia Iran

National AccountsGDP 2013 748.450 M.$ 368.904 M.$ 2013

GDP per Capita 2013 25.962$ 4.763$ 2013

Debt 2013 20.026 M.$ 41.300 M.$ 2013

Debt (% GDP) 2013 2.68% 11.25% 2013

Debt (per capita) 2013 695$ 536$ 2013

Deficit 2013 65.074 M.$ -3.567 M.$ 2013

Deficit (% GDP) 2013 8.70% -0.97% 2013

Public Expenditure 2013 282,593.30 57,128.70 2013

Education Expenditure 2008 26,691.30 9,785.80 2012

Education Expenditure (%) 2008 17.74% 16.08% 2012

Healthcare Expenditure 2012 15,480.50 10,769.70 2012

ECONOMIC COMPARISON 1

Country Saudi Arabia Iran

National AccountsMilitary Expenditure 2013 67,277.00 8,409.10 2012

Military Expenditure (% Public Expenditure)

2013 23.81% 13.82% 2012

Public Expenditure (% GDP) 2013 37.76% 15.56% 2013

Public Expenditure Per Capita 2013 9.802$ 738$ 2013

Education Expenditure Per Capita 2008 1.012$ 128$ 2012

Healthcare Expenditure Per Capita 2012 547$ 141$ 2012

Military Expenditure Per Capita 2013 2.334$ 110$ 2012

Rating Moody's 2010 Aa3 -  - 

Rating S&P 2007 AA- -  - 

Rating Fitch 2014 AA B+ 2006

Economic Comparison 2

REFERENCES: Saudi Arabia, Ministry of Justice, http://www.moj.gov.sa CIA – The World Factbook – Saudi Arabia, https://www.cia.gov/cia/publications/factbook/geos/sa.html (last visited October 7, 2006). The Royal Embassy of Saudi Arabia, http://www.saudiembassy.net (follow “About Saudi Arabia” hyperlink; then follow either “Government” or “Laws” hyperlinks) (last visited October 12, 2006). Saudi Arabia Information Resource, http://www.saudinf.com (follow either “Judicial System” or “Government” hyperlinks) (last visited October 12, 2006). Arab Political Systems: Baseline Information and Reforms – Saudi Arabia, http://www.carnegieendowment.org/files/saudi_arabia_aps.doc (last visited October 7, 2006). UN, Department of Economic and Social Affairs (DESA) (2004). Kingdom of Saudi Arabia: Public

Administration Country Profile. Available at: http://unpan1.un.org/intradoc/groups/public/documents/un/unpan023182.pdf

Wikipedia• http://en.wikipedia.org/wiki/Saudi_Arabia• http://www.lomarthobe.com/shopping/• http://www.freewebs.com/ummhadiyah/jilbabsandabayas.htm•

http://www.middle-east-online.com/english/?id=40034• http://maluszeq.blogspot.com/2010/09/wear-hijab-day.html• http://arjanphoto.com/index.php?option=com_phocagallery&v iew=category&id=40&Itemid=93•

http://www.palmwonders.com/content/about-dates/• http://www.linguanaut.com/english_arabic.htm

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