Free Essay

Gold in Saudi Arabia

In: Business and Management

Submitted By cutz
Words 1906
Pages 8
1 – PURPOSE
The sole purpose of offering physical precious metals to the ARB clients is to increase the product offerings to its client, which in turn will increase the profitability and the bottom line of the bank. It has been established that Gold and Silver retailers, who are among ARB corporate clientele, usually buy USD from ARB and use the funds to acquire their precious metals from ANCB. Hence, herein lies the market basis of the proposed offering for the precious metals. Currently, ANCB is the only organization in the financial trade market that deals in the trade of precious metals and ARB envisions it to be its only competitor. ARB will limit itself to the corporate clients, who buy on a continuous and regular. Seasonal request to buy either gold or silver by private and affluent clients will not be accommodated.

2 – EXECUTIVE SUMMARY
3 – INTRODUCTION
Precious metals have been traded for eons. Fairly common are gold and silver which apart from their ornamental value, they have a variety of industrial and commercial uses. Among these precious metals, gold has been chosen as a special interest metal. Gold is a precious metal that a whole industry has developed and evolves into a multibillion-dollar industry led by huge corporations. The gold industry is stratified with many major and minor players working together. Key among these relevant stakeholders includes the mining companies, the gold processing companies, gold traders, and consumers.
Gold mining is one of the most intensive, which is carried out extensively around the world. The World Gold Council (WGC), a market development organization, puts the production of gold globally to be in the region of 3,000 Metric tons. The figure produced globally does not meet the quantity demanded. The low supply and high cost of setting up a mine prohibits the possibility of gold reducing in price.
The key areas of focus of the new precious metal division of the ARB will be to offer the clients of precious metals affordable rates that are lower than what the competition offers them. At the same time, deliver on authenticity and quality. The ARB Treasury will be the sole custodians of such precious metal and thus bear extra risks with minimal risks to the bank.
Background
-The Process involved in Gold acquisition
-Permits
-method and mode of sale to clients
-Hiring of new managers and new staff
-Legal issues involved by a bank selling precious metals
-Research pertaining the involvement of banks in sale of precious metals
-Any market research done by ARB
Business Objective
The business objective for the new precious metal offering to the ARB clients is to improve and gain on profitability. As such, the revenue streams for the precious metal business must always be more than the overhead costs. In order to realize profitability as a business objective, the management will work together with all the other stakeholders to control costs involving operations and production with the view of maintaining a healthy profit margin. Moreover, the management has to conduct a comprehensive competitive analysis so that the new arm of ARB understands where its products will be ranked in the marketplace.

Industry Outlook
The industry outlook of the bullion market in the Kingdom of Saudi Arabia is made up of manufacturers, distributors, and the bottom of the industry comprising retailers and traders. It is important to notice that some large commercial banks operating within the Kingdom offer banking products that are based on gold. However, there is an absence of a centralized exchange for gold trading. Two key gold trading centers include Riyadh and Mecca. Sale of gold is normally high however; it peaks during celebrations such as Hajj pilgrimage, Ramadan, and during wedding periods. Hajj pilgrimage offers the best time for sale of gold since pilgrims come from all over the world visit Mecca.
The WGC in 2014 estimated the number of individuals who partook in the Saudi gold market to be about 7500 traders. In addition, the activities of the traders and retailers yielded approximately USD 8 billion. The amount of money traded by the retailers in 2014 represented a tenth of the wholesale gold market in Dubai. Furthermore, the wholesalers who are located in Dubai often supply other markets in the region apart from those they supply the Kingdom. WGC has figures of gold demanded in the Kingdom relative to its neighbors. For instance, in the year 2015, Saudi Arabia demanded a total of 85 tons of gold jewelry, investment bars, and coins, compared to the UAE, which averaged 60 tons of the gold jewelry, investment bars, and coins. The major exporter of gold in the same year was Switzerland. It exported a total of 46 tons of gold into the Kingdom.
Though the amount of gold imported into the Kingdom is significantly larger than those of its neighbors, the competitiveness of the Kingdom’s gold cannot match those of its neighbors. Of key concern to the gold market players is the 5% levy charged on imported manufactured gold. While on the hand, Dubai for instance charges only 0.5% levy on the same. Furthermore, Dubai does not have stringent visa requirements as compared to those of the Kingdom. Hence, many foreign direct investments are lost in the Kingdom due to the restrictive visa requirements.

Competitive Environment
The Kingdom of Saudi Arabia has an established gold mining sector. Most importantly, the mining sector contributes immensely to the national economy although it is quite small when it is compared to the global gold industry trends and statistics. In the Kingdom, a state controlled company is exploring and developing its gold resources. MA ‘Aden, the state controlled company, produced a total of 5.1 tons.

Another manufacturer is the Riyadh based L’azurde. A company is recognized as the largest manufacturer in the Middle East and the Kingdom in the gold jewelry industry. The company has spread its operation to Egypt, North Africa, where it is a major distributor. In addition, L’azurde established a refinery in Riyadh, which has the accreditation of the London Billion market Association. In addition to L’azurde, Al-Moallim is another important player in the lucrative luxurious gold jewelry sector.
Apart from the gold manufacturers, some Saudi banks also offer gold products. The National Commercial Bank issues its customers gold accounts, which they will able to trade in gold. Another bank, which offers gold, accounts for holding and is the Arab National Bank.
Profitability
The demand and hence profitability of the gold trade in Saudi Arabia closely rely on socio economic factors, global price and the physical buyers. However the interests that have been shown by both the manufactures and the retailer’s points out to a profitable environment. However, small retailers are being edged out while the manufacturers are setting up and operating their own retail outlets.
Regulatory
The gold trading in the Kingdom of Saudi Arabia is closely monitored and regulated. The Saudi Arabian Monetary Agency (SAMA) is the sole body that manages the gold reserves of the Kingdom. In addition to the regulation set by SAMA, there exists a Precious Metal Chamber, which represents the interests of the Saudi gold industry.

Product Rationale
Gold is a long term investment for our customers and we believe that bullion trading for us will remain a profitable venture for us. The trends currently point out to a high gold price presently and in the future. * In our opinion, the demand outlook for gold is good for the traders. The risk of inflation in the long-term is appreciated. Hence, the demand will be strong as it makes gold a strong investment in the coming future. The amount of bullion demanded by the corporate clients will be higher when the volatility in prices do down. * The current low supply of mined gold as compared to previous years is supportive of higher prices. The supply of above ground stocks of gold cannot match the increased demand that has been brought by the higher gold prices. Hence, we feel that the increasement in demand for gold will continue pushing gold prices, hence giving us a lucrative position as traders of bullion in bulk. * During the past decade, some of the key corporate clients like the central banks of numerous countries have been the net source of supply in the bullion trading market. The central banks are bulk holders of gold. However, there is a major shift in behavior by the central banks. For instance, the central banks have turned into large source of demand for gold. The impact of such a drastic change in demand offers us an opportunity to position ourselves as major players in the trading of gold. * Currently, we hold on to the belief that although the prices of gold are high, the true value of gold is still understated. When the value of gold is understated, corporate and some private investors take the position of buying and hoarding the metal. It is our understanding that this situation is currently happening as clients are currently buying and taking the golf of the market.

Key Benefits to Customers
According to the Saudi Arabian Law, a bank may sell precious metals to the customer in any amounts. The ARB bank focus will be on corporate clients. The key benefits to customers who will make gold purchases from ARB include: * For every purchase of bullion made under the ARB, the bank will issue a quality certificate that shows the authenticity and quality of the bullion * ARB bank has the relevant storage facilities for gold. In the event that the clients want the bank to store/hold their gold, the service will be readily available for safe keeping * ARB bank in its fleet has specially amoured vehicles and professional staff who are well versed in the handling and transportation of high value products. Hence, gold purchased from the bank will be safely, securely, and conveniently transported by the bank from its vault to the customers preffered location. * The purchase of gold and other precious metals offered by the bank will be confidential. Any transaction made between the bank and its clients wll be private, and as such, the clients will benefit from the privacy offered by the bank. * ARB would offer its client the possibilities of effecting payment by the use of bullions in other countries. * Moreover, due to the high liquidity of bullion, the bank will ensure that its customers get a twenty-four round the clock access to their bullions. Hence, they would be able to trade online at a touch of a button or secure a loan through with them.

Product Description
In its basic state, gold is a commodity. The intrinsic value place on gold is what sets its apart from the other precious metals. The demand for gold far outstrips supply. Gold has to be mned from the deep bowels of the earth. The process of mining is often timng consuming and an expensive affair. However, previously mned gold which had been used for various products is often resmelted and is known as above ground gold. The presence of these two sources of gold still does not effectively meet the bulging demand. The need to step into the demand driven gold market is thus a well thought move for the bank.

Product features
Gold is coveted by humans and it is the best metal used in making jewelry. It is a rare metal with a distinctive yellow color…...

Similar Documents

Premium Essay

Saudi Arabia

...Business Cultural Analysis Outline Saudi Arabia 1. What are the major elements and dimensions of culture in this region? 1.1. Introduction 1.1.1. Brief history of Saudi Arabia 1.2. Communication 1.2.1. Verbal and Nonverbal 1.2.2. High Context vs. Low Context 1.3. Languages 1.3.1. Arabic is the official language 1.3.2. English is widely spoken 1.3.3. Other languages spoken by non-Saudi population 1.3.3.1. Urdu 1.3.3.2. Farsi 1.3.3.3. Turkish 1.4. Religion 1.4.1. Islam 1.4.2. Christianity 1.5. Ethics 1.5.1. Business Ethics in Saudi Arabia 1.5.2. Issue of Corruption 1.6. Values and Attitudes 1.6.1. Concept of time/time management 1.6.2. Dealing with change 1.6.3. The role of gender 1.6.4. Social Status 1.7. Business Manners and Customs in Saudi Arabia 1.7.1. Business etiquette 1.7.1.1. Relationships and Communication 1.7.1.2. Business Meeting Etiquette 1.7.1.3. Business Negotiating 1.7.1.4. Dress Etiquette 1.7.1.5. Business Cards 1.7.2. Customs 1.8. Social Structures and Organizations 1.8.1. Social groups 1.9. Education 1.10. Hofstede's Dimensions of Culture 1.10.1. Individualism in Saudi Arabia 1.10.2. Power Distance 1.10.3. Masculinity 1.10.4. Uncertainty Avoidance 2. How are these elements and dimensions integrated by locals conducting business in the nation? 2.1. Integration of communication in local business 2.2. Integration of language in local business 2.3. Integration of religion in local business 2.4. Integration of ethics in local business 2.5. Integration of......

Words: 432 - Pages: 2

Free Essay

Saudi Arabia Exports and Imports

...Part I The Kingdom of Saudi Arabia is the largest country in the Arabian Peninsula. Saudi Arabia’s population is 27 million, including 8.4 million foreign residents (2010 census), and its capital city is Riyadh. Saudi Arabia’s geography is diverse, with forests, grasslands, mountain ranges and deserts. The climate varies from region to region. Temperatures can reach over 110 degrees Fahrenheit in the desert in the summer, while in the winter temperatures in the north and central parts of the country can drop below freezing. Saudi Arabia gets very little rain, only about four inches a year on average. Saudi Arabia is a monarchy based on Islam, which in turn has a government that is headed by the King, who is also the commander in chief of the military. One of the few monarchy’s left in the world, their power and influence continues to increase because of their natural resources as well as workforce diversity for foreigners. The King governs with the help of the Council of Ministers, also called the Cabinet (Saudi Embassy). There are 22 government ministries that are part of the Cabinet. Each ministry specializes in a different part of the government, such as foreign affairs, education and finance. Since the beginning of the first Saudi state in the 18th century through the founding of the modern Kingdom of Saudi Arabia by the late King Abdulaziz bin Abdelrahman Al-Saud on September 23, 1932, Shari'ah (Islamic law) has been the pier and source of Saudi Arabia's basic......

Words: 1830 - Pages: 8

Premium Essay

Saudi Arabia

...ECONOMICS II THE ACCESSION OF SAUDI ARABIA TO THE WTO ANALYSING THE FUTURE CHALLENGES SUBMITTED BY: AKANKSHA PRAKASH I.D.NO.: 1785 IIND YEAR B.A.LL.B. {HONS.} TABLE OF CONTENTS RESEARCH METHODOLOGY___________________________________________________________2 INTRODUCTION_________________________________________________________________________3 THE ACCESSION OF SAUDI ARABIA TO THE WTO: AN ANALYSIS OF THE FUTURE CHALLENGES____________________________________________________________________________4 • Objectives________________________________________________________________________4  Diversification of the economy______________________________________4  Development of modern infrastructure________________________________4  Access to Foreign Direct Investment (FDI) and modern technologies________4  Enhancement of purchase power of the population_______________________4  Employment Generation___________________________________________5  Maximization of competitive advantage in petrochemicals________________5  Open Access to international Market__________________________________5  Open Access to international Market__________________________________6  Integration of Saudi Arabia’s economy with the global economy____________6 • Reforms__________________________________________________________________________6  Foreign Investment_______________________________________________7  Trade in......

Words: 4341 - Pages: 18

Free Essay

Saudi Arabia

...My first day in United States Why many people from Saudi Arabia choose the United States to study? Why did I choose the United States to complete my master’s degree? Many people choose the U.S.A because to many things for example, there are a lot of universities in U.S.A and they are many states in it. My story of my first day in U.S.A and my experience what I learned from one day in the U.S.A maybe I cannot learn ever without I travel to it. My story of travel to the U.S and what I learned from it was interesting. The story begging on the first day for me in the United States. I was really afraid because I could not speak English. I knew just some simple words as yes and no. also, I didn’t know anyone in the U.S.A. when I arrived to Portland’s airport I just took my big and went outside. I saw the taxi and I tried to explain to him where I wanted to go. After ten mints he understood me, but he tried to explain to me it’s a faraway and that cost me a lot of money because I went to Frost Grove. It takes one hour and 30mints. I didn’t understood him but I said okay. When I arrived to the hotel I saw the meter side $150! That time I smiled and I understood what he was trying to say to me. Yes I was shocked when I saw the meter side 150 USD but I learned from this story to be careful next time and I don’t side okay for anyone without I understand him. Next day I went to the U.S bank and first thing I side to the employee was I need translator, because I don’t know what......

Words: 378 - Pages: 2

Free Essay

Saudi Arabia Foreign Policy

...the foreign policy of Saudi Arabia, this paper aims to show the ways in which Saudi foreign policy is unique and then go on to highlight the fact that Saudi policy is characterized by moderation and centrism. Its stance on issues pertaining to security and international relations will be demonstrated to be unique for a Middle Eastern state due a number of inter-linked issues; Saudi Arabia's geographical location as the ‘Heart of Islam', its significant oil reserves, and geo-political security issues. Having highlighted the special conditions in which Saudi foreign policy operates, it will then be argued that Saudi policy is dominated by themes of peaceful diplomacy and centrism, meaning that the Saudi approach to international affairs and security is one of pragmatic real politk rather than the more ideological approach adopted by other states in the region. In making such an argument, we will examine Saudi policy in relation to a number of key issues: the Israel-Palestine conflict and Iranian nuclear disarmament. Saudi Arabia holds a unique position in the Middle East. It is the ‘Heart of Islam' as it is home of to two of the holiest places is Islam, Mecca and Medina. Its oil reserves mean that it is the World's leading exporter of petrol. Furthermore, in the tinderbox-like atmosphere of the Middle East, the Kingdom of Saudi Arabia plays a crucial role of peace-maker in the region and is the closet Middle Eastern ally of the United States. The Saudis have significant......

Words: 1474 - Pages: 6

Free Essay

Management 5360 Saudi Arabia

...Doing Business in Saudi Arabia 1) Prepare a short description of the most striking cultural characteristics that may affect business interaction in this country. Doing business in Saudi Arabia requires significant research if I expect to be successful. There are many cultural differences that must be taken in consideration prior to and during business interactions. The Saudi Arabian culture, its shared values and norms, is distinctly different from our western culture. Saudi Arabian social structure emphasizes a group rather than individualism. Saudi’s are more likely to identify themselves as a part of something (e.g., “I am from Exxon Mobil”) rather than identifying their individual role (e.g., “I am an engineer”). It will also be important to understand the social stratification within Saudi Arabia. Having a working knowledge of the significance of the tribal affiliations as well as the varied groups of which someone can be a part will help me to understand which individuals I need to approach and build relationships with in order to be successful in the region. It will also be incredibly important for me to understand the role of religion, specifically Islam, in the region and how it affects work ethic, business decisions, and simple logistics throughout the day. As Americans, we are focused on our work and we allow very little to get in the way of our accomplishments. Saudi’s are very different. Work is secondary to many things, most notably,......

Words: 1696 - Pages: 7

Free Essay

Saudi Arabia

...Saudi Arabia is a kingdom that located in the Middle East region. It is the leader country in OPIC and that show’s how large is the Saudi’s economic power. The average of the Saudis are educated. From the beginning history of this kingdom, the government showed the importance of education for both men and women. Decades ago, the Saudi government started a project to give scholarships to the students who wants to complete their education abroad. The Saudi culture is very sensitive issue. Most of the Saudis are conservatives. A lot of changes happened in the Saudi’s economy, education, and cultures after five years of king Abdullah being in charge. The Saudi’s economy had major changes in the last five years. Before, the Saudi’s economy was relying on the oil business. Today, the Saudi economic policy has been changed a lot. King Abdullah established one of the four economic cities. The economic cities are a government development plan for the future. The goal of this plan is to diversify their economy away from oil, by generating foreign interest and bringing big corporations to these economic cities. The Saudi education has been changed to the better during the last decades and it at its best these days. King Abdullah is very interested in the education field. He established international universities for men and women. These universities afford full scholarships to Saudis and international students. Good example of these universities is King Abdullah of Science and......

Words: 597 - Pages: 3

Free Essay

Azerbaijan and Saudi Arabia

...Country Briefings: Azerbaijan and Saudi Arabia Marvin Labre Sarah Garstecki Kalle Stenbaek Trenton Norton Table of Contents Economic Environment………………………………………………………………………....3 Azerbaijan…………………………………………………………………………….....3 Saudi Arabia………………………………………………………………………….....5 Political and Regulatory Environment...………………………………………………………..6 Azerbaijan………………………………………………………………………………6 Saudi Arabia………………………………………………………………………….....6 Cultural and Societal Framework………………………………………………………………7 Azerbaijan………………………………………………………………………………7 Saudi Arabia………………………………………………………………………….....9 Technological Environment…………………………………………………………………....10 Azerbaijan………………………………………………………………………………10 Saudi Arabia…………………………………………………………………………....10 Conclusion……………………………………………………………………………………...10 References………………………………………………………………………………………12 Economic Environment Azerbaijan Azerbaijan is a developing country that is heavily dependent on the exportation of gas and oil for its economic status. Other forms of sustainable economic consistency are from non-export organizations such as construction, banking, and real estate (CIA: World Factbook). Even in times of various economic trends, the country maintains its middle-class economy through the increase/decrease of the prices of their main resources. It’s from the positively consistent results that the government permits pervasive corruption and structural economic inefficiencies from these local companies to pose as an obstacle to......

Words: 4775 - Pages: 20

Premium Essay

Culture and Business in Saudi Arabia

...1. What forces that shape modern Saudi culture? How similar to different police forces from those that shaped the culture of Western Nations? Because modern Saudi culture is rooted in the nomadic tribes that once roamed the Arabian Peninsula, some modern day Saudi Arabia culture can be traced to the Bedouins. Islam has also influenced modern Saudi culture. Stores and restaurants still do the daily prayer dictated by the Koran and the strict dress codes followed by women make it unlike any other Western culture because the values and the social norms are based on religious teachings that still continue. 2. What kind of misunderstanding or likely to arise between an American company and the Saudi enterprise, if neither of which has experience in dealing with the other? Different cultures have different ways of doing business. In Saudi Arabia, family and friendship plays a big role in career advancement whereas in the US individual success is more important. Woman make up a share of the workforce but in Saudi Arabia women have little freedom. It is important that both sides are sensitive to each other’s culture for effective business conduction. 3. If you were in a position to advise a Western company that was considering doing business in Saudi Arabia for the first time, what would your advice be? The most important piece of advice would be to take time and learn about the Saudi culture and the Saudi way of doing business In order to avoid any......

Words: 310 - Pages: 2

Premium Essay

Saudi Arabia

...Saudi Arabia Its officially known as the Kingdom of Saudi Arabia, is an Arab state in western Asia Saudi Arabia is the worlds largest oil producer and largest exporter and controls the worlds largest hydrocarbon reserves. Saudi Arabia is a member of Organization of the petroleum exporting countries(OPEC). Saudi Arabia's command economy is petroleum based roughly 75% of budget revenues and 90% of export earnings come from the oil industry. GDP-$648.971billion Trade relations between China and Saudi Arabia China's main exports to Saudi Arabia: automobiles, electronic goods , industrial machinery etc. China main imports from Saudi Arabia: crude oil, liquefied petroleum gas and primary plastics. In 2014 ,Saudi was the 20th and 10th export and import market respectively for China (0.9% of China exports and 2.5% of China imports)..the bilateral trade was $69.1bn and trade balance -$27.9bn Bilateral trade is the exchange of goods and services between countries. Trade balance is the difference between the monetary value of exports and imports of output in an economy over a period of time. China has also undertaken several energy exploration agreement with the Saudi Arabia's government winning the right to explore e.g. in Saudi Arabia's al-khali basin Saudi Arabia agreed to help China develop strategic petroleum reserves and to modernize downstream refining capacity e.g. deal to construct a refinery for natural gas in Fujian province Saudi Arabia is involved in...

Words: 252 - Pages: 2

Premium Essay

China&Saudi Arabia

...between Saudi Arabia and China, which centre on the crude oil and petrochemicals industries China mainly exports to Saudi Arabia textile, clothing, light industry products, food like grain etc. It imports from Saudi Arabia crude oil, chemical fertilizer and petro-chemical raw materials the import trends between china and Saudi Arabia in the recent years (2012,2013,2014) is while there was a decline in the imports of goods from Saudi Arabia in 012 and 013, the was a general rise in 2014 placing Saudi Arabia as the 10th largest import market for china (2.5% of china’s imports) Exports trend: increased exports from 2012 to 2014, in 2012 at $18.5, in 2023 at $18.7 and at $20.6 in 2014 placing Saudi Arabia as one of the largest export markets for china. In the recent years, the bilateral trade volume of sino-saudi has achieved steady growth since the establishment of diplomatic relations while the trade balance is reducing in comparision to the China views Saudi Arabia with great importance for several reasons: (a) Saudi’s history as a reliable partner with all of its customers (b) saudi is the world’s largest petroleum exporter with capacity of 12 million barrels per day; (c) vast amount of oil which China desires, 17 percent of the world’s proven oil reserves are located in the Saudi Arabia (d) Saudi Arabia has the largest economy among the Arab countries and - (e) China recognizes that Saudi Arabia,......

Words: 379 - Pages: 2

Free Essay

Saudi Arabia

...Saudi Arabien ist nicht der einfachste Ort in der Welt für westliche Unternehmen um dort Geschäfte zu machen. Auf der einen Seite bietet das ölreiche Königreich viele Gelegenheiten für Unternehmensgeschäfte. Westliche Baufirmen haben lange eine Rolle beim Errichten von Infrastruktur im Königreich gespielt. Westliche Marken von Coca-Cola, Nike und McDonalds bis Body Shop, Next, Benetton haben dort eine signifikante Präsenz. Östliche Luftfahrtunternehmen wie Boeing und Lockheed haben eine beträchtliche Anzahl an Flugzeugen an Saudi Arabien über die Jahre verkauft. Markt der Saudis ist einer der größten im mittleren Osten. Für mehr als ein Jahrzehnt hat die Regierung signalisiert dass sie offener gegenüber fremden Investitionen in bestimmten Sektoren der Wirtschaft ist obwohl Öl und Gas Gewinnung immer noch für staatliche Unternehmen reserviert ist. Auf der anderen Seite ist Saudi Arabien ein historisch konservatives Land wo ein großer Anteil der Bevölkerung sich die religiösen Werte und alten Traditionen der Region zu bewahren wünscht. Das läuft auch in den Geschäftssektor über. Kultur des Landes wurde durch eine Kombination von islamischen und beduinischen Traditionen geformt. Als 1744 die Wüstennomaden die arabische Halbinsel bevölkerten, schloss bei einer Oase wohnende al Saud Klan einen Pakt mit Ibn Abd-al-Wahhab. Wahhab war ein einflussreicher islamischer Wissenschaftler der es anstrebte den Islam zu reinigen und ihn zu seinen traditionellen Wurzeln zurück zu führen durch......

Words: 846 - Pages: 4

Free Essay

America and Saudi Arabia

...Differences in Saudi Arabia and the USA Saudi Arabia is the biggest country in the whole Arab world. The population of Saudi Arabia is 27 Million. Saudi Arabia is a country where from Islam is originated. The Prophet of the Muslims Muhammad SAW was born in Saudi Arabia, and also He started His teaching here. It can be said that the Saudi Arabia was the first home of the Muslim’s nations. The geography of Saudi Arabia is very diverse; it has mountains, desserts grassland, and forests. The temperature goes very down in winter and in summer; it goes very high in desserts. Rain is slightly lessor in Saudi Arabia. The surface of Saudi Arabia is also called as the surface of the oil. While United States is a liberal democracy having 50 states and USA was also the key partner in the initiation of the World Bank in 1944. Now at the present USA is a major shareholder of the World Bank. The USA has a total population of 323,214,999. It makes the USA the third biggest country in the world according to population (Li, 2012). Each nation has what recognizes it from different nations. The United States and Saudi Arabia are huge countries. They have a universal impact on political issues and the economy. The United States has novel things; likewise, Saudi Arabia has as well. There is a considerable measure of contrasts between the United States and Saudi Arabia; however there is a couple of similitude between them. One evident difference is the religion. The main religion is Islam in......

Words: 791 - Pages: 4

Premium Essay

Saudi Arabia

...religious beliefs, traditions, work ethic ( culture) The full name of Saudi Arabia is the Kingdom of Saudi Arabia. Arabic is the official language. In the 7th century, the successor of the Mohammed who was the founder of Islam established Arab empire. The 8th century is a heyday for Saudi Arabia, and its territory crosses Europe, Asia and Africa. However, in the 16th century, Arab empire was ruled by the Ottoman Empire. In the 19th century, The Great Britain invaded into Arab, it was divided into two parts, Hejaz and Nejd. In 1924, the chief of Hejaz in Saudi Arabia merged Nejd and then gradually unified the Arabian Peninsula. Finally, in September 1932, he declared the establishment of Saudi Arabia kingdom. Saudi Arabia is the birthplace of Islam. Islam has become the world’s second large religion. The founder Muhammad established Islam approximately A.D 600 in Mecca; the sacred city of Islam is located in Saudi Arabia. Islam prospers in northwestern Africa, the Middle East, Central Asia, Pakistan, and some Southeast cities. Religion strongly affects consumption behavior of Arabian. For example, Muslim consumers are not allowed to consume alcohol and pork, besides that, the nation is governed under the Law of Islamic. Muslim pray five times a day, the local people usually go to the mosque to do religious service. Women must wear black robes in that day. Some of the traditions and customs in Saudi Arabia are similar to the other countries, but some of them are......

Words: 2053 - Pages: 9

Free Essay

Saudi Arabia

...I am sorry i was not able to write to you earlier, as no one must know about this letter. I had to be completely alone. If the government ever saw this then i would be imprisoned or worse, the death penalty by beheading. Informing a journalist like you who lives in USA with this opinion on my country would not be deemed acceptable. To introduce myself, my name is maysa karim and i live in Saudi Arabia,Jalajil. I am 23 years of age, have two children which i am aware of and am forced by my arrogant husband Amir to be unemployed. Instead i am forced to stay at home to clean, cook and do everything in my power to please Amir. Saudi Arabia is an absolute monarchy system ruled by King Fahd Al Saud. Who has the most power and can overrule any judjment or descion made, controlling the entire country. He is both the head of state and government.The al Saud-Royal family completely overpower the Saudi Arabia political system,controlling most of the country, having involvement at all levels of government. The government of Saudi Arabia consists of the King, 13 regional Governors to rule the 13 regions who are appointed by the king, all from the royal family. Who are in charge of things such as finance,health,education ect. The government of my country also consists of the council of ministers/cabinet who are appointed by the king and is composed of 22 ministry departments.The cabinet controls laws, draft regulationsand implement policies but the king has the end say and determines......

Words: 1078 - Pages: 5