Question

Discuss how globalization affects the international business and the economy of Saudi Arabia. How does the Saudi Vision 2030 transform economic barriers to influence more successful companies?

Answer 1

Ans. The international trade of Saudi Arabia needs no introduction as we all are well aware that it's the Number 1 Oil Exporting nation of the world. Its oil wealth and the international influence derived from it have made Riyadh the fourth corner of the traditionally triangular Arab East. the discovery of enormous reserves of oil in Saudi Arabia’s Eastern Province in 1938, rapid growth in global demand for energy, and huge royalties from oil exports have enabled the Kingdom to manage a three decade-long program of modernization that is unprecedented in the scope of its speed, intensity, and breadth. Now , Economic progress of Saudi Arabia is tremendous and the infrastructure is among the best in world. The revenues from the export of oil have tremendously helped the economy to boost up and get top a next level. They have built a remarkably complete, ultramodern physical base for a modern manufacturing sector and service economy while vastly expanding and modernizing their country’s religious infrastructure. Now , all this would not have been possible without Globalization , Globalization have helped the economy of Saudi Arabia to integrate with the rest of the world and then to export to various economies , New Economies and businesses started investing in the country and FDI increased to a great extent. This also led to the economic development.

The Vision 2030 of Saudi Arabia seeks to reduce the dependence of the economy merely on Oil exports and to diversify the economy. With this motive in mind , it would take several measures to relax the economic barriers on foreign countries and would seek more Foreign Investments in different sectors of the economy. This would certainly boost investments in the different sectors of Saudi's economy and would help them in diversification. Moreover , This would surely benefit the more successful companies by improving their strengths and focusing on expansion.

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