Exporting to Saudi Arabia

KSA. Kingdom of Saudi Arabia

Export opportunities for Spanish companies in Saudi Arabia

Strengths

  • Centre of the Islamic culture and chief Middle Eastern market by population and GDP thanks to its huge oil reserves.
  • Major industrialisation phase.
  • The government is fostering an investment environment favourable to foreign capital.
  • In the process of developing infrastructures.
  • Major opportunities for large corporations, SMEs, private investors, executives, merchants and salaried workers.
  • Favourable climate for business with Spain (28% increase in exports in 2011).

Investments

There are many sectors offering strong opportunities. Spanish companies can access this market via franchises, direct investment, participation in privatisations or together with a local partner, who will be key in reaching the Administration and facilitating contacts with Saudi companies and the royal family.

Weaknesses

  • There are no customs-free areas.
  • Political crisis in certain countries.
  • The different royal families play a major role in business. Excessive bureaucracy in administrative formalities.
  • For imported products, compulsory use of English and Arabic on labels.

 

Outlook

  • Approximately half of GDP comes from energy activities controlled by the government and account for over 90% of exports.
  • Exchange rate control has been eliminated over recent years.

 

Contact

United Arab Emirates

Hassanicor Bldg. Office 104
Al Barsha 1 st – Sheikh Zayed Rd,
Dubai (UAE)

Contact details

Manager: Víctor Argüello

Tel. +971 (0) 43 996 860 / 6185

 

Contact

Form of government

Islamic monarchy

Official language

Arabic

Currency

Saudi riyal (SAR)

Exchange rate

1 euro = 5.16 SAR (January 2014)

Religion

Islam (the official religion and the only one allowed)

Population

26.5 million

Time difference

Winter +2 hours; Summer +1 hour

Banco Sabadell in the Middle East

Víctor Argüello (director), Mohammed Al Ramahi y Priti Arora

Víctor Argüello (Manager), Mohammed Al Ramahi and Priti Arora.

Experience

Banco Sabadell has an office in Dubai, the chief financial and services city in the Emirates.

We have a deep knowledge of the region and we were the first Spanish bank to establish itself in the Persian Gulf area.

BS has correspondent relations with most of the financial entities in the country, as it has operated in the area for over two decades, first in Beirut and now in Dubai.

BS has business lines with local banks to simplify foreign trade operations for Spanish companies.

Services

  • Introduction of Spanish companies in the local market and banks. Guidance on multiple financial products: documentary credit, documentary remittances, collateral and guarantees, international reverse factoring, risk hedging.
  • Support for projects and investments.
  • Ongoing contact with Spanish companies, local companies, agents, and customers.
  • Transaction monitoring.