PESTLE on Saudi Arabia

Industry- Textile Retailing

Group 12 Charles Denis-754 Souvik Nandi- 11IB254 Sudeep Mehrotra- 11IB256 Tom George- 11IB258
Tuesday 17 January 12

Introduction- Country
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Largest in Western Asia, Second Largest in the Arab world in terms of land area. Second Largest Oil Exporter. Absolute Monarchy. Founder Member of the Arab League. Joined the WTO in 2005. Saudi Arabia's economy has ranked 17th on the Global Competitiveness Index.

Tuesday 17 January 12

Doing Business ranking

Tuesday 17 January 12

Introduction-Product
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Ethnic Indian wear. Embroidered Kurtas and Kurtis, Burkhas, Pajamas, Dhotis, Sherwanis. Why???Climate. Cultural Norms. Huge potential market of traditional Saudis as well as Indians (1.8 million)

Tuesday 17 January 12

Pestle
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Stands for Political, Economic, Social, Technological, Environmental and Legal analysis to describe a framework of macro environmental factors. Further extended to STEEPLE and STEEPLED with Ethics and Demographics. Useful strategic tool for understanding market growth/ decline, business potential etc.

Tuesday 17 January 12

Political
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Monarchy.

PESTLE

Business Friendly government regulations. The King governs through a Council of Ministers, on which he serves as President. The Kingdom of Saudi Arabia is divided into 13 provinces, each of which is administered by a provincial governor appointed by the King. Provinces are subdivided into governorates, districts and centers. The provincial councils are empowered to determine the development needs of their respective provinces, make recommendations for projects and improvements and request appropriations in the annual state budget.

Tuesday 17 January 12

Economical
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PESTLE

Since the discovery of oil in 1938 has grown to be among the wealthiest nations. Produces more than 5% of the total production of petrochemicals in the world. Capitalist Economy. GDP (PPP) $622 Billion and Growth 3.7%. 40% of GDP from private sector. As part of its effort to attract foreign investment and diversify the economy, Saudi Arabia acceded to the WTO in 2005 after many years of negotiations.

Tuesday 17 January 12

Social
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PESTLE

Adherence to Islamic values and maintenance of social stability in the context of rapid economic change have been consistent goals of Saudi Arabia's development plans. Major variations in accumulated wealth, although distinctive income groups exist they all are bound together either by kinship, religion. Religious values. Mix of culture, Indian diaspora.

Tuesday 17 January 12

Technological
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PESTLE

Modern high technology arsenal makes Saudi Arabia among the world’s most densely armed nations. Although internet was introduced late in 1999, there was a growth rate of 3750% by 2000.

Tuesday 17 January 12

Legal
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The Saudi civil legal system is based on the Share’a, which is derived from the Quran, Sunna and Ejtihad. The commercial legal system differs very much from the civil system, but shares some basics. This system is more influenced by west in many ways, this due to the amount of international business that the country was involved in after the discovery of oil. At the present time, there are no exchange control regulations governing the repatriation of funds, profits or capital after corporate dissolution. Immigration- Companies are required to register their employee’s contracts with the Ministry of Interior before a residency permit can be issued.

PESTLE

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Tuesday 17 January 12

Employment Law-Employment matters in the Kingdom of Saudi Arabia are governed by the Labor Law.The Ministry of Labor regulates all labor related issues in the Kingdom through Labor Offices located in different regions of the Kingdom.

Environmental
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PESTLE

The Meteorology and Environmental Protection Administration (MEPA) is the entity responsible for regulating pollution control and related environmental matters. Government has also approved the General Environmental Regulation. The GER prohibits any actor failure to act that may result in adverse environmental effects and, among other things, requires that precautionary and preemptive measures be implemented to ensure that such adverse effects do not occur as a result of construction of any project. The Environmental Assessment Regulation applies to a long list of projects that may have an environmental impact and requires that an environmental assessment be conducted with respect to such projects that fall under its coverage.

Tuesday 17 January 12

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