Saudi Arabia is a Continental, Not an Island
Many people have the misconception that Saudi Arabia is an island, when in actual fact it is an large, continental nation located in the heart of the Middle East. Saudi Arabia is the largest nation in the region, spanning over 830,000 square miles, and is home to 32 million citizens. Despite its large size, it might be easy to identify Saudi Arabia as an island due to its many coastal regions that are surrounded by the Gulf of Aqaba, the Red Sea, and the Persian Gulf.
The country is bordered by seven other countries, including Iraq, Oman, Yemen, Jordan, Kuwait, Qatar, and the United Arab Emirates. Its unique geographic location provides easy access to the nearby nation, as well as countries located in Asia and Africa for trade and export purposes. Furthermore, Saudi Arabia is an incredibly rich nation, largely due to its large and abundant supply of petroleum reserves, estimated to be at 268 billion barrels, making it the second largest oil reserves in the world.
Not only is it home to 13% of the world’s total reserves, but they also generate around 30% of its GDP from the resources it produces. This provides the nation with an incredible amount of wealth, and provides the resources to to invest in medical and technological advancements in the region. This has made Saudi Arabia an attractive destination for many businesses that are looking for a profitable and stable home.
The traditional landscape of Saudi Arabia is largely desert or semi-desert, and the country is divided into 13 regions. Its capital, Riyadh, is home to 6.5 million people and is ranked as one of the world’s most expensive cities. The country also houses some of Islam’s most holy sites, such as the Great Mosque of Mecca located in the Western region of the country.
Saudi Arabia is a strong and valuable ally in the international community and the Arab world. It is home to many distinguished universities and a rapidly-growing economy. It is the center of Muslim pilgrimage and the custodian of the Two Holy Shrines in Mecca and Madinah respectively. In 2020, it has become the leader in the Middle East for innovation and technological advancement, particularly in the renewable energy sector with it’s goal to be the leading producer of photovoltaic electricity in the world.
Modern Day Middle East- An Emerging Business Hub
Saudi Arabia’s modern-day position as the heart of the Middle East has been part of its rapid transformation into a global superpower, and its economy has become one of the most diverse in the world. In some ways, it now serves as the gateway to the region, allowing for collaborations between Arab nations and the West with regards to business, technology, and finance. The Kingdom has positioned itself as a major hub for innovation and entrepreneurship, and the country is now the preferred destination for investors from all over the world.
The nation is continuing to invest heavily into renewable energy sources such as solar and wind power, as well as venturing into nuclear energy, which it hopes to use to reduce its dependence on oil. Saudi Arabia’s goal is to become an international leader in alternative, renewable energy sources. This has put them on the path to becoming one of the most resource-efficient nations on the planet.
Apart from its investments in renewable energy sources, the Kingdom has also seen massive investments in other sectors such as education, healthcare, and tourism, as well as construction. These investments have helped to create jobs and build up the economy. As a result, Saudi Arabia is now the 15th largest economy in the world, with a inflation-adjusted gross domestic product of over $729 billion.
In addition, Saudi Arabia is actively embracing the digital revolution by investing in the latest technology, providing world-class infrastructure, and establishing its own centers of excellence for startups and tech companies such as Riyadh Valley and Neom, as well as the KAUST university. All of these steps are being taken in order to make the Kingdom a more attractive destination for businesses, investment, and tourism.
Tourism in Saudi Arabia- A Potential Economic Booster
One of Saudi Arabia’s most significant potential opportunities for increased socio-economic development is in the tourism sector. The nation’s government is taking steps to develop the country as an attractive destination for travelers from around the world, and the nation is now offering visa-free travel to 49 nations, with more planned for the future.
The establishment of tourist resorts and hotels in the coastal regions is seen as a major step forward for the nation in terms of tourism, and this is soon to be bolstered by the development of a new international airport in Riyadh. The Ministry of Tourism hopes that all of these developments will make the country a desirable and preferred tourist destination, and the potential for this sector to generate economic gains is immense.
Furthermore, an increasing number of non-Muslim visitors from Western countries are visiting the Kingdom to experience its infamous ancient historical sites, such as the Nabatean ruins and the Al Ula region. This has helped to promote the country’s rich heritage, and the remains of successful civilizations long forgotten.
Saudi Arabia is also home to some of the most advanced medical centers in the region, and the implementation of universal healthcare has made the demographic among the best-educated in the region. This is an example of the nation’s commitment to improving the quality of life of its citizens, and creating a sustainable economic climate for the future.
Reforms To Promote a Stable Business Environment
Saudi Arabia has witnessed a major shift in its socio-economic policies and its government has introduced several major reforms since its emergence. These include a shift towards a more open economy, relaxing of certain laws, and providing foreign investors with incentives to establish businesses within the kingdom. The government also launched the Vision 2030 program, which aims to diversify and improve the country’s economic practices within the next decade.
The new economic policies have allowed for a variety of businesses to flourish in Saudi Arabia. These include the retail industry, telecommunications, banking and finance, manufacturing, healthcare, and construction. These businesses are creating jobs and fostering economic growth in the region.
The government has also issued the new Saudization law which requires foreign companies to hire a certain number of Saudi citizens for a given role, with the intention of increasing Saudi citizens’ employment opportunities. The government also recently unveiled the New Quotas System that allows foreign companies to bring in skilled labor from abroad, in order to alleviate the labor shortage that exists in certain sectors.
Furthermore, The Kingdom has reduced the time needed to open businesses from weeks to one day, reduced the cost of starting businesses from some of the highest in the world to the lowest in this region, decreased the time to obtain licenses for businesses from days to a few minutes, and simplified the system by creating an online portal where businesses can interact with authorities to obtain permits.
Conclusion Of Saudi Arabia As A Continental Nation
It is evident that Saudi Arabia is far from being an Island. It has much to offer both from a cultural, religious and economic standpoint, making it a viable business destination that has the potential to be a powerhouse in the Middle East. With a strong commitment to creating a stable business climate, the country is also revamping its tourism sector in order to boost its economy and bring in more foreign investments.
The reforms that the government has enacted have created a more open and welcoming environment for foreign investors, making the country an attractive destination for businesses from all over the world. As the Kingdom continues to invest and develop its resources, it will be interesting to observe how its economy will shape up in the coming years.
