NOTES OF THE TRADE ATTACHE
Saudi market Keywords:, business expansion, oil revenues, economic boom, investment cooperation
The notes of the former trade Attache of Russia in the Kingdom of Saudi Arabia (KSA) P. G. Gulkin significantly complement the previous publications of the journal on trade and economic cooperation between the Russian Federation and KSA*. They are, in fact, specific recommendations to our businessmen who intend to develop the markets of the Kingdom, as well as the entire Arab world. The notes are valuable because they are based on the personal experience of a Russian diplomat and a specialist in foreign trade.
In 2009-2011. I worked as a trade attache at the Russian Embassy in Saudi Arabia. This was a period of relative activation of our private business in the Kingdom. The global crisis has forced some domestic, mainly medium-sized companies to look for new markets outside their traditional geographical niches, and the rapidly developing and, most importantly, financially secure market of Saudi Arabia seems to be an ideal testing ground for them.
The most active Russian companies began to appear on the KSA market in 2009-2010, but by mid-2011 this flow had almost dried up. A couple of dozen Russian firms that had registered their divisions in one form or another in the KSA before 2011 practically stopped working and recalled their representatives. The attempt of domestic entrepreneurs to gain a foothold on Saudi soil "with a rush" failed.
Why did this happen? What are the features of doing business in Saudi Arabia? What factors should be considered when entering the local market?
An unbiased analysis of the circumstances of Russia's business expansion in Saudi Arabia over the past couple of years and the observations of a direct witness to the events will certainly help those newcomers who, despite everything, will again try to break into the Saudi market.
ISLAND OF STABILITY
In the layman's view, the Kingdom of Saudi Arabia is a place where hu ... Read more