What seemed unthinkable just a half decade ago is now reality. The United States has surpassed Saudi Arabia as the world’s biggest fuel producer. Crude output in the U.S. has hit a 20 year high and has produced the most fuel in the world for the first time since 2002. The United States is producing 11.65 million barrels of liquid fuel a day (which includes crude, refined petroleum products, and biofuels) surpassing the Saudi Arabian output of 11.25 million barrels a day.
globalEDGE Blog - By Tag: saudi-arabia
It appears that Saudi Arabia is attempting to become more open to foreign direct investment. Currently they are a large exporter of oil. Saudi Arabia exports about 9 million barrels per day of oil. Since oil prices are high this has benefited Saudi Arabia, but they are attempting to plan for a less oil dependent society in the future. In order to do this, they will need to diversify the types of businesses in operation in the country and work more with foreign investors.
Approaching business challenges requires an open mind and willingness to take a fresh look. This couldn’t apply better than to opening new export markets. An interview with the U.S. Ambassador to the Kingdom of Saudi Arabia shed light on the opportunities opening in the Middle East. The Ambassador provided an insightful view of Saudi Arabia which presents great opportunities for businesspeople to view the country as a place to export.
It all began in 1945 with a renewed relationship between the United States and the King of Saudi Arabia, King Abdul Aziz. Since then, the country has experienced significant population growth as well as improved social and political climates. In fact, Saudi Arabia is in the process of creating 250,000 graduates of a vocational school. Education is paramount to the country’s development and will fundamentally change it from a purely oil driven economy to one that is more diverse moving ahead into the future.
The next question on your mind: But isn’t it hard to get started in the Middle East? Actually, Saudi Arabia is a capital rich environment where companies feel comfortable both manufacturing and selling products that are highly sensitive to intellectual property (IP) rights protection. As part of the current administration, IP protection has gone up because of the educational initiatives. Instead of stealing technology, the country is able to create its own.
If you are considering new countries in which to export your products, keep an open mind. Saudi Arabia is an example of a great opportunity for the right company to come in and provide solutions. China, India and Russia have recently earned over $19 billion in business that has traditionally gone to American firms. This is the time to regain confidence in the partnership that originated over 50 years ago.
Doug Barry of the U.S. Commercial Service has another market brief for our blog readership. In this brief, he interviews Amer Kayani, who is a Senior Commercial Officer at the U.S. Embassy in Saudi Arabia. The interview covers the potential of emerging markets, with a primary focus on Saudi Arabia. Additionally, Mr. Kayani clears up some misconceptions some may have regarding Saudi business sentiments towards U.S. investors and businesspeople.