globalEDGE Newsletter

May 2008
Vol. 7 - Issue 5

Inside This Issue

  1. Featured Country: Saudi Arabia
  2. Poll Question
  3. News
  4. In-Depth Look
  5. gE Business Review Featured Article
  6. Featured Sites
  7. Newsletter Information

1) Featured Country: Saudi Arabia

The oil-rich kingdom of Saudi Arabia was established in 1932 by Abdul-Aziz bin Saud, whose descendants rule the country today. The economy is dominated by the oil industry, which accounts for about 90% of all exports and 75% of government revenues. The kingdom is the leading oil producer in the world and is a key member in the Organization of Petroleum Exporting Countries. The government sees overdependence on oil as a potential long-term problem, and is reinvesting oil revenues into new areas of the economy, and welcoming in foreign direct investment. Saudi Arabia is currently ranked as the 20th most promising market on MSU-CIBER's Market Potential Index.

Learn more about Saudi Arabia on globalEDGE Country Insights.

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2) Poll Question

This month's poll question is:

"Which of the following is the most important step currently being taken by Saudi Arabia to ensure the kingdom's long-term growth and economic diversity?"

Please click a choice below to vote. You can also vote at our home page.

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3) News

India, Saudi Arabia Initiate Key Economic Measures to Boost Relations
The Hindu, by Atul Aneja (April 21, 2008)
http://www.hindu.com/2008/04/21/stories/2008042160521700.htm
India and Saudi Arabia have made negotiations to advance their economic relations. The talks included an agreement to set up a Saudi-India investment fund. Among other agreements, the two countries will also adopt a long term visa program for businesspeople.

Saudi Arabia Invests $119 Billion in Energy Infrastructure Projects
Albawaba (April 17, 2008)
http://www.albawaba.com/en/countries/Saudi%20Arabia/225812
A new study found that Saudi Arabia is expected to invest $119 billion in energy infrastructure between 2007 and 2009. This figure is up over 2,000 percent from the previous three-year period.

View more News on globalEDGE.

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4) In Depth Look

Oasis Economies
Strategy+Business (April 10, 2008)
http://www.strategy-business.com/press/article/08105?pg=all
As oil-rich nations in the Middle East benefit from record oil prices, leaders in the region are experimenting with new ways to ensure that growth is sustained in the long term. Among the top priorities is the creation of a middle class, which will be aided by the construction of several economic cities, the first of which boasts a $30 billion price tag. The region is reinvesting profits, attracting foreign investment and building infrastructure at break-neck speeds, all while maintaining its traditional culture and business ethics. The question remains whether today's growth can be sustained in the long term, or whether the progress seen recently is just a mirage. Free registration required to view article.

China's At-Risk Factories
Time, by Bill Powell (April 17, 2008)
http://www.time.com/time/magazine/article/0,9171,1731898-1,00.html
Over the past several years, China's soaring export growth rate has fueled an equally impressive growth in domestic manufacturing. As demand for cheap Chinese-made goods surged, thousands of new manufacturing firms sprouted up across the country. But many firms are now facing a myriad of problems that include rising labor and commodity costs, a strengthening currency, and a potential global recession. These issues are poised to test China's long-term manufacturing might.

View more In Depth Look articles on globalEDGE.

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5) gBR Featured Article

What is Fair Trade?
By Paulette L. Stenzel (Volume 2, Number 5, pp. 1-2, 2008)
http://globaledge.msu.edu/newsAndViews/businessReviews/gBR2-5.pdf
Executive Briefing: Fair trade is a way of doing business that builds equitable, long-term partnerships between consumers in developed regions and producers in developing regions across the world. It takes steps toward a just and sustainable economic system that ensures that people get paid a fair price for their work. Fair trade is neither synonymous with nor the antithesis to free trade. Fair trade promotes environmental sustainability and bio-diversity - goals articulated by many of those who advocate free trade.

Read other gE Business Reviews on globalEDGE.

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6) Featured Sites

This month's Featured Sites:

Saudi Arabia: Saudi Arabian Monetary Agency
http://www.sama.gov.sa/indexe.htm
Saudi Arabian Monetary Agency (SAMA), is the central bank of the kingdom of Saudi Arabia and was established in 1952. The site offers monetary information, links to banks within Saudi Arabia, statistics, and publications. Available in English and Arabic.
Category: Money: Banks
Country: Saudi Arabia

Saudi Arabia: SaudiaOnLine
http://www.saudia-online.com/saudi_arabia.htm
SaudiaOnLine.com contains information about Saudi Arabia's geography, history, economy, government, and the business sector. Business opportunities and companies can be searched through by keyword.
Country: Saudi Arabia

Arabian Business and Cultural Guide
http://www.traderscity.com/abcg/culture.htm
A series of excerpts from the book of the same title, this website gives some insights into the business culture of the Arabian countries. It includes information on Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain, Oman, and Yemen.
Category: Reference: Culture

View recently added sites on globalEDGE.

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7) Newsletter Information

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