Saudi Arabia Country Profile

Snapshot of the Saudi Arabia Country Profile


Saudi Arabia has gradually liberalised trade in recent years in pursuit of attracting foreign investment, and joined the WTO in late 2005. The country offers the largest market in the Persian Gulf, economic and political stability, and a well-regulated business climate. While its political system is still tightly controlled by the royal al-Saud family, Saudi Arabia has embarked on a process of political and social reform intended to liberalise and strengthen its governing institutions. This has also included an increased emphasis on public transparency and good governance, and, in 2007, the government approved a national strategy to combat corruption.

Positive developments in relation to corruption and investment:

  • Saudi Arabia has reduced many regulatory barriers to investment in recent years and was ranked as the world's Top Reformer by the World Bank and IFC in 2006.
  • New procurement regulations have reportedly clarified procedures in an otherwise very corrupt procurement regime.
  • Although judicial corruption occurs, it is reportedly less rampant than in many other MENA countries.

Risks of corruption:

  • Information on business-related corruption in Saudi Arabia is scarce, making an accurate estimate of the extent of corruption very difficult.
  • Despite recent developments, public procurement is continuously mentioned as an area of great concern for foreign investors.
  • Even though Saudi Arabia has drastically improved regulatory processes in recent years, several sources report that the regulatory framework for private companies is often applied inconsistently in practice.