1. Introduction to KSA

3. Agenda
Demographics & KSA Consumption
Economic Situation
Relevant Local Aspects

4. Agenda
Demographics & KSA Consumption
Economic Situation
Relevant Local Aspects

5. Demographics
Some Key Facts…
Population (July 2008 est.): 28,686,633 (22.6 million Saudis, 5.6 million foreign nationals)
Age structure
0 - 14 years: 38% (male: female = 50:50)
15 - 64 years: 59.5% (male: female = 60:40)
65 years and over: 2.5% (male: female = 50:50)
KSA has a birth rate of 3.83 children born/ woman. Life expectancy is now 78.48 years for
women and 74.23 years for men.
The Expatriate population mainly comprises of people from the Asia (India, Pakistan,
Bangladesh, Indonesians etc.) and Westerners (Europe, Britain etc.).

6. Economy
The Kingdom of Saudi Arabia was been rated as the 13th most economically competitive
country in the world according to the International Finance Corporation (IFC)-World Bank
annual ‘Doing Business’ report issued in September 2009.
With one-quarter of the world’s known oil reserves and 13 percent of world production, Saudi
Arabia is the world’s leading producer and exporter of oil. In 2008, the non-oil GDP grew by
4.5 percent to $223 billion. Saudi Arabia’s nonpetroleum exports increased to $2.7 billion in
May 2008, up from $2.3 billion in May 2007.
Conversion rate: 1 Euro = 5.10 SAR (Saudi Riyal)

7. Demographics and Consumption
Some consumption facts
KSA
PC / laptop at
23% home
89% Mobile phone
(est. March 2007)
51%
Credit card
(est. June 2009)
86% Car
(May 2007, Global TGI)

8. KSA life

10. KSA

11. The Saudi society
The family is the most important social institution in Saudi Arabia. For
Saudis generally, the family is the primary basis of identity and status for
the individual and the immediate focus of individual loyalty.
Majority of the families in Saudi Arabia now live in a nuclear set-up i.e.
husband wife and children, although family gathering still remain a very
strong focal point (even though less frequent).
Satellite TV has become the main source of entertainment for Saudi
housewife’s as internet is mainly limited to younger age groups.
Eating out has become one of the main weekend activities for the whole
family. Families prefer fast food joints for conventional restuarants, which
has also lead to increasing incidence of obesity. As per a WHO report 66%
of Saudi women and 52% of Saudi men are suffering from obesity.

12. The typical Saudi life
Family/ Household
The family and tribe are the basis of the social structure.
As is seen in their naming conventions, Saudis are cognizant of their
heritage, their clan, and their extended family, as well as their nuclear
family.
Saudis take their responsibilities to their family quite seriously.
Families tend to be large and the extended family is quite close.
The individual derives a social network and assistance in times of need
from the family.
Nepotism is considered a good thing, since it implies that employing
people one knows and trusts is of primary importance.

13. The typical Saudi life
Hospitality for Expatriates
Saudis socialize primarily in restaurants and international hotels when
entertaining expatriates whom they do not know well. After some time
you will be invited to the home.
Entertainment will generally be same-sex only. If both sexes are
included, they will be in separate rooms.
If you are invited to a Saudi's house:
You would usually remove your shoes.
Dress conservatively.
Try to arrive at the invited time. Punctuality is appreciated but not crucial.
Show respect for the elders by greeting them first.
Accept the offer of Arabian coffee and dates even if you do not normally drink
coffee. If you are invited for a meal, understand that there will be a great deal of
socializing and small talk before the meal is served.

14. Work and career
Until recently, most Saudis haven’t needed to hold jobs. The government provides
free education and health care and levies no personal income tax. In 2007, just 4
million Saudis worked, according to the Ministry of Economy and Planning.
Only a fraction of the labor force is female, in part because of constraints placed
on women by the government’s strict interpretation of Islam.
In its 2009 Ease of Doing Business report, the World Bank ranks Saudi Arabia
16th out of 181 countries, up from 67th in 2004. The kingdom attracted $24.3
billion in foreign direct investment in 2007, according to the latest available figures
from the United Nations Conference on Trade and Development, compared with
just $183 million in 2000.
There are between 5-6 million foreign residents living and working in Saudi and
many of them live in compounds and often enjoy a frenetic social life. The main
areas where Expats work in Saudi Arabia are defense, healthcare, and the oil
industry. IT, telecommunications, banking and other menial and physical labor
jobs.

15. Living conditions
With up to three generations to accommodate, groups of two or more villas are
common. The less well-off prefer houses to apartments. Young newly-married
couples are given low-cost loans and in some states these turn out to be gifts if the
loans aren’t repaid within a particular time limit.
Foreign workers live in compounds. The term ‘compound’ refers to a group of houses
or small, usually low-level, apartment blocks within a walled enclosure, rather like a
private estate.
Compound facilities include a communal swimming pool, a restaurant and shop,
tennis and squash courts and a gymnasium. Saudi Arabian expatriate life is
invariably in compounds
The exterior and interior quality of buildings is high throughout the region, and
improving as prospective landlords vie with each other to have the most attractive
buildings. The average property is also more spacious than its equivalent in Europe
or the USA. Rooms are generally large in all types of accommodation.

16. Saudi homes from inside

17. Agenda
Demographics and Consumption
Economic Situation
Relevant Local Aspects

18. KSA economy
Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It
possesses about 20% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum,
and plays a leading role in OPEC.
The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export
earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to
employ more Saudi nationals.
Diversification efforts are focusing on power generation, telecommunications, natural gas exploration, and
petrochemical sectors. Roughly 5.5 million foreign workers play an important role in the Saudi economy,
particularly in the oil and service sectors, while Riyadh is struggling to reduce unemployment among its own
nationals.
Saudi officials are particularly focused on employing its large youth population, which generally lacks the
education and technical skills the private sector needs.
Riyadh has substantially boosted spending on job training and education, most recently with the opening of
the King Abdullah University of Science and Technology - Saudi Arabia's first co-educational university. As
part of its effort to attract foreign investment, Saudi Arabia acceded to the WTO in December 2005 after many
years of negotiations.
Saudi authorities supported the banking sector during the crisis by making direct capital injections into banks,
reducing rates, and publicly affirming the government's guarantee of bank deposits.

19. Economic outlook for 2010
Economic growth likely to accelerate to
3.9% in 2010, with private sector growing
3.7% on steady turnaround in commercial
activity
Saudi private sector and banks poised to
gradually move away from risk aversion
this year, claims on private sector seen
growing 8% in 2010, up from 2.1% in 2009
Real estate shortages, public spending on
infrastructure and a revival in global
petrochemical demand among factors to
support non-oil sectors
Productivity has been declining in
government and private sectors, which
could lead to challenges for future job
creation, restrain economic multipliers Source: Banque Saudi Fransi (Saudi Arabia Economic, 13th January 2010)

20. Other indicators of economy
GDP composition by sector (2009 estimate): Industry (60.4%), Services (36.4%),
Agriculture (3.2%)
Inflation rate (consumer prices): 5% (2009 est.) and 9.9% (2008 est.)
Unemployment rate: 11.6% (2009 est.)

21. Agenda
Demographics and KSA Consumption
Economic Situation
Local Aspects

22. Local/ Cultural Aspects
Saudi Arabian culture mainly revolves around both Islamic and tribal values. Islam's two holiest sites,
Mecca and Medina, are located in the country. Five times every day, Muslims are called to prayer
from the minarets of mosques which are scattered around the country. The weekend begins on
Thursday due to Friday being the holiest day for Muslims.
Music and dance
One of Saudi Arabia's most compelling folk rituals is the Ardha, the country's national dance. This is a
sword dance based on ancient Bedouin traditions: drummers beat out a rhythm and a poet chants
verses while sword-carrying men dance shoulder to shoulder.
Al-sihba folk music, from the Hejaz, has its origins in al-Andalus. In Mecca, Medina and Jeddah,
dance and song incorporate the sound of the mizmar, an oboe-like woodwind instrument in the
performance of the Mizmar. Saudi Arabian Musical tradition depends heavily on the modern Arabian
oud.
Dress
Saudi Arabian dress follows strictly the principles of hijab (the Islamic principle of modesty, especially
in dress). The predominantly loose and flowing but covering garments are helpful in Saudi Arabia's
desert climate. Traditionally, men usually wear an ankle-length shirt woven from wool or cotton
(known as a thawb), with a keffiyeh (a large checkered square of cotton held in place by a cord coil) or
a ghutra (a plain white square made of finer cotton, also held in place by a cord coil) worn on the
head.
Women's clothes are decorated with tribal motifs, coins, sequins, metallic thread, and appliques.
Women are required to wear an abaya or modest clothing when in public.

23. Local/ Cultural Aspects
Food
Arabic unleavened bread, or khobz, is eaten with almost all meals. Other staples include lamb, grilled
chicken, falafel (deep-fried chickpea balls), shawarma (spit-cooked sliced lamb), and Ful medames (a
paste of fava beans, garlic and lemon).
Arabic tea is also a famous custom, which is used in both casual and formal meetings between
friends, family and even strangers. The tea is black (without milk) and has herbal flavoring that comes
in many variations.
Islamic dietary laws forbid the eating of pork and the drinking of alcohol, and this law is enforced
strictly throughout Saudi Arabia.
Film and theatre
Public theatres and cinemas were prohibited, as some Muslims' views deem those institutions to be
incompatible with Islam. However, lately, a reform is undergone in the country and several cinemas
and movies had been shown under high tensions from radical Saudi groups.
Theaters are available in private compounds, public theaters can be found but often are more popular
for local music, arts, and theatre. DVDs (American and British movies) are legal and widely available.
Religion
Due to the legal framework of the country, which does not provide legal protection for freedom of
religion, the public practice of non-Muslim religions is prohibited. According to a 2009 Pew Forum
report, 97 percent of the total population are Muslims.

24. The Arab Dress

25. About the headscarf
The male headdress is also known as “Keffiyeh”. Headdress pattern might be an indicator
of which tribe, clan, or family the wearer comes from. However this is not always the case.
While in one village, a tribe or clan might have a unique headdress, in the next town over
an unrelated tribe or clan might wear the same headdress.
Most popular headdresses:
Checkered headdresses relate to type and government and participation in the Hajj, or a pilgrimage to
Mecca.
Red and white checkered headdress – Generally of Jordanian origin. Wearer has made Hajj and
comes from a country with a Monarch.
Black and white checkered headdress – The pattern is historically of Palestinian origin.
Black and grey represent Presidential rule and completion of the Hajj.
Shi’a- black turbans associated with Shi’a clergy who are somehow connected to the Prophet
Muhammed or Ali Ibn Abi Talib the cousin of the Prophet who was the 4th Khalif of Islam and leader of
the Shi’a sect.
Those who wear white turbans are associated with the lower echelons of the Shi’a hierarchy.

26. Thank you