Measuring the Performance of SAGIA and its Contribution to the Development of the Saudi Economy and its Economic Competitiveness
by
Table of Contents
CHAPTER 1: INTRODUCTION1
Background of the study1
Aim of the research2
Research Questions2
Significance of the Research2
CHAPTER 2: LITERATURE REVIEW3
Saudi Arabia3
Economy6
Agriculture8
Transport9
Currency and Foreign Trade9
Al-Dabbagh's role in SAGIA's and Saudi Arabia's economic progress11
SAGIA's contribution for the economic growth of Saudi Arabia13
SAGIA will Strengthen Relationships15
Forecast of Saudi Arabia's economy16
REFERENCES22
CHAPTER 1: INTRODUCTION
Background of the study
The Saudi Arabian General Investment Authority (SAGIA) was established in 2000 by the Saudi government for the purpose of creating a highly competitive economic climate. The establishment of SAGIA was a result of the boom in the Saudi economy due to the surpluses generated from the rise of oil prices. In 2010, experts projected that Saudi Arabia will generate a budget surplus of over 100 billion Saudi Riyals (CPI Financial, 2010). It is important to note that Saudi Arabia is the biggest oil exporter and has the largest oil reserves in the world an. Also, oil revenue contributes to more than 85% of Saudi Arabian government revenues (CPI Financial, 2010).
One of the strategies that have been set since the establishment of SAGIA is the 10x10 strategy. The objective of this strategy was to place Saudi Arabia into the top 10 most competitive economies by 2010. However, according the 2010/2011 Global Competitiveness Report (Schwab, 2010), Saudi Arabia was ranked as number 21. Hence, the objective has not been met. The purpose of the Dissertation is to understand the reasons for the failure of Government of Saudi Arabia to meet the objectives. The causes of failure will be identified and measured by evaluating the performance of SAGIA during the last ten years and comparing it with other developing countries in the region, namely, Qatar and UAE. Qatar was ranked as 17th while UAE as 25th (Schwab, 2010).
Aim of the research
The research aims to assess the measurement of the performance of SAGIA and its contribution to the development of the Saudi economy and its economic competitiveness.
Research Questions
The study will analyse the following research questions:
What has been SAGIA's role in fostering trade and economic development in Saudi Arabia?
What is SAGIA's contribution in improving the economic climate for investment?
Did SAGIA succeed in enhancing the Saudi economic competitiveness?
How can SAGIA benefit from the experiences of other government authorities in Qatar and UAE?
Significance of the Research
The research will be very useful to measure the performance of SAGIA and its contribution to the development of a competitive economy in Saudi Arabia since its inception in the year 2000.
CHAPTER 2: LITERATURE REVIEW
Saudi Arabia
The kingdom of the south Arabia is situated in the south western Asia and it covers around four fifths of the Arabia peninsula. It covers 2.24 million sq km land area, and the population of Saudi Arabia is around 24.7 million. In comparison with the global standard she has the per capita income round US$11,770(Potter, 2009, pp 1225). Through an alliance of the Al-Saud and Al-Wahhab families, Saudi Arabia was being ...