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Doing Business in Saudi Arabia 2017 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S

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Doing Business in Saudi Arabia 2017 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S Doing Business in Saudi Arabia 2017 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2016. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Table of Contents Doing Business in Saudi Arabia .......................................................................................... 4 Market Overview ............................................................................................................. 4 Market Challenges .......................................................................................................... 5 Market Opportunities ..................................................................................................... 6 Market Entry Strategy .................................................................................................... 8 Political Environment .......................................................................................................... 8 Political Environment ....................................................................................................... Selling US Products & Services ........................................................................................... 8 Using an Agent to Sell US Products and Services .......................................................... 8 Establishing an Office ................................................................................................... 10 Franchising .................................................................................................................... 11 Direct Marketing ........................................................................................................... 13 Joint Ventures/Licensing .............................................................................................. 13 Selling to the Government ............................................................................................ 14 Distribution & Sales Channels ...................................................................................... 15 Express Delivery ............................................................................................................ 16 Selling Factors & Techniques ....................................................................................... 16 eCommerce .................................................................................................................... 17 Trade Promotion & Advertising ................................................................................... 18 Pricing ............................................................................................................................ 19 Sales Service/Customer Support ................................................................................... 19 Protecting Intellectual Property ................................................................................... 19 Due Diligence ................................................................................................................. 22 Local Professional Services ........................................................................................... 22 Principle Business Associations .................................................................................... 23 Limitations on Selling US Products and Services ........................................................ 23 Selling Web Resources .................................................................................................. 24 Trade Regulations, Customs, & Standards ........................................................................ 24 Import Tariff ................................................................................................................. 24 Trade Barriers ............................................................................................................... 25 Import Requirements & Documentation...................................................................... 27 Labeling/Marking Requirements.................................................................................. 28 U.S. Export Controls ..................................................................................................... 28 Temporary Entry .......................................................................................................... 28 Prohibited & Restricted Imports .................................................................................. 28 Customs Regulations ..................................................................................................... 29 Trade Standards ............................................................................................................ 30 Trade Agreements ......................................................................................................... 34 Web Resources............................................................................................................... 35 Licensing Requirements for Professional Services ...................................................... 35 Trade Regulation Web Resources ...................................... 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Investment Climate Statement ........................................................................................... 36 Executive Summary ....................................................................................................... 36 Openness to and Restrictions upon Foreign Investment ............................................. 37 Conversion and Transfer Policies ................................................................................. 45 Expropriation and Compensation ................................................................................ 45 Dispute Settlement ......................................................................................................... 46 Performance Requirements and Investment Incentives .............................................. 49 Right to Private Ownership and Establishment .......................................................... 51 Protection of Property Rights ....................................................................................... 51 Efficient Capital Markets and Portfolio Investment ................................................... 53 Competition from State-Owned Enterprises ................................................................ 55 Corporate Social Responsibility ................................................................................... 56 Political Violence ........................................................................................................... 57 Corruption ..................................................................................................................... 57 Bilateral Investment Agreements ................................................................................. 63 OPIC and Other Investment Insurance Programs ...................................................... 64 Labor .............................................................................................................................. 64 Foreign Trade Zones/Free Ports/Trade Facilitation ................................................... 66 Foreign Direct Investment and Foreign Portfolio Investment Statistics .................... 66 Contact for More Information on the Investment Climate Statement ....................... 67 Trade & Project Financing ................................................................................................ 68 Methods of Payment ...................................................................................................... 68 Banking Systems ............................................................................................................ 68 Foreign Exchange Controls........................................................................................... 69 US Banks & Local Correspondent Banks .................................................................... 69 Project Financing .......................................................................................................... 70 Financing Web Resources ............................................................................................. 71 Business Travel .................................................................................................................. 72 Business Customs .......................................................................................................... 72 Travel Advisory ............................................................................................................. 73 Visa Requirements ........................................................................................................ 74 Currency ........................................................................................................................ 76 Telecommunications/Electric ........................................................................................ 76 Transportation............................................................................................................... 77 Language ........................................................................................................................ 77 Health ............................................................................................................................. 77 Local Time, Business
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