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Focus On Saudi Arabia

VitalStatistics

Population: 25,732,000
Monetary unit: Saudi riyal (SR)
Capital city: Riyadh
Major languages: Arabic
Major religions: Muslim c. 94%, of which Sunni c. 84%, Shi(i c. 10%; Christian c. 3.5%, of which Roman Catholic c. 3%; Hindu c. 1%; nonreligious/ other c. 1.5%
Ethnic composition: Saudi Arab c. 74%; expatriates c. 26%, of which Indian c. 5%, Bangladeshi c. 3.5%, Pakistani c. 3.5%, Filipino c. 3%, Egyptian c. 3%, Palestinian c. 1%, other c. 7%
Age breakdown: under 15, 30.8%; 15–29, 30.7%; 30–44, 24.3%; 45–59, 9.8%; 60–74, 3.5%; 75–84, 0.8%; 85 and over, 0.1%
Life expectancy: male 71.7 years; female 75.6 years
Education: Percentage of Saudi ([2000] non-Saudi) population age 10 and over who: are illiterate 13.7% (12.1%), are literate/have primary education 34.0% (40.6%), have some/completed secondary 42.1% (36.0%), have at least begun university 10.2% (11.3%)
Urban/Rural split: urban 81.9%; rural 18.1%
Income per household (USD):
Broadband internet users (%):

Source: Encyclopedia Britannica

Introduction

With a population of over 27 million people, one of the largest oilfields in the world, and the expectation of double digit GDP growth over the next three years, it is little surprise that the Kingdom of Saudi Arabia remains a highly important market for both local and international brands.

This has not gone unnoticed by the global PR groups, and in recent years many have entered the market through distributors or joint ventures. These, together with a burgeoning local PR sector, are creating a vibrant market for PR services. This was formalised with the recent creation of the Saudi Association for Public Relations and Advertising (SAPRA).

As Hani Okaily, head of communications for the Saudi Atomic Energy Authority, says: “PR in Saudi Arabia is evolving at a rapid pace. Initially PR was seen as simply media coverage and protocol, but nowadays corporations and government entities are spending more time and money on the whole spectrum of communication aspects, from CSR to public affairs and crisis and issue management.”

There are though many challenges for the Saudi PR industry to tackle. The media is limited; attend ten media events for different industries and you will most likely see the same faces at each one. Corruption is endemic with many media accepting payment to run stories. This is driving more and more brands to look at how they can use social media to circumvent the traditional media.

 


 

Working There

In Association With:

Fabric Recruitment

While the economy in Saudi Arabia is not as impressive as it once was, there is still an extremely healthy job market to take advantage of.

Oil and gas remain the key areas of industry for the country, but the logistics, IT, telecommunications, construction, medical, and

retail sectors also provide opportunities for adventurous expats. English teachers are always in demand in Saudi Arabia and the positions often come with good salaries.

 

 

Red Tape

Unfortunately, Saudi Arabia doesn’t make it easy for job-hunting foreigners! You need a visa to both enter and exit the country and getting one of these prized documents involves a rather long and convoluted process.

Work and residency visas:

To qualify for a visa you must have a confirmed job offer as well as an individual or company to act as your ‘sponsor’ and vouch for your conduct. Basically, it’s not possible to arrange to come to Saudi Arabia and then look for work after you arrive.

To obtain the actual visa, you have to contact the nearest Saudi embassy in your own country. They’ll ask to see proof of employment: usually a  copy of your job contract. You’ll also need to show proof of your qualifications, bank records, a copy of your passport and results of a comprehensive medical examination that includes confirmation of a negative HIV test. Alternatively, you can ask your sponsor in

 

Saudi Arabia to submit all this for you directly to the Saudi authorities.

Interestingly, it’s also compulsory to have some form of medical insurance when applying for or renewing a visa. However, your employer is typically responsible for arranging and paying for this.

 

If all your documentation is seen to be in order you should be issued a visa number, which you then use to obtain a hard copy of your visa. You can also use the number to apply for a residency permit, which will be allocated to you within a few months of arrival. The residency permit is called an ‘Iqama’ and contains information about your sponsor, profession, date of birth and family members.

Until you have an Iqama, it’s vital to remember to keep your passport and visa with you at all times. If you get stopped with

no valid ID it may be assumed that you’re in the country illegally and you could be taken to jail or deported. Many police officers don’t speak English and are not generally very helpful. Saudi Arabia, unlike other countries in the GCC, has no real tourist industry and doesn’t issue tourist visas.

One last hurdle to consider is that on arrival in the country, you have to surrender your passport to your sponsor and you can’t leave again without their consent. And when you do get hold of your passport, you still need an ‘exit stamp’, which also requires approval from your sponsor.

 

 

Costs

Currently, Saudi Arabia’s capital city of Riyadh is ranked 130 out of the 282 most expensive places in the world for expats to live.

ATMs are easy to find, and you can change foreign currency at almost all the banks and bureau de change. Major credit cards - such as Visa and Mastercard - are also accepted at most shops, hotels and restaurants. And with no sales taxes on goods or services, your Riyal goes a long way! (The Saudi currency is the Riyal. £1 = 5.78 SAR and €1 = 5.06 SAR, as at October 2011)


Tax-free salary!

Of course, one significant perk of working in Saudi Arabia is that foreign employees don’t get taxed on their salaries. There is a religious wealth tax (zakat) that businesses  pay – but expat businesses are exempt.

 

When you negotiate your job contract it’s worthwhile trying to include some extras. For example, an accommodation allowance, medical care, tickets home twice a year, and a fully insured company car will really help your finances to go further. It’s also advisable to ask for medical insurance and school fees for your family. These secondary costs do add up and can easily negate the tax advantage of working in Saudi.

The major cost you’ll incur in Saudi Arabia is housing. Depending on the standard of living you aspire to, accommodation can cost as much as SAR 3,500 per month.

Average monthly rents:

Unfurnished 2 bedroom house: SAR 2,100

Furnished 2 bedroom apartment: SAR 4,200

Unfurnished 2 bedroom apartment SAR 2,200

Room in shared apartment SAR 1,100

 

If you wish to risk the potential culture shock of living amongst the Saudi people it is possible to buy or rent a villa or apartment. The cost of buying a property will depend on size, location and amenities, but the average cost of a medium size villa is around 30,000 SAR.

Other day-to-day costs:

Groceries are reasonably priced if you know where to shop, but dining out can be harsh on your wallet. Clothing and goods associated with recreation are also slightly pricey (probably because many western items are simply not used by the Saudi population), but relatively inexpensive transport, furniture and appliance costs help to balance this out.

As you might expect from an oil-rich country, petrol is extremely cheap; you may find you can afford to drive a much more luxurious car than at home.

Culture Snapshot

No matter how well informed you are, there will be a degree of cultural adjustment needed when moving to Saudi Arabia. Many westerners find it easier to live and socialise in western-style compounds, which are far removed from Saudi life.

Religion:

Saudis are predominantly Muslim and they take their religion very seriously. Sharia is the religious law that dictates the way Muslims should live their life. It is highly respected and affects absolutely everything from politics, economics and family life to business, sexuality and even hygiene. The religious police or ‘Muttaween’ are there to enforce compliance and do so with gusto, even if you’re a non-Muslim expat.

It’s crucial to familiarise yourself with the basic rules on how to conduct yourself appropriately in this society.

Etiquette:

Extreme importance is placed on politeness and social decorum and you’ll soon cause offence if you don’t learn the correct way to behave.

Expats should use the Arabic greeting of 'Salaam Aleikum' in preference to the western ‘hello' or ‘hi’.

Use your right hand when eating and when giving or taking things: the left hand is considered ritually unclean.

It’s normal to shake hands with other men but physical contact with women is heavily discouraged, even if you know them well. Holding hands is just about tolerated between

married couples but never ever kiss your wife or husband in public; restrain yourselves until you get home!

Eye contact is also extremely important in Saudi Arabia; your sincerity and credibility may be judged according to your ability to hold someone’s gaze.

Business meetings are often long-winded and you shouldn’t be surprised if you’re interrupted by family members or personal phone calls. You may even find you get ignored altogether while a lengthy personal conversation takes place. While this is obviously not how westerners are used to conducting meetings, don't become frustrated. Try your best to fit in and treat everything as a necessary part of becoming accepted.

Women:

Saudi Arabia is a heavily patriarchal society and in women have a submissive role. Although there have been slight reforms over the last few years, women are expected to be subservient to men and have little independence or rights.

As a woman, you can’t enter or leave the country alone unless you’re being met by a sponsor or male relative. You have no right to vote and you may be expected to use separate entrances and areas of public places and shops. This sometimes applies to workplaces, too. Females can own a car but are not permitted to drive. This means they have to hire a male driver or get chauffeured around by a male family member. It’s not unusual to see Saudi women being driven around by their very young sons.

Saudi women are also forbidden from

socialising in public with men they’re not married to or related to by blood. These rules are actively enforced by the religious police and expats are also expected to comply.

Clothing should be conservative and must be covered by a long black robe (abaya) that covers their body, legs, head and face. Non-Muslim women are not required to cover their face but are still expected to wear an abaya and must never show any bare flesh.

Alcohol and pork:

One of the most glaring differences an expat will encounter is the fact that alcohol and pork products are both illegal. Although, in practice, alcohol is often consumed inside western compounds.

Western bubble!

Many expats choose to live in western compounds in order to escape the many restrictions. Life within these communities is intensely social and it’s easy to form strong bonds with fellow expats.  Most foreigners live in the cities of Jeddah and Riyadh - both of which have the full range of western shops and other amenities: restaurants, bowling alleys, cinemas, dry cleaners, supermarkets, golf courses, hair salons, football fields and gyms.

Weather:

Expats might find the weather in Saudi Arabia difficult to contend with. The country is mostly desert and rainfall is very sparse. During the day it’s incredibly hot - sometimes over 45°C (113°F) - but temperatures can drop below freezing at night.

MyMove

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Media

Print is the primary medium for PR in Saudi Arabia and of the 13 newspapers Alsharq Al Awsat and Alhayat are the most important. They cover both local and international politics and are well read by those in power. Alriyadh, Aljazeerah, Okaz, Al-madina and Alwatan are the important local papers, and the sports paper Alriyadiya has the highest circulation across the board.

Adel Sartawi, communications manager for Nokia KSA & Yemen, adds: “There are also

some local and pan-Arab magazines such as Sayidaty, Laha, Al Rajul, Zahrat Al Khaleej, and T3 ME.”

Although neither television channel is based in the Kingdom, the MBC Group, with MBC1 and Al Arabiya, has the most viewers and Aljazeera TV is probably the most influential. CNBC Arabia is a trusted business and investment channel. In terms of radio, Panorama and MBC FM are the most noteworthy.

All of these media are to a very great extent restricted by the Government and this, combined with the issues around journalist corruption and the fact that 10 million Saudis are now online, is driving more and more brands to invest in social media.  For example, Cisco’s consumer division recently began targeting Saudi bloggers with a high degree of success.

 

Major Brands

The telecommunications industry is a major investor in PR in Saudi Arabia with Mobily and Saudi Telecom Company the two main operators and Samsung, Apple, Nokia, and Blackberry the leading handset manufacturers.

Others to watch include National Commercial

Bank, chemicals, fertilisers, plastics and metals manufacturer the Saudi Basic Industries Corporation, oil company Aramco, and industrial giant Savola, as well as multinationals Microsoft and Intel which both have a presence through vendors.

 

Agencies

Asda'a Burson-Marsteller, Hill + Knowlton Strategies, Ketchum, and MEMAC Ogilvy all have a presence, as do regional players TRACCS and DABO & Co. Adalid is a new agency established in 2009 which is fast building a name for itself.

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