Chamber of Commerce Country Factsheet Last update: 09.08.2017
Your advisors at the Chamber of Commerce
- Edith Stein+352423939482
- Daniel Sahr+352423939313
Saudi Arabia is the birthplace of Islam and home to Islam's two holiest shrines in Mecca and Medina. The king's official title is the Custodian of the Two Holy Mosques. The modern Saudi state was founded in 1932 by ABD AL-AZIZ bin Abd al-Rahman Al SAUD (Ibn Saud) after a 30-year campaign to unify most of the Arabian Peninsula. One of his male descendants rules the country today, as required by the country's 1992 Basic Law. Following Iraq's invasion of Kuwait in 1990, Saudi Arabia accepted the Kuwaiti royal family and 400,000 refugees while allowing Western and Arab troops to deploy on its soil for the liberation of Kuwait the following year. The continuing presence of foreign troops on Saudi soil after the liberation of Kuwait became a source of tension between the royal family and the public until all operational US troops left the country in 2003. Major terrorist attacks in May and November 2003 spurred a strong ongoing campaign against domestic terrorism and extremism.
From 2005 to 2015, King ABDALLAH incrementally modernized the Kingdom. Driven by personal ideology and political pragmatism, he introduced a series of social and economic initiatives, including expanding employment and social opportunities for women, attracting foreign investment, increasing the role of the private sector in the economy, and discouraging businesses from hiring foreign workers. Saudi Arabia saw protests during the 2011 Arab Spring among Shia Muslims in the Eastern Province, who protested primarily against the detention of political prisoners, endemic discrimination, and Bahraini and Saudi Government actions in Bahrain. Riyadh took a cautious but firm approach by arresting some protesters but releasing most of them quickly and by using its state-sponsored clerics to counter political and Islamist activism. In addition, protests were met by a strong police presence, with some arrests, but not the level of bloodshed seen in protests elsewhere in the region.
The government held its first-ever elections in 2005 and 2011, when Saudis went to the polls to elect municipal councilors. In December 2015, women were allowed to vote and stand as candidates for the first time in municipal council elections, with 21 women winning seats. King SALMAN bin Abd al-Aziz Al Saud ascended to the throne in 2015 and placed the first next-generation prince, MUHAMMAD BIN NAIF bin Abd al-Aziz Al Saud, in the line of succession as Crown Prince. He designated his son, MUHAMMAD BIN SALMAN bin Abd al-Aziz Al Saud, as the Deputy Crown Prince. In March 2015, Saudi Arabia led a coalition of 10 countries in a military campaign to restore the government of Yemen, which had been ousted by Huthi forces allied with former president ALI ABDULLAH al-Salih. The war in Yemen has led to civilian casualties and shortages of basic supplies, which has drawn considerable international criticism. In December 2015, Deputy Crown Prince MUHAMMAD BIN SALMAN announced Saudi Arabia would lead a 34-nation Islamic Coalition to fight terrorism. In January 2016, Saudi Arabia executed 47 people on charges of terrorism, including Shia Muslim cleric NIMR al-Nimr. Iranian protesters overran Saudi diplomatic facilities in Iran to protest al-NIMR’s execution and the Saudi government responded by cutting off diplomatic ties with Iran.
Subject descriptor 2014 2015 2016 2017 2018 Gross domestic product, constant prices 3.639 3.486 1.194 1.981 2.551 Gross domestic product, current prices 753.832 646.002 637.785 689.004 740.218 Gross domestic product per capita, current prices 24,498.618 20,582.626 19,922.365 21,100.287 22,224.195 Inflation, average consumer prices 2.685 2.189 4.024 1.982 4.697 Volume of imports of goods and services 16.324 1.161 -9.483 2.710 3.934 Volume of exports of goods and services 2.097 4.115 4.012 2.188 2.343 Unemployment rate 5.721 5.591 n/a n/a n/a Current account balance 73.758 -53.478 -42.281 -17.674 -13.499 Current account balance 9.784 -8.278 -6.629 -2.565 -1.824
Source: IMF Statistics - Saudi Arabia
Luxembourg and the country
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 07.05.2013 (Memorial 2014, A, p. 1816)
- Effective as of 01.01.15
Air Services agreement
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Saudi Arabia
Le Luxembourg est représenté par:
Ambassade Royale des Pays-Bas à Riyad
Poste compétent pour les affaires consulaires:
Ambassade du Royaume de Belgique à Riyad
Les demandes de visas pour se rendre au Luxembourg sont à adresser à la représentation de:
Ambassade du Royaume de Belgique à Riyad
Economic and Commercial Attaché (AWEX):
2 Main Road - Lot No. A2
P. O. Box 94396
Tel: +966 1 4808614
Fax: +966 1 4808615
Annuler les modificationsCountry risk as defined by Office du Ducroire for Saudi Arabia
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Luxembourg for Business market entry guide to Saudi Arabia: Market entry guides are brochure series published by the Ministry of the Economy and Foreign. The series focuses on worldwide markets, industries and business environments, providing comprehensive and in-depth analysis and guidelines. The brochures cover all aspects relating to a market entry including the economic, financial and legal frameworks. The brochures are a vast knowledge pool, compiled into a practice oriented document with many tips and important addresses.
Other useful links:
- CIA World factbook on Saudi Arabia
- L'Arabie Saudite sur le site de l'Awex
- Doing business in Saudi Arabia
- Arab-Belgian-Luxembourg Chamber of Commerce
- The Saudi Network
- Economic Freedom Saudi Arabia
- Das ist Saudi Arabien
- L'Arabie Saoudite sur le site de l'AWEX
The Chamber of Commerce and the country