Economics of Saudi Arabia

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Saudi Arabians are facing tougher economic times recently as prices of commonly purchased goods have gone up about 7-10%. It is back-to-school season everywhere and items such as book bags, notebooks and lunch boxes have gone up in price since last year making it more difficult for many middle eastern families to provide the essentials for their children. Many parents have gone on the record saying that they do not waiver to buy these things for their children because of price but because these things need to be purchased, other things will have to be gone without.

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Saudi Arabia is also struggling to maintain its labor market and market competitiveness. The country has taken steps to try and ensure better employment rates but there is still a deficiency. As of Tuesday, Saudi Arabia is ranked 70 out of 148 in terms of Labor Market Efficiency.

In 2011, Saudi Arabia implemented a program designed to increase the number of nationals employed in the private sector. Nevertheless, employment is still down. This is probably because the companies in the private sector are less concerned about employing more nationals and more preoccupied in working the system. According to an article from alarabiya.net, a popular Saudi news source, private sector companies are registering family members as employees in the system in order to meet quota requirements and stay in the “green zone”. ¬†Companies not in the green zone are barred from obtaining licenses and completing vital business operations.

Sources: Arabnews.com and Alarabiya.net

Written By: Brittany Lintner

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