Saudi Arabia

Saudi Arabia

1. What are some current issues facing Saudi Arabia? What is the climate for doing business in Saudi Arabia today?

Well the to answer the first part of the question I would say that infrastructure is one of the big issues in Saudi Arabia. Most of the towns they have are as old and out dated. Also the old pipes in the city, the bad water works, terrible electricity, a lot of phone lines are not being updated enough to accommodate the growth of population and business there. For the second part of the question I would say over all a bad climate for business. Reasons being that Saudi Arabia has been accused over time that they are taking part in terrorist’s activities. This does not mean that they are, but the bad plublicity hurts them for attracting new business. Just from reading this small case that another reason that climate is bad in Saudi Arabia is that they do not seem to be as trustworthy. Just from the last couple paragraphs in the case it seems that they say things that are not accurate just to gain the things that they want. Also a trait they seem to have is that they are okay with being paid off to give certain companies contracts, Skyblue for example.

2. Is it legal for Auger’s firm to make a payment of $100,000 to help ensure this contract?

I think that Auger giving payment of $100,000 dollars to help ensure this contract is not legal in a business sense. I do not know this for sure but it seems that this type of “bribe” the minister has done before so it might have just become socially acceptable to put in words. But, as for an action being done in the United States this is something that would not even come to mind in a business world. I feel that is not fair to other companies when others use money to win contracts, I feel that it over-looks the companies that actually do good business instead of the companies that are not good, they just have money.

3. Do you think other firms are making these payments, or is Auger’s firm...