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The article discusses several risk scenarios in Saudi Arabia as of November 20, 2013. These include threat from Iran to close the Strait of Hormuz, uncertainty of political succession and failure to address political corruption. Each risk scenario was identified as foreign trade and payments, political stability, and government effectiveness risks.

The article provides an overview of a risk assessment for Saudi Arabia as of November 20, 2013. Topics covered include the country's political risk, financial risk, and security risk. Uncertainty over political succession, unrest due to violence and tensions over the treatment of the Shia minority and reforms in social liberalisation, and high youth unemployment rate are risk scenarios observed in the kingdom.

The article discusses tax policy risks in Saudi Arabia in 2013. It was noted that taxes imposed on foreign companies have been lowered steadily since 2002. The tax scenarios explored include the possibility of imposing income taxes on foreign expatriates in the near future and the establishment of a consumption tax on domestic goods and services. Foreign suppliers and firms active in Saudi Arabia are advised to prepare for the possibility of some form of sales tax within the next five years.

The article focuses on the political stability risk assessment for Saudi Arabia. The continued rule by the Al Saud family is influenced by the absence of clear alternatives. It explains the social unrest in the region. The uncertainty over succession and the marginalisation of the Saudi Shia are analyzed.

The article focuses on risk scenarios for Saudi Arabia. Scenarios on security risks are presented such as attacks by Islamic militants launched from Yemen, retaliations from Iran in the event of the escalation of the nuclear issue and other tensions in the Gulf, and being drawn into a deterioration of the Bahrain situation. Scenarios impacting Saudi political stability are discussed such as the spread of the regional social unrest, a dispute in succession, and increased protests by the Shia.

The article focuses on the government effectiveness risk assessment for Saudi Arabia. The Saudi bureaucracy is described as having slow with unclear regulations. The article discusses corruption as a source of domestic discontent and explains the need for economic liberalisation. King Abdullah of Saudi Arabia announced the creation of an anti-corruption commission, reporting directly to him.

The article focuses on the security risk assessment for Saudi Arabia. It discusses a government campaign against Islamist extremists which drive militants into Yemen where they could attempt further attacks on targets such as oil facilities. Tensions concerning Iran's nuclear programme are discussed such as a U.S. or Israeli attack on Iran in which a retaliation could impact Saudi Arabia.

The article focuses on the legal and regulatory risk assessment for Saudi Arabia. It explains the inadequacy of the Saudi legal system to provide protection for foreign firms. It says that the favouring of domestic capital and bids are threats to increasing foreign investment in the country. The risk of the "Saudiisation" policy as an additional challenge for private-sector firms is explored.

The article focuses on the macroeconomic risk assessment for Saudi Arabia. It discusses the Saudi economy's dependence on oil. It explains the economic measures announced by King Abdullah in February 2011 worth 36 billion U.S. dollars in expenditures which affected the country's fiscal balance. It discusses the decline in inflation slightly to 5% in 2011.

The article focuses on foreign trade and payments risk assessment for Saudi Arabia. It explains Iran's threat to close the Strait of Hormuz. It mentions that Non-tariff barriers to trade such as additional customs procedures are causing political tension. It cites that the Saudi Arabian government has a poor record of payment for contracted goods and services on a timely basis, both from foreign and domestic firms.

The article focuses on the tax policy risk assessment for Saudi Arabia. It discusses the reduction in taxes on foreign firms approved by the Consultative Council in January 2004. A top rate of corporate tax of 25 percent was changed to 20 percent flat tax. The Saudi government is reportedly considering direct or indirect income taxes on foreign expatriates.

The article focuses on the infrastructure risk assessment for Saudi Arabia. It discusses the infrastructure quality and the threat of water shortages in the country. The inadequacy of the telecoms infrastructure and the need for more projects to meet the power demand are also discussed. The article discusses the increase in the power demand in Saudi Arabia.

The article focuses on the labour market risk assessment for Saudi Arabia. It explains the strict implementation of Saudiisation policy. The increase in the lack of marketable skills of Saudi workers is discussed. In February 2011, the king announced a scholarship system for Saudi students studying abroad, which should allow more young Saudis to access the best tertiary education establishments globally.

The article focuses on the risk assessment for Saudi Arabia. Security risks are presented such as threats from groups identified with al-Qaida, the Shia elements, and the tense relations with Iran. The uncertainty of succession is discussed including the issue that Abdullah and the senior princes in the Al Saud family are old and beset with health problems. Concerns on the unstable regional political situation, corruption, and the inadequacy of the legal system are also discussed.

The article focuses on the financial risk assessment for Saudi Arabia. It discusses the under-developed Saudi financial market wherein non-resident foreigners cannot directly invest in equities. It explains the cautious stance by international lenders caused by defaults of two Saudi family conglomerates in 2009, Dubai's debt-management problems, and defaults in Bahrain and Kuwait. It analyzes a break in the fixed exchange-rate peg in place since 1986 and the likelihood of devaluation.

The article presents a country risk report for Saudi Arabia. It explains that while the Al Saud family will likely stay in power, several risks including uncertainty over political succession remains. Risk of violent or organised crime is low although relations with Iran are increasingly tense. While there are divisions among the Al Saud family, they will likely keep a united public front. The economy continues to rely on oil which the Saudi government will continue to control.

This article provides a country risk assessment for Saudi Arabia from 2012 to 2013. The Economist Intelligence Unit expects consumer price inflation to slow down during the period. The firm forecasts decreases in the country's scores for tax policy and security risks. It also assesses the intention of the government to pressure companies to increase wages or provide bonuses.

The article provides an overview on the security, political, financial and economic risk for Saudi Arabia for 2011. It mentions that any dispute could draw in Saudi Arabia which may be viewed by Iran as offering tacit support to Israel of the U.S. for any attack on Iran, given the long-standing ties between the U.S. and Saudi Arabia. It states that one of the primary differences is the clergy's role with a long-standing pact with the Al Sauds, and has disapproved any protests in Saudi Arabia.

The article provides an overview on the security, political, financial and economic risk of Saudi Arabia for 2011. It mentions that the arrest of 113 militants in March 2011 and the attempt of assassinating the deputy interior minister highlighted the continued risk from groups that identify loosely with al-Qaida. In addition, proceedings tend to be insufficiently transparent and the legal system offers inadequate protection for foreign companies.

The article presents Saudi Arabia's risk scenario watchlist. It rates as moderate to high the Islamist extremists successful attacks on Saudi Arabia from Yemen while risk of the wider regional social spreads to Saudi Arabia is rated as Moderate to Very high. The government's imposition of income taxes on foreign expatriates in the near future is seen as very low to moderate while shortages of marketable skills in the labour sector is rated as moderate to high.

The article presents a summary of Saudi Arabia's legal and regulatory risk. Its legal system offers inadequate protection for foreign firms and enforcement of contracts can be difficult especially if the local firm in a dispute is linked to the royal family. The appointment of a new justice minister boosted efforts to overhaul the judicial system. Its government will maintain its policy of requiring firms to employ a minimum quota of Saudi nationals to reduce unemployment among its citizens.

The article presents a summary of Saudi Arabia's political stability risk. In the absence of clear alternatives, the ruling family remains in place. There is no elected parliament and the issue of succession remains uncertain as King Abdullah bin Abdel-Aziz al-Saud and senior princes are old with health problems. It notes that while popular dissatisfaction may not turn into a unified national movement, smaller groups may mobilise on specific issues such as youth unemployment and Shia rights.

The article presents a summary of Saudi Arabia's government effectiveness risk. The global recession has made the economy more dependent on the state and the unstable regional political scene has increased state involvement in the government. It cites failure of the government to address bureaucratic corruption in the form of commissions paid as part of doing business in Saudi Arabia. Its bureaucracy is seen as inefficient with poor co-ordination between ministries.

The article presents a summary of Saudi Arabia's macroeconomic risk. Its gross domestic product (GDP) growth remains subject to risks from oil-output decisions as its economy remains heavily dependent on oil. It predicts a slip of its fiscal account into deficit from 2013 due to recent announcements by the king of new spending initiatives. It indicates Saudi's concerns that global worries on climate change and investment in alternative energy may lead to lower oil demand and damage its economy.

The article presents a summary of Saudi Arabia's security risk. The attempted assassination of the deputy interior minister and the arrest of 113 militants highlighted risk from groups loosely identified with al-Qaida. The risk of politically motivates attacks against the government including oil facilities and individual expatriates remain. It indicates the expansion of its security services and the government has invested on an extensive information campaign against advocates of violence.

The article presents a summary of Saudi Arabia's foreign trade and payments risk. Its strong external trade and finance position signifies the absence of threat to current-account convertibility or to its access to foreign exchange. Its accession to the World Trade Organisation (WTO) in 2005 means there is little risk of discriminatory tariffs or excessive trade protection in the near future. While tariffs are low, customs procedures may become barriers to trade.

The article presents a summary of Saudi Arabia's tax policy risk. The latest tax reform on foreign firms reduced a corporate tax to a 20% flat tax on all foreign company income earned in the kingdom. Government plans to impose income taxes on foreign expatriates in the near future may be politically controversial. While there is no urgent fiscal incentive to introduce taxes, foreign firms in Saudi Arabia should consider the possibility of some form of sales tax being introduced in the future.

The article presents an overall view of Saudi Arabia's labour market risk. While trade unions do not exist and strikes are almost unheard of, workers' grievances often cause stoppages which are not illegal. Much labor is imported due to a severe shortage of skilled and specialised labour. The policy of Saudiisation is being enforced more strictly in the wake of the sweeping unrest in the region. Its educational system produces students lacking the required skill of the modern business world.

The article presents a summary of Saudi Arabia's financial risk. Saudi authorities have resisted calls for a revaluation of the Saudi riyal which has been pegged at 3.75 Saudi riyal to a U.S. dollar since 1986. Regional unrest and the defaults in 2009 by two major Saudi family conglomerates has made international lenders more cautious about lending to the Gulf. Saudi Arabia remains an active buyer of U.S. Treasury bills and is expected to continue amassing U.S. sovereign bonds.

The article presents an overall risk assessment of Saudi Arabia. It notes that while the Al Saud family remains in power a number of risks exist which includes the uncertainty over political succession. Support for the government is maintained through patronage, heavy public spending and implicit bargain with conservative clerics. Its economy remains oil-dependent and vulnerable to changes in international oil prices. It cites the absence of labor unions and strikes are unheard of.

The article presents a summary of Saudi Arabia's infrastructure risk. Maintenance of its ports, airports and roads remains a problem as it undergoes major expansion of its rail network. Its telecommunications is inadequate but is rapidly improving due to greater competition and new investment by new market entrants. It indicates a worsening water shortage while its power demand is growing by 8% a year and the government has to invest significant amount to keep pace.

The article discusses the operational risk rating for Saudi Arabia. It points out the vulnerability of the Saudi Arabian regime in light of the massive new state spending pledges announced in March 2011 and the unrest across the Middle East. It notes the impact of social unrest spreading across the region on investors' perceptions, leading to a 10-point increase in the political stability risk score. The macroeconomic risk score was reduced by five points due to positive projection of economic growth in 2011 brought about by higher Saudi oil production.

The article assesses the security risk of Saudi Arabia. It discusses the possibility of terrorist attack by al-Qaida in the Arabian Peninsular (AQAP) from Yemen on government, and Western and civilian targets in Saudi Arabia. It advises foreign firms to be highly vigilant and to maintain very tight security and liaise closely with their embassies. It relates the impact of the deployment of Saudi forces in Bahrain on the kingdom's relations with the Shia minority.

The article assesses the government effectiveness risk of Saudi Arabia. It provides an overview of the problem of corruption in the bureaucracy in line with the practice of payment of commissions when doing business in the kingdom. It discusses some of the factors contributing to the delay in implementation of economic reforms, such as the opposition of local businesspeople and ruling family members. It emphasizes the importance for businesses to forge local connections since the private sector will remain heavily dependent on government contracts.

The article assesses the country risk of Saudi Arabia. Some of the risks facing the rule of the Al Saud family include the uncertainty over the political succession, and some opposition to the ruling family. It relates the steps taken by the government in response to protests in Shia areas. It highlights the vulnerability of the Saudi economy to changes in international oil prices in line with its dependency on oil revenue.

The article assesses the legal and regulatory risk facing businesses operating in Saudi Arabia. It relates the insufficient protection provided by the Saudi legal system for foreign firms. It advises foreign investors to enter Saudi Arabia in partnership with a well-connected local firm since Saudi Arabia has tended to favour domestic vested interests over foreign capital. It discusses the likelihood for the government to maintain its Saudiisation policy that requires firms to employ a minimum quota of Saudi nationals.

The article assesses the political stability risk of Saudi Arabia. It explains why the revolutions that recently took place in Egypt and Tunisia is unlikely to occur in Saudi Arabia. Some of the factors that may contribute to future social unrest in the kingdom include high youth unemployment and uncertainty in the succession of the kingdom's ruler. It discusses the impact of the unrest across the Middle East on the protests by the Shia minority.

The article assesses the foreign trade and payments risk of Saudi Arabia. It describes problems in customs procedures in the kingdom. It advises foreign firms to be prepared for the possibility of some custom delays and valuation difficulties and to consult local agents for help. Businesses are also advised to check with their local embassies and industry associations before agreeing to contracts with the Saudi Arabian government which has a poor record of paying for contracted goods and services on a timely basis.

The article assesses the tax policy risk that foreign businesses operating in Saudi Arabia may face. It outlines the tax rate on all foreign company income earned in the kingdom. It discusses the possibility of the introduction of a consumption tax such value-added tax (VAT) or sales tax in Saudi Arabia if such taxes became the norm in other Gulf states. It explores the disadvantage of a consumption tax for foreign firms.

The article assesses the macroeconomic risk of Saudi Arabia. It discusses the impact of the set of economic measures introduced by King Abdullah in late February 2011, including unemployment benefits and increase in public-sector wages on the kingdom's public finances over the medium term. It expects a widening in Saudi's fiscal account deficit in 2014-2015. It emphasizes the importance for firms to be aware of the economic volatility that accompanies the kingdom's dependence on crude oil revenue.

The article assesses the financial risk of Saudi Arabia. It discusses the impact of the outbreak of social unrest in the Middle East on the ability of countries across the region to issue new debt. It relates the decline of the Saudi stock market and the sharp increase in the cost of insuring Saudi debt. Firms operating in Saudi are advised to review the availability of alternative sources of financing. It highlights the possibility for the Saudi currency to experience downward pressure if oil prices suffer a sustained decline.

The article assesses the labour market risk of Saudi Arabia. It relates the possibility for the government to enforce the "Saudiisation" quotas that require firms to employ a certain proportion of Saudi nationals in response to persistent unemployment. It describes the problems facing firms in finding workers that have the skills necessary to do the job in line with a Saudi educational system at the elementary and high school level which emphasizes the study of classical Arabic and Islam.

The article assesses the infrastructure risk of Saudi Arabia. It relates the problem of maintenance in Saudi's ports, airports and roads. It describes the improvement in the telecommunications infrastructure of the country which was brought about by greater competition and new investment by recent market entrants. It emphasizes the need for investment in information technology, as well as power and water networks.

The article assesses the country risk of Saudi Arabia. Some of the risks facing the rule of the Al Saud family include the uncertainty over the political succession, and some opposition to the ruling family. It relates the occurrence of small-scale protests in the capital and in Shia areas in relation with the social unrest affecting countries in the Middle East. It highlights the vulnerability of the Saudi economy to changes in international oil prices in line with its oil-dependency.

The article offers a commentary on risk ratings for Saudi Arabia as of December 2010. In their review of Saudi Arabia's operational risk model, analysts have upgraded one category and downgraded another. Rating for the country's macroeconomic risk has been brought down from 30 to 25, with interest rates being held at the same level since April 2009. Score for financial risk, however, has been raised from 38 to 42 as the depth of financing has become more restricted than earlier.

The article provides a summary of the country risk ratings for Saudi Arabia as of December 2010. It says that there has been few attacks within the country following a wave of violence by al-Qaida-inspired militants in 2003-2004. On the economic, it is expected that the degree of policy continuity would also depend on the economy at the time of the succession. It has also a poor record of paying for contracted goods and services on a timely basis, both from foreign and domestic firms.

The article provides a security risk assessment for Saudi Arabia as of December 2010. Recent events that highlighted the persistent risk from groups that loosely identify with al-Qaida were attempts to assassinate the deputy interior minister and the arrest of 113 militants in March 2010. Beefed-up security forces reportedly contributed to a reduction in the country's violence. There is also a low risk violent or organised crime in the country.

The article provides a government effectiveness risk assessment for Saudi Arabia as of December 2010. It notes that its economy's dependence on the state has been influenced by global recession and a tight financing environment. A long-term process of liberalisation and opening to foreign investment are underway in the country. There is also existence of corruption in the government and some efforts to address it. A plan to overhaul the legal system is also noted.

The article provides a legal and regulatory risk assessment for Saudi Arabia as of December 2010. Legal system in the country is said to provide inadequate protection for foreign firms and there is insufficiently transparent proceedings. It says that there is difficulty in enforcing contracts, particularly if the local firm in a dispute is linked to the royal family. An improvement in local accounting practices is also reported.

The article provides a political stability risk assessment for Saudi Arabia as of December 2010. It notes the absence of elected parliament in the country, the restriction of opposition movements and the unlikeliness that anyone could overthrow the government. Policymaking is reportedly constrained by the king's need to accommodate the interests of princes and of senior clerics in Saudi Arabia. It is also predicted that economic inequalities and high youth unemployment will be the key sources of discontent.