Business and Entrepreneurship in Saudi Arabia

EDWARD BURTON is CEO and president of the USSABC. He works with the American and Saudi public and private sectors to promote the interests of the U.S.-Saudi Arabian bilateral commercial relationship. Ed has counseled hundreds of Fortune 500 companies, as well as small- and middle-tier firms in such industries as construction, medical and pharmaceutical, defense and security, information technology, power and water, and technical services.

• Preface ixAcknowledgments xxiAbout the Author xxiiIntroduction xxiiiCHAPTER 1 The Kingdom’s Modern Economy and Economic Might 1The Modern Saudi Economy and the National Development Plans 1The Private Sector’s Role in National Development and Non-Oil GDP 8So, How Has It All Worked Out? 9The Kingdom’s Path to Economic Diversification 17Notes 29CHAPTER 2 Innovation in Saudi Arabia: The Kingdom’s March Toward the Future 33Evaluating Innovation in Saudi Arabia: The Global Innovation Index and the Importance of International Market Engagement 33Innovation versus Invention 40Technological and Scientific Discovery in Saudi Arabia 42King Abdulaziz City for Science and Technology (KACST) 45King Abdullah University for Science and Technology (KAUST) 56Industrial Clusters Program (IC), SABIC, and Saudi Intellectual Property 62Notes 67CHAPTER 3 The Development of Family-Owned Businesses in Saudi Arabia 69Defining the Family-Owned Business (FOB) 69The Corporate versus Social Nature of the Saudi Family-Owned Business 74Corporate Succession within Saudi Family-Owned Business and New Generation Integration 81Management of Strategic Focus and the Importance of Corporate Governance 90Illustrations of Saudi Family-Owned Businesses 98Notes 116CHAPTER 4 Entrepreneurship in Saudi Arabia Today 120Defining "Entrepreneur" in Saudi Arabia 120Saudi Entrepreneurs—The Decision to Go into Business 130Mr. Saud Al-Suhaimi, CEO of Jawlah Tours 136Mr. Abdulrahman Al-Olayan, Businessman, Lecturer, Doctoral Candidate 142Bankruptcy in Saudi Arabia 150Notes 157CHAPTER 5 Exploring Saudi Entrepreneurism and Opportunities for Business 162Entrepreneurship as a Catalyst for Economic Growth—Saudi Realities 162Promotion and Support of Saudi Entrepreneurs and Small and Medium-Sized Businesses 168Endeavor Global Incorporated (Endeavor) and Endeavor Saudi Arabia 169The National Entrepreneurship Institute (RIYADAH) 178The Centennial Fund (TCF) 186Saudi Technology Development and Investment Company (TAQNIA) 192Notes 198CHAPTER 6 New Horizons for the Kingdom and for Its Domestic and Foreign Businesses 201A New Era in U.S.–Saudi Commercial Relations 201Saudi and American Goodwill and Right Intentions—A High-Level Discussion on U.S.–Saudi Bilateral CommercialRelationships 206New Fiscal Realities and Recurrent Development Themes 211Closing Thoughts 218Notes 220Index 223