It’s not that the Saudis aren’t pleased to see foreign visitors, it’s just that they use the first possible opportunity to issue a death threat. ‘Traffickers will be killed’ promises the landing card distributed before we touch down in Jeddah. It’s a reminder of Saudi Arabia’s tough stance on crime and its direct approach to business, even drug-smuggling business. But for those blue-chips interested in rather more mainstream corporate endeavours, opportunities in Saudi Arabia are booming.
The oil-rich kingdom is offering more than £624 billion worth of contracts in defence, transport and infrastructure to international firms. Despite the worst stock-market crash ever seen in the Arab world — the Tadawul All-Share index lost $400 billion of its value in three months earlier this year — the Gulf’s largest economy is still buoyed by the rising price of oil. While the West pays record amounts to fill up, gas stations on the Jeddah highway offer fuel at 65 halalas (9p) a litre, a price which is fixed throughout the kingdom. Saudi Arabia is blessed and cursed by oil, because wealth insulates the country from change, and enables it simply to buy its way out of trouble, removing the need to compete with its neighbours or Western allies.
To understand Saudi Arabia’s business challenges it is important to appreciate how the place is governed. It is not an absolute monarchy, but is run by a gaggle of elderly princes. King Abdullah — ‘O Long Lived One’ as his sons affectionately call him — came to the throne last year and is every Saudi’s favourite great-uncle, regarded as shrewd and incorruptible. (He is also more modern in outlook than his predecessors, and the proud owner of a Winnebago camper van.) His reforms include abolishing the title of Majesty and forbidding Saudis to kiss his hand.
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