Saudi Arabia risks and opportunities concerning suitable exports are significant in understanding the impacts of globalization on our world economy. During this discussion, we are going to look into the effects of globalization as far as Saudi Arabia's oil and gas industry is concerned (Demirbas et al., 2018). We are going to discuss the strengths, weaknesses, opportunities, and threats for Saudi Arabia's long-term petroleum products industry outlook.
Some of the strengths for the industry include; Developed infrastructure such as improved transport systems and learning centers, which make it easier for the products to access the global market (Conca, 2015). Improved energy production by the Saudi Arabian economy, hence the economy can depend mainly on oil and gas production. Thus, accessing the global market quickly through oil and gas production. Readily available labor is also available for the industry. Labor from within and without the state; hence, this can boost the creation of the products. The weaknesses faced include; Rise in crime rates, frequent strikes by workers which in turn affect the continuous production process negatively. Crime may scare away foreign investors who may be willing to invest in the sector (Mohanty et al., 2018). However, opportunities are created by the industry, such as available market globally for their oil and gas due to large scale production.
Lastly, threats must also exist in the sector of production. Such risks include a high level of competition by other countries. Countries such as Qatar for the market, price fluctuations in the market and recurrent attacks on the production causing panic thus hindering globalization. The Saudi vision 2030 implies that the economy will, therefore, reduce dependence on oil and gas. And embrace a diversity of its economic base in areas of public service such as infrastructure, health, education, tourism, among others.
Conca, J. (2015). US Winning Oil War Against Saudi Arabia. ENERGY, 6, 50AM-149. http://www.talaracapital.com/wp-content/uploads/2017/04/Talara-CIO-Discusses-U.S.-Shale-Growth-in-Forbes.pdf
Mohanty, S. K., Onochie, J., & Alshehri, A. F. (2018). Asymmetric effects of oil shocks on stock market returns in Saudi Arabia: evidence from industry level analysis. https://link.springer.com/article/10.1007/s11156-017-0682-5
Review of Quantitative Finance and Blazquez, J., Hunt, L., & Manzano, B. (2017). Oil subsidies and renewable energy in Saudi Arabia: A general equilibrium approach. The Energy Journal, 38(S11), 29-45.Accounting, 51(3), 595-619 http://epubs.surrey.ac.uk/814073/
Demirbas, A., Alsulami, H., & Nizami, A. S. (2016). The natural gas potential of Saudi Arabia. Energy Sources, Part A: Recovery, Utilization, and Environmental Effects, 38(18), 2635-2642. https://www.sciencedirect.com/science/article/pii/S0360544215009251
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