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Doing Business in Saudi Arabia - International Franchise Association

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at anytime world class government services offered <strong>in</strong> a seamless user friendly and secure way<br />

by utiliz<strong>in</strong>g a variety of electronic means, which will contribute to <strong>Saudi</strong> <strong>Arabia</strong>’s prosperity.<br />

Trade Promotion and Advertis<strong>in</strong>g Return to top<br />

The U.S. Commercial Service <strong>in</strong> <strong>Saudi</strong> <strong>Arabia</strong> organizes a dynamic annual trade events<br />

calendar, <strong>in</strong>clud<strong>in</strong>g and especially the recruitment of official <strong>Saudi</strong> delegations to more than a<br />

dozen important trade shows <strong>in</strong> the United States each year under the auspices of the<br />

Commerce Department’s <strong>International</strong> Buyer Program, as well as Trade Missions, promotion of<br />

trade events <strong>in</strong> <strong>Saudi</strong> <strong>Arabia</strong>, the USA and <strong>in</strong> other countries, etc.<br />

Advertis<strong>in</strong>g, especially on satellite television, is rapidly expand<strong>in</strong>g, but commercials have to<br />

conform to religious and ethical codes. With some m<strong>in</strong>or exceptions, the female human form is<br />

not culturally or religiously acceptable <strong>in</strong> the media. The <strong>Saudi</strong> monopoly on television<br />

broadcast<strong>in</strong>g was broken with the <strong>in</strong>troduction of satellite television, which also forced TV<br />

advertis<strong>in</strong>g rates to come down.<br />

<strong>Saudi</strong> companies have opted to run commercials through <strong>in</strong>ternational satellite TV channels<br />

such as the Middle East Broadcast<strong>in</strong>g Corporation (MBC) and Arab Radio & Television (ART).<br />

Other Arabic satellite channels that also have proved to be popular <strong>in</strong> the Arab world <strong>in</strong>clude<br />

LBC, Future Television, Dubai One TV, Dubai TV, New TV, Channel 2, MBC2, MBC3, and<br />

MBC4. Many <strong>Saudi</strong> companies place commercials on these channels as well as on two pan-<br />

Arab news channels, Arabiya and Al-Jazira channels. In addition, two encrypted TV networks<br />

each provide approximately 30 channels for an average subscription of $1,000 per year. The<br />

networks <strong>in</strong>clude Orbit Communications and ShowTime.<br />

Newspaper advertis<strong>in</strong>g is carried <strong>in</strong> both the local English and Arabic press, but its effectiveness<br />

is somewhat limited by relatively low readership rates. The two local English dailies, Arab News<br />

and <strong>Saudi</strong> Gazette, have an average circulation <strong>in</strong> the range of 35,000 copies. The lead<strong>in</strong>g<br />

Arabic newspapers, with nationwide distribution, have circulations <strong>in</strong> the range of 70,000 to<br />

100,000: Al Hayat, Riyadh Daily, and Okaz.<br />

Other relevant newspapers have lower circulations, and some have only regional distribution.<br />

The pr<strong>in</strong>cipal papers are Al Bilad, Al Jazirah, Al Mad<strong>in</strong>a, Al Nadwa, Al Riyadh, Al Youm, Um Al<br />

Qura, Al Watan, Al-Riyadiya (sports only). The economic daily Al Eqtisadiah has rapidly earned<br />

a loyal readership of executives and government officials.<br />

Trade promotion events take place from September through June, with most of them held <strong>in</strong> the<br />

modern exhibit centers <strong>in</strong> <strong>Saudi</strong> <strong>Arabia</strong>’s three major cities, Riyadh, Jeddah and Dhahran.<br />

Smaller exhibition facilities are also located <strong>in</strong> regional centers, and often operate <strong>in</strong> cooperation<br />

with or under the sponsorship of a local chamber of commerce.<br />

Most chambers have a proactive approach to promotion and trade, organiz<strong>in</strong>g shows and<br />

presentations for <strong>in</strong>dividual companies or groups, and have been eager to attract American and<br />

other Western suppliers. The ma<strong>in</strong> chambers of commerce are listed <strong>in</strong> the “Contacts” section<br />

of Chapter 9 <strong>in</strong>fra.

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