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2018 Survey Results
This survey has been created by the RGBB Board to identify where you and your company are in reference to the current business environment in the Kingdom.
We are sharing the results with you in the expectation that it will provide you with a snapshot of business by sector, concerns and challenges, expectations, direction
and potential opportunities, and provoke dialogue and discussion within and outside the RGBB.
This is the second edition of the Survey, and the intention is to repeat it on a yearly basis to track changes and identify trends. Where possible, we have compared
2018 to 2017 results.
In addition we would welcome feedback and suggestions as to additional questions that could be asked to add further value to the survey output.
INTRODUCTION
• Sound proofing of Hall – works have been carried out by the Embassy, but there is room for improvement
• Launch of Website
• Special Briefings focused on broad engagement with members on Business/Operational issues, rather than sales type pitches
• Major event with SABIC supporting DIT
• Establishment of Focus Groups, with continuous engagement on further development
• Increased engagement with DIT supporting meetings and events. Consciously raising the need for SME engagement with DIT.
ACTIONS FROM LAST SURVEY
Q1 – What type of visa do you have?
2018 2017
In nrs As % In nrs As %
Resident Visa 91 59% 116 78%
Work Visa 49 32% 31 20%
Government Visa 8 5% 2 2%
Other 7 4% - -
Total 155 100% 149 100%
2018 2017
In nrs As % In nrs As %
CEO / CFO / MD / VP / Managing Partner 43 28% 33 22%
Partner 8 5% 88 59%
Senior Staff / Technician 80 52% 15 10%
Other 24 15% 13 9%
Total 155 100% 149 100%
Q2 – What is your KSA role in your business?
2018 2017
In nrs As % In nrs As %
< 2 years 50 32% 45 30%
2 – 5 years 57 37% 69 46%
6 – 10 years 24 15% 22 14%
10 – 15 years 12 8% 8 5%
> 15 years 12 8% 8 5%
Total 155 100% 152 100%
Q3 – How long have you worked in KSA?
2018 2017
In nrs As % In nrs As %
A large corporation or multinational 111 72% 100 67%
An SME (less than 200 staff / UK 25 million turnover) 34 22% 38 26%
A sole trader / start-up or small business 10 6% 11 7%
Total 155 100% 149 100%
Q4 – To help us collate results, please indicate if you are answering on behalf of:
2018 2017 2018 2017
Sector nr % % Sector nr % %
Construction & Engineering 20 13% 12% Chemicals 3 2% 1%
Consultants 20 13% 10% Events & Entertainment 3 2% 0.5%
Education & Training 20 13% 12% IT & E Technology 3 2% 3%
Financial Services / Insurance 17 11% 14% Legal 3 2% 2%
Aerospace & Defence / Security 15 10% 12.5% Ministries & Government Agencies 3 2% 3%
Transport & Logistics (incl. Rail & Aviation) 15 10% 7% Telecommunication & Media 3 2% 2%
Hospitals & Medical Services 10 6.5% 6% Oil / Gas / Mining / Drilling 2 1% 2%
Consumer Goods & Retail 5 3% 4% Printing & Publishing 2 1% 0.5%
Food & Beverage 4 2.5% 3% Recruitment 2 1% 0.5%
Real Estate, Hotels & Facilities Management 4 2.5% 3% Electrical Power Industry 1 0.5% 2%
Total 155 100% 100%
Q5 – Into what sector does the company you work for fall?
2018
In nrs As %
No 108 70%
Yes 47 30%
Total 155 100%
Q6 – Are you working for a British company in KSA?
2018
In nrs As %
Yes 82 53%
No 73 47%
Total 155 100%
Q7 – Does your company have a UK Subsidiary?
2018
In nrs As %
No 134 86%
Yes 21 14%
Total 155 100%
Q8 – Does your company have UK Shareholding through SAGIA?
2018
In nrs As %
Yes 115 74%
No 40 26%
Total 155 100%
Q9 – Do you buy goods / services from the UK ?
2018 2017
In nrs As % In nrs As %
1 5 3% 11 7%
2 – 5 5 3% 6 4%
6 – 20 12 8% 16 11%
21 – 100 33 21% 32 21%
> 100 100 65% 86 57%
Total 155 100% 151 100%
Q10 – How many employees are there in your KSA business?
2018 2017
In nrs As % In nrs As %
Recruit 104 67% 94 63
Remain the Same 40 26% 44 30%
Reduce 11 7% 11 7%
Total 155 100% 149 100%
Q11 – In employment in KSA, are you planning to:
• Opportunities following Brexit and the removal of EU trading regulations
• G2G Pipelines
• Mega Projects
• Specialist Advisory Services & Consultancy• Defence & Security• Infrastructure, including rail, construction, nuclear power• Education• Health care
• Knowledge Transfer
• Privatisation Programmes
• Tourism & Entertainment
• Education
Please see full list of responses in Appendix 1
Q12 - What opportunities do you see for British Business in KSA?
Q13 - What is the main barrier or issue you experience to doing business in KSA ?
2018 2017
In nrs As % In nrs As %
Recruitment and skills. 54 35% 53 37%
Saudization 30 19% 32 22%
Enforcing Contracts 5 3% 11 8%
Business Credit/Investor Funding. 2 1% 9 6%
Setting up a company. 2 1% 7 5%
Understanding Employment Law. 0 0% 5 4%
Debt collection. 30 19% 4 3%
Business Culture - Adapting to local business practices 18 13% 2 1%
Other 14 9% 21 14%
Total 155 100% 144 100%
2018 2017
In nrs As % In nrs As %
KSA remains a market of large project opportunities 56 36% 20 16%
Developing market 27 17% 19 14.5%
KSA Company - so not applicable 20 13% 19 14.5%
Global Operations and capability for Clients 0 0% 16 13%
Higher margins 2 1% 10 8%
Tax free salary 32 20% 10 8%
Business Improvement and skills development. 4 3% 5 4%
Multiple potential opportunities for our skills compared to the UK. 5 3.5% 4 3%
To underpin the KSA-UK relationship 6 4.5% 4 3%
Other 3 2% 20 16%
Total 155 100% 127 100%
Q14 – What is the main benefit of doing business in KSA compared to back in the UK?
2018 2017
In nrs As % In nrs As %
Positive 115 74% 124 84%
Mixed 40 26% 17 12%
Negative 0 6 4%
Total 155 100% 147 100%
Q15 - Overall, do you consider Vision 2030 to be a positive or negative initiative by the Saudi government?
2018 2017
In nrs As % In nrs As %
The plan has positively affected the Business 70 45% 63 48%
Nothing yet 27 18% 31 24%
Will see more long term effects 32 21% 19 14%
Has created uncertainty 10 6% 5 4%
No 8 5% 3 2%
Other 8 5% 11 8%
Total 155 100% 132 100%
Q16 - Has Vision 2030 already affected your company’s business?
Q17 - How well do you feel you are prepared to deal with the 2030 plan around the ongoing drive for Saudization?
2018 2017
In nrs As % In nrs As %
Comfortable 69 45% 64 43%
Concerned 36 23% 46 31%
Confident 47 30% 34 23%
No answer 3 2% 5 3%
Total 155 100% 149 100%
Q18 - Have you / your company experienced difficulties in obtaining visas, and if yes, which visas?
2018 2017
In nrs As % In nrs As %
No 69 45% N/A -
Residency Visa 56 65% 77 54%
Business Visa 29 34% 33 23.5%
Visit visa / Family Visa 17 20% 32 22.5%
2018 2017
In nrs As % In nrs As %
Too much bureaucracy 81 52% 99 71%
Speed of Issuance 51 33% 41 29%
Cost 21 13% 140 100%
Other 16 10% 29 17%
Q19 - Please specify if you / your company has experienced problems with any of the points below:
2018 2017
In nrs As % In nrs As %
Not in a position to answer 69 45% 39 80%
No 44 28% 10 20%
Yes 42 27% N/A -
Total 155 100% 49 100%
Q20 - Has your company replaced any departures (as a result of the contractual changes) with candidates of the same experience / age?
Q21 – Do you operate predominantly in the Government or Private Sector?
2018
In nrs As %
Private Sector 86 55%
Government Sector 69 45%
Total 155 100%
2018
In nrs As %
Yes 92 59%
No 27 18%
Not in a position to answer 36 23%
Total 155 100%
Q22 - Many organisations / employees have experienced delays in the payment from their clients / employers and this has had a ripple effect throughout industry. Is the issue of late / overdue payment still an issue?
Government Sector Private Sector
Q23 - What percentage of initial invoices are rejected for drafting ‘errors’ and have to be re-submitted to be registered for payment?
2018
In nrs As %
None 7 8%
1 – 33% 28 33%
34 – 65% 4 5%
66 – 100% 3 3%
Not in a position to answer
44 51%
Total 86 100%
2018
In nrs As %
None 2 3%
1 – 33% 10 14%
34 – 65% 10 14%
66 – 100% 8 12%
Not in a position to answer
39 57%
Total 69 100%
Government Sector Private Sector
Q24 - What is the average period in days between raising an invoice and it being paid? (2018)
2018
In nrs As %
1 – 3 11 19%
4 – 5 months 5 9%
6 – 9 months 3 5%
10 – 12 months
Not in a position to answer
39 67%
Total 58* 100%
2018
In nrs As %
1 – 3 months 4 6%
4 – 5 months 16 23%
6 – 9 months 16 23%
10 – 12 months 5 7%
Not in a position to answer
28 41%
Total 69 100%
* 28 respondents did not answer the question
Q24 -What is the average period in days between raising an invoice and it being paid? (2017 comparison)
2017
In nrs As %
1-3 months 41 60%
4 – 5 months 8 12%
6 – 9 months 14 21%
10 – 12 months 5 7%
Total 68 100%
Q25 -How many British employees do you have now, compared to two years ago?
2018 2017
In nrs As % In nrs As %
Same 63 41% 42 47%
Decrease 50 32% 28 31%
Increase 42 27% 20 22%
Total 155 100% 90 100%
Q26 - How many Western employees do you have now, compared to two years ago?
2018 2017
In nrs As % In nrs As %
Decrease 59 38% 33 33%
Same 58 37% 38 43%
Increase 38 25% 17 19%
Total 155 100% 88 100%
Q27 - How many other expat employees do you have now, compared to two years ago?
2018 2017
In nrs As % In nrs As %
Decrease 53 34% 21 37%
Same 51 33% 22 36%
Increase 51 33% 16 27%
Total 155 100% 59 100%
Q28 - Is your company still actively recruiting Western expats?
2018
In nrs As %
Yes 75 48%
Not recruiting 29 19%
Focus on Saudis 51 33%
Total 155 100%
2017
In nrs As %
Yes 56 47%
Not recruiting 33 30%
Yes but reducing numbers 26 20%
Focus on Saudis now. Have enough expat staff 2 2%
Still recruiting but with added Saudi recruitment 1 1%
Total 118 100%
2018 2017
In nrs As % In nrs As %
Lots of opportunity and we are able to win some 50 32% 38 45%
Tough Market/Increased competition 56 36% 24 28%
Slow/reduced/limited 29 19% 18 21%
Unchanged 20 13% 5 6%
Total 155 100% 85 100%
Q29 - In respect to winning and securing new business, how are you finding the availability of opportunities and your availability to win?
Q30 - Would your company benefit from external consultancy support for winning new business, whether through solution development, competitor analysis, presentation preparation, development of bids and proposals, etc.?
2018 2017
In nrs As % In nrs As %
No 114 74% 99 71%
Yes 41 26% 41 29%
Total 155 100% 140 100%
Q31 – Is your organisation subject to VAT?
2018
In nrs As %
Yes 110 71%
No 9 6%
Don’t know 36 23%
Total 155 100%
Q32 – Has the VAT implementation process worked?
2018
In nrs As %
Yes 90 58%
No 9 6%
Don’t know 56 36%
Total 155 100%
Q33 – Has your organisation had any fines imposed?
2018
In nrs As %
Yes 6 4%
No 80 51%
Don’t know 69 45%
Total 155 100%
Q34 – Have you heard about the Saudi Aramco led IKTVA programme?
2018
In nrs As %
Yes 38 25%
No 117 75%
Total 155 100%
Q35 – Has your company been audited for its IKTVA rating?
2018
In nrs As %
Yes 11 7%
No 134 87%
Don’t know 10 6%
Total 155 100%
Q36 – Do you feel you require more information about IKTVA?
2018
In nrs As %
Yes 89 57%
No 66 43%
Total 155 100%
• Much positive feedback received. Members generally happy with the Group and where it is going.
• Main sectors of feedback:• More engagement with DIT and the Embassy (including more improvements in the Hall acoustics)• Drive the Sectors and Focus Groups to meet more often• General Format and Type of Events – Briefings, Networking Events, Focus Groups etc
• Outside Embassy Events – Business and Social• More time for Q&A• Request for more events
• Engagement with / presentation from Saudi Business• Website and Social Media• Don’t forget small and medium business
• A new Board will be elected at the AGM – will look at the comments in depth and see what can be actioned
Please see full list of responses in Appendix 2
Q37 - What could the RGBB do better?
