The Effectiveness of Improving Non-Oil Saudi Export Through Ma’aden Aluminum Company

• Pages: 57-67

Vo

l. 7 N

o

. 1

M

arch

,

202

1

ISS

N 2410-391

8

A

cces online at www.ii

p

ccl.or

g

57

A

cademic Journal o

f

Business,

A

dministration, Law and Social Sciences

II

PCCL Publishin

g

, Graz-

A

ustria

The Ef‌f ectiveness of Improving Non-Oil Saudi Export

Through Ma’aden Aluminum Compan

y

D

r. Mo

h

amme

d

Du

l

iem A

l

Qa

h

tan

y

K

ing Faisal

U

niversity, School o

f

Business, Management Departmen

t

Hamad Al

J

aafar

i

K

ing Faisal

U

niversity, School o

f

Business, Management Departmen

t

Ab

str

a

ct

S

audi

A

rabia is a major producer of natural oil and one of the largest exporters of crude oil

i

n the world. More than 80% of the total Saudi exports go in favor of oil. Saudi

A

rabia being

i

n the middle of the

A

rab world and has a signif‌i cantly important geographical location with

a

n abundance of the natural resources of minerals and so on; all of that is ref‌l ected on the

development and prosperity of the growing economy of the kingdom and the trade balance.

F

rom here the government of Saudi

A

rabia is keen to promote non-oil exports before running

out of oil reserves. Ma’aden

A

luminum Company is the major key player of aluminum industry

i

n Saudi

A

rabia; with grow administratively and

f‌i

nancially day a



er day. This study a empts

t

o f‌i nd out how the company can play its part in improving the country’s overall exports; and

provides in-depth analysis o

f

the company’s

f‌i

nancial health through SW

O

T analysis o

f

the

company, f‌i nancial ratio analysis, company’s valuation and free cash f‌l ow model. Regression

a

nalysis also provides the linear relationship among the Saudi non-oil exports growth and

M

a’aden

A

luminum Company’s export. The results of this study show that the company can

play a signif‌i cant role in improving the overall Saudi

A

rabia exports.

K

e

y

words

:

E

xport, Non-oil industries, Performance

A

nalysis, Business Development

.

I

ntr

odu

ct

io

n

Saudi ex

p

ort o

f

non- oil

p

roducts became o

f

the

p

ressing issues o

f

the Saudi econom

y

,

s

o it is a vital

f

actor in economic develo

p

ment e

f‌f

orts. Develo

p

ment

p

lans have

f

ocused on diversi

f‌i

cation o

f

sources o

f

national income b

y

giving

p

riorit

y

to the

p

roduction and manu

f

acturing sectors and reduce de

p

endence on oil as the sole

s

ource o

f

income. Saudi non-oil ex

p

orts exceeded 150 billion ri

y

als throughout the

p

ast two

y

ears as indicated b

y

Saudi

E

x

p

ort Develo

p

ment

A

uthorit

y

.

E

x

p

ort diversi

f‌i

cation has been ada

p

ted widel

y

b

y

develo

p

ing countries and

m

ultilateral institutions, such as the World Bank, as a

p

olic

y

measure to tackle the

p

roblem o

f

ex

p

ort instabilit

y

and to achieve higher rates o

f

ex

p

ort growth.

A

t the

s

ame time, it has been argued that the im

p

lementation o

f

ex

p

ort diversi

f‌i

cation

p

olicies would reduce the de

p

endence o

f

the develo

p

ing countries on traditional

e

x

p

orts whose

p

rices have not onl

y

risen at generall

y

slow rates o

f

growth over the

long run, but also have been sensitive to excessive short-term

f‌l

uctuations.

A

s it is noticed that in the

A

rabian Gul

f

States the aluminum

p

roduction business has

d

eve

l

o

p

e

d

since t

h

e 1970s to turn into a critica

l

non-oi

l

in

d

ustr

y

sector in t

h

is

q

uic

kly