Question

You decided to start your own business in that particular area of freight transport in the Eastern Province of KSA. You have a capital of 20 million SAR and another fund covers 5 million SAR is allocated to you by the Ministry of Commerce and Investment. The market has a positive trend for road transport industry and developing rapidly in spite of the adverse effects of after pandemic environment. Provide your plans and decisions on:

What will be the legal requirements when and how you start up your business?

Answer 1

To start a freight transport business in the Eastern Province of KSA, one needs to fulfill several legal requirements and should be mindful of the Saudi economy's direction towards diversification and global trade benefits as shown by the PPF and trade exchange examples.

Step-by-step explanation:

To start your own business in the freight transport sector in the Eastern Province of KSA with a capital of 20 million SAR and an additional fund of 5 million SAR from the Ministry of Commerce and Investment, you must be aware of various legal requirements and procedures. Establishing a business in Saudi Arabia involves several steps, including registering the business name, obtaining the necessary licenses, and adhering to specific regulations for the transport industry. Additionally, it will be essential to connect with the global markets while considering the local economy's efforts to diversify away from a petroleum-based focus. According to the production possibilities frontier (PPF), if Saudi Arabia specializes and trades efficiently, such as exporting fewer than 60 barrels of oil and importing at least 10 bushels of corn, it will benefit the country's economy. This example, as illustrated in Figure 33.3, demonstrates how trade allows a country like Saudi Arabia to consume beyond its domestic PPF, thereby gaining from trade.