OBSTACLES FACING SAUDI ARABIAN FOOD AND CHEMICAL EXPORTERS

Abstract

This study examined responses from 58 food and chemical exporters in Saudi Arabia. Managerial perceptions on 24 export obstacles that were derived from the literature are analyzed and reported. The single most important obstacle perceived by the sample exporters is fierce competition in foreign markets. Competition is followed by high cost of imported raw materials, absence of information about foreign markets, wide fluctuations in the foreign exchange rate, and high overseas transportation costs. The eight categories of the obstacles are: market information, competition, shipping, government policy, foreign market risks, export procedures, production/marketing cost, and internal/technical problems. MANOVA analysis showed that chemical and food exporters are statistically different in their mean response to these obstacles. ANOVA pinpointed those variables that are different at the .05 level. They are: risks involved in selling abroad, language and cultural differences, complex export procedures, lack of adequate export revenue insurance program, and absence of an export management and consulting company. Managerial and policy implications are discussed. Further, recommendations for tackling the top export obstacles are presented.