Political risks analysis for international project under the new situation-case study on the market of saudi arabia

Abstract

With the deep development and implementation of the Chinese “the Belt and Road” strategy, more and more Chinese project contracting enterprises are rapidly stepping towards the international project contracting market and join the market competition. Meanwhile, these enterprises are faced with more complex and harsh risks overseas. Under a series of new situations, such as complicated and changing international situation, growing regional conflicts, increasingly rampant terrorist organizations, these enterprises are also confronted with increasingly huge political risks. Saudi Arabia is China's largest engineering contracting market in the Middle East, but the situation in the Middle East is becoming more and more deteriorative because of the Syrian Crises and the diplomatic crisis between Saudi Arabia and Iran. Therefore, Chinese enterprises are faced with serious political risks in Saudi Arabia. In this paper, we took the political risks that Chinese project contracting enterprises faced in Saudi Arabia under the new situation as an example, and optimized as well as combined various risk management technologies. Finally, we put forward systematic recommendations on effective control of political risks and duly handling the results caused by the political risks.