READINESS OF SAUDI ARABIAN SMEs FOR GLOBAL COMPETITION: A STUDY ON THE EASTERN PROVINCE

Abstract

Small and Medium Scale Enterprises (SMEs) of Saudi Arabia are going to be challenged by the global competitors as a result of country’s accession to WTO. The main objective of the study is to evaluate current level of competitiveness of the Saudi Arabian SMEs in order to assess their readiness to face global competition. Competitiveness of Saudi SMEs is measured against 4 parameters, which are Management Awareness and Attitude, Level of Technology, Customer Responsiveness and Skill Level of Manpower. It was found that awareness level of the management of Saudi SMEs about the potential competition resulting from joining the country in WTO is very high and they are trying to shape their companies accordingly. They were found relatively weak in switching to new product in a quick time with little expenses. It was also found that level of technology used by the Saudi SMEs is quite advance and comparable to the global leaders in the respective industries. The study also found some weaknesses of Saudi SMEs in their customer responsiveness and skill level of their employees.