Outline

Comparison and Contrast between USA and Saudi Arabia Business Laws

Introduction

Legal systems are in general vibrant and dissimilar dependent on the background of where the law is conscripted (Deresky & Christopher, 2011). In this comparison, there are extensive differences and limited similarities catalog amid the legislative system of Saudi Arabia and that of the United States (Ebbe, 2014). Principally, Saudi Arabia centered and regulated by Islamic Sharia law that is acquired from the Islamic religion Quran, hadith, public accord and Islamic academics. It was renowned by Crane (2016). That Saudi Arabia leading lawful system is the Islamic regulation that is centered on religious principles and standards which additionally dominates every aspect of existence in the country. On the other hand, the United States of America mainly adheres to and applies the constitutional and common law which offers a precise draft of the governing regulations via a democratic procedure that includes everyone in its specific location (Natarajan, 2011).

Business climate in the USA and Saudi Arabia

Saudi Arabia is characterized with the largest market in the Middle East based on the owned resources and growth potential (Neuliep, 2009). Corporate laws were modified in 2000 to allow foreign investors to have full business ownership which was missing before (Neuliep, 2009). On the Other hand, America is the leading economically globally based on its size, resources, revenue and international influence. A business organization in America is mainly guided by democratic constitutional law which governs both the domestic and the international business. Both Saudi Arabia and America provides an attractive surrounding for conducting business but U.S.A is more accommodating in regard to foreign investment based on its liberal and democratic culture (Neuliep, 2009).

Cultural influences that influence business organization and relationships in the USA and Saudi Arabia

Saudi Arabia is an Islamic based society which is very conservative. This differs from the American society which encourages individuality and there are no cultural restrictions that affect business (Shahidullah, 2014). For most Saudi Arabians family values are of great significance since families coexist jointly. This culture is not excluded in business operations since most businesses are business are possessed by families. Business operations in Saudi Arabia necessitate unique considerations of both social and cultural standards based on the Islamic religion (Shahidullah, 2014).

Business Organization Contradictions

It is universally argued that Sharia law which is used in Saudi Arabia limits the potential of businesses because the structure itself is a dictatorial one (Shahidullah, 2014). Along with the strict laws that govern the political and social operations in the country, the law further assumes that any sentenced individual is a criminal until contrary prove that aligns with the law is developed. The law itself raises too many controversies among the public globally as to most it is considered to be operating human rights (Ugur, 2006). The antagonistic regulation system in the United States is dissimilar in that it encourages liberty either economically, politically and socially and the supposed guilty persons must be tested lawfully. Corporate scandals are higher in the United States than in Saudi Arabia based on the difference between the democratic law and the sharia law which is more of dictatorship following religious beliefs (Al-Janadi, Rahman & Omar, 2013).

Business Organization Similarities

An essential law examination is based on the manner in which the regulations are utilized to govern organizations and instill justice. There are several similarities in American and Saudi Arabian laws in that everyone is treated as equal. Both are accommodative of both local and foreign investors but in Saudi Arabia, one must seek to win recognition and trust of the people first.

Contracts and E-Contracts

Sharia law is applied in both criminal and business law since Civil Code does not work in Saudi Arabia (Ali, 2009). All the contracts that are developed in Saudi or engages a company from the state are under the Sharia law’s jurisdiction (Bhuian, Abdul-Muhmin, & Kim, 2001). However, in the United States business contracts are developed based on the interests of the involved parties but should adhere to the law.

Conclusion

Based on the above analysis it is clear that sharia law and the statutory and common law applied in governing operations in Saudi Arabia and the United States are more different than similar. In that Saudi Arabia is mainly controlled by the Islamic religion and authoritative cultures that influence business operations while the United States relies on democracy and the interests of those conducting businesses are guarded and respected.

 

References

Ali, A. (2009). Business and management environment in Saudi Arabia: challenges and opportunities for multinational corporations. Routledge.

Al-Janadi, Y., Rahman, R. A., & Omar, N. H. (2013). Corporate governance mechanisms and voluntary disclosure in Saudi Arabia. Corporate Governance, 4(4), 25-35.

Bhuian, S. N., Abdul-Muhmin, A. G., & Kim, D. (2001). Business Education and Its Influence on Attitudes to Business, Consumerism, and Government in Saudi Arabia. Journal of Education for Business, 76(4), 226.

Crane, A. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

Deresky, H., & Christopher, E. M. (2011). International management: Managing cultural diversity. Frenchs Forest, N.S.W: Pearson Australia.

Ebbe, O. (2014). Comparative and international criminal justice systems: Policing, judiciary and corrections. Mason Florida: Taylor and Francis Group. p43.

International, B. P. U. (2015). Saudi arabia investment and business guide: Strategic and practical information. Place of publication not identified: Intl Business Pubns Usa.

Natarajan, M. (2011). “International Crime and Justice”. New Jersey: Cambridge University Press. p80.

Neuliep, J. W. (2009). Intercultural communication: A contextual approach. Los Angeles: Sage.

Shahidullah, S. (2014). Comparative criminal justice systems: Global and local perspectives.         Burlington, MA: Jones & Bartlett Publishers.

Ugur, E. (2006). Article of the European Convention on Human Rights: a practitioner’s   handbook.Geneva: World Organization against Torture.