A Study on the Expansion of AEO MRA into the Middle East: Focusing on Saudi Arabia

Abstract

Purpose - This study analyzes the Middle Eastern market through qualitative analysis through SWOT analysis and STP strategy, solves the difficulties of Korean companies currently exporting to Saudi Arabia, and expands the MRA effect through mutual promotion between the two countries to other countries in the Middle East. Design/Methodology/Approach - This research aimed to establish 3C, PEST, SWOT, STP strategies by conducting market environment analysis in the Middle East through the theoretical background and preceding research on the AEO system and AEO MRA, It focused on Saudi Arabia, which has a future national vision in the Middle East. Findings - The result showed that Saudi Arabia is Korea’s 7th largest trading partner. In order to handle the difficulties of non-tariff barriers and delays in customs clearance in the Middle East and Saudi Arabia, it is necessary to actively conclude an AEO MRA. This is a good chance for Korean companies to create a second boom in the Middle East. Research Implications - Saudi Arabia has yet to sign an AEO MRA with Korea. However, as part of the Saudi Vision 2030, Korean companies need to enter various fields such as civil engineering, construction, and energy. There are yet many non-tariff barriers and logistics flow delays in the Middle East. It is time to enter into the AEO MRA system with Saudi Arabia.