Joint Ventures in construction firms in Saudi Arabia.

Abstract

This thesis discusses the main problems facing the joint venture firms in the Eastern Province in Saudi Arabia. A survey of thirty firms for Saudi-Foreign joint venture and twenty firms for Saudi-Saudi joint venture for the Eastern Province was undertaken. The survey includes different questions such as role in construction, type of construction, grade as specified by Ministry of Commerce, reasons for making joint venture and what type of joint venture. Also, the questionnaire includes seventeen different problems facing the construction joint venture firms. These problems are ranked according to the importance index, which measures their level of importance. A computer statistical package (SAS) was used to analyse the data. A hypothesis that Saudi-Saudi joint venture and Saudi-Foreign joint venture agree on the ranking of importance indices were tested and shown to hold not true. It was concluded that for Saudi-Saudi joint venture, payment delay from the owner, government regulation and lack of adequate study of partner before forming the joint venture are the main problems. For Saudi-Foreign joint venture, poorly written contract, and lack of adequate study of partner before forming the joint venture and government regulation are the main problems.