TITLE:
Impact of Economic Sustainability in Apparel Factories on Economic Challenges in Saudi Arabia
AUTHORS:
Sarah Eid Hamalos Aldaadi
KEYWORDS:
Economic Sustainability, Challenges, Apparel Industry, Saudi Economy
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.9 No.7,
July
21,
2021
ABSTRACT: The global apparel industry has resisted challenges over the past decade, the garment industry in the Kingdom of Saudi Arabia also
faced many challenges at the local and international level. The implementation of the rules and regulations of the World
Trade Organization (WTO) and the Kingdom’s Vision 2030 has received special
attention and economic sustainability has become one
of the main objectives of garment factories. The study uses the interview in
data collection and the descriptive approach in the qualitative analysis of the
data. The impact of economic sustainability on the economic challenges facing
(10) small and medium garment factories has been studied with the aim to identify the challenges and
economic factors that affect the business strategy and feasibility of
implementing economic sustainability. It was concluded that some of the
economic challenges are represented in the high operating cost caused by the
application of new taxes, including the value-added tax (VAT), imposition of
fees on non-Saudi workers and the updated
rules and regulations of the Ministry of Commerce. As such, it was
concluded that the economic sustainability component represented in production
efficiency, reducing operating costs through modern manufacturing techniques,
and reducing supply costs, was a key solution to ensure the survival and
sustainability of factories. The study recommended
the necessity of implementing industrial cooperation with factories and related
companies and preparing a strategic plan to attract investors.