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The economy of Saudi Arabia is based on its oil exports because it is the leading producer and exporter of crude oil and other petroleum products. Oil exports constitute 90% of the country’s exports and around 75% of public sector revenues. Knowledge management and sharing are obviously concerned with the improvement and dissemination of expertise in the oil production and export sector.   The Saudi Public Sector recognizes the fact that for its continued growth, expansion, and progression the implementation of “Knowledge Management” is essential. Employees working in the private sector are better paid than those working in the public sector. This means that public sector employees will either resign to work for private organizations or take early retirement.

This means that the public sector will lose experienced and educated employees to the private sector and that the research can be concentrated on the public sector because of the plethora of information available       A strategy to endorse such changes is to build up the idea of Knowledge Management Strategies which can help to cope with challenges and help the public sector in dealing with problems that they are facing or could face in the future. In the last decade, Knowledge Management Strategies have been adopted quite successfully by several large companies which the Saudi Arabian Oil Company. Saudi Basic Industrial Corporation (SABIC) Al Zamil and Saudi Telecom.

Although there have been many successful uses of knowledge management and sharing, there are several instances where knowledge management and sharing has failed. Studies carried out found that nearly two-thirds of all companies had some sort of knowledge management program that worked with a combination of financial and operational measurements that quantify results. Knowledge management creates tools that make it possible for organizations to realize their objectives and measure their performance parameters.

Saudi Arabian companies are currently utilizing knowledge management for establishing structures, processes, and procedure to encourage communication and transferring of knowledge between individuals and organization for the further development of existing knowledge and skills. The entire concept of knowledge management is founded on the principle that these are passive processors which have important links in the value information chain because they play an active part of transforming data into useful information. The research concentrates on issues that are critical and persuasive for the development of Knowledge Management Strategies for the public sector in Saudi Arabia. The study recognized and acknowledged several issues that must be taken into consideration for the successful implementation of KM.

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