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Economic Transition - Essay Example

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Running Head: Economic Transition Economic Transition Economic Transition Saudi Arabia Saudi Arabia is the biggest country in terms of area, which is situated in the Middle East. The country is one of the biggest producers of oil, which generate more than 75 percent of revenues for the country…
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Economic Transition
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Economic Transition

Download file to see previous pages... In addition, trade barriers are being lifted, the export portfolio is diversifying from oil to other products, and market forces are emerging as strong determinant of price and demand. The reasons behind this shift have their roots in the lessons, which the Saudi policy makers learnt from the crisis and recessions of 1980s due to fluctuations in the oil prices. Since then, slowly and gradually, the Saudi government has been trying to strengthen the oil sector and create a reliable banking system, which could provide credit facilities to the new foreign and domestic investors. Important here to understand that this transition is not complete yet it is had some impacts on the macroenvironment. Rather than controlling the country based on the feedback on family members and a few friends, the King has gone on to create a cabinet of ministers, which are experts of economic and financial affairs for policy making and suggestions. The administration has witnessed some retaliation from the side of the religious experts of the country because it is hard for them to digest that how can an Islamic welfare state adopt the western capitalistic policies but the administration has appeared firm on its decision to complete this smooth transition by the end of this decade (Ramady, 2010). ...Download file to see next pagesRead More
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