Nobody downloaded yet

Saudi Arabia's Economy - Essay Example

Comments (0) Cite this document
Saudi Arabia is always linked with oil as it is estimated that the country accounts for 25% of the world's total supply of petroleum. The abundance of oil in Saudi Arabia made it largely an oil-driven economy. It can be noted that the performance of the country is heavily affected by the production and export of its oil and oil products…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.3% of users find it useful
Saudi Arabias Economy
Read TextPreview

Extract of sample
"Saudi Arabia's Economy"

Download file to see previous pages It is acknowledged that the oil industry is a major contributor in the GDP of Saudi Arabia. However, one should not lose sight that other sectors also have significant roles in shaping the economy of Saudi Arabia. These other sectors, though currently not as significant as the oil industry have a considerable bearing in the performance of Saudi Arabia. Also, the Hubbert Peak Theory, which foretells the downslide in Saudi Arabian oil production, warns of the possible collapse of the oil industry's which will considerably reduce or even eliminate the significance oil to the country.
This paper will look at the economy of Saudi Arabia as a whole. The first part will talk about the country's GDP and its composition. Next, it will tackle the contributing sectors individually mostly concentrating on the oil industry. An assessment of the Hubbert Peak Theory and its opponent will also be done.
In general, Saudi Arabia has a robust economy supported by its strong oil industry. Saudi Arabia's economy began to flourish during after 1973, when the price of oil in the world market skyrocketed. This phenomenon made the country one of the fastest-growing economy in the world as it enjoyed a substantial surplus in its overall trade transactions with its partners, rapid growth in imports, and the generation of substantial government revenue that supports the country's development efforts (Background Note 27-28).
During 2004, the country recorded a total GDP of $310.2 billion dollars which translates to a per capita GDP of $11,742. It should be noted that in terms of GDP, the country is in a decline. The aggregated GDP average growth during the period of 1975-2000 was -2.2% as opposed to the -4.4 recorded during 1980-2000 (Saudi or Saudi Arabian Economy 5).
In spite of the overall decline in the economy, Saudi Arabia is showing signs of slow recovery from the oil price collapse in 1998. Real GDP growth rate during 2004 was seen at 5.2% while experts forecast that Saudi Arabia will expand at an annual rate of 5.7 and 4.8% for the years 2005 and 2006, respectively (Saudi Arabia 2).
The oil industry largely contribute to the total GDP of Saudi Arabia. As stated above, oil export revenue accounts for 90-95% of the country's export earnings, 70-80% of the total state revenue and 40% of the total GDP. The largest chunk of the country's GDP is shared by the industry sector which makes up 58.8%, followed by the services sector at 36.5%. The remaining 4.7% is accounted for by Saudi Arabia's agricultural sector (Saudi Arabia 2).

The Oil Industry
Saudi Arabia controls the largest petroleum reserves in the world which is 26% of the proved total, ranks the largest exporter of petroleum and undeniably plays a significant role in the Organization of Petroleum Exporting Countries (OPEC). According to the Oil Gas Journal, Saudi Arabia possesses 261.9 billion barrels of proven oil reserves in the world including those, which are in the Saudi-Kuwaiti Divided. The country has 80 oil and gas fields though more than half of the total reserves is concentrated in only eight fields which includes Ghawar and Safaniya. Ghawar is considered the largest oil field with an estimated remaining reserves of 70 billion barrels while Safaniya is the largest offshore ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Saudi Arabia's Economy Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Saudi Arabia's Economy Essay Example | Topics and Well Written Essays - 2500 words. Retrieved from
(Saudi Arabia'S Economy Essay Example | Topics and Well Written Essays - 2500 Words)
Saudi Arabia'S Economy Essay Example | Topics and Well Written Essays - 2500 Words.
“Saudi Arabia'S Economy Essay Example | Topics and Well Written Essays - 2500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
The Development in Saudi Arabia
Previously in 2009, the Gross Domestic Product per capita stood at 9300 US dollars. This indicated an upward growth of 145 US dollars (Trading economics, 2012). In 2011, the country’s gross domestic product grew further by 6.7% in comparison to 2010. Saudi Arabia economy is largely dependent on oil.
6 Pages(1500 words)Essay
Saudi Arabian Polical Economy
Similarly, due to the nature of royal families, they occupy all significant ministries in the government. For instance, the ministries of armed forces, security, finance, provincial administration and the civil service are all reserved for the royal family.
3 Pages(750 words)Essay
As a result, the Saudi government has developed a policy of ‘Saudization’ as a way of replacing expatriates with Saudi workers to solve the problem of unemployment (Fakeeh, 2009). The policy also represents a developmental necessity in the sense that it requires the Saudi government to commit and show eagerness to prove to its nationals that they are more worthy of government attention and action than their counterparts, the expatriates.
8 Pages(2000 words)Essay
Media in Saudi Arabia
This basic law defines both the government's responsibilities and rights. The monarchy in Saudi Arabia is hereditary. However, in 2006, an Allegiance Commission was created. The commission composed of Princes was mandated to select the future kings that would govern Saudi Arabia after the present crown prince has gained kingship.
13 Pages(3250 words)Essay
Political and Economic Integration Processes in The Gulf Cooperation Council
This essay mainly focuses on the characterization of the current level of political and economic integration among member countries of GCC. It also exposes major hindrances on the path of such integration, that become apparent in the countries of GCC. A belief that globalization creates world peace is supported by the countries of the union.
16 Pages(4000 words)Essay
Economic Development in the Persian Gulf (Saudi and Iran)
These countries still face the issues like falling per capita income, low GDP, high unemployment and poverty. This paper illuminates the state of economic development in both the countries and presents a comparative analysis of the causes of economic backwardness.
6 Pages(1500 words)Essay
Chapter 17 of Agenda 21 called for new and integrated approaches to the sustainable development of oceans and coasts. There has since emerged an international trend towards the adoption of new approaches to marine policy based on a holistic, integrated and sustainable management of ocean resources at regional and national levels.
10 Pages(2500 words)Essay
Saudi Arabia's Trade Policy
Any increase in imports from any country depends on competitive prices, good quality, and punctual delivery" (Saudi Arabia Trade.2008). Saudi Arabia belongs to the primary oil exporters and this very policy determines its foreign relations and trade issues.
4 Pages(1000 words)Essay
Saudi Arabia & Bahrain Economy
In 2009, production of oil stood at about 8 million barrels every day, less than a number of barrels recorded in 2008 by 1.1million. The oil industry
6 Pages(1500 words)Essay
Saudi Arabia's geography offers more opportunities than constraints
que geographic positioning of the nation offers potentials for economic, social, and political development and the nation’s overall sustainability in the global perspectives. Notably, the geographic location provides Saudi Arabia with opportunities for developing an accessible
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Saudi Arabia's Economy for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us