Mother Earth Travel > Country Index > Saudi Arabia > Map Economy History |
| Economy - overview: This is an oil-based economy with strong
government controls over major economic activities. Saudi Arabia has the
largest reserves of petroleum in the world (26% of the proved reserves),
ranks as the largest exporter of petroleum, and plays a leading role in
OPEC. The petroleum sector accounts for roughly 75% of budget revenues,
40% of GDP, and 90% of export earnings. About 35% of GDP comes from the
private sector. Roughly 5 million foreign workers play an important role
in the Saudi economy, for example, in the oil and service sectors. Saudi
Arabia was a key player in the successful efforts of OPEC and other oil
producing countries to raise the price of oil in 1999-2000 to its highest
level since the Gulf war by reducing production. Riyadh expects to have a
moderate budget deficit in 2001, in part because of increased spending for
education and other social programs. The government in 1999 announced
plans to begin privatizing the electricity companies, which follows the
ongoing privatization of the telecommunications company. The government is
expected to continue calling for private sector growth to lessen the
kingdom's dependence on oil and increase employment opportunities for the
swelling Saudi population. Shortages of water and rapid population growth
will constrain government efforts to increase self-sufficiency in
agricultural products. GDP: purchasing
power parity - $232 billion (2000 est.) SOURCE: The World Factbook |
Mother Earth Travel > Country Index > Saudi Arabia > Map Economy History