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flag Saudi Arabia Saudi Arabia: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

The Saudi Arabian economy is entirely based on oil. The country has the largest oil reserves in the World and is also the World's biggest oil producer and exporter. Oil accounts for more than 90% of the country's exports and nearly 80% of government revenues. The recovery of the demand in 2010 helped to stabilize growth and offers hope for a favorable recovery in 2011.

The big construction works policy led by the government as well as direct foreign investments and the solidity of the banking and financial system have allowed this country to become the first economy in the region and one of the major ones in the world.

Inflation, which had reached a record 10% in 2008, mainly due to the increase in the prices of food products has decreased. In addition to this, the kingdom’s authorities wish to abolish all the existing subsidies, which will in fact lead to an increase in prices.

The government wants to reduce the kingdom's dependence on the oil sector by diversifying its economic activities and in developing mainly the agricultural, food, and industry sectors. The kingdom has a stable and high-quality banking and financial system.

Private investments are supported by generous government financing and incentive plans. The standard of living is one of the highest in the region with USD 15,352 GDP/inhabitant. The country is still marked by an unemployment rate of about 11%. Tourism generates highly significant revenues (nearly 4 million tourists per year), exclusively on account of the pilgrimage to Mecca.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 377.20e448.36560.29581.94620.86
GDP (Constant Prices, Annual % Change) 0.14.16.53.64.4
GDP per Capita (USD) 14,14816,26719,89020,21421,101
General Government Gross Debt (in % of GDP) 15.9e9.9e7.1e6.15.1
Inflation Rate (%) 5.1e5.4e5.4e5.34.3
Unemployment Rate (% of the Labor Force) 10.510.0---
Current Account (billions USD) 20.9866.84115.31e82.5973.12
Current Account (in % of GDP) 5.6e14.920.611.8-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Agriculture accounts for 3% of the GDP and employs 15% of the active population. It is not a very productive sector despite the huge state investments. Saudi Arabia imports most of its agricultural and food product requirements because of the geographical and climatic contraints. Water scarcity is a serious regional problem that the country is likely to face in the coming years, as growing cultivation of wheat presents a strong threat of water depletion.

The industrial sector represents two thirds of the GDP. It is dominated by non-manufacturing activities (oil drilling). The industrial sector portion, other than oil, is growing due to Saudi state investments, to diversify the economy, the kingdom having tapped into its financial reserves accumulated by the soaring oil prices.

Lastly, services represent 22% of the GDP. This sector is mainly dominated by tourism, financial and insurance services and the banking sector.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 4.8 18.0 77.2
Value Added (in % of GDP) 2.6 62.0 35.5
Value Added (Annual % Change) 1.1 3.1 4.6

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Saudi Riyal (SAR) - Average Annual Exchange Rate For 1 USD 3.753.753.753.753.75

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Saudi Arabia on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
66.2/100
Position:
Moderately free
World Rank:
50/179
Regional Rank:
7/17

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

The foreign trade share in Saudi Arabia is nearly 90% of the GDP. The country recorded a highly significant trade surplus in 2008. Despite the falling oil prices, the country should show a positive balance in the forthcoming years.
Saudi Arabia's main export partners are the United States, China and Japan, followed by Germany and U.A.E., as well as the Southeast Asian countries. The country exports mainly crude oil (the black gold represents 90% of its exports), plastics, organic products and chemicals.

Its main import partners are the United States, Japan, China and Korea, followed by other Asian countries (India, Taiwan, Singapore). Saudi Arabia mainly imports vehicles, machinery, electrical equipment, iron, steel and food products.

In order to promote international trade, attract foreign investment and diversify the non-oil sectors, the government has announced plans to establish four "economic cities" in different regions of the country.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 69,80090,214115,13495,552102,000
Exports of Goods (million USD) 211,305233,329313,462192,314254,000
Imports of Services (million USD) 29,48845,91449,57247,039-
Exports of Services (million USD) 13,97315,7439,1289,428-
Imports of Goods and Services (Annual % Change) 25.221.6---
Exports of Goods and Services (Annual % Change) 3.43.0---
Imports of Goods and Services (in % of GDP) 31.837.737.143.135.4
Exports of Goods and Services (in % of GDP) 63.264.867.854.256.8
Trade Balance (million USD) 147,391150,716212,025105,230153,717
Trade Balance (Including Service) (million USD) 112,012104,026146,16139,98887,628
Foreign Trade (in % of GDP) 95.1102.5104.997.392.2

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2007
Japan 26.8%
United States 17.5%
United Arab Emirates 3.6%
Netherlands 1.6%
India 1.4%
See More Countries 49.1%
Main Suppliers
(% of Imports)
2007
United States 13.6%
China 9.7%
Germany 8.9%
Japan 8.7%
Italy 4.5%
See More Countries 54.6%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2007
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 76.6%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 7.5%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 3.8%
Polymers of ethylene, in primary formsPolymers of ethylene, in primary forms 1.8%
Acyclic alcohols and their halogenated,...Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives 1.0%
See More Products 9.3%
Main Imports
(% of Imports)
2007
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 8.6%
BarleyBarley 2.4%
Transmission apparatus for radio-telephony,...Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras 2.2%
Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab 2.0%
Parts of aircraft and spacecraft of heading 8801...Parts of aircraft and spacecraft of heading 8801 or 8802, n.e.s. 1.7%
See More Products 83.2%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Finance
Ministry of Economy and Planning
Ministry of Petroleum and Mineral Resources
Ministry of Commerce and Industry
Ministry of Agriculture and Water
Statistical Office
Central Department of Statistics and Information
Central Bank
The Saudi Arabian Monetary Agency (SAMA)

Stock Exchange
Saudi Stock Exchange (Tadawul)
Search Engines
Saudi info
Saudisearch
Saudi on line
Economic Portals
Economy watch

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Political Outline

Executive Power
King is both the chief of the state and head of the government. The monarch is hereditary. Council of Ministers (cabinet) is appointed by the monarch and includes many royal family members. The Council of Ministers has both legislative and executive powers, subject to the King's approval.
Legislative Power
There is no elected legislature in Saudi Arabia. A Consultative Council was appointed in August 1993 which has 120 members and a chairman appointed by the King for four-year terms. This Council has limited powers and does not affect decision making or power structures in a meaningful way. The population of Saudia Arabia has limited political rights.
Main Political Parties
No political parties are allowed in Saudi Arabia. However, a party called Green Party of Saudi Arabia, which promotes the values of the worldwide Green movement, exists as an illegal organization. The first Saudi Arabian municipal elections were held in the year 2005.
Current Political Leaders
King and Prime Minister: Abd Allah ibn `Abd al-`Aziz Al Faysal Al Sa`ud (since August 2005) - hereditary.
Heir Apparent: Crown Prince SULTAN bin Abd al- Aziz Al Saud - half brother of the King.
Next Election Dates
Municipal elections, scheduled for 2009, has been postponed indefinitely.
 

Indicator of Freedom of the Press

World Rank:
157/178
Evolution:
6 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Not Free
Political Freedom:
7/7
Civil Liberties:
6/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012