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Saudi Arabia: Economy
INTRODUCTION
1. Political situation
2. Economy
3. Health & Education
4. Religions & Peoples
5. History
GDP: US$191.2 billion
GDP/capita: US$7,870
GDP/sector: Agriculture 12%, Industry 25%, Services 63%
Foreign debts: US$168 billion
Foreign debts/GDP: 88%
Foreign debts/capita: US$6,920
Annual growth in GDP: 1.2%
Trade balance: +125%
Export products: Petroleum and petroleum products.
Annual inflation rate: 0.6% (2003 estimate)
Official unemployment: 15%
Population below poverty line: Not available
Fixed rate since June 1986:
US$1=3.7450 Saudi Riyals
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Saudi Arabia exhibits extreme differences between the large group of rich, and the poor which are found both in rural districts and in cities.
The traditional incomes of Saudi Arabia, agriculture and fishing, have lost much of their central position in the national economy, and employs slightly less than 10% of the work force. Today, Saudi Arabia is a net importer of foodstuffs of all kinds. Much of this development have taken place in the last 20 years or so, with the growing profits from the oil industry. There has been a modernizing process that have taken place since 1973 (when oil prices increased to four times of the former level), and the changes to the society during these years have few parallels anywhere else in the world.
Still oil is the principal source of income, as Saudi Arabia is the largest exporter of the world, with an export level about 4 times higher than number 2 in the world (Norway). The daily production is around 1,3 million tons daily. Saudi Arabia has also a strong production of natural gas, running at the level of 100 million m³ daily.
Saudi Arabia has an export surplus of more than 100%. In 1997 imports were US$28,3 billion, and exports US$59,7 billion. The main trade partners are for imports are USA (21%), Britain (11%), Japan (6,7%), Switzerland (5,8%) and Germany (5,5%). For exports, the main partners are USA (17,6%), Japan (15%), South Korea (10,6%), Singapore (6%), Netherlands (4,3%) and France (3,9%). Technical and mechanical equipment makes up 40% of the import, foodstuffs and tobacco about 15%, chemical products 10%.<
Governmental plans have put considerable funds into developing liquefied natural gas plants and petroleum-based industries in recent years.
With only 1% of the total surface being fertile, large projects have been put down to help increase the agricultural output of the country. The present production is still low, output of wheat is about 3,6 million tons; barley 1,1 million tons; tomatoes 490,000 tons; dates 500,000 tons; watermelons 450,000 tons, plus smaller output of sorghum, dairy products, onions, grapes and citrus fruit. Livestock is made up of 7,1 million sheep; 3,4 million goats; 210,000 cattle; and 410,000 camels. Output from fishing is about 50,000 tons annually, where shrimp is making up a large part of the catch.
The pilgrimage to Mecca and Madina is still an important part of the Saudi economy, with 2-3 million visitors annually. The estimated income from this is exceeding US$2 billion.
© Copyright 1996-2008 LookLex Ltd. All rights reserved
By: Tore Kjeilen
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