- You are here:
- Home
- › Travel & living abroad
- › Travel advice by country
- › Country profiles
- › Middle East and North Africa
- › Saudi Arabia
Middle East and North Africa
Saudi Arabia |
|
|
Last reviewed: 20 August 2009 |
Country information
ECONOMY
Saudi Arabia has the largest proven oil reserves in the world and is by a long way the largest exporter of oil. Oil was discovered in 1938, and production began under the then US-controlled Aramco (Arabian American Oil Company). Saudi Aramco, now nationalised, controls all onshore oil and has the largest reserve base of any company in the Exporting Countries (OPEC); It has always been the dominant player within OPEC in adjusting production in line with market stability.
Large oil earnings, particularly since the oil price rises of the early 1970’s, have allowed the Government to spend heavily to look after the people and to build the infrastructure of a modern economy. The economy is heavily dependent on oil earnings and the high level of Government spending they make possible: a large and varied private sector has grown up but remains vulnerable to fluctuations in the oil price and government spending. In the 1980’s and 1990’s economic growth was barely fast enough to keep up with population growth, but very high oil prices in 2003-5 have made possible a strong spurt in growth. The impact of the recent drop in oil prices and the global financial crisis on Saudi Arabia is not yet clear. There are signs it is having some negative impact on the economy but not to the same extent as some of its Gulf neighbours.
Saudi Arabia has long had a very liberal policy on the use of foreign workers, who form the vast bulk of the private sector workforce. But the Saudi population is rapidly increasing and policy is now focusing on the need to create more jobs for young Saudis.
Economic reform continues: moves in recent years include opening some previously closed sectors of the economy, such as the gas industry, to investment by foreign companies. Upstream oil remains closed to foreign investment. Saudi Arabia has joined the World Trade Organisation.
Basic Economic Facts
Proven oil reserves (end-2004): 262.7bn barrels
Proven oil reserves as share of world total: 25%
Oil production (2009): 11mbd
Oil production as share of world total (2007): 11%
GDP (2006): US$500bn
Population including expatriates (2007): 27.6 million
GDP per head (2006): US$20,000
Annual growth rate in real GDP (2008): 4.3% (Oil 0.2%, non-oil 6.3%)
Major sectors: Oil, petrochemicals, financial services, construction
Major destinations for Saudi exports: USA, Japan, Korea, China and EU
Major exporters to Saudi Arabia: USA, Japan, Germany, China and UK
Exchange Rate (average 2009): £1=5.5 Saudi Riyals (US$1=3.75 Saudi Riyals)
Money: The Saudi Riyal (SR) is divided into 100 halalas. Notes come in denominations of SR1, 5, 10, 20, 50, 100, 200 and 500. Coins come in denominations of 5,10, 25 and 50 halalas
UK Trade & Investment Country Profile: Saudi Arabia
