FITA helps you find
service providers for:

Market Research


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 economy of Saudi Arabia is entirely based on oil. The policy of large-scale public works undertaken by the government, as well as foreign direct investment and the soundness of the banking and financial system have enabled the country to become the number one regional economy and one of the largest in the world. After the global economic recession of 2008-2009, the recovery in domestic demand in 2010 helped stabilize growth; this was consolidated in 2011 (6%).

The government's priority is to maintain growth and living standards, and create jobs in an uncertain global and regional environment marked by social unrest. The government is developing the oil and gas industry while seeking to reduce dependency of the kingdom on oil, diversifying its economic activities and developing mainly agriculture (notably through the purchase of land abroad to cultivate certain essential goods), food and industry. The private sector development is encouraged (especially in services), but in terms of the wave of social unrest which has recently swept through the region, social spending has been increased and jobs have been created in the public sector.

The standard of living is one of the highest in the region with over USD 20,000 GDP/inhabitant. The country is still marked by an unemployment rate of about 11% and high degree of social inequality.

 
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 (droughts). 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 country has the largest oil reserves in the world and is also the largest producer and exporter of oil in the world. Oil accounts for more than 90% of exports and nearly 80% of government revenues. The share of non-oil industrial sector is now growing because of the investments of the Saudi state for economic diversification.

Lastly, services represent 22% of the GDP. This sector is mainly dominated by tourism, financial and insurance services and the banking sector. Tourism generates very large revenues (almost 4 milions of tourists per year), exclusively thanks to the pilgrimage to Mecca.

 
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 Analyses about Saudi Arabia on Globaltrade.net, the Directory for International Trade Service Providers.
 

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

Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

Return to top

Foreign Trade in Figures

The foreign trade share in Saudi Arabia is nearly 95% of the GDP (average 2008-2010). The country's trade balance, although structurally in surplus, fluctuates according to the price of oil and the global demand.

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 20072008200920102011
Imports of Goods (million USD) 90,214115,13495,552102,000111,744
Exports of Goods (million USD) 233,329313,462192,314254,000364,500
Imports of Services (million USD) 45,91449,57247,03950,99654,876
Exports of Services (million USD) 15,7439,1289,42810,34612,142
Imports of Goods and Services (Annual % Change) 21.6----
Exports of Goods and Services (Annual % Change) 3.0----
Imports of Goods and Services (in % of GDP) 37.737.143.135.4-
Exports of Goods and Services (in % of GDP) 64.867.854.256.8-
Trade Balance (million USD) 150,716212,025105,230153,717-
Trade Balance (Including Service) (million USD) 104,026146,16139,98887,628-
Foreign Trade (in % of GDP) 102.5104.997.392.2-

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)
 

Return to top

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

Return to top

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:
158/179
Evolution:
1 place down compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

 

Indicator of Political Freedom

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

Map of freedom 2010
Source: Freedom House

Note: The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

 

Return to top

Any Comments About This Content? Report It to Us.

 

© Export Entreprises SA, All Rights Reserved.
Last Updates: May 2012