MEMO

Saudi Arabian Economy

Saudi Arabia is one of the richest countries in the Middle East . It is known to have the largest amount of oil reserves in the world and it is the largest producer of oil in the world . Oil , Black Gold as it is called today is one of the most precious commodities in the world and everyone knows that in a few decades oil is going to run out . Many companies in the world are making vehicles and machinery that uses alternative forms of energy to lessen our dependence on

oil . The kingdom of Saudi Arabia also knows that and so the kingdom is investing a lot of money into developing other industries and lessening its dependence on oil . However , the major source of income or money to the kingdom remains to be oil . 75 of the budget revenues come from oil . 45 of the GDP and 90 of the export earnings also come from oil . The proven oil reserves in Saudi Arabia are over 262 billion barrels and they export around 8 million barrels a day

The King and his family are the main rulers of the country and the family members take up most positions . Off later , there is resistance in the country because of the many foreigners living there , however , the foreigners are invited and paid handsomely for their work because they are there helping the economy exploit the natural resources of energy and develop new industries

Saudi Arabia has a population of 27 Million , but most of the population is young , the median age is around 21 years . The GDP is 264 Billion and GDP based on PPP is 338 Billion . The economy is growing at a healthy 6 .1 yearly . The average GDP is over 10 ,000 and that makes them a rich country . However , most of the wealth is in the hands of the kings family and there is a lot of disparity amongst the population

However , in spite of all this there is a 13 official unemployment rate and over a third of the people working Saudi Arabia are foreign nationals . This is the reason for the recent up surging and violence against the foreigners

Based on 2004 data from the CIA website , the major export partners of Saudi Arabia are US 18 .2 , Japan 14 .9 , South Korea 9 .5 , China 6 .1 Taiwan 4 .5 , Singapore 4 .1 over 90 of the exports are petroleum products . The major import partners are US 15 .3 , Japan 9 .8 , Germany 8 .1 , China 6 .6 , UK 5 .7 , the import products are machinery and equipment , foodstuffs , chemicals , motor vehicles , textiles . The Saudi riyal has been constant against the US at 3 .75 and the last 5 year exchange rates have been as follows : 3 .747 (2005 , 3 .75 (2004 , 3 .75 (2003 , 3 .75 (2002 , 3 .75 (2001 . The economy is growing and the prospects are great for Saudi Arabia in the coming years . Although the reliance on oil is...