Saudi Arabia

Saudia Arabia

A Country Case Report

Imran Arif

International Relations

Professor xyz

2 April 2008

Outline

Thesis : Due to globalization of the world , every country has become significant for every other country due to increased interaction and more integration . Saudi Arabia , with the passage of time has integrated its economy with the world economy in such a way that its significance on the world map cannot be ignored

With the discovery of oil , Saudi Arabia transformed to wealthy industrial state

Income is mostly dependent on oil

p It stands 32 out of 103 in human poverty index

Late seventies saw a lot of work on infrastructure , institutions research and development in Saudi Arabia

There had been many recessions and booms in business cycles major boom being in early seventies

Saudi Arabia has many bilateral / multilateral trade agreements and proves to be a good opportunity for investors . Creation of Middle East free trade area is under consideration

Saudi Arabia follows a pegged exchange rate regime and many measures have been taken to ensure price stability . Major shift in regime in 1986 was seen

A comprehensive monetary policy is followed under SAMA to ensure economic stability and development in the kingdom . A conducive environment has been ensured for investment Saudi Arabia

The Kingdom of Saudi Arabia is of crucial importance on the world map due to a number of reasons . In the Muslim world , Saudi Arabia has a status of a leader due to religious reasons being the birth place of the Holy Prophet Muhammad (pbuh ) and its two holy cities namely Makkah and Madinah . It is a huge economy of the world as it holds about quarter of the world oil reserves . Its geographical location in Middle East also makes it important politically due to the volatility of the region . Due to globalization of the world , every country has become significant for every other country due to increased interaction and more integration Saudi Arabia , with the passage of time has integrated its economy with the world economy in such a way that its significance on the world map cannot be ignored

Long run economic growth

Saudi Arabia had a subsistence economy until about 7o years ago , when with discovery of oil by four American companies Saudi Arabia was transformed in to a wealthy industrial state (Guides 3 . The income of Saudi Arabia is mostly dependent on its oil production . Per capita income of Saudi Arabia was as high as 19000 in 1981 however , it has significantly reduced and varies between 7000 to 9000 now (Goliath According to United Nations categorization in 2005 , Saudi Arabia stands thirty second out of 103 countries in Human Poverty Index (Library of Congress . A Gulf News article quoted Khalid Al Qusaibi , Minister of Economy and Planning , saying that the Saudi government has slashed poverty to half in a record time and the kingdom intends to completely eradicate it by 2015 (Al Hakeem

The main engine of growth of Saudi economy , as ever , is its oil production with...