Saudi Arabia has the world’s second-largest oil reserves (after Brazil-Venezuela), and it is the world’s leading oil exporter and second-largest producer. According to Saudi government calculations, proven reserves are estimated to be 260 billion barrels (41 km3), or nearly a fifth of global oil reserves. Saudi Arabia’s petroleum is not only abundant, but also under pressure and near to the surface. As a result, extracting petroleum in Saudi Arabia is significantly cheaper and consequently far more profitable than in many other areas. Approximately 87 percent of Saudi budget income, 90 percent of export earnings, and 42 percent of GDP come from the petroleum sector. Saudi Aramco, the state-owned oil company of Saudi Arabia, is in charge of the country’s oil reserves and production.
The private sector accounts for another 40% of GDP. In 2013, an estimated 7.5 million foreigners worked lawfully in Saudi Arabia, contributing significantly to the Saudi economy, particularly in the oil and service sectors. For many years, the government has pushed private sector growth in order to reduce the kingdom’s reliance on oil and expand job possibilities for the growing Saudi population. In recent decades, the government has begun to allow private sector and foreign investor participation in industries including electricity generation and telecommunications, as well as joining the World Trade Organization (WTO). High oil prices allowed the government to have budget surpluses throughout much of the 2000s, allowing it to increase spending on job training and education, infrastructure development, and government salaries.
The Saudi economy has been called as “impressive” due to its absolute monarchy system of government, massive state sector, and generous welfare benefits.
a strange (at least to outsiders) mix of feudal allegiance and modern political patronage. Saudis manipulate individual advantages, favors, obligations, and connections at every level and in every sector of endeavor. Similarly, the government bureaucracy is a network of overlapping or conflicting power centers, all of which are patronized by many royal princes, each with their own interests, ambitions, and dependents to satisfy.
Saudi Arabia’s gross domestic output and real gross domestic income fluctuate considerably in response to oil prices (see below).
The International Monetary Fund and other sources assessed market pricing in millions of Saudi Arabian Riyals (SR). In 2009, the average hourly wage was $14.74.
What is Saudi Arabia’s oil revenue?
Despite a dip in 2020, Saudi Arabia’s gross domestic product from the oil sector was above 600 billion Saudi riyals. Saudi Arabia has one of the world’s greatest oil reserves, with about 40 billion metric tons. Saudi Arabia’s oil production has surpassed 11 million barrels per day.
How much of Saudi Arabia’s GDP is derived from oil?
Saudi Arabia’s economy is based on oil, which is also the cornerstone of its progress. According to the latest figures from the IMF(1), oil receipts accounted for about 85% of exports and nearly 90% of fiscal revenue, while the oil sector accounts for over 40% of overall GDP.
Is the Saudi economy built on oil?
Saudi Arabia’s economy is built on oil, and the government exerts tight control over major economic activity. It holds roughly 16 percent of the world’s proven petroleum reserves, is the largest petroleum exporter, and is a key member of OPEC.
What factors influence Saudi Arabia’s GDP?
Saudi Arabia is a Middle Eastern country that straddles the Arabian Peninsula, bordered on the north by Jordan, Kuwait, and Iraq, and on the south by Oman and Yemen. With a land area of roughly two million square kilometers, it is the world’s 14th largest country and the second largest OPEC member country. Saudi Arabia has a population of about 35 million people, with more than seven million living in Riyadh, the capital. The official language is Arabic.
Around 17% of the world’s proven petroleum reserves are held by Saudi Arabia. The oil and gas industry accounts for over half of the country’s gross domestic product and 70% of export revenues. Natural gas, iron ore, gold, and copper are among the Kingdom’s other natural resources, in addition to petroleum.
HM King Salman Bin Abdulaziz Al-Saud, the Custodian of the Two Holy Mosques, is the Sovereign. Saudi Arabia is a founding member of the Organization of Petroleum Exporting Countries (OPEC).
- The Rub Al-Khali, or Empty Quarter, in Saudi Arabia is the world’s largest continuous sand desert.
- In March 1938, oil was discovered at a depth of 1,440 meters in the Dammam oilfield in Saudi Arabia.
Is Saudi Arabia the wealthiest country on the planet?
Saudi Arabia’s economy is heavily reliant on the production and export of petroleum, as one might assume. It is the second-largest member of OPEC. Saudi Arabia accounts for roughly 18 percent of world petroleum production, earning the country enormous recognition in the global market. This country is the fourth most rich Arab country and ranks 15th in the world in terms of per capita income.
Is Saudi Arabia the largest oil producer in the world?
- Oil production continues to play an important part in the global economy, despite continued expansion in renewable energy.
- The United States, Saudi Arabia, Russia, Canada, and China are the top five oil-producing countries, according to the latest recent data.
- In 2013, the United States became the world’s top producer of petroleum liquids, and in 2018, it became the world’s top crude producer.
- Western sanctions have limited Russia’s production, but its weight in the global oil market has grown since it created the OPEC+ coalition with Saudi Arabia and other major suppliers.
- China’s oil production accounts for slightly over a third of the country’s total consumption. As a result, it has become the world’s largest petroleum importer.
Was Saudi Arabia wealthy before it discovered oil?
Saudi Arabia was a poor country until oil was found and successfully exploited. Despite the fact that Abd al-power Aziz’s grew after the kingdom was unified, he struggled to make ends meet.
How did Saudi Arabia end up with so much oil?
The most widely accepted explanation for why the Middle East is so rich in oil is that it wasn’t once a big desert. Thick layers of salt encased the oil and held it in situ on the seabed. The Tethys Ocean withdrew as the land in the present Middle East rose owing to tectonic action.