Economy - overview: Saudi Arabia has an oil-based economy with strong government controls over major economic activities. Saudi Arabia is first in the world in proven reserves of petroleum (24% of the proved total), ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 75% of budget revenues, 40% of GDP, and 90% of export earnings. About 35% of GDP comes from the private sector. Saudi Arabia was a key player in the successful efforts of OPEC and other oil producing countries to raise the price of oil in 1999 to its highest level since the first Gulf War by reducing production. Although oil prices are expected to remain relatively high in 2000, Riyadh expects to have a $7.5 billion budget deficit in part because of increased spending for education and social problems. The government in 1999 announced plans to begin privatizing the electricity companies, which follows the ongoing privatization of the telecommunications company. The government is expected to continue calling for private sector growth to lessen the kingdom's dependence on oil and increase employment opportunities for the swelling Saudi population. Shortages of water and rapid population growth will constrain government efforts to increase self-sufficiency in agricultural products. Categories: Stub | Currencies ... The word Sar has miscellaneous meanings and etymologies : in Sumerian (?), a royal title in Mesopotamian (city) states (compare lugal) in Dutch, a sar is a nagger (hence the verb sarren) as a NAME in geography Sar can refer to: the Sar river in Galicia = Galiza, a region in Spain the... Logo The Organization of the Petroleum Exporting Countries (OPEC) is made up of Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela; since 1965, its international headquarters have been in Vienna, Austria. ... For other uses of the initials WTO, see WTO (disambiguation). ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... Services are: plural of service Tertiary sector of industry IRC services Web services the name of a first-class cricket team in India This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... The poverty line is the level of income below which one cannot afford to purchase all the resources one requires to live. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... Services are: plural of service Tertiary sector of industry IRC services Web services the name of a first-class cricket team in India This is a disambiguation page — a navigational aid which lists other pages that might otherwise share the same title. ... For the album by Prince, see 1999 (album) 1999 is a common year starting on Friday of the Gregorian calendar, and was designated the International Year of Older Persons by the United Nations. ... Dorothea Langes Migrant Mother depicts destitute pea pickers in California during the Great Depression. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... Oil is a generic term for organic liquids that are not miscible with water. ... Nodding donkey pumping an oil well near Sarnia, Ontario, 2001 Petroleum (from Latin petra – rock and oleum – oil), crude oil, sometimes colloquially called black gold, is a thick, dark brown or greenish liquid. ... A petrochemical is any chemical derived from fossil fuel. ... Ammonia is a compound of nitrogen and hydrogen with the formula NH3. ... -1... Sodium hydroxide (NaOH), also known as caustic soda or lye, is a caustic metallic base used in industry (mostly as a strong chemical base) in the manufacture of paper, textiles, and detergents. ... Sodium hydroxide (NaOH), also known as caustic soda or lye in North America, is a caustic metallic base used in industry (mostly as a strong chemical base) in the manufacture of paper, textiles, and detergents. ... In the general sense, a cement (Latin caementum) is any material with adhesive properties. ... Cranes are essential in construction, as seen in this photo of the construction of a skyscraper Construction on the North Bytown Bridge in Ottawa, Canada. ... Fertilizers or fertilisers are compounds given to plants with the intention of promoting growth; they are usually applied either via the soil, for uptake by plant roots, or by foliar spraying, for uptake through leaves. ... The term plastics covers a range of synthetic or semi-synthetic organic condensation or polymerization products that can be molded or extruded into objects or films or fibers. ... Italian ship-rigged vessel Amerigo Vespucci in New York Harbor, 1976 A ship is a large, sea-going watercraft, sometimes with multiple decks. ... An aircraft is any machine capable of atmospheric flight. ... 2004 is a leap year starting on Thursday of the Gregorian calendar. ... Nodding donkey pumping an oil well near Sarnia, Ontario, 2001 Petroleum (from Latin petra – rock and oleum – oil), crude oil, sometimes colloquially called black gold, is a thick, dark brown or greenish liquid. ... Nodding donkey pumping an oil well near Sarnia, Ontario, 2001 Petroleum (from Latin petra – rock and oleum – oil), crude oil, sometimes colloquially called black gold, is a thick, dark brown or greenish liquid. ... 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Logo The Organization of the Petroleum Exporting Countries (OPEC) is made up of Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela; since 1965, its international headquarters have been in Vienna, Austria. ... The private sector of a nations economy consists of those entities which are not controlled by the state - i. ... 1999 is a common year starting on Friday Anno Domini (or the Current Era), and was designated the International Year of Older Persons by the United Nations. ... C Company, 1st Battalion, The Staffordshire Regiment, 1st UK Armoured Division The 1991 Gulf War was a conflict between Iraq and a coalition force of 34 nations mandated by the United Nations and led by the United States. ... This article is about the year 2000. ... Lightning strikes during a night-time thunderstorm. ... Privatization (sometimes privatisation, denationalization, or, especially in India, disinvestment) is the process of transferring property, from public ownership to private ownership and/or transferring the management of a service or activity from the government to the private sector. ...

Roughly 4 million foreign workers play an important role in the Saudi economy, for example, in the oil and service sectors. Many of these foreign workers, especially in the less well-paying positions, come from India, Pakistan, or the Philippine Islands. However, the Saudi government is making an effort to reserve jobs in the service sector for Saudi nationals. In November, 2002, the Saudi Interior Ministry's Manpower Council banned expatriates from driving taxis and working in the gold and jewelry industries. These moves were resisted by Saudi businessmen. For other uses, see November (disambiguation). ... 2002 is a common year starting on Tuesday of the Gregorian calendar. ...

Long term, the Saudi dependence on oil revenue is of great concern to many economists. Saudi Arabia's oil production is expected to peak in the early 21st century and decline thereafter as the reserves are depleted. In addition, the population of Saudi Arabia is increasing rapidly which means that the revenues from oil production are divided among an increasing population.

Economy - in greater depth:
Oil was discovered in Saudi Arabia by U.S. geologists in the 1930s, although largescale production did not begin until after World War II. Oil wealth has made possible rapid economic development, which began in earnest in the 1960s and accelerated spectacularly in the 1970s, transforming the kingdom. ... A geologist is a contributor to the science of geology. ... World War II was a truly global conflict with many facets: immense human suffering, fierce indoctrinations, and the use of new, extremely devastating weapons like the atom bomb World War II, also known as the Second World War, was a mid-20th-century conflict that engulfed much of the globe...

Saudi oil reserves are the largest in the world, and Saudi Arabia is the world's leading oil producer and exporter. Oil accounts for more than 90% of the country's exports and nearly 75% of government revenues. Proven reserves are estimated to be 260 billion barrels (41 km³), about one-quarter of world oil reserves.

More than 95% of all Saudi oil is produced on behalf of the Saudi Government by the parastatal giant Saudi ARAMCO. In June 1993, Saudi ARAMCO absorbed the state marketing and refining company (SAMAREC), becoming the world's largest fully integrated oil company. Most Saudi oil exports move by tanker from Gulf terminals at Ras Tanura and Ju'aymah. The remaining oil exports are transported via the east-west pipeline across the kingdom to the Red Sea port of Yanbu. A major new gas initiative promises to bring significant investment by U.S. and European oil companies to develop nonassociated gas fields in three separate parts of Saudi Arabia. Following final technical agreements with concession awardees in December 2001, development should begin in 2002. Saudi Aramco, the national oil company of Saudi Arabia (formerly just Aramco, standing for the Arabian American Oil Company), is the largest oil corporation in the world and the worlds largest in terms of proven crude oil reserves and production. ...

Due to a sharp rise in petroleum revenues in 1974 following the 1973 Arab-Israeli war, Saudi Arabia became one of the fastest-growing economies in the world. It enjoyed a substantial surplus in its overall trade with other countries; imports increased rapidly; and ample government revenues were available for development, defense, and aid to other Arab and Islamic countries. ...

But higher oil prices led to development of more oil fields around the world and reduced global consumption. The result, beginning in the mid-1980s, was a worldwide oil glut, which introduced an element of planning uncertainty for the first time in a decade. Saudi oil production, which had increased to almost 10 million barrels (1.6 million m³) per day during 1980-81, dropped to about 2 million barrels/day (300,000 m³/day) in 1985. Budgetary deficits developed, and the government drew down its foreign assets. Responding to financial pressures, Saudi Arabia gave up its role as the "swing producer" within OPEC in the summer of 1985 and accepted a production quota. Since then, Saudi oil policy has been guided by a desire to maintain market and quota shares.

However, beginning in late 1997, Saudi Arabia again faced the challenge of low oil prices. Due to a combination of factors--the East Asian economic crises, a warm winter in the West caused by El Niño, and an increase in non-OPEC oil production--demand for oil slowed and pulled oil prices down by more than one-third. World map showing location of Asia Asia is the central and eastern part of Eurasia, defined by subtracting Europe from Eurasia. ... Chart of ocean surface temperature anomaly [°C] during the last strong El Niño in December 1997 El Niño and La Niña (Spanish for the boy and the girl, often written in English as El Nino and La Nina) are major temperature fluctuations in the tropical Pacific Ocean. ...

Saudi Arabia was a key player in coordinating the successful 1999 campaign of OPEC and other oil-producing countries to raise the price of oil to its highest level since the Gulf War by managing production and supply of petroleum. That same year, Saudi Arabia established the Supreme Economic Council to formulate and better coordinate economic development policies in order to accelerate institutional and industrial reform.

In recent years, Saudi Arabia sought to join the World Trade Organization. Negotiations have focused on the degree to which Saudi Arabia is willing to increase market access to foreign goods and services and the timeframe for becoming fully compliant with World Trade Organization obligations. In April 2000, the government established the Saudi Arabian General Investment Authority to encourage foreign direct investment in Saudi Arabia. Saudi Arabia maintains a "negative list" of sectors in which foreign investment is prohibited, but the government plans to open some closed sectors such as telecommunications, insurance, and power transmission/distribution over time. WTO Logo The World Trade Organization (WTO) is an international organization which oversees a large number of agreements defining the rules of trade between its member states (WTO, 2004a). ...

Through 5-year development plans, the government has sought to allocate its petroleum income to transform its relatively undeveloped, oil-based economy into that of a modern industrial state while maintaining the kingdom's traditional Islamic values and customs. Although economic planners have not achieved all their goals, the economy has progressed rapidly. Oil wealth has increased the standard of living of most Saudis. However, significant population growth has strained the government's ability to finance further improvements in the country's standard of living. Heavy dependence on petroleum revenue continues, but industry and agriculture now account for a larger share of economic activity. The mismatch between the job skills of Saudi graduates and the needs of the private job market at all levels remains the principal obstacle to economic diversification and development; about 4.6 million non-Saudis are employed in the economy.

Saudi Arabia's first two development plans, covering the 1970s, emphasized infrastructure. The results were impressive--the total length of paved highways tripled, power generation increased by a multiple of 28, and the capacity of the seaports grew tenfold. For the third plan (1980-85), the emphasis changed. Spending on infrastructure declined, but it rose markedly on education, health, and social services. The share for diversifying and expanding productive sectors of the economy (primarily industry) did not rise as planned, but the two industrial cities of Jubail and Yanbu--built around the use of the country's oil and gas to produce steel, petrochemicals, fertilizer, and refined oil products--were largely completed.

In the fourth plan (1985-90), the country's basic infrastructure was viewed as largely complete, but education and training remained areas of concern. Private enterprise was encouraged, and foreign investment in the form of joint ventures with Saudi public and private companies was welcomed. The private sector became more important, rising to 70% of non-oil GDP by 1987. While still concentrated in trade and commerce, private investment increased in industry, agriculture, banking, and construction companies. These private investments were supported by generous government financing and incentive programs. The objective was for the private sector to have 70% to 80% ownership in most joint venture enterprises.

The fifth plan (1990-95) emphasized consolidation of the country's defenses; improved and more efficient government social services; regional development; and, most importantly, creating greater private-sector employment opportunities for Saudis by reducing the number of foreign workers.

The sixth plan (1996-2000) focused on lowering the cost of government services without cutting them and sought to expand educational training programs. The plan called for reducing the kingdom's dependence on the petroleum sector by diversifying economic activity, particularly in the private sector, with special emphasis on industry and agriculture. It also continued the effort to "Saudiize" the labor force.

The seventh plan (2000-2004) focuses more on economic diversification and a greater role of the private sector in the Saudi economy. For the period 2000-2004, the Saudi Government aims at an average GDP growth rate of 3.16% each year, with projected growths of 5.04% for the private sector and 4.01% for the non-oil sector. The government also has set a target of creating 817,300 new jobs for Saudi nationals.

See also

• List of Saudi Arabian companies
• Irrigation in Saudi Arabia

. This is a list of Saudi Arabian companies. ... Circles of green irrigated vegetation in Saudi Arabia, April 1997 Center Pivot Irrigation in Saudi Arabia. ...

Organization of the Petroleum Exporting Countries (OPEC)
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