[66] Establishing fast-track licenses and special finance packages to encourage private sector investment in housing projects. The government has encouraged private sector growth for many years to lessen the kingdom's dependence on oil, and to increase employment opportunities for the swelling Saudi population. "[95], To provide the best support for the private sector and entrepreneurs, The Kingdom announced a decision approved by the Saudi Cabinet, In July 2019, allowing businesses in the country to be given the option to remain open 24 hours a day. The Gross Domestic Product (GDP) in Saudi Arabia was worth 792.97 billion US dollars in 2019, according to official data from the World Bank and projections from Trading Economics. [55], The sixth plan (1996–2000) focused on lowering the cost of government services without cutting them and sought to expand educational training programs. Jobs in service and sales are considered totally unacceptable for citizens of Saudi Arabia—both potential employees and customers.[76]. About 51% are under the age of 25 (as of Feb 2012). ]", World Population Prospects: The 2010 Revision, "Saudi Arabia's Youth and the Kingdom's Future", "Saudi Arabia needs private sector growth to stem youth unemployment, business leaders say", "Saudi Arabia leads Arab world in patents", "KSA ranks 23rd in number of patents granted by the US Patent and Trademark Office", "Saudi Arabia Granted 664 Patents in 2017; Double of All Arab Countries Combined", "Saudi Arabia Accused of Turning A Blind Eye To International Terrorism Financing By Global Watchdog", "Saudi Arabia has tenth lowest poverty rate worldwide, says World Bank", "Saudi Arabia's riches conceal a growing problem of poverty", "Saudi dissidents turn to YouTube to air their frustrations", "Mal3ob 3alena: Poverty in Saudi Arabia English Version", "A foreign Saudi plot to expose foreign poverty in foreign Saudi", "Poverty Hides Amid Saudi Arabia's Oil Wealth", "Poverty exists in Saudi Arabia too | The Observers", "Saudi film-makers enter second week of detention", "Nearly 50% citizens own houses in Saudi Arabia", "New mortgages to boost home ownership in Saudi Arabia", "Manufacturing booms in Saudi Arabia | Saudi Arabia News", "Rising Oil Prices Are Bad News for Saudi Arabia", "Saudi Arabia's Big Dreams and Easy Living Hit a Wall", "Saudis Reduce Oil Pricing in Sign Demand Recovery Struggling", "Saudi Arabia most improved economy for business", "Saudi Arabia sees most improvement in ease of doing business: World Bank", "Doing Business 2020: Saudi Arabia Accelerated Business Climate Reforms, Joins Ranks of 10 Most Improved", "Special Report: MEED 100 – The Middle East's top 100 listed companies in 2009 | Special Report", "Saudi Arabia issued 5 new foreign investor licenses a day in Q2", "Saudi Aramco to sell billions of dollars in international bonds", "Saudi Aramco plans debt market comeback with multi-tranche bond deal", "Saudi electronic market reaches $3.5 billion", Saudi Arabia Export, Import, Trade Balance, Council of Economic and Development Affairs, Saudi Arabian Monetary Agency (central bank), Organization of the Petroleum Exporting Countries, Trade-Related Aspects of Intellectual Property Rights, Special administrative regions of the People's Republic of China, Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, https://en.wikipedia.org/w/index.php?title=Economy_of_Saudi_Arabia&oldid=991670980, CS1 maint: BOT: original-url status unknown, Articles needing additional references from February 2009, All articles needing additional references, Wikipedia articles needing rewrite from June 2020, Articles with multiple maintenance issues, All Wikipedia articles written in American English, Short description is different from Wikidata, Articles with unsourced statements from September 2017, Articles with unsourced statements from June 2020, Creative Commons Attribution-ShareAlike License, petroleum and petroleum products 90% (2012 est. Saudi Arabia sits on approximately 20% of the planet's known oil reserves, and it is this oil that constitutes the bulk of the kingdom's natural … Development of oil fields continued in Saudi Arabia, managed mainly by Aramco, company formed by the partnership of Texaco and Chevron. The remaining oil exports are transported via the east–west pipeline across the kingdom to the Red Sea port of Yanbu. During much of the 2000s, high oil prices[24] enabled the government to post budget surpluses, boost spending on job training and education, infrastructure development, and government salaries. [109] As of 2013, due to the rapid population growth of Saudi Arabia,[110] per capita income in Saudi was "a fraction of that of smaller Persian gulf neighbors", even less than petroleum-poor Bahrain. In 1951, the first offshore field in the middle east was found by the Arabian American Oil Company(Aramco) at Raʾs Al-Saffāniyyah area. These firms are "heavily dependent on government spending", which is dependent on oil revenues. [59], Since 2017, in order to boost the economy and decrease the country's dependency on oil, Mohammed bin Salman has brought in multiple changes, including the raising of prices of gasoline and electricity, introduction of new taxes, and policy of Saudi workers over foreign workers. [34][35] Moreover, in 1951, Aramco started operating Trans-Arabian Pipeline that used to transform oil from the eastern region of Saudi Arabia to the Mediterranean Sea, passing by Jordan, Syria and Lebanon. Since that time and pursuant to its commitment to the WTO, Saudi Arabia has been developing trade-related policies and legislations. Obtaining a foreign investor license became more straightforward as it requires only two documents, and it is processed in three hours.[161]. Critics see cases of land-grabbing in various instances that also lead to uproars in the respective countries. [14] This page has economic forecasts for Saudi Arabia including a long-term outlook for the next decades, plus medium-term expectations for the next four quarters and short-term market predictions for the next release affecting the Saudi Arabia economy. As of 2013 four cities were being developed. Rich Saudis are reluctant to invest within the kingdom due to the fear of triggering government scrutiny. [53] In the first quarter of 2019, foreign investment in Saudi Arabia has jumped by 28%. Real estate plays a fundamental role in the country's non-oil economy. In almost two and a half years, bonds worth $60 billion have been sold by Saudi, becoming one of the biggest borrowers globally. Firming oil prices and an expansionary budget have resulted in a positive outlook for Saudi Arabia for 2019, with the IMF lifting the Kingdom’s GDP growth prediction for 2019 by 0.5% to … [51] Saudi Arabia turned towards international debts following a decline in its oil income. [58], The main investing countries in Saudi Arabia in 2016 were the US, UAE, France, Singapore, Kuwait and Malaysia. In urban areas the price of land has been bid up because nearly all of it is owned by the Saudi elite (members of the royal family or other wealthy Saudis), who have lobbied the government for land "giveaways". [135] Observers researching the issue prefer to stay anonymous[136] because of the risk of being arrested, like Feras Boqna. [20] The petroleum sector accounts for roughly 87% of Saudi budget revenues, 90% of export earnings, and 42% of GDP. [29] Mean wages were $14.74 per man-hour in 2009. 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. In 1933, the Saudi government signed an oil concession agreement with Standard Oil Company of California. Officially the Republic of China, participates as ", This page was last edited on 1 December 2020, at 06:41. [130] Press reports and private estimates as of 2013 "suggest that between 2 million and 4 million" of the country's native Saudis live on "less than about $530 a month" – about $17 a day – considered the poverty line in Saudi Arabia. [68], According to many reports, the Saudi government is greatly interested in giving more liberty to the foreign investment system and in giving a 100% allowance to the foreign investors to work in the wholesale and retail sector in particular cases. Saudi Arabia's economy slowed sharply in the second quarter amid oil output cuts by the world's largest crude exporter, ... down from annual growth of 1.66% in the first quarter of 2019. USSABC Economic Brief: Saudi Arabia’s Tourism Sector Update November 2019 www.us-sabc.org Albara’a Alwazir Economist alalwazir@us-sabc.org Overview Tourism is one of the fastest growing economic sectors in the world. The oil prices have gone up by double since the government began to consider the program in 2015. [57] The country has a small agricultural sector, primarily in the southwest where annual rainfall averages 400 mm (16"). [33] In 1960, OPEC was created with Saudi Arabia as one of its founding members. Just three of the 20 companies that have dropped out of the top 100 over the past year are listed on the Saudi stock exchange. In 2000, 100% foreign-owned businesses were allowed in the kingdom.[45]. Saudi Arabia: GDP contracts deeply in Q2 as both the oil and non-oil sectors reel. ", "Africa up for grabs, Saudi Arabia takes its share", "Land grabbers: Africa's hidden revolution", "King Abdullah's Initiative for Saudi Agricultural Investment Abroad: A way of enhancing Saudi food security", "What you should know about Saudi investment in African farmland", "KSA Business: Saudi REITs market worth over $2bn in Q1", "Value of Saudi real estate deals drops 24%", "Real Estate Ownership and Investment in Saudi Arabia", "Overview of Saudi Real Estate Laws and Practice", "Knight Frank expands reach with opening of Saudi Arabian office", "Real Estate Investment Traded Funds – REITs", "Cabinet gives go-ahead for businesses to open 24/7 in Saudi Arabia", "New head of foreign trade thanks King for his trust", "Saudi Arabia nominates candidate to head WTO: document", "SAUDI ARABIA –MEASURES CONCERNINGTHE PROTECTION OF INTELLECTUAL PROPERTY RIGHTS", "WTO Urged To Reject Saudi Arabia's Nominee For Director General", "Nigerian, South Korean make last round of WTO chief race – sources", "Kingdom of Saudi Arabia - Member information", "Membership of Key Economies in International Organisations", "The Cooperation Council for the Arab States of The Gulf – Secretariat General", "Longform's Picks of the Week [Will Saudi Arabia Ever Change? [111], Unlike most developed countries where gross domestic product growth is a function of increases in productivity and inputs such as employment, in Saudi the fluctuation of oil prices is the most important factor in the growth or decline of domestic production. Saudi Arabia will chair the G-20 in 2020; this increased global profile is likely to stimulate progress on structural reforms. Saudi Arabia: Non-oil PMI ticks down in June, conditions continue to worsen. This has done little to lower the unemployment rate, which rose to 12.9 percent, its highest on record. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. This site uses cookies to optimize functionality and give you the best possible experience. GDP growth is anticipated to slow in 2019 to 0.8%, as the drag from oil production cuts is compounded by the worsening global outlook since the early summer. [55], Saudi Arabia first began to diversify its economy to reduce dependency on oil in the 1970s as part of its first five-year development plan. As a consequence, "the quota has now been dropped and replaced with a more flexible system. We are pleased to present our analysis on the budget statement for the fiscal year 2019, announced on Tuesday, 18 December 2018. With its absolute monarchy system of government, large state sector and supply of welfare benefits, the Saudi economy has been described as, a bewildering (at least to outsiders) combination of a feudal fealty system and a more modern political patronage one. Since 2008, extensive land investment has taken place, especially in Africa - see paragraph Non-petroleum sector. [166] Saudi Aramco owns the Ghawar Field, the world's largest oil field, and the Shaybah Field, another one of the world's largest oil fields. [55], In the fourth plan (1985–90), the country's basic infrastructure was viewed as largely complete, but education and training remained areas of concern. The banks hired for the transaction included Citi Bank, Goldman Sachs International, HSBC, JP Morgan, Morgan Stanley and NCB Capital. Ma'aden is now expanding its activities beyond its gold business with the development of phosphates, aluminum, and other projects. The gross domestic product of Saudi Arabia fluctuates dramatically according to the price of oil (see below). [19], Saudi oil reserves are the second largest in the world, and Saudi Arabia is the world's leading oil exporter and second largest producer. The kingdom witnessed a mass departure of around 750,000 foreign workers after imposing new government levies on expat workers. Saudi population grew sevenfold from 1960 to 2010,[112] and petrol prices are subsidized and cost users less than equivalent quantities of bottled water. Saudi Arabia launches digital cooperation organization to accelerate digital economic growth Argaam 06:44 27-Nov-20 Finance ministry sets issuance size of November SAR-denominated Sukuk at SAR 795 mln Argaam 06:34 27-Nov-20 [167], On 16 November 2020, Saudi Aramco announced hiring banks to sell dollar-denominated bonds with the aim of improving finances after the coronavirus pandemic caused a sharp fall in the global demand for crude oil. [52], The foreign investments in the Kingdom have witnessed a rapid increase in the first quarter of 2019. [55], Advertising expenditures have reached new peaks due to emphasis on value-added manufacturing. Saudi has not been a hotbed of technological innovation. In 2008, SABIC was Asia's largest (in terms of market capitalization) and most profitable publicly listed non-oil company, the world's fourth-largest petrochemical company, ranked 186th as world's largest corporation on the Fortune Global 500 for 2009, the second largest producer of ethylene glycol and methanol in the world, the third largest producer of polyethylene and overall the fourth-largest producer of polypropylene and polyolefin. These private investments were supported by generous government financing and incentive programs. However, their effect on Saudi Arabia's economic fortunes has been small. Guided by its Vision 2030, the Kingdom of Saudi Arabia has committed itself to a path of economic, industrial, social and digital transformation. By 1949 Saudi oil production reached 500,000 barrels per day (bpd), and r… In particular, Vision 2030 states: 'Where it exists in strategic locations, we will also capitalize on the government’s reserves of real estate. [21] Saudi Arabia's oil reserves and production are largely managed by the state-owned corporation Saudi Aramco.[22]. Following final technical agreements with concession awardees in December 2001, development should begin in 2002. Although jobs created by the roughly two million annual hajj pilgrims do not last long, the hajj employs more people than the oil industry—40,000 temporary jobs (butchers, barbers, coach drivers, etc. This aims at opening the real estate market to a wide range of investor.

saudi arabia economy 2019

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