G-20 Project:Saudi Arabia

By: Matthew McDaniel

  What Life Is Really Like In Saudi Arabia

Overview of Saudi Arabia

• The Kingdom of Saudi Arabia is the largest Arab country of the Middle East.

• It is bordered by Jordan and Iraq on the north and northeast, Kuwait, Qatar, Bahrain and the United Arab Emirates on the east, Oman on the southeast, and Yemen on the south.

• The origins of Saudi Arabia go back as far as 1744 with the establishment of the first Saudi State.

• Birthplace of Islam

Major Historical Highlights

• The Arab Revolt from December 31, 1915 to Dec 31 1917• The country of Saudi Arabia was made a country on

September 22, 1932• Oil was Discovered on December 31, 1935• Founding of Saudi Arabia Flag on March 14, 1973• King Reshuffles Government on January 31, 2008

Political and Governmental System

• Saudi Arabia is a hereditary monarchy.• Executive Branch:

• King Abdullah bin Abdulaziz Al Saud has been the ruler since 2005

• The king is also the prime minister, chief of state, the head of government, and commander in chief of the military of Saudi Arabia.

• Legislative Branch:• This is made up of a Consultative Council (also known as Majlis as-Shura or Shura

Council) advises the King on issues that are important to Saudi Arabia.

• Judicial Branch:• The country is governed and justice is administered according to Islamic law.

Population and Demographics • Saudi Arabia's population as

of the April 2010 census was 27,136,977: 18,707,576 Saudi nationals and 8,429,401 non-nationals.

• About 51% of the population is under the age of 25.

• Life expectancy: 75.50 years (2012) World Bank

• Fertility rate: 2.70 births per woman (2012) World Bank

• Population growth rate: 1.9% annual change (2013) World Bank

Major International Corporations

• PetroSaudi International Ltd.• PetroSaudi trades natural gas, LPG, jet fuel, gasoline, chemical

feedstock and related products in global markets.

• ALDREES Petroleum and Transport Services Company• One of the largest petroleum retail and commodity hauling companies

in Saudi Arabia with a network of 346 petrol filling stations and a fleet.

• CEPCO (Civil and Electrical Projects COntracting)• CEPCO is a leading construction company

Major Products

• The petroleum sector accounts for roughly 80% of budget revenues,45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals.

Industries

• Major industries include crude oil production, petroleum refining, basic petrochemicals, ammonia, industrial gases, sodium hydroxide (caustic soda), cement, fertilizer, plastics, metals, commercial ship repair, commercial aircraft repair, construction.

Imports

• Vehicles: US$22,685,657,000 (14.9% of total imports)

• Machines, engines, pumps: $22,081,295,000 (14.5%)

• Electronic equipment: $12,458,840,000 (8.2%)

• Iron or steel products: $6,057,415,000 (4.0%)

• Aircraft, spacecraft: $4,937,731,000 (3.2%)

• Iron and steel: $4,686,588,000 (3.1%)• Cereals: $4,612,134,000 (3.0%)• Pharmaceuticals: $4,309,796,000 (2.8%)• Medical, technical equipment:

$3,870,166,000 (2.5%)

Exports• Exports from Saudi Arabia

amounted to US$347.9 billion in 2014

• Crude prices fell almost 50 percent in 2014

Top Ten Exports in 2014• Oil: US$296.2 billion (85.1% of total exports)

• Plastics: $19.8 billion (5.7%)

• Organic chemicals: $16.2 billion (4.6%)

• Fertilizers: $2.1 billion (0.6%)

• Aluminum: $1.4 billion (0.4%)

• Gems, precious metals, coins: $970.6 million (0.3%)

• Inorganic chemicals: $967.0 million (0.3%)

• Dairy, eggs, honey: $700.7 million (0.2%)

• Copper: $671.4 million (0.2%)

• Iron or steel products: $650.2 million (0.2%)

Economic Statistics

Economic StatisticsEconomic Growth

Economic Statistics

Unemployment and Labor

Economic Statistics

Inflation

Economic Statistics

Government Finances

Economic Statistics

Industry and Business

Economic Statistics

International Trade

Trade Agreements• World Trade Organization Accession Agreement

• Agreement on the Accession of the Kingdom of Saudi Arabia to the World Trade Organization (WTO).

• Greater Arab Free Trade Area (GAFTA)• GAFTA was declared within the Social and Economic Council of the Arab League

as an executive program to activate the Trade Facilitation and Development Agreement.

• Trade and Investment Framework Agreements (TIFAs) • Provides strategic frameworks and principles for dialogue on trade and

investment issues between the United States and the other parties to the TIFA.

   Economic History

YearGross Domestic Product

(in millions of Saudi Riyals (SR))

US Dollar Exchange(in Saudi Arabian Riyals)

1970 22,565 4.50

1975 163,670 3.52

1980 546,602 3.59

1985 376,318 3.62

1990 437,334 3.74

1995 533,504 3.74

2000 706,657 3.74

2005 1,152,600 3.74

Recent Economic News

Recent Economic News

• KSA will not cut oil production: Al-Jubeir• Saudi stocks gain strength in 2015 the drops drastically in

late 2015 early 2016• A Saudi-Russian oil accord• The oil conundrum (January 23, 2016)

Economic Forecasts for the Next 20 Years

Overview 2015 2020 2025 2030 2035GDP Growth Rate (Percent)

2.005 2.05 2.095 2.14 2.185

Unemployment Rate (Percent)

5.615 5.68 5.745 5.81 5.875

Inflation Rate (Percent) 2.74 2.35 1.96 1.57 1.18Interest Rate (Percent) 2.675 5.75 2.675 -0.4 -3.475Balance of Trade (Million SAR)

60672.75

118555 697437.25

755319.50 813201.75

Sources • The World Bank 2012 Saudi Arabia Report

• (http://data.worldbank.org/country/saudi-arabia)• International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity).

Accessed on November 20, 2015• The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on November 20, 2015• Trade Map, International Trade Centre. Accessed on November 20, 2015• Investopedia, Net Exports Definition. Accessed on November 20, 2015• Wikipedia, List of companies of Saudi Arabia. Accessed on November 20, 2015• Forbes 2015 Global 2000 rankings, The World’s Biggest Public Companies. Accessed on November 20,

2015• Zepol’s company summary highlights by country. Accessed on November 20, 2015• Office of the United States Trade Reprehensive (https://ustr.gov/) • United Nations• https://www.quandl.com/collections/saudi-arabia/saudi-arabia-economy-data