Country Factbook: Saudi Arabia
A. Country Analysis: Saudi Arabia1. IntroductionSaudi Arabia, officially known as the Kingdom of Saudi Arabia, is the largest country in the western part of Asia (House & Elliott, 2012). The population of the country is approximately 27 million individuals (Roy, 2012) and a population growth rate of 1.46%. Saudi Arabia has a GDP per Capita of $52,300 US Dollars, and a GDP Growth of 3.5% as of2015 (Ciagov, 2016).The land mass of Saudi Arabia is around 2.26 million sq. kilometers. Despite the fact that English is becoming popular in Saudi Arabia especially in the media, Arabic is the official language. However, interestingly when using unspoken language, physical contact is prohibited in Saudi Arabia, but it is sometimes common among people of the same gender. Approximately 97% of the Saudi Arabian population is comprised of Muslims. The topography of Saudi Arabia is dominated by desert, with no lakes or rivers and very little land is considered fertile.2. Economic AnalysisThe economy of Saudi Arabia has been relying on oil and gas. Before oil was discovered, country’s population largely relied on subsistence farming where many people were nomads until oil was discovered. Since oil and gas were discovered in the country, Saudi Arabia has become rich economy globally. Saudi owns around 18% of the petroleum reserves of the world where it is said to be the largest producer and exporter of oil globally,playing a fundamental role in the Organization of Petroleum Exporting Countries (Keating & Aileen, 2005). The revenues realized from exporting oil in Saudi Arabia accounts for around
90% of the overall earnings in its gross revenue. Saudi Arabia has been experiencing economic growth of around 3.8% with a GDP of around $622 billion (Morton, 2006). Approximately 40% of the GDP is said to come from the private sector. Â In the process of attracting foreign investors, the country has ensured that the economy has diversified. Thediversification of the economy has made Saudi Arabia rank as the 13th country on the list of the countries that possess a competitive economy globally (El Mallakh, 2015). Saudi Arabia has ensured that there is various reforms in the economy to ensure that more foreign investors are attracted din the country.2.1 Structure & GrowthOil production has shaped the economic growth and structure of Saudi Arabia. However, the state has been working towards diversifying the economy of the country to avoid over-relies on the oil and gas as the only economic resources. For instance, the government of Saudi Arabia has been coming up with policies that attract foreign investors in the country by ensuring that the business environment is conducive for investments. Despite the efforts to diversify the economy, oil has remained as the major contributor to the GDP of the country (Abir, 2006).