Saudi Arabia » Introduction

Basic Economic Facts

GDP composition by Sector

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. Saudi Arabia claimed to be in possession of 260.1 billion barrels of oil reserves as of 2003, about 24% of the world's proven total petroleum reserves. It 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 the GDP, and 90% of export earnings. About 35% of the 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 Gulf War by reducing production. Saudi Arabia announced plans to begin privatizing the electricity companies in 1999, which followed the ongoing privatization of the telecommunications company.

To diversify the economy, Saudi Arabia launched a new city on the western coast with investments exceeding 26.6 billion dollars. The city which is named "King Abdullah Economic City" will be built near al-Rabegh industrial city north to Jeddah. The new city, where construction work started in Dec 2005, includes a port which is ten times larger than the largest port of Rotterdam (the largest in the world) and it can anchor giant ships as well as an industrial area for the sectors of petrochemicals, pharmaceuticals and research. The city, which will expand along a coast of 35 km, also includes an educational city, a tourism zone and a financial stock market centre. Saudi Arabia officially became a WTO member in December 2005.