Saudi Arabia Economy Profile 2007

Economy - overview

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses 25% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 75% of budget revenues, 45% of GDP, and 90% of export earnings. About 40% of GDP comes from the private sector. Roughly 5.5 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors. The government is encouraging private sector growth to lessen the kingdom's dependence on oil and to increase employment opportunities for the swelling Saudi population. The government is promoting private sector and foreign participation in the power generation, telecom, natural gas, and petrochemical industries. As part of its effort to attract foreign investment and diversify the economy, Saudi Arabia acceded to the WTO in December 2005 after many years of negotiations. With high oil revenues enabling the government to post large budget surpluses, Riyadh has substantially boosted spending on job training and education, infrastructure development, and government salaries. The government has announced plans to establish six "economic cities" in different regions of the country to promote development and diversification.

GDP (purchasing power parity)

$366.2 billion (2006 est.)

GDP (official exchange rate)

$276.9 billion (2006 est.)

GDP - real growth rate

2.4% (2006 est.)

GDP - per capita (PPP)

$13,600 (2006 est.)

GDP - composition by sector

agriculture: 3.3%
industry: 67%
services: 29.8% (2006 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices)

1.9% (2006 est.)

Investment (gross fixed)

16.2% of GDP (2006 est.)

Labor force

7.125 million
note: more than 35% of the population in the 15-64 age group is non-national (2006 est.)

Labor force - by occupation

agriculture: 12%
industry: 25%
services: 63% (1999 est.)

Unemployment rate

13% among Saudi males only (local bank estimate; some estimates range as high as 25%) (2004 est.)

Budget

revenues: $189.2 billion
expenditures: $107.6 billion; including capital expenditures of $NA (2006 est.)

Public debt

32.5% of GDP (2006 est.)

Industries

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

Industrial production growth rate

1.9% (2006 est.)

Electricity - production

155.2 billion kWh (2004)

Electricity - consumption

144.4 billion kWh (2004)

Electricity - exports

0 kWh (2004)

Electricity - imports

0 kWh (2004)

Oil - production

9.475 million bbl/day (2005 est.)

Oil - consumption

1.845 million bbl/day (2004)

Oil - imports

0 bbl/day (2003)

Oil - exports

7.92 million bbl/day (2003)

Oil - proved reserves

262.7 billion bbl (2006 est.)

Natural gas - production

65.68 billion cu m (2004 est.)

Natural gas - consumption

65.68 billion cu m (2004 est.)

Natural gas - exports

0 cu m (2004 est.)

Natural gas - imports

0 cu m (2004 est.)

Natural gas - proved reserves

6.654 trillion cu m (1 January 2005 est.)

Current Account Balance

$103.8 billion (2006 est.)

Agriculture - products

wheat, barley, tomatoes, melons, dates, citrus; mutton, chickens, eggs, milk

Exports

$204.5 billion f.o.b. (2006 est.)

Exports - commodities

petroleum and petroleum products 90%

Exports - partners

Japan 17.6%, US 15.8%, South Korea 9.6%, China 7.2%, Singapore 4.4%, Taiwan 4.4% (2006)

Imports

$64.16 billion f.o.b. (2006 est.)

Imports - commodities

machinery and equipment, foodstuffs, chemicals, motor vehicles, textiles

Imports - partners

US 12.2%, Germany 8.5%, China 7.9%, Japan 7.2%, UK 4.8%, Italy 4.8% (2006)

Reserves of foreign exchange and gold

$31.63 billion (2006 est.)

Debt - external

$47.39 billion (2006 est.)

Economic aid - donor

since 2000, Saudi Arabia has committed $307 million for assistance to the Palestinians; pledged $230 million to development in Afghanistan; pledged $1 billion in export guarantees and soft loans to Iraq; pledged $133 million in direct grant aid, $187 million in concessional loans, and $153 million in export credits for Pakistan earthquake relief; pledged a total of $1.59 billion to Lebanon in assistance and deposits to the Central Bank of Lebanon in 2006 and pledged an additional $1.1 billion in early 2007

Currency (code)

Saudi riyal (SAR)

Exchange rates

Saudi riyals per US dollar - 3.745 (2006), 3.747 (2005), 3.75 (2004), 3.75 (2003), 3.75 (2002)

Fiscal year

calendar year