Saudi Arabia Economy Profile 2009

Economy - overview

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses more than 20% 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 80% of budget revenues, 45% of GDP, and 90% of export earnings. About 40% of GDP comes from the private sector. Roughly 6.4 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors. High oil prices through mid-2008 have boosted growth, government revenues, and Saudi ownership of foreign assets, while enabling Riyadh to pay down domestic debt. The government is encouraging private sector growth - especially in power generation, telecommunications, natural gas exploration, and petrochemicals - to lessen the kingdom's dependence on oil exports and to increase employment opportunities for the swelling Saudi population, nearly 40% of which are youths under 15 years old. Unemployment is high, and the large youth population generally lacks the education and technical skills the private sector needs. Riyadh has substantially boosted spending on job training and education, infrastructure development, and government salaries. 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. The government has announced plans to establish six "economic cities" in different regions of the country to promote development and diversification. The last five years of high oil prices have given the Kingdom ample financial reserves to manage the impact of the global financial crisis, but tight international credit, falling oil prices, and the global economic slowdown will reduce Saudi economic growth in 2009.

GDP (purchasing power parity)

$576.5 billion (2008 est.)
$553.3 billion (2007 est.)
$535.1 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$481.6 billion (2008 est.)

GDP - real growth rate

4.2% (2008 est.)
3.4% (2007 est.)
3.2% (2006 est.)

GDP - per capita (PPP)

$20,500 (2008 est.)
$20,100 (2007 est.)
$19,800 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 3.1%
industry: 61.9%
services: 35% (2008 est.)

Population below poverty line

NA%

Labor force

6.74 million
note: about one-third of the population in the 15-64 age group is non-national (2008 est.)

Labor force - by occupation

agriculture: 6.7%
industry: 21.4%
services: 71.9% (2005 est.)

Unemployment rate

11.8% (2008 est.)
13% (2004 est.)
note: data are for Saudi males only (local bank estimates; some estimates range as high as 25%)

Household income or consumption by percentage share

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

Investment (gross fixed)

19.4% of GDP (2008 est.)

Budget

revenues: $293.7 billion
expenditures: $136 billion (2008 est.)

Public debt

18.9% of GDP (2008 est.)
75% of GDP (2004 est.)

Inflation rate (consumer prices)

9.9% (2008 est.)
4.1% (2007 est.)

Central bank discount rate

2.5% (31 December 2008)
NA% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)

Stock of money

$113.2 billion (31 December 2008)
$102.4 billion (31 December 2007)

Stock of quasi money

$134.3 billion (31 December 2008)
$109.5 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$66.94 billion (31 December 2007)

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

2.4% (2008 est.)

Electricity - production

179.1 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)

Electricity - consumption

156.8 billion kWh (2006 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

9.2 million bbl/day (2008 est.)

Oil - consumption

1 million bbl/day (2008 est.)

Oil - imports

41,680 bbl/day (2005)

Oil - exports

8.2 million bbl/day (2007 est.)

Oil - proved reserves

264.3 billion bbl (1 January 2008 est.)

Natural gas - production

75.9 billion cu m (2007 est.)

Natural gas - consumption

75.9 billion cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

7.167 trillion cu m (1 January 2008 est.)

Current Account Balance

$128 billion (2008 est.)
$96.77 billion (2007 est.)

Agriculture - products

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

Exports

$309.8 billion (2008 est.)
$234.1 billion (2007 est.)

Exports - commodities

petroleum and petroleum products 90%

Exports - partners

US 18.5%, Japan 16.5%, China 10.2%, South Korea 8.6%, Singapore 4.8% (2008)

Imports

$108.3 billion (2008 est.)
$82.6 billion (2007 est.)

Imports - commodities

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

Imports - partners

US 12.4%, China 10.6%, Japan 7.8%, Germany 7.5%, Italy 4.9%, South Korea 4.7%, UK 4.2% (2008)

Reserves of foreign exchange and gold

$30.59 billion (31 December 2008 est.)
$34.01 billion (31 December 2007 est.)

Debt - external

$75.36 billion (31 December 2008 est.)
$58.6 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$108.5 billion (31 December 2008 est.)
$92 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$27.5 billion (31 December 2008 est.)
$16.99 billion (31 December 2007 est.)

Market value of publicly traded shares

$246.3 billion (31 December 2008)
$515.1 billion (31 December 2007)
$326.9 billion (31 December 2006)

Economic aid - recipient

$26.29 million (2005)

Economic aid - donor

since 2002, Saudi Arabia has provided more than $480 million in budgetary support to the Palestinian Authority, supported Palestinian refugees through contributions to the UN Relief and Works Agency (UNRWA), provided more than $250 million to Arab League funds for the Palestinians, and pledged $500 million in assistance over the next three years at the Donors Conference in Dec 2007; 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)

Currency (code)

SAR

Exchange rates

Saudi riyals (SAR) per US dollar - 3.75 (2008 est.), 3.745 (2007), 3.745 (2006), 3.747 (2005), 3.75 (2004)

Fiscal year

calendar year