Saudi Arabia Overview

Saudi economy is very dependent on oil revenues : with one-fourth of the world oil reserves available, Saudi Arabia is the largest producer of oil among OPEC members. For a few months, oil prices increase has been profitable to Saudi Arabia. The country rose its production. The country's economic activity was stimulated by high barrel prices : GDP growth was 5.2% in 2004, and 6% in 2005. The IMF forecasts a 4.7% growth in 2006. Thanks to the petroleum, Saudi Arabia set several aims : to repay the public debt, to improve the occupational trainin program, to develop the social/health policy...The country have to face to the unemployment rate (estimated at 12%).

The agricultural sector is widely subsidized and accounts for 10% of the country's GDP (non-petroleum). Saudi Arabia is the world's largest barley importer. The country exports dates, dairy products and flowers. The abundance of natural mineral resources ensures Saudi Arabia's prosperity: crude oil exports account for 75% of the State income. In order to reduce the economy's oil dependance, the government tries to develop energy related activities including gas and electricity. The industrial sector provides 10% of the GDP. Tourism generates huge revenues (4 million tourists per year), particularly thanks to Mecca.

Saudi Arabia is a member of the Gulf Cooperation Council (GCC), which gathers Oman, Qatar, Bahrain, Kuwait and the United Arab Emirates and has set up a customs union.

The top three export partners are the U.S.A., Japan and South Korea. The top three import partners of Saudi Arabia are the U.S.A, Japan and Germany. Saudi Arabia mainly imports vehicles, electrical equipment goods and food products.