The kingdom of Saudi Arabia is an Arab sovereign state situated in western Asia. Geographically, Saudi is the fifth largest state in Asia and second in the Arab states. Saudi Arabia is the world’s largest oil producer and exporter. World Bank has categorized it to be among some high income economy, high human development index. However Saudi Arabia lacks participation in other production services other than extraction of natural resources.
Saudi Arabia economy is totally oil based as it possess around 18% of the world’s petroleum reserves, is the largest exporter of petroleum. The major revenue for the government comes from petroleum only. Saudi Arabia does have around 260 billion barrels of world oil reserves, which is nearly the 1/4th of the world oil reserves. The petroleum extraction is quite easy in Saudi Arabia because of the oil is in plenty and quite close to the earth surface , therefore contributing around 92.5% in Saudi revenues a 97% to the export earnings, and 55% in GDP.
According to research report “Country Analysis Report: Saudi Arabia, In-depth PESTLE Insights“, the regulatory and open market policy of Saudi Arabia are not much developed if compared to other emerging economies therefore the kingdom has unveiled the economic reforms plan “SAUDI VISION 2030” which will help in increasing the foreign investment, and development of private sectors.
Saudi Arabia is totally a monarchy system, ruled by king Salman bin Abdulaziz Al Saud. The major revenues for the government are generated through oil. The Saudi faces a lot of threatened from Islamic state. The Saudi citizens have to pay around 2.5% of the religious tax which is mandatory under the Islamic law.
Ken Research says, trade is the very important business activity to Saudi Arabia as 73% of GDP is contributed by both import and export activities. The foreign investment and state owned industries are going to garble the economic condition of Saudi Arabia. As per the OPEC norms, Saudi Arabia and some other major oil producers agree to cut the production cost so as to flood the market in order to make supply exceed the demand that has collapsed the prices for the same.
The kingdom faced the budget deficit for the first time and was forced to take loans from international investor. In order to meet these crises Saudi has already slashed energy subsidies, cut wages of officials due to which unemployment is going to rise.
Key Topics Covered in the Report:
Saudi Arabia Country Analysis
Saudi Arabia Oil Industry Research
Saudi Arabia Pestel Analysis
Saudi Arabia Regulatory Environment
Saudi Arabia GDP Growth
Oil Rich Saudi Arabia Bracing
Saudi Arabia Oil Industry Size
Saudi Arabia Oil Industry Growth
Saudi Arabia Oil Industry Market Share
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Ankur Gupta, Head Marketing & Communications