A Guide to Saudi Arabia Politics: 7. Information on the economy

Saudi
Arabian economy is widely recognized as an oil-based economy. The country is rich
in natural resources, especially petroleum reserves (almost 16% of world’s
reserves), which boots the economy significantly. Oil sectors accounts for 80%
of budget revenues, 45% of national GDP, and 90% of export. Currently, Saudi
Arabia tries to diversify its revenues, therefore, encourages the development
of private sector. Almost 6 million foreigners constitute the basis of Saudi
labor force, whereas Riyadh is trying to reduce unemployment among young Saudi
citizens. The country’s GDP is $718,5 billion, which is the 20^th in
the world. The GDP growth rate slowed down after the Arab Spring – 8,6% in
2011, 5,1% in 2012, and 3,6% in 2013. The GDP per capita equals to that of the
European countries - $31,300 per person, however, unlike other developed countries,
the majority of GDP is produced by industrial sector – 62.5% in comparison
20-30% in the developed countries. The services sector is being developed
throughout the decade and now holds 71,9% of country’s labor force. The
national reserves make $739.5 billion, which is the 4^th world’s
result (CIA). Despite the declining oil revenues Saudi Arabian 2014 budget
provides significant investments in country’s infrastructure, education, and
health. In 2013 one could observe an 11% drop in oil revenues from $1,140
billion to $1,017 billion, however, this drop was compensated by increase (14%)
from non-oil sources, which shows constant transformation of the Saudi economy
(Aluwaisheg).