Saudi Arabia Economy 2008

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 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. High oil prices 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 the power generation, telecom, natural gas, and petrochemical industries - to lessen the kingdom's dependence on oil and to increase employment opportunities for the swelling Saudi population. Unemployment is high, with a large youth population - 40% are under 15 years old- lacking 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.

GDP (purchasing power parity):
$572.2 billion (2007 est.)

GDP (official exchange rate):
$302.3 billion (2007 est.)

GDP - real growth rate:
4.7% (2007 est.)

GDP - per capita (PPP):
$20,700 (2007 est.)

GDP - composition by sector:
agriculture: 3%
industry: 61.8%
services: 35.2% (2007 est.)

Labor force:
6.488 million
note: more than 35% of the population in the 15-64 age group is non-national (2007 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.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
3.4% (2007 est.)

Investment (gross fixed):
18.8% of GDP (2007 est.)

Budget:
revenues: $193.7 billion
expenditures: $122.2 billion (2007 est.)

Public debt:
22.6% of GDP (2007 est.)

Agriculture - products:
wheat, barley, tomatoes, melons, dates, citrus; mutton, chickens, eggs, milk

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:
0.2% (2007 est.)

Electricity - production:
165.6 billion kWh (2005)

Electricity - consumption:
146.9 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
11.1 million bbl/day (2005 est.)

Oil - consumption:
2 million bbl/day (2005)

Oil - exports:
8.554 million bbl/day (2004)

Oil - imports:
0 bbl/day (2004)

Oil - proved reserves:
266.8 billion bbl (1 January 2006 est.)

natural gas - production:
68.32 billion cu m (2005 est.)

natural gas - consumption:
68.32 billion cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
6.568 trillion cu m (1 January 2006 est.)

Current account balance:
$88.89 billion (2007 est.)

Exports:
$215 billion f.o.b. (2007 est.)

Exports - commodities:
petroleum and petroleum products 90%

Exports - partners:
Japan 17.7%, US 15.8%, South Korea 9%, China 7.2%, Taiwan 4.6%, Singapore 4.4% (2006)

Imports:
$82.77 billion f.o.b. (2007 est.)

Imports - partners:
US 12.3%, Germany 8.6%, China 8%, Japan 7.3%, UK 4.9%, Italy 4.8%, South Korea 4.1% (2006)

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

Economic aid - recipient:
$26.29 million (2005)

Reserves of foreign exchange and gold:
$34 billion (31 December 2007 est.)

Debt - external:
$52.89 billion (31 December 2007 est.)

Stock of direct foreign investment - at home:
$NA

Stock of direct foreign investment - abroad:
$NA

Market value of publicly traded shares:
$326.9 billion (2006)

Currency (code):
Saudi riyal (SAR)

Exchange rates:
Saudi riyals per US dollar - 3.745 (2007), 3.745 (2006), 3.747 (2005), 3.75 (2004), 3.75 (2003)