Saudi Arabia is the largest country in the Gulf region with a
population of 33 million, and the largest economy in the Arab World
with a GDP of $ 782 billion. It is the only G-20-member country in
the region. The Saudia Arabian Government (SAG) exercises control
over main economic activities of the country’s oil-based economy.
Saudi Arabia has almost 16 percent of the world's proven petroleum
reserves, plays a principal role in OPEC, is one of the world’s
largest producer and exporter of crude oil, and is a large-scale
oil refiner and producer of natural gas. According to Forbes
Magazine, petroleum accounts for roughly 87 percent of budget
revenues, 32 percent of GDP, and 81 percent of export
earnings.
To diversify its economy away from oil, in 2016, SAG launched a
broad and ambitious socio-economic reform plan known as Vision
2030. The program is aimed at diversifying the economy, creating
private sector jobs for a growing population, and placing
government finances on a sounder footing. Vision 2030’s most
significant goals and targets include: spurring private-sector
growth; increasing local content requirements in manufacturing,
particularly in defense equipment and basic materials; enhancing
Saudi government efficiencies; improving the provision of
government services; increasing revenue generation through new
taxes; transforming the Public Investment Fund (PIF) into the
world’s largest sovereign wealth fund; providing affordable housing
to citizens; developing Saudi Arabia’s capital markets; building a
renewable energy sector; attracting greater foreign direct
investment; privatizing dozens of government entities; expanding
the ICT sector; further developing the mining sector; accelerating
the development of the public transportation and the railway
network; building an effective domestic tourism infrastructure; and
expanding natural gas and petrochemical production. To date, the
SAG is not on pace to reach the Vision 2030 goals by 2030 but it is
moving in a positive direction.
Saudi Arabia policies aimed at attracting new foreign investments
were amplified at the Future Investment Initiative forum held in
Riyadh in October of 2019. Three hundred global investment chiefs
and policymakers attended. Saudi Arabia announced signing of $20
billion in investment deals during the event, including significant
deals between Saudi and American companies.
In November 2019 Saudi Arabian- Oil Company (Aramco) announced its
plan to list stock for public purchase for the first time in the
company’s 86-year history. It plans to sell 1.5% of its outstanding
shares. In 2018, Aramco made $111 billion dollars in profit, making
it the most profitable company in the world (The second-most
profitable company, Apple, made $60 billion that year). The oil
giant announced the company could be valued at $1.7 trillion.
Aramco’s procurements present numerous significant opportunities
for U.S. suppliers in energy, construction, and security including
cyber security. U.S. Commercial Service maintains an office in
Dhahran in the oil-rich Eastern Province of Saudi Arabia, assisting
U.S. exporters in their business dealings with
Aramco.
Saudi Arabia is America’s 22nd-largest goods trading partner and
the second-largest U.S. goods export market in the Gulf region
behind the UAE. U.S. goods exports in 2018 totaled $$3.6 billion,
(down 17 percent from 2017); U.S. imports from Saudi Arabia totaled
$$24.1 billion, resulting in a goods trade deficit of $$10.5
billion. Major U.S. export products include: transportation
equipment (including aircraft but excluding rail) ($$3.8 billion);
nuclear machinery ($$1.9 billion), arms and ammunition ($$1.5
billion), electric machinery ($$1.1 billion); optic, photo, medical
instruments ($$0.7 billion), chemicals ($500$ million), and cereals
($400 m$illion) . Source: Global Trade
Atlas.
In 2017, U.S. exports of consumer-oriented food products to Saudi
Arabia declined by approximately 11 percent to $$508 million. Saudi
Arabia is the largest importer of food and agricultural products in
the Gulf Cooperation Council (GCC). The latest available U.N. trade
data show Saudi Arabia imported $$14.8 billion worth of
agricultural and related products in 2016, a decline of
approximately 23 percent from 2015. This decline was mostly due to
lower prices of grains, such as corn, wheat, barley and rice, and
lower imported quantities of dairy product and frozen broiler meat.
In 2016, Saudi Arabia imported approximately $$7.8 billion of
consumer-oriented food products, a 20 percent decrease from 2015.
U.S. food products are generally viewed as meeting higher-quality
standards compared to those produced locally or imported from other
countries. Although U.S. food products command higher price prices
compared to imports from Asia and Arab countries, demand for U.S.
food products in the Saudi market has been increasing in the past
few years
It is only about 5 years. Is this ok dear Questioner
01. Explain the structure of the export and import of Saudi Arabia for the last ten...
Make a comparison on the interest rates of Saudi Arabia and that of U. S. A. and a third country over the last ten years in bar chart or graphic format. Also list the references you used. Make a comparison on the interest rates of Saudi Arabia and that of U. S. A. and a third country over the last ten years in bar chart or graphic format. Also list the references you used. Make a comparison on the interest...
explain saudi arabia government budget
Is there a Law of E-Commerce in Saudi Arabia? Explain your answer
Assume we have a closed economy, the following information for the third quarter of 2020 (assume export = import = net export = 0): • National income (excluding net export) = 517,536,000,000 SAR.• Consumption equal 222,526,000,000 SAR.• Government expenditures equal 140,199,000,000 SAR.Assume that the consumption tax rate is 15% (Value Added Tax) and 20% for capital (investment). Solve for the following if it is considered a closed economy:a- Tax revenue. there are two types of tax; sales tax (VAT) and capital...
Explain a diet related health problem the commonly affects people in the kingdom of Saudi Arabia?
While there are several EHR implementation instances in the Kingdom of Saudi Arabia capable of collecting data from individual patients, there is an immense need of integration systems to interlink the EHRs installations to make them interoperable and to generate aggregated data. Explain why the public health professionals are more interested in aggregated data rather than individual data and clarify the importance of these integration and data exchange systems for the field of public health informatics in the Kingdom of...
saudi arabia banks 1- With Accounting for credit risky financial instruments not recognized at observed market value generally involves estimating expected future Credit Risks and Losses with reference to its “Disclosers”. Explain this statement “Disclosers”. in your own words with statistical examples of the data from the Saudi Local Banks or Financial Institutions. (Case Study) (1.5 marks) 3- Mortgage banking is primarily a fee based rather than interest rate spread –based business. You are required to describe and explain in...
Saudi Arabia can produce 100 barrels of oil using 100 worker hours or 25 bushels of corn using 100 worker hours. United States can produce 50 barrels of oil using 100 worker hours or 100 bushels of corn using 100 worker hours. Which country has the absolute advantage in oil? Group of answer choices Saudi Arabia United States Neither country has an absolute advantage. There is not enough data to calculate.
Unemployment rate in Saudi Arabia in 2018 Published by H. Plecher, Oct 23, 2019 In 2018, Saudi Arabia's estimated unemployment rate amounted to approximately 5.92 percent. This increase is up .03 percent from the year before. The unemployment rate is defined as the percentage of unemployed workers in the total labor force. Where are people employed? Saudi Arabia's population is around 33 million inhabitants, and of the employed workforce, most have jobs in the oil and gas industry. This is...
Can you explain this in terms of economics? DUBAI, March 7 (Reuters) - Saudi Arabia slashed its official selling price (OSP) for April for all its crude grades to all destinations, after OPEC's oil supply cut pact with Russia fell apart on Friday, sending oil into a tailspin. State oil giant Saudi Aramco has set its Arab light crude oil to Asia for April at a discount of $3.10 to the Oman/Dubai average, down $6 a barrel from March, the...