Economy - overview:
This is an oil-based economy with strong government controls over
major economic activities. Saudi Arabia possesses 25% 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. The
government is encouraging private sector growth to lessen the
kingdom's dependence on oil and increase employment opportunities
for the swelling Saudi population. The government is promoting
private sector and foreign participation in the power generation,
telecom, natural gas, and petrochemical industries. 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. With high oil revenues enabling the government to post
large budget surpluses, Riyadh has been able to substantially boost
spending on job training and education, infrastructure development,
and government salaries.
GDP (purchasing power parity):
$374 billion (2006 est.)
GDP (official exchange rate):
$286.2 billion (2006 est.)
GDP - real growth rate:
5.9% (2006 est.)
GDP - per capita (PPP):
$13,800 (2006 est.)
GDP - composition by sector:
agriculture: 3.3%
industry: 67%
services: 29.8% (2006 est.)
Labor force:
7.125 million
note: more than 35% of the population in the 15-64 age group is
non-national (2006 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%