Why is Saudi Arabia a powerful country?

Saudi Arabia has since become the world’s second largest oil producer (behind the US) and the world’s largest oil exporter, controlling the world’s second largest oil reserves and the sixth largest gas reserves.

Why is this important for the Saudi Arabian economy?

It has evolved from a basic agricultural society into a regional and global economic power with a modern infrastructure. Petroleum is an integral part of the Saudi economy; Saudi Arabia is the world’s largest producer and exporter of oil. The government has an essential role in industrial and economic development.

Why is Saudi Arabia developed?

Fueled by enormous revenues from oil exports, the economy boomed during the 1970s and ’80s. Unlike most developing countries, Saudi Arabia had an abundance of capital, and vast development projects sprung up that turned the once underdeveloped country into a modern state.

What makes up Saudi Arabia’s GDP?

Saudi Arabia possesses around 17 per cent of the world’s proven petroleum reserves. The oil and gas sector accounts for about 50 per cent of gross domestic product, and about 70 per cent of export earnings. Apart from petroleum, the Kingdom’s other natural resources include natural gas, iron ore, gold, and copper.

What are the weaknesses of the Saudi economy?

Structural weaknesses Saudi Arabia’s economic structure is unbalanced. The country possesses the world’s second-largest proven oil reserves (>15\% of global resources) and, at current rates of extraction, its oil will last for over 60 years. In addition, gas reserves will last for a further 72 years.

How is Saudi Arabia’s economy changing?

The economy of Saudi Arabia is heavily dependent on oil, and the country is a member of OPEC. In the first quarter of 2019, Saudi Arabia’s budget has accomplished its first surplus since 2014. This surplus of $10.40 billion has been achieved due to the increase of the oil and non-oil revenues.