Editing Economy of Saudi Arabia

{{Short description|none}}
{{More citations needed|date=February 2022}}
{{Use American English|date=May 2017}}
{{Use dmy dates|date=October 2021}}
{{Infobox economy
| country = Saudi Arabia
| image = Riyadh Skyline.jpg
| image_size = 310px
| caption = [[Riyadh]], the [[financial center]] of Saudi Arabia
| currency = [[Saudi Riyal]] ([[File:Saudi Riyal Symbol.svg|14px]]){{efn|[[Pegged currency|Pegged]] to the [[United States dollar]] (USD) at 3.75 riyals per USD since 1986<ref>{{cite web |url= https://www.reuters.com/article/saudi-currency-peg-idUSL5N17U54R |title= Saudi riyal peg pressure eases, but not gone |last= Strohecker|first= Karin |date= 27 April 2016|website=reuters.com|publisher=[[Reuters]] |access-date=30 September 2023 }}</ref><ref>{{cite web |url= https://www.bloomberg.com/news/articles/2016-01-05/saudi-riyal-peg-not-sustainable-amid-oil-slide-commerzbank-says#xj4y7vzkg |title= Saudi Riyal Peg Not Sustainable Amid Oil Slide, Commerzbank Says |last=Kirkland|first=Stephen |date= 5 January 2016|website=bloomberg.com |publisher= [[Bloomberg L.P.]]|access-date= 30 September 2023}}</ref>}}
| year = [[Calendar year]]
| organs = [[World Trade Organization|WTO]], [[OPEC]], and [[Cooperation Council for the Arab States of the Gulf|GCC]]
| group = {{plainlist|
* [[Developing country|Developing]]/[[Emerging market|Emerging]]<ref>{{cite web| url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+develo+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019 |archive-date=22 December 2019 |archive-url=https://web.archive.org/web/20191222001529/https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developed+economy |url-status=live}}</ref> 
* [[High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=World Bank |access-date=29 September 2019 |archive-date=28 October 2019 |archive-url=https://web.archive.org/web/20191028223324/https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |url-status=live}}</ref>
}}
| population = {{IncreaseNeutral}} 32,175,224 (2022 census)<ref>{{cite web |url=https://portal.saudicensus.sa/portal |title=GASTAT Portal |website=portal.saudicensus.sa |access-date=2023-12-11}}</ref>
| gdp = {{increase}} $1.14 trillion ([[GDP|Nominal]], 2025)<ref name="IMFWEO.SA" /><br /> 
{{increase}} $2.25 trillion ([[purchasing power parity|PPP]], 2025)<ref name="IMFWEO.SA">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/October/weo-report?c=456,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPRPPPPC,NGDPDPC,PPPPC,PPPEX,PCPI,PCPIPCH,LP,GGXWDN_NGDP,GGXWDG_NGDP,BCA,BCA_NGDPD,&sy=2020&ey=2026&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=World Economic Outlook Database, October 2024 Edition. (SA) |publisher=[[International Monetary Fund]] |website=IMF.org |date=10 April 2024 |access-date=2 May 2024}}</ref>
| gdp rank = [[List of countries by GDP (nominal)|19th (nominal, 2025)]]<br />[[List of countries by GDP (PPP)|17th (PPP, 2025)]]
| growth = *{{Decrease}} -0.8%&nbsp;{{abbr|(2023)|2023}}<ref name="IMFWEO.SA" />
* {{Increase}} 1.5%&nbsp;{{abbr|(2024f)|2024 forecast}}<ref name="IMFWEO.SA" />
* {{Increase}} 4.6%&nbsp;{{abbr|(2025f)|2025 forecast}}<ref name="IMFWEO.SA" />
| per capita = {{increase}} $33,291 (nominal; 2025)<ref name="IMFWEO.SA" /><br />
{{Increase}} $65,880 (PPP; 2025)<ref name="IMFWEO.SA" />
| per capita rank = [[List of countries by GDP (nominal) per capita|34th (nominal, 2024)]]<br />[[List of countries by GDP (PPP) per capita|25th (PPP, 2024)]]
| sectors = *[[Primary sector of the economy|Agriculture]]: 2.7%
*[[Secondary sector of the economy|Industry]]: 46%
*[[Tertiary sector of the economy|Services]]: 51.3% (2023 est.)<ref name="CIAWFSA"/>
| inflation = 1.6% (2024)<ref name="General Authority for Statistics">[https://www.stats.gov.sa/sites/default/files/CPI%20Mar%202024-EN.pdf Consumer Price Index, March 2024]</ref>
| gini = 45.9 {{color|red|high}} (2013 est.)<ref name="CIAWFSA">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/saudi-arabia/ |title=Middle East: Saudi Arabia |publisher=[[Central Intelligence Agency]] |website=cia.gov |access-date=5 March 2020 |archive-date=19 March 2021 |archive-url=https://web.archive.org/web/20210319180722/https://www.cia.gov/the-world-factbook/countries/saudi-arabia |url-status=live }}</ref>
| hdi = {{increase}} 0.900 {{color|darkgreen|very high}} (2023)<ref name="UNHDR">{{Cite web |date=6 May 2025 |title=Human Development Report 2025 |url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2025reporten.pdf|url-status=live |archive-url=https://web.archive.org/web/20250506051232/https://hdr.undp.org/system/files/documents/global-report-document/hdr2025reporten.pdf |archive-date=6 May 2025 |access-date=17 May 2025 |publisher=[[United Nations Development Programme]] |language=en}}</ref> ([[List of countries by Human Development Index|37th]])
| labor = 16.934&nbsp;million (2023 est.)<ref name="CIAWFSA"/><br />
{{increase}} 63.9% employment rate (2023)<ref>{{cite web |title=Employment to population ratio, 15+, total (%) (national estimate) – Saudi Arabia |url=https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=SA |website=data.worldbank.org |publisher=World Bank |access-date=5 March 2020 |archive-date=31 July 2020 |archive-url=https://web.archive.org/web/20200731020626/https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=SA |url-status=live }}</ref>
| occupations = (2005 est.)<ref name="CIAWFSA"/>
*agriculture: 6.7%
*industry: 21.4%
*services: 71.9%
| unemployment = {{decreasePositive}} 4.88% (2023 est.)<ref name="CIAWFSA"/>{{efn|Data are for total population; unemployment among Saudi nationals is more than double<ref name="CIAWFSA"/>}}
| edbr = {{increase}} [[Ease of doing business index#Ranking|62nd (Easy, 2020)]]<ref name="World Bank and International Financial Corporation">{{cite web |url=http://www.doingbusiness.org/data/exploreeconomies/saudi-arabia |title=Ease of Doing Business in Saudi Arabia |publisher=Doingbusiness.org |access-date=24 November 2017 |archive-date=1 December 2017 |archive-url=https://web.archive.org/web/20171201044206/http://www.doingbusiness.org/data/exploreeconomies/saudi-arabia |url-status=live }}</ref>
| industries = {{hlist| [[Crude oil production]]| [[petroleum refining]]| [[petrochemicals]]| [[ammonia]]| [[industrial gas]]es| [[sodium hydroxide]]| cement| [[fertilizer]]| plastics| [[metal]]s| [[ship repair]]| [[Aircraft maintenance|aircraft repair]]| construction }}
| exports = {{increase}} $370.974&nbsp;billion (2023 est.)<ref name="CIAWFSA"/>
| export-goods = [[crude petroleum]], [[refined petroleum]], [[polymers]], [[industrial alcohols]], [[natural gas]] (2019)<ref name="CIAWFSA"/>
| export-partners = {{plainlist|
*{{Flag|China}} 21.5% 
*{{Flag|India}} 11.6%
*{{Flag|Japan}} 11.6%
*{{Flag|United States}} 5.5% (2023)<ref name="OECExport1">{{cite web|title=Export Partners of Saudi Arabia|url=https://oec.world/en/visualize/tree_map/hs92/export/sau/show/all/2023|publisher=[[The Observatory of Economic Complexity]]|access-date=20 February 2025}}</ref>}}
| imports = $291.565&nbsp;billion (2023 est.)<ref name="CIAWFSA"/>
| import-goods = [[machinery and equipment]], [[chemicals]], [[packaged medicine]], [[motor vehicles]], [[textiles]], [[broadcasting equipment]], [[telephones]]<ref name="CIAWFSA"/>
| import-partners = {{plainlist|
*{{Flag|China}} 21.3%
*{{Flag|United Arab Emirates}} 7.6%
*{{Flag|United States}} 7.3%
*{{Flag|India}} 5.7% (2023)<ref name="OECExport">{{cite web|title=Import Partners of Saudi Arabia|url=https://oec.world/en/visualize/tree_map/hs92/import/sau/show/all/2023|publisher=[[The Observatory of Economic Complexity]]|access-date=20 February 2025}}</ref>}}
| current account = {{increase}} $34.07&nbsp;billion (2023 est.)<ref name="CIAWFSA"/>
| gross external debt = {{increaseNegative}} $205.1&nbsp;billion (31 December 2017 est.)<ref name="CIAWFSA"/>
| debt = {{increaseNegative}} 17.2% of GDP (2017 est.)
| revenue = 398.023&nbsp;billion (2022 est.)<ref name="CIAWFSA"/>
| expenses = 315.007&nbsp;billion (2022 est.)<ref name="CIAWFSA"/>
| balance = 8.9% (of GDP) (2017 est.)<ref name="CIAWFSA"/>
| reserves = {{decrease}} $457.949&nbsp;billion (2023)<ref name="CIAWFSA"/> ([[List of countries by foreign-exchange reserves|7th]])
}}

The economy of [[Saudi Arabia]]<!-- DO NOT BOLD, see [[WP:SBE]] --> is [[Petrostate|highly reliant on its petroleum sector]]. Oil accounts for approximately 30% of Saudi GDP<ref>{{Cite web |title=Saudi Arabia: 2024 September Article IV Consultation-Press Release; and Staff Report |url=https://www.imf.org/en/Publications/CR/Issues/2024/09/03/Saudi-Arabia-2024-Article-IV-Consultation-Press-Release-Staff-Report-and-Informational-Annex-554530 |access-date=2025-02-23 |website=IMF |language=en}}</ref> and 55% of government revenue, with substantial fluctuations depending on [[Price of oil|oil prices]] each year.<ref name=":02">{{Cite report |author=International Monetary Fund Middle East and Central Asia Dept. |date=2022-08-17 |title=Saudi Arabia: Selected Issues |url=https://www.elibrary.imf.org/view/journals/002/2022/275/article-A001-en.xml |publisher=IMF Staff Country Reports |language=en |volume=2022 |issue=275 |doi=10.5089/9798400217548.002.A001|doi-broken-date=1 November 2024 }}</ref>

The kingdom has [[List of countries by proven oil reserves|the second-largest]] [[Proven reserves|proven]] [[petroleum reserves]],<ref>{{Cite web|url=https://www.worldatlas.com/articles/the-world-s-largest-oil-reserves-by-country.html|title=The World's Largest Oil Reserves By Country|website=WorldAtlas|language=en|access-date=12 December 2018|archive-date=9 May 2019|archive-url=https://web.archive.org/web/20190509050959/https://www.worldatlas.com/articles/the-world-s-largest-oil-reserves-by-country.html|url-status=live}}</ref> and the [[List of countries by natural gas proven reserves|fourth-largest]] measured [[natural gas reserves]].<ref>{{Cite web |title=Country Analysis Executive Summary: Saudi Arabia |url=https://www.eia.gov/international/analysis/country/SAU |url-status=live |archive-url=https://web.archive.org/web/20220713210330/https://www.eia.gov/international/analysis/country/SAU |archive-date=13 July 2022 |access-date=19 July 2022 |website=eia.gov |language=en}}</ref> Saudi Arabia is currently the largest exporter of petroleum in the world.<ref>{{Cite web |last=Workman |first=Daniel |date=30 November 2018 |title=Crude Oil Exports by Country |url=http://www.worldstopexports.com/worlds-top-oil-exports-country/ |url-status=live |archive-url=https://web.archive.org/web/20181209212745/http://www.worldstopexports.com/worlds-top-oil-exports-country/ |archive-date=9 December 2018 |access-date=12 December 2018 |website=World's Top Exports |language=en-US}}</ref> Other major parts of the economy include refining and chemical manufacturing from the oil reserves, much of which is vertically integrated in the state-owned enterprise, [[Saudi Aramco]]. Saudi Arabia is a permanent and founding member of [[OPEC]].

In 2016, the Saudi government launched its [[Saudi Vision 2030]] program to reduce its dependency on oil and diversify its economic resources.<ref name=":7">{{Cite report |author=International Monetary Fund Middle East and Central Asia Dept. |date=2022-08-17 |title=Saudi Arabia: Selected Issues |url=https://www.elibrary.imf.org/view/journals/002/2022/275/article-A003-en.xml |publisher=IMF Staff Country Reports |language=en |volume=2022 |issue=275 |doi=10.5089/9798400217548.002.A003|doi-broken-date=1 November 2024 }}</ref> By 2022, Saudi Arabia had only modestly reduced its dependence on oil.<ref name=":02"/>

Monetary policy in Saudi Arabia is anchored by the [[Fixed exchange rate system|fixed exchange rate]] of the Saudi Riyal to the U.S. Dollar.<ref>{{Cite report |author=International Monetary Fund Middle East and Central Asia Dept. |date=2022-08-17 |title=Saudi Arabia: Selected Issues |url=https://www.elibrary.imf.org/view/journals/002/2022/275/article-A002-en.xml |publisher=IMF Staff Country Reports |language=en |volume=2022 |issue=275 |doi=10.5089/9798400217548.002.A002|doi-broken-date=1 November 2024 }}</ref>

Nearly every major business in Saudi Arabia has extensive ties to the Saudi state.<ref>{{Cite news |last=Nereim |first=Vivian |last2=Lipton |first2=Eric |date=2025-04-30 |title=New Mideast Project Is Latest Trump Company Deal Tied to Foreign Government |url=https://www.nytimes.com/2025/04/30/world/middleeast/trump-family-qatar-dubai.html |work=The New York Times |language=en-US |issn=0362-4331}}</ref>

== Economic overview ==
[[Oil reserves in Saudi Arabia|Saudi oil reserves]] are the second largest in the world (after [[Oil reserves in Venezuela|Brazilian–Venezuelan oil reserves]]), and Saudi Arabia is the world's leading oil exporter and second-largest oil producer. [[Proven reserves]], according to figures provided by the Saudi government, are estimated to be {{convert|260|Goilbbl|km3}}, which is about one-quarter of the world [[oil reserves]]. Petroleum in Saudi Arabia is not only plentiful but also located under pressure close to the earth's surface, which makes it less expensive and more profitable to extract compared to other places.<ref name="HT2003: 113">[[#HT2003|Tripp, ''Culture Shock'', 2003]]: p.113</ref> The petroleum sector accounts for roughly 87% of Saudi budget revenues, 90% of export earnings, and 42% of GDP.<ref>{{Cite news |title=Saudi Arabia |url=https://www.forbes.com/places/saudi-arabia/ |url-status=live |archive-url=https://web.archive.org/web/20180313204832/https://www.forbes.com/places/saudi-arabia/ |archive-date=13 March 2018 |access-date=23 February 2018 |work=Forbes |language=en}}</ref> Saudi Arabia's oil reserves and production are largely managed by the state-owned corporation Saudi Aramco.<ref>{{Cite web |title=Who we are |url=http://www.saudiaramco.com/en/home/about/who-we-are.html |url-status=live |archive-url=https://web.archive.org/web/20180818084004/http://www.saudiaramco.com/en/home/about/who-we-are.html |archive-date=18 August 2018 |access-date=18 August 2018 |website=Saudi Aramco |language=en}}</ref>

Another 40% of the GDP comes from the private sector. An estimated 7.5 (2013) million [[Foreign workers in Saudi Arabia|foreigners work]] legally in Saudi Arabia<ref>{{cite news |date=16 April 2013 |title=New plan to nab illegals revealed |url=http://www.arabnews.com/news/448234 |url-status=live |archive-url=https://web.archive.org/web/20180622114447/http://www.arabnews.com/news/448234 |archive-date=22 June 2018 |access-date=30 April 2013 |newspaper=[[Arab News]]}}</ref> and play a crucial role in developing the Saudi economy, for example in the oil and service sectors. The government has been encouraging the growth of the private sector for many years to decrease the kingdom's dependence on oil and to increase employment opportunities for the swelling Saudi population. In recent decades, the government started allowing private sector activity and foreign investor participation in certain sectors, such as power generation and telecommunications, and acceded to the [[World Trade Organization]]. During much of the 2000s, high oil prices<ref name="HT2009: vii">[[#HT2009|Tripp, ''Culture Shock'', 2009]]: p. vii</ref> allowed the government to post [[Government budget balance|budget surpluses]] and boost spending on job training and education, [[infrastructure]] development, and government salaries.

With its [[absolute monarchy]], large state sector, and supply of welfare benefits, the Saudi economy has been described asː

{{blockquote| A bewildering (at least to outsiders) combination of a feudal fealty system and a more modern political patronage one. At every level in every sphere of activity, Saudis maneuver through life manipulating individual privileges, favours, obligations, and connections. By the same token, the government bureaucracy is a maze of overlapping or conflicting power centers under the patronage of various royal princes with their own priorities and agendas to pursue and dependents to satisfy.<ref name=house-174>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia : Its People, Past, Religion, Fault Lines and Future| publisher=Knopf|year=2012|page=174}}</ref>}}

The following table shows the main economic indicators in 1980–2021 (with [[IMF]] staff estimates in 2022–2027). Inflation under 5% is in green.<ref>{{cite web | url=https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=456,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 | title=Report for Selected Countries and Subjects }}</ref><ref name="indexmundi">{{cite web |title=Saudi Arabia – gdp |url=http://www.indexmundi.com/facts/saudi-arabia/gdp |url-status=live |archive-url=https://web.archive.org/web/20121019161548/http://www.indexmundi.com/facts/saudi-arabia/gdp |archive-date=19 October 2012 |access-date=28 September 2012 |publisher=Indexmundi.com}}</ref>
{| class="wikitable" style="text-align:center;"
!Year
!GDP
<small>(in billion [[International dollar|Int$]] PPP)</small>
!GDP per capita
<small>(in Int$ PPP)</small>
!GDP
<small>(in billion US$ nominal)</small>
!GDP per capita
<small>(in US$ nominal)</small>
!GDP growth
<small>(real)</small>
!Inflation rate
<small>(in percent)</small>
!Unemployment
<small>(in percent)</small>
!Gov. debt
<small>(in % of GDP)</small>
|-
|1980
|418.1
|44,859.5
|164.5
|17,655.1
|{{Increase}}5.7%
|{{Increase}}4.4%
|n/a
|n/a
|-
|1981
|{{Increase}}466.5
|{{Increase}}47,671.8
|{{Increase}}184.3
|{{Increase}}18,832.1
|{{Increase}}1.9%
|{{Increase}}3.6%
|n/a
|n/a
|-
|1982
|{{Decrease}}392.7
|{{Decrease}}38,212.2
|{{Decrease}}153.2
|{{Decrease}}14,912.7
|{{Decrease}}-20.7%
|{{Increase}}1.9%
|n/a
|n/a
|-
|1983
|{{Decrease}}342.5
|{{Decrease}}31,746.0
|{{Decrease}}129.2
|{{Decrease}}11,972.2
|{{Decrease}}-16.1%
|{{Increase}}0.6%
|n/a
|n/a
|-
|1984
|{{Decrease}}338.4
|{{Decrease}}29,864.0
|{{Decrease}}119.6
|{{Decrease}}10,558.7
|{{Decrease}}-4.7%
|{{Increase}}-0.7%
|n/a
|n/a
|-
|1985
|{{Decrease}}314.9
|{{Decrease}}26,466.2
|{{Decrease}}103.9
|{{Decrease}}8,732.8
|{{Decrease}}-9.8%
|{{Increase}}-2.3%
|n/a
|n/a
|-
|1986
|{{Increase}}375.9
|{{Increase}}30,086.7
|{{Decrease}}86.9
|{{Decrease}}6,955.1
|{{Increase}}17.0%
|{{Increase}}-3.1%
|n/a
|n/a
|-
|1987
|{{Decrease}}359.6
|{{Decrease}}27,414.1
|{{Decrease}}85.6
|{{Decrease}}6,524.2
|{{Decrease}}-6.6%
|{{Increase}}-2.4%
|n/a
|n/a
|-
|1988
|{{Increase}}421.1
|{{Increase}}30,571.4
|{{Increase}}88.1
|{{Decrease}}6,398.8
|{{Increase}}13.1%
|{{Increase}}-0.4%
|n/a
|n/a
|-
|1989
|{{Increase}}435.4
|{{Decrease}}30,103.8
|{{Increase}}95.2
|{{Increase}}6,583.3
|{{Decrease}}-0.5%
|{{Increase}}1.2%
|n/a
|n/a
|-
|1990
|{{Increase}}520.3
|{{Increase}}34,260.8
|{{Increase}}117.5
|{{Increase}}7,735.0
|{{Increase}}15.2%
|{{Increase}}-1.1%
|n/a
|n/a
|-
|1991
|{{Increase}}618.7
|{{Increase}}38,793.7
|{{Increase}}132.0
|{{Increase}}8,280.2
|{{Increase}}15.0%
|{{Increase}}3.9%
|n/a
|39.4%
|-
|1992
|{{Increase}}658.0
|{{Increase}}38,823.1
|{{Increase}}136.9
|{{Decrease}}8,077.7
|{{Increase}}4.0%
|{{Increase}}-1.0%
|n/a
|{{IncreaseNegative}}47.8%
|-
|1993
|{{Increase}}664.4
|{{Decrease}}38,455.7
|{{Decrease}}132.8
|{{Decrease}}7,686.0
|{{Decrease}}-1.4%
|{{Increase}}1.2%
|n/a
|{{IncreaseNegative}}58.6%
|-
|1994
|{{Increase}}682.4
|{{Increase}}38,550.2
|{{Increase}}135.0
|{{Decrease}}7,626.4
|{{Increase}}0.6%
|{{Increase}}1.4%
|n/a
|{{IncreaseNegative}}67.9%
|-
|1995
|{{Increase}}698.2
|{{Decrease}}38,497.0
|{{Increase}}143.2
|{{Increase}}7,893.4
|{{Increase}}0.2%
|{{IncreaseNegative}}5.1%
|n/a
|{{IncreaseNegative}}74.2%
|-
|1996
|{{Increase}}729.7
|{{Increase}}39,271.8
|{{Increase}}158.5
|{{Increase}}8,527.7
|{{Increase}}2.6%
|{{Increase}}0.3%
|n/a
|{{IncreaseNegative}}75.2%
|-
|1997
|{{Increase}}750.5
|{{Increase}}39,422.1
|{{Increase}}165.7
|{{Increase}}8,706.3
|{{Increase}}1.1%
|{{Increase}}-0.2%
|n/a
|{{IncreaseNegative}}76.7%
|-
|1998
|{{Increase}}780.9
|{{Increase}}40,036.4
|{{Decrease}}146.8
|{{Decrease}}7,525.3
|{{Increase}}2.9%
|{{Increase}}-0.4%
|n/a
|{{IncreaseNegative}}101.5%
|-
|1999
|{{Decrease}}762.1
|{{Decrease}}38,136.5
|{{Increase}}161.7
|{{Increase}}8,092.7
|{{Decrease}}-3.8%
|{{Increase}}-2.1%
|4.3%
|{{IncreaseNegative}}103.0%
|-
|2000
|{{Increase}}823.2
|{{Increase}}40,207.4
|{{Increase}}189.5
|{{Increase}}9,256.5
|{{Increase}}5.6%
|{{Increase}}-1.0%
|{{IncreaseNegative}}4.6%
|{{DecreasePositive}}86.7%
|-
|2001
|{{Increase}}831.5
|{{Decrease}}39,642.3
|{{Decrease}}184.1
|{{Decrease}}8,778.4
|{{Decrease}}-1.2%
|{{Increase}}-1.1%
|{{IncreaseNegative}}4.6%
|{{IncreaseNegative}}93.1%
|-
|2002
|{{Decrease}}820.7
|{{Decrease}}38,187.7
|{{Increase}}189.6
|{{Increase}}8,822.5
|{{Decrease}}-2.8%
|{{Increase}}0.1%
|{{IncreaseNegative}}5.3%
|{{IncreaseNegative}}96.4%
|-
|2003
|{{Increase}}931.0
|{{Increase}}42,278.8
|{{Increase}}215.8
|{{Increase}}9,800.5
|{{Increase}}11.2%
|{{Increase}}0.5%
|{{IncreaseNegative}}5.6%
|{{DecreasePositive}}81.6%
|-
|2004
|{{Increase}}1,032.1
|{{Increase}}45,739.0
|{{Increase}}258.7
|{{Increase}}11,467.1
|{{Increase}}8.0%
|{{Increase}}0.3%
|{{IncreaseNegative}}5.8%
|{{DecreasePositive}}62.9%
|-
|2005
|{{Increase}}1,123.7
|{{Increase}}48,168.2
|{{Increase}}328.2
|{{Increase}}14,068.2
|{{Increase}}5.6%
|{{Increase}}0.6%
|{{IncreaseNegative}}6.1%
|{{DecreasePositive}}37.3%
|-
|2006
|{{Increase}}1,190.7
|{{Increase}}49,362.7
|{{Increase}}376.4
|{{Increase}}15,604.0
|{{Increase}}2.8%
|{{Increase}}1.9%
|{{IncreaseNegative}}6.3%
|{{DecreasePositive}}25.8%
|-
|2007
|{{Increase}}1,245.5
|{{Increase}}49,936.8
|{{Increase}}415.7
|{{Increase}}16,666.6
|{{Increase}}1.8%
|{{Increase}}5.0%
|{{DecreasePositive}}5.6%
|{{DecreasePositive}}17.1%
|-
|2008
|{{Increase}}1,348.7
|{{Increase}}52,301.7
|{{Increase}}519.8
|{{Increase}}20,157.3
|{{Increase}}6.3%
|{{IncreaseNegative}}6.1%
|{{DecreasePositive}}5.2%
|{{DecreasePositive}}12.1%
|-
|2009
|{{Decrease}}1,329.4
|{{Decrease}}49,863.3
|{{Decrease}}429.1
|{{Decrease}}16,094.7
|{{Decrease}}-2.1%
|{{Increase}}4.3%
|{{IncreaseNegative}}5.4%
|{{IncreaseNegative}}14.0%
|-
|2010
|{{Increase}}1,413.2
|{{Increase}}51,270.0
|{{Increase}}528.2
|{{Increase}}19,163.3
|{{Increase}}5.0%
|{{Increase}}3.7%
|{{IncreaseNegative}}5.5%
|{{DecreasePositive}}8.4%
|-
|2011
|{{Increase}}1,586.7
|{{Increase}}55,918.0
|{{Increase}}671.2
|{{Increase}}23,654.9
|{{Increase}}10.0%
|{{Increase}}3.7%
|{{IncreaseNegative}}5.8%
|{{DecreasePositive}}5.4%
|-
|2012
|{{Increase}}1,672.5
|{{Increase}}57,284.5
|{{Increase}}736.0
|{{Increase}}25,208.2
|{{Increase}}5.4%
|{{Increase}}2.9%
|{{DecreasePositive}}5.5%
|{{DecreasePositive}}3.0%
|-
|2013
|{{Increase}}1,680.2
|{{Decrease}}56,015.9
|{{Increase}}746.6
|{{Decrease}}24,893.0
|{{Increase}}2.7%
|{{Increase}}3.5%
|{{IncreaseNegative}}5.6%
|{{DecreasePositive}}2.1%
|-
|2014
|{{Increase}}1,722.9
|{{Increase}}56,785.5
|{{Increase}}756.4
|{{Increase}}24,929.3
|{{Increase}}3.7%
|{{Increase}}2.2%
|{{IncreaseNegative}}5.7%
|{{DecreasePositive}}1.6%
|-
|2015
|{{Decrease}}1,541.8
|{{Decrease}}49,637.2
|{{Decrease}}654.3
|{{Decrease}}21,063.3
|{{Increase}}4.1%
|{{Increase}}1.2%
|{{DecreasePositive}}5.6%
|{{IncreaseNegative}}5.8%
|-
|2016
|{{Decrease}}1,475.7
|{{Decrease}}46,422.9
|{{Decrease}}644.9
|{{Decrease}}20,288.9
|{{Increase}}1.7%
|{{Increase}}2.1%
|{{IncreaseNegative}}5.6%
|{{IncreaseNegative}}13.1%
|-
|2017
|{{Increase}}1,565.9
|{{Increase}}48,014.6
|{{Increase}}688.6
|{{Increase}}21,114.0
|{{Decrease}}-0.7%
|{{Increase}}-0.8%
|{{IncreaseNegative}}6.0%
|{{IncreaseNegative}}17.2%
|-
|2018
|{{Increase}}1,643.6
|{{Increase}}49,189.7
|{{Increase}}816.6
|{{Increase}}24,438.5
|{{Increase}}2.5%
|{{Increase}}2.5%
|{{Steady}}6.0%
|{{IncreaseNegative}}18.3%
|-
|2019
|{{Increase}}1,678.6
|{{Decrease}}49,055.7
|{{Decrease}}803.6
|{{Decrease}}23,485.1
|{{Increase}}0.3%
|{{Increase}}-2.1%
|{{DecreasePositive}}5.7%
|{{IncreaseNegative}}22.5%
|-
|2020
|{{Decrease}}1,628.5
|{{Decrease}}46,511.7
|{{Decrease}}703.4
|{{Decrease}}20,088.5
|{{Decrease}}-4.1%
|{{Increase}}3.4%
|{{IncreaseNegative}}7.4%
|{{IncreaseNegative}}32.4%
|-
|2021
|{{Increase}}1,751.2
|{{Increase}}49,386.2
|{{Increase}}833.5
|{{Increase}}23,507.3
|{{Increase}}3.2%
|{{Increase}}3.1%
|{{DecreasePositive}}6.7%
|{{DecreasePositive}}30.0%
|-
|2022
|{{Increase}}2,018.3
|{{Increase}}55,802.3
|{{Increase}}1,010.6
|{{Increase}}27,941.5
|{{Increase}}7.6%
|{{Increase}}2.7%
|n/a
|{{DecreasePositive}}24.8%
|-
|2023
|{{Increase}}2,166.9
|{{Increase}}58,736.3
|{{Decrease}}996.4
|{{Decrease}}27,008.8
|{{Increase}}3.7%
|{{Increase}}2.2%
|n/a
|{{IncreaseNegative}}25.1%
|-
|2024
|{{Increase}}2,277.1
|{{Increase}}60,513.7
|{{Increase}}1,016.7
|{{Increase}}27,018.7
|{{Increase}}2.9%
|{{Increase}}2.0%
|n/a
|{{DecreasePositive}}24.6%
|-
|2025
|{{Increase}}2,386.6
|{{Increase}}62,180.3
|{{Increase}}1,044.2
|{{Increase}}27,206.4
|{{Increase}}2.9%
|{{Increase}}2.0%
|n/a
|{{DecreasePositive}}24.0%
|-
|2026
|{{Increase}}2,503.7
|{{Increase}}63,953.2
|{{Increase}}1,077.6
|{{Increase}}27,525.0
|{{Increase}}2.9%
|{{Increase}}2.0%
|n/a
|{{DecreasePositive}}23.2%
|-
|2027
|{{Increase}}2,629.4
|{{Increase}}65,847.1
|{{Increase}}1,116.1
|{{Increase}}27,950.0
|{{Increase}}3.0%
|{{Increase}}2.0%
|n/a
|{{DecreasePositive}}22.4%
|}

==History==
{{see also|History of the oil industry in Saudi Arabia}}
[[File:Dammam No. 7 on March 4, 1938.jpg|thumb|[[Dammam No. 7]] on March 4, 1938, the day the well struck oil in commercial quantities, becoming the first in the kingdom to do so]]

Saudi Arabia was a [[subsistence economy]] until the 1930s. In 1933, the Saudi government signed an oil concession agreement with the [[Standard Oil]] Company of California;<ref>{{Cite web|url=http://www.saudiaramco.com/en/home/about/history/1930s.html|title=1930s|website=Saudi Aramco|language=en|access-date=18 August 2018|archive-url=https://web.archive.org/web/20180915165704/http://www.saudiaramco.com/en/home/about/history/1930s.html|archive-date=15 September 2018|url-status=dead}}</ref> five years later, [[Dammam No. 7|commercial volumes of oil were discovered]] in the kingdom.<ref>{{cite book |last=Kingston |first=A.J. |chapter=Chapter 1: The Black Gold Rush: Saudi Arabia's Oil Revolution (Early 1900s)|author-link= |date=2023 |title= House of Saud: Saudi Arabia's Royal Dynasty|volume=Book 2: Oil, Power and Influence — House of Saud in the 20th Century (1900s–2000s)|chapter-url= https://books.google.com/books?id=WlXaEAAAQBAJ&dq=dammam+no.+7&pg=PT70 |location= |publisher=A.J. Kingston |page= |isbn= 9781839384820}}</ref><ref>{{cite book |last= Mababaya|first=Mamarinta P. |author-link= |date=2002 |title= The Role of Multinational Companies in the Middle East — The Case of Saudi Arabia|url= https://books.google.com/books?id=4GSO2h_XCksC&dq=dammam+no.+7&pg=PA359 |location= |publisher= [[University of Westminster Press]]|page=359 |isbn= 9781581121728}}</ref> The development of oil fields continued in Saudi Arabia, managed mainly by [[Saudi Aramco|Arabian American Oil Company]] (Aramco), a company formed by the partnership of [[Texaco]] and [[Chevron Corporation|Chevron.]]<ref>{{Cite news|url=https://graphics.wsj.com/what-is-aramco/|title=Aramco: How The World's Most Important Energy Company Works|work=The Wall Street Journal|access-date=18 August 2018|language=en|archive-date=19 August 2018|archive-url=https://web.archive.org/web/20180819003112/https://graphics.wsj.com/what-is-aramco/|url-status=live}}</ref> In 1951, the first offshore field in the Middle East was established by Aramco at Raʾs Al-Saffāniyyah area.<ref name=":3">{{Cite web|url=https://www.britannica.com/place/Saudi-Arabia|title=Saudi Arabia – Economy|website=Encyclopedia Britannica|language=en|access-date=4 February 2019|archive-date=3 May 2015|archive-url=https://web.archive.org/web/20150503055449/https://www.britannica.com/EBchecked/topic/525348/Saudi-Arabia|url-status=live}}</ref> By 1949, Saudi oil production reached 500,000 barrels per day (bpd) and rose rapidly to 1 million bpd in 1954.<ref>{{Cite web|url=http://www.saudiaramco.com/en/home/about/history/1940s.html|title=1940s|website=Saudi Aramco|language=en|access-date=18 August 2018|archive-url=https://web.archive.org/web/20180819051410/http://www.saudiaramco.com/en/home/about/history/1940s.html|archive-date=19 August 2018|url-status=dead}}</ref><ref>{{Cite web|url=http://www.saudiaramco.com/en/home/about/history/1950s.html|title=1950s|website=Saudi Aramco|language=en|access-date=18 August 2018|archive-url=https://web.archive.org/web/20180819051418/http://www.saudiaramco.com/en/home/about/history/1950s.html|archive-date=19 August 2018|url-status=dead}}</ref> Moreover, in 1951, Aramco started operating the [[Trans-Arabian Pipeline]] that moved oil from the eastern region of Saudi Arabia to the Mediterranean Sea through Jordan, Syria, and Lebanon. However, in 1981, this line was no longer used after a new line began operations that linked [[Jubail]] on the [[Persian Gulf]] and [[Yanbu]] on the [[Red Sea]]. The new pipe contributed greatly to speed up oil transport.<ref name=":3" /> In 1960, [[OPEC]] was established, with Saudi Arabia as one of its founding members.<ref>{{Cite web|url=https://www.opec.org/opec_web/en/about_us/24.htm|title=OPEC : Brief History|website=opec.org|language=en|access-date=18 August 2018|archive-date=9 May 2019|archive-url=https://web.archive.org/web/20190509233733/https://www.opec.org/opec_web/en/about_us/24.htm|url-status=live}}</ref> During the [[1973 oil crisis]], the price of oil rose from $3 per barrel to nearly $12, and the Saudi economy started growing rapidly,<ref name="HT2009: vi">[[#HT2009|Tripp, ''Culture Shock'', 2009]]: p. vi</ref> with GDP increasing from approximately $15 billion in 1973 to almost $184 billion by 1981.<ref>{{Cite web|url=https://data.worldbank.org/country/saudi-arabia|title=Saudi Arabia {{!}} Data|website=data.worldbank.org|language=en-us|access-date=18 August 2018|archive-date=17 August 2018|archive-url=https://web.archive.org/web/20180817234544/https://data.worldbank.org/country/saudi-arabia|url-status=live}}</ref> After gradually purchasing Aramco assets, the Saudi government nationalized the company in 1980. In 1988, [[Saudi Aramco]] was established to take over the responsibilities of Aramco.<ref>{{Cite web|url=http://www.saudiaramco.com/en/home/about/history/1980s.html|title=1980s|website=Saudi Aramco|language=en|access-date=18 August 2018|archive-url=https://web.archive.org/web/20180819051421/http://www.saudiaramco.com/en/home/about/history/1980s.html|archive-date=19 August 2018|url-status=dead}}</ref>

In 1980, the price of oil peaked, and demand started decreasing as a result of [[recession]]s in industrialized nations and more efficient oil use, which produced surpluses.<ref>{{Cite news|url=https://www.nytimes.com/1982/03/21/business/the-dark-side-of-the-oil-glut.html|title=THE DARK SIDE OF THE OIL GLUT|last=Hershey|first=Robert|date=21 March 1982|work=The New York Times|access-date=18 August 2018|archive-date=19 August 2018|archive-url=https://web.archive.org/web/20180819051242/https://www.nytimes.com/1982/03/21/business/the-dark-side-of-the-oil-glut.html|url-status=live}}</ref> This created a [[1980s oil glut|worldwide oil glut]], with the price of oil dropping from approximately $36 per barrel in 1980 to approximately $14 by 1986.<ref>{{Cite web|url=https://www.statista.com/statistics/262858/change-in-opec-crude-oil-prices-since-1960/|title=OPEC crude oil price statistics annually 1960–2018 {{!}} Statistic|website=Statista|language=en|access-date=18 August 2018|archive-date=19 August 2018|archive-url=https://web.archive.org/web/20180819082919/https://www.statista.com/statistics/262858/change-in-opec-crude-oil-prices-since-1960/|url-status=live}}</ref> Saudi oil production, which had increased to almost {{convert|10|Moilbbl|m3}} per day during 1980–81, fell 80% to about {{convert|2|Moilbbl/d|m3/d}} in 1985.<ref>{{Cite news|url=https://www.reuters.com/article/us-saudi-oil-policy-analysis/facing-new-oil-glut-saudis-avoid-1980s-mistakes-to-halt-price-slide-idUSKCN0I229320141014|title=Facing new oil glut, Saudis avoid 1980s mistakes to halt price slide|last=Gamal|first=Rania El|work=U.S.|access-date=19 August 2018|language=en-US|archive-date=19 August 2018|archive-url=https://web.archive.org/web/20180819051325/https://www.reuters.com/article/us-saudi-oil-policy-analysis/facing-new-oil-glut-saudis-avoid-1980s-mistakes-to-halt-price-slide-idUSKCN0I229320141014|url-status=live}}</ref> Budgetary deficits developed, and the government drew down its foreign assets.<ref>GDP per capita (PPP) shrunk by 0.8% on average during the 1980s, grew 2.1% during the 1990s and 4.4% during the 2000s. (source: [http://www.imf.org/external/pubs/ft/weo/2013/01/weodata/weorept.aspx GDP (PPP) per capita trend during 1980–2010]) Annual imports grew 44% on average during the 1970s, but shrunk 1.9% during the 1980s, grew again 2.4% during the 1990s and 14% during the 2000s.(source: [http://www.indexmundi.com/facts/saudi-arabia/imports-of-goods-and-services Saudi Arabian imports grew 14% during the 2000s] {{Webarchive|url=https://web.archive.org/web/20180819082816/http://www.indexmundi.com/facts/saudi-arabia/imports-of-goods-and-services |date=19 August 2018 }})</ref> As a result of the oil glut and the pressure from declines in production, after 1985 Saudi Arabia started enforcing production quotas more harshly for the OPEC members.<ref>{{Cite journal|last=Molchanov|first=Pavel|date=April 2003|title=A Statistical Analysis of OPEC Quota Violations|url=https://sites.duke.edu/djepapers/files/2016/08/paveldje.pdf|journal=Duke Journal of Economics|volume=XV|pages=9|access-date=19 August 2018|archive-date=28 October 2018|archive-url=https://web.archive.org/web/20181028061057/https://sites.duke.edu/djepapers/files/2016/08/paveldje.pdf|url-status=live}}</ref>

In June 1993, Saudi Aramco absorbed the state marketing and refining company (SAMAREC), becoming the world's largest fully integrated oil company. Most Saudi oil is exported by tankers from oil terminals at [[Ras Tanura]] and Ju'aymah in the [[Persian Gulf]].<ref>{{cite web | url=https://2009-2017.state.gov/outofdate/bgn/saudiarabia/6075.htm | title=Saudi Arabia (09/98) }}</ref>

[[File:Oil Reserves Updated.png|thumb|left|upright=1.5|A map of world [[oil reserves]] according to OPEC, 2013]]
In the 1990s, Saudi Arabia experienced a significant contraction of oil revenues combined with a high rate of population growth. Per capita income fell from a high of $11,700 at the height of the oil boom in 1981 to $6,300 in 1998.<ref>{{cite web |title=Country Profile Study on Poverty: Saudi Arabia |url=http://www.jica.go.jp/english/global/pov/profiles/pdf/sau_eng.pdf |url-status=dead |archive-url=https://web.archive.org/web/20080226202420/http://www.jica.go.jp/english/global/pov/profiles/pdf/sau_eng.pdf |archive-date=26 February 2008 |access-date=26 February 2008 |website=jica.go.jp}}</ref> Taking into account the impact of the real oil price changes on the kingdom's real gross domestic income, the real command-basis GDP was computed to be 330.381 billion 1999 USD in 2010.<ref>{{cite report |title=The Impact of Oil Price Volatility on Welfare in the Kingdom of Saudi Arabia: Implications for Public Investment Decision-Making |last1=Pierru |first1=Axel |last2=Matar |first2=Walid |date=16 July 2012 |publisher=USAEE Working Paper No. 2110172 |ssrn=2110172}}</ref> [[World oil market chronology from 2003|Increases in oil prices in the early 2000s]] helped boost per capita GDP to ${{gaps|17|000}} in 2007 dollars (about $7,400 adjusted for inflation),<ref>{{cite web |title=CPI Inflation Calculator |url=http://data.bls.gov/cgi-bin/cpicalc.pl |publisher=Data.bls.gov}}</ref> but have declined since oil price drop in mid-2014.<ref name="wti">{{cite web |title=Crude Oil WTI (NYMEX) Price |url=http://www.nasdaq.com/markets/crude-oil.aspx?timeframe=10y |access-date=16 March 2015 |website=nasdaq.com}}</ref>

However, beginning in late 1997, Saudi Arabia again faced the challenge of low oil prices. Because of a combination of factors—the East Asian economic crises, a warm winter in the West caused by [[El Niño]], and an increase in non-OPEC oil production—demand for oil decreased and pulled oil prices down by more than one-third.<ref>{{cite web |url= https://ora.ox.ac.uk/objects/uuid:8e176905-4979-44a5-bc97-3096e5adea6c/download_file?file_format=application%2Fpdf&safe_filename=The%2Boil%2Bprice%2Bcrises%2Bof%2B1998-9%2Band%2B2008-9.pdf&type_of_work=Journal+article |title= The Oil Price Crises of 1998–9 and 2008–9 |last= Mabro|first= Robert|author-link=Robert Mabro|date=May 2009 |website=ora.ox.ac.uk |publisher=[[Oxford Institute for Energy Studies]] |access-date= October 9, 2023}}</ref>

Saudi Arabia was a key player in coordinating the successful 1999 campaign of OPEC and other oil-producing countries to raise the oil price to its highest level since the (Persian) [[Gulf War]] by managing petroleum supply and production. That same year, Saudi Arabia established the [[Supreme Economic Council of Saudi Arabia|Supreme Economic Council]] to formulate and better coordinate economic development policies to accelerate institutional and industrial reforms.<ref>{{Cite web |title=World Atlas - About Saudi Arabia |url=https://www.traveldocs.com/world-atlas/Saudi-Arabia-atlas194 |access-date=2022-06-23 |website=www.travel docs.com |archive-date=18 January 2023 |archive-url=https://web.archive.org/web/20230118135540/https://www.traveldocs.com/world-atlas/Saudi-Arabia-atlas194 |url-status=live }}</ref>

Saudi Arabia joined the [[World Trade Organization]] (WTO) in 2005 after many years of negotiations.

===Foreign investment===
Before 2000, there were strict limits placed on foreign direct investment in Saudi Arabia. The 1979 Foreign Investment Act prohibited foreign ownership in some sectors of the economy, allowed foreign investment only if the investor qualified for a license based on their expertise, and gave priority to businesses that were Saudi-owned or partially Saudi-owned.<ref name="Almahmood">{{cite thesis |last=Almahmood |first=Abdulaziz |date=December 2010 |title=Foreign Direct Investment in Saudi Arabia: Joint Venture Equity Shares and Source Country Characteristics |url=https://theses.ncl.ac.uk/jspui/bitstream/10443/1128/1/Abdulaziz%20almahmood%2011.pdf |publisher=Newcastle University Business School |access-date=15 December 2022 |page=24-25 |archive-date=18 January 2023 |archive-url=https://web.archive.org/web/20230118135539/https://theses.ncl.ac.uk/jspui/bitstream/10443/1128/1/Abdulaziz%20almahmood%2011.pdf |url-status=live }}</ref>

However, in the mid-1990s, foreign ownership rules were relaxed, with investment sought in telecommunications, utilities, and financial services.<ref name="HT2009: 225">[[#HT2009|Tripp, ''Culture Shock'', 2009]]: p. 225</ref> The 2000 Foreign Direct Investment Act made substantial changes to the rules on foreign investment, including allowing projects to be run by 100% foreign-owned companies for the first time.<ref name="Almahmood" />

According to [[United Nations Conference on Trade and Development|UNCTAD's]] June 2018 report, Saudi Arabia's foreign direct investment was only $1.4&nbsp;billion in 2017, down from $7.5&nbsp;billion the year before and as much as $12.2&nbsp;billion in 2012. The fall in investment is attributed to negative intra-company loans by foreign multinationals and various divestments.<ref>{{cite magazine|url=https://www.forbes.com/sites/dominicdudley/2018/06/07/saudi-arabia-shock-collapse-investment/#7c41da966e60|title=Saudi Arabia Suffers Shock Collapse in Inward Investment|magazine=Forbes|access-date=7 June 2018|archive-date=7 February 2019|archive-url=https://web.archive.org/web/20190207002725/https://www.forbes.com/sites/dominicdudley/2018/06/07/saudi-arabia-shock-collapse-investment/#7c41da966e60|url-status=dead}}</ref> In the first quarter of 2018, [[net capital outflow]]s were running at approximately 5% of GDP, compared to less than 2% of GDP in late 2016.<ref>{{cite magazine|url=https://www.forbes.com/sites/dominicdudley/2018/09/21/is-saudi-arabia-unable-or-just-unwilling-to-stem-the-flow-of-money-leaving-the-country/#1b26ad026abb|title=Is Saudi Arabia Unable Or Just Unwilling To Stem The Flow of Money Leaving The Country?|magazine=Forbes|access-date=21 September 2018|archive-date=20 November 2018|archive-url=https://web.archive.org/web/20181120060351/https://www.forbes.com/sites/dominicdudley/2018/09/21/is-saudi-arabia-unable-or-just-unwilling-to-stem-the-flow-of-money-leaving-the-country/#1b26ad026abb|url-status=dead}}</ref> However, according to a report published in Trading Economics, in the second quarter of 2018, [[foreign direct investment]] in the country raised by $882&nbsp;million.<ref>{{Cite web|url=https://www.ceicdata.com/en/indicator/saudi-arabia/foreign-direct-investment|title=Saudi Arabia Foreign Direct Investment (FDI) [2006 – 2018] [Chart-Data-Forecast]|website=ceicdata.com|access-date=23 December 2018|archive-date=24 December 2018|archive-url=https://web.archive.org/web/20181224024046/https://www.ceicdata.com/en/indicator/saudi-arabia/foreign-direct-investment|url-status=live}}</ref> Moreover, [[Saudi Arabian General Investment Authority|SAGIA]]'s data indicate that licenses provided to foreign investment increased by 130% in the first quarter of 2018 as a result of reforms in the economy.<ref>{{Cite web|url=http://www.arabnews.com/node/1319606/business-economy|title=New Measures of foreign Investment in Saudi Arabia|date=11 June 2018|access-date=23 December 2018|archive-date=11 October 2018|archive-url=https://web.archive.org/web/20181011094814/http://www.arabnews.com/node/1319606/business-economy|url-status=live}}</ref>

As Saudi oil income declined in the late 2010s, the kingdom's international debt soared. In December 2018, Saudi Arabia announced it would be issuing [[Bond (finance)|bond]]s worth approximately 120&nbsp;billion riyals ($32&nbsp;billion) to cover its 4.2% GDP deficit of 131&nbsp;billion riyals.<ref>{{cite news|url=https://www.bloomberg.com/professional/blog/saudi-arabia-wants-sell-32-billion-bonds-2019/|title=Saudi Arabia wants to sell $32 billion of bonds in 2019|newspaper=Bloomberg Professional Services|date=20 December 2018|access-date=20 December 2018|publisher=Bloomberg|archive-date=25 January 2019|archive-url=https://web.archive.org/web/20190125183601/https://www.bloomberg.com/professional/blog/saudi-arabia-wants-sell-32-billion-bonds-2019/|url-status=live}}</ref> In January 2019, the kingdom sold bonds worth $7.5&nbsp;billion.<ref>{{cite news|url=https://www.bloomberg.com/news/articles/2019-01-09/saudi-arabia-to-sell-7-5-billion-of-bonds-in-two-parts|title=Saudi Arabia to Sell $7.5 Billion of Bonds in Two Parts|newspaper=Bloomberg.com|date=9 January 2019|access-date=9 January 2019|publisher=Bloomberg|archive-date=25 January 2019|archive-url=https://web.archive.org/web/20190125183604/https://www.bloomberg.com/news/articles/2019-01-09/saudi-arabia-to-sell-7-5-billion-of-bonds-in-two-parts|url-status=live}}</ref> In almost two and a half years, bonds worth $60&nbsp;billion were sold by Saudi, which became one of the biggest borrowers globally.<ref>{{cite news|url=https://www.wsj.com/articles/saudi-arabia-is-raising-money-again-with-international-bonds-11547034391|title=Saudi Arabia Sells More Than $7 Billion in Bonds|access-date=9 January 2019|newspaper=The Wall Street Journal|archive-date=21 March 2019|archive-url=https://web.archive.org/web/20190321162720/https://www.wsj.com/articles/saudi-arabia-is-raising-money-again-with-international-bonds-11547034391|url-status=live}}</ref>

In September 2018, the Public Investment Fund completed a deal with a group of global lenders for a loan of $11 billion.<ref>{{cite web |last1=Martin |first1=Matthew |date=17 September 2018 |title=Saudi Arabia's Sovereign Wealth Fund Raises $11 Billion Loan |url=https://www.bloomberg.com/news/articles/2018-09-17/saudi-arabia-s-sovereign-wealth-fund-raises-11-billion-loan |publisher=Bloomberg}}</ref> The deal raised more than initially planned and was the first time the PIF had incorporated loans and debt instruments into its funding.<ref name="blooms">{{cite web |last1=Nereim |first1=Vivian |date=18 September 2018 |title=Saudi Businesses Are Struggling to Hire Saudi Workers |url=https://www.bloomberg.com/news/articles/2018-09-19/jobs-for-saudis-plan-tests-retailers-used-to-cheap-foreign-labor |publisher=Bloomberg}}</ref> According to data from Fitch Ratings, over two years starting from May 2016 Saudi Arabia went from having zero debt to raising $68 billion in dollar-denominated bonds and syndicated loans—one of the fastest rates among emerging economies.<ref>{{Cite news |last=Jones |first=Rory |date=17 October 2018 |title=Fate of Journalist Heightens Saudi Debt Worries |work=[[The Wall Street Journal]] |url=https://www.wsj.com/articles/fate-of-journalist-heightens-saudi-debt-worries-1539774000 |access-date=18 October 2018 |issn=0099-9660}}</ref>

Foreign investments in the kingdom witnessed a rapid increase in the first quarter of 2019. The number of new licenses approved for foreign businesses grew 70% over 2018. Most licenses were approved for British and Chinese companies, which drove the increase.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2019-04-28/saudis-issue-70-more-foreign-business-licenses-from-year-ago|title=Bloomberg – Britain, China Lead Way in New Saudi Business Licenses|newspaper=Bloomberg.com|date=28 April 2019|access-date=28 April 2019|archive-date=30 June 2019|archive-url=https://web.archive.org/web/20190630070014/https://www.bloomberg.com/news/articles/2019-04-28/saudis-issue-70-more-foreign-business-licenses-from-year-ago|url-status=live}}</ref> In the first quarter of 2019, foreign investment in Saudi Arabia jumped by 28%.<ref name="auto">{{Cite web |date=24 April 2019 |title=Saudi Arabia sees first budget surplus since 2014 |url=http://www.arabnews.com/node/1487371/business-economy |url-status=live |archive-url=https://web.archive.org/web/20190426232005/http://www.arabnews.com/node/1487371/business-economy |archive-date=26 April 2019 |access-date=1 May 2019 |website=Arab News |language=en}}</ref>

===Diversification and the development plans===
All the Saudi government's five-year plan since 1970 have called for diversifying the economy beyond oil, but with marginal success.<ref name="house-162">{{cite book |last1=House |first1=Karen Elliot |url=https://books.google.com/books?id=dIu0LSe8aVwC&q=every+five-year+plan+since+the+first+one+in+1970+has+called+for+diversifying+the+economy+beyond+oil&pg=PA163 |title=On Saudi Arabia: Its People, Past, Religion, Fault Lines and Future |date=2012 |publisher=Alfred A. Knopf |isbn=978-0307473288 |page=163 |quote=every five-year plan since the first one in 1970 has called for diversifying the economy beyond oil, but oil is still supreme |access-date=13 February 2015 |archive-url=https://web.archive.org/web/20210613081751/https://books.google.com/books?id=dIu0LSe8aVwC&q=every+five-year+plan+since+the+first+one+in+1970+has+called+for+diversifying+the+economy+beyond+oil&pg=PA163 |archive-date=13 June 2021 |url-status=live}}</ref>

The government has sought to allocate its petroleum income to transform its relatively undeveloped, oil-based economy into a modern industrial state, while maintaining the kingdom's traditional Islamic values and customs. Although economic planners have not achieved all their goals, the economy has progressed rapidly. Oil wealth has increased the standard of living of most Saudis. However, significant [[population growth]] has strained the government's ability to finance further improvements in the country's standard of living. Heavy dependence on petroleum revenue continues, but industry and agriculture now account for a larger share of economic activity. The mismatch between the job skills of Saudi graduates and the needs of the private job market at all levels remains the principal obstacle to economic diversification and development; about 4.6&nbsp;million non-Saudis are employed in the economy.<ref name="usgov" />

Saudi Arabia first began to diversify its economy to reduce dependency on oil in the 1970s as part of its first five-year development plan. Basic petrochemical industries using petroleum byproducts as feedstock were developed.<ref name=PCPSKSA>{{cite web|title=The Petrochemicals and Plastics Sector in the Kingdom of Saudi Arabia|url=http://www.us-sabc.org/files/public/Petrochemicals_Brochure.pdf|publisher=U.S.–Saudi Arabian Business Council|access-date=12 February 2015|url-status=dead|archive-url=https://web.archive.org/web/20141212225752/http://www.us-sabc.org/files/public/Petrochemicals_Brochure.pdf|archive-date=12 December 2014}}</ref> The fishing villages of al-[[Jubail]] on the [[Persian Gulf]] and [[Yanbu]] on the [[Red Sea]] were developed. However, their effect on Saudi Arabia's economic fortunes has been small.<ref name="HT2009: 44">[[#HT2009|Tripp, ''Culture Shock'', 2009]]: p. 44</ref>

Saudi Arabia's first two development plans, covering the 1970s, emphasized infrastructure. The results were impressive—the total length of paved highways tripled, power generation increased by a factor of 28, and the capacity of the seaports grew by a factor of 10. For the third plan (1980–85), the emphasis changed. Spending on infrastructure declined, shifting instead to education, health, and social services. The share for diversifying and expanding productive sectors of the economy (primary industry) did not rise as planned, but the two industrial cities of [[Jubail]] and [[Yanbu]]—which were built around the use of the country's oil and gas to produce steel, [[petrochemicals]], fertilizer, and refined oil products—were largely completed.<ref name=usgov/>

In the fourth plan (1985–90), the country's basic infrastructure was viewed as largely complete, but education and training remained areas of concern. Private enterprise was encouraged, and foreign investment in the form of joint ventures with Saudi public and private companies was welcomed. The private sector became more important, rising to 70% of non-oil GDP by 1987. While still concentrated in trade and commerce, private investment increased in industry, agriculture, banking, and construction companies. These private investments were supported by generous government financing and incentive programs. The objective was for the private sector to have 70% to 90% ownership in most joint venture enterprises.<ref name=usgov/>

The fifth plan (1990–95) emphasized consolidation of the country's defences; improved and more efficient government social services; regional development; and, most importantly, creating greater private-sector employment opportunities for Saudis by reducing the number of foreign workers.<ref name=usgov/>

The sixth plan (1996–2000) focused on lowering the cost of government services without cutting them and sought to expand educational training programs. The plan called for reducing the kingdom's dependence on the petroleum sector by diversifying economic activity, particularly in the private sector, with special emphasis on industry and agriculture. It also continued the effort to "[[Saudization|Saudize]]" the labour force.<ref name=usgov/>

The seventh plan (2000–2004) focused more on economic diversification and a greater role of the private sector in the Saudi economy. For 2000–04, the government aimed at an average GDP growth rate of 3.16% each year, with projected growths of 5.04% for the private sector and 4.01% for the non-oil sector. The government also set a target of creating 817,300 new jobs for Saudi nationals.<ref name=usgov>{{cite web|title=Saudi Arabia. Profile|url=https://2009-2017.state.gov/outofdate/bgn/saudiarabia/26136.htm|work=11/2001|publisher=US government|access-date=12 May 2014|archive-date=25 January 2020|archive-url=https://web.archive.org/web/20200125122536/https://2009-2017.state.gov/outofdate/bgn/saudiarabia/26136.htm|url-status=live}}</ref> By 2007, advertising expenditures had reached new peaks due to emphasis on value-added manufacturing.<ref>{{cite web |url=http://www.warc.com/LandingPages/Data/NewspaperTrends/PDF/SaudiArabia.pdf |title=Archived copy |access-date=20 December 2007 |url-status=bot: unknown |archive-url=https://web.archive.org/web/20090326211755/http://www.warc.com/LandingPages/Data/NewspaperTrends/PDF/SaudiArabia.pdf |archive-date=26 March 2009}}</ref>{{Failed verification|date=March 2023|reason=Source includes information on advertising, but not value-added manufacturing.}}

In 2016, the main investing countries in Saudi Arabia were the US, UAE, France, Singapore, Kuwait, and Malaysia. They mainly invested in chemical industry, real estate, tourism, fossil fuels, automobiles, and machinery.<ref name=":4">{{Cite web|url=https://en.portal.santandertrade.com/establish-overseas/saudi-arabia/foreign-investment|title=SAUDI ARABIA: FOREIGN INVESTMENT|date=2019|website=Santander, TradePortal|access-date=4 February 2019|archive-date=7 February 2019|archive-url=https://web.archive.org/web/20190207015550/https://en.portal.santandertrade.com/establish-overseas/saudi-arabia/foreign-investment|url-status=live}}</ref> As part of its diversification, Saudi Arabia arranged major refinery contracts with Chinese and other companies.<ref name="Bloomberg 17 January 2012">{{cite news |url=https://www.bloomberg.com/news/2012-01-16/saudi-aramco-to-invest-200-billion-in-refining-exploration.html |title=Saudi Aramco to Invest $200 Billion in Refining, Exploration |first=Wael |last=Mahdi |date=17 January 2012 |newspaper=Bloomberg |access-date=19 January 2012 |archive-date=21 October 2012 |archive-url=https://web.archive.org/web/20121021230714/http://www.bloomberg.com/news/2012-01-16/saudi-aramco-to-invest-200-billion-in-refining-exploration.html |url-status=live }}</ref>

After Saudi Arabia became a member of the World Trade Organization (WTO) in 2005, the overall foreign investment environment in Saudi Arabia improved thanks to the kingdom's stable economy, massive oil reserves, high power of expenditure, developed infrastructure, reinforced finance, and banking system. Since then, and pursuant to its commitment to the WTO, Saudi Arabia has been developing trade-related policies and legislations. Moreover, foreign investment has been highly encouraged by [[Saudi Vision 2030]] and its economic diversification.<ref name=":4" />

Since 2017, to boost the economy and decrease the country's dependency on oil, Crown Prince [[Mohammed bin Salman]] has introduced multiple changes, such as raising the prices of gasoline and electricity, levying new taxes, and prioritizing Saudi workers over foreign workers. However, some government officials claimed the policies were causing serious ill effects on the economy. Saudi businessmen reported a decline in sales for 2018, and a few blamed the government.<ref>{{cite news|url=https://www.wsj.com/articles/saudi-arabias-economic-overhaul-is-backfiring-11553338819|title=Saudi Arabia's Economic Overhaul Is Backfiring|newspaper=The Wall Street Journal|access-date=5 April 2019|archive-date=5 April 2019|archive-url=https://web.archive.org/web/20190405025846/https://www.wsj.com/articles/saudi-arabias-economic-overhaul-is-backfiring-11553338819|url-status=live}}</ref>

In 2019, the ''[[Financial Times]]'' reported that the plans to float state-owned oil beneficiary Saudi Aramco were stranded between the company's attachment to the oil ministry and the desire to meet international standards. However, Energy Minister [[Khalid A. Al-Falih|Khalid Al Falih]] has long maintained that Aramco's association with the state is a "win-win policy" for both parties.<ref>{{cite news|url=https://www.ft.com/content/96a6fc26-8b92-11e9-a24d-b42f641eca37|title=Saudi Aramco battles oil ministry overuse of company funds|newspaper=Financial Times|access-date=20 June 2019|archive-date=21 July 2019|archive-url=https://web.archive.org/web/20190721071536/https://www.ft.com/content/96a6fc26-8b92-11e9-a24d-b42f641eca37|url-status=live}}</ref>

Saudi Arabia made plans to launch six "economic cities" (e.g., [[King Abdullah Economic City]]) in an effort to diversify the economy and provide jobs.<ref>{{cite web |url=http://professional.tdctrade.com/content.aspx?data=Professional_content_en&contentid=917452&w_sid=194&w_pid=836&w_nid=10993&w_cid=917452&w_idt=1900-01-01&w_oid=181&w_jid= |title=Construction boom of Saudi Arabia and the UAE |access-date=7 December 2016 |url-status=bot: unknown |archive-url=https://web.archive.org/web/20071011212725/http://professional.tdctrade.com/content.aspx?data=Professional_content_en&contentid=917452&w_sid=194&w_pid=836&w_nid=10993&w_cid=917452&w_idt=1900-01-01&w_oid=181&w_jid= |archive-date=11 October 2007}}. tdctrade.com. 2 August 2007</ref> At a total construction cost of $60&nbsp;billion (2013), they were "expected to contribute $150bn to the economy".<ref name=MEED>{{cite web|title=Saudi Arabia economic zones|url=http://www.meed.com/supplements/2013/meed-guide-to-economic-zones/saudi-arabia-economic-zones/3183419.article|website=MEED|access-date=16 March 2015|date=21 August 2013|url-status=dead|archive-url=https://web.archive.org/web/20150402105004/http://www.meed.com/supplements/2013/meed-guide-to-economic-zones/saudi-arabia-economic-zones/3183419.article|archive-date=2 April 2015}}</ref>
<ref name=MCC>{{cite web|title=Saudi Arabia's Four New Economic Cities|url=http://www.metrocorpcounsel.com/articles/22205/saudi-arabia%E2%80%99s-four-new-economic-cities|website=The Metropolitan Corporate Counsel|access-date=16 March 2015|date=6 February 2013|archive-date=10 October 2017|archive-url=https://web.archive.org/web/20171010082817/http://www.metrocorpcounsel.com/articles/22205/saudi-arabia%E2%80%99s-four-new-economic-cities|url-status=live}}</ref> However, these cities have failed to attract either the population or the financial investment that the government claimed they would.<ref>{{Cite web |date=2023-01-12 |title=Saudi Arabia is giving itself an extreme makeover with 'giga-projects.' Will it work? |url=https://www.latimes.com/world-nation/story/2023-01-12/saudi-arabia-development-megaprojects-jeddah-tower |access-date=2023-01-13 |website=Los Angeles Times |language=en-US |archive-date=18 January 2023 |archive-url=https://web.archive.org/web/20230118135541/https://www.latimes.com/world-nation/story/2023-01-12/saudi-arabia-development-megaprojects-jeddah-tower |url-status=live }}</ref>

The privatization program [[Saudi Vision 2030]] is running behind schedule. Oil prices have doubled since the government began to consider the program in 2015. Delay in Aramco's initial public offering further demonstrated a lack of urgency to privatize, even though in July 2018, the [[International Monetary Fund]] urged accelerating the process.<ref>{{cite news|url=https://www.bloomberg.com/news/articles/2018-09-20/aramco-is-not-alone-as-saudi-arabia-s-privatization-push-slows|title=It's Not Just Aramco, Saudi's Privatization Push Is Slowing Down|newspaper=Bloomberg.com|date=20 September 2018|publisher=Bloomberg News|access-date=20 September 2018|archive-date=21 September 2018|archive-url=https://web.archive.org/web/20180921190935/https://www.bloomberg.com/news/articles/2018-09-20/aramco-is-not-alone-as-saudi-arabia-s-privatization-push-slows|url-status=live}}</ref>

According to many reports, the Saudi government is interested in granting more liberties to the foreign investment system and giving a 100% allowance to foreign investors to work in the wholesale and retail sector in certain cases.<ref name=":4" /> The Saudi [[Ministry of Commerce and Investment (Saudi Arabia)|Ministry of Commerce and Investment]] expected that the kingdom would see an increase in the GDP per capita from US$20,700 to $33,500 by 2020.<ref>{{Cite web|url=https://mci.gov.sa/en/AboutKingdom/Pages/InvestmentInKingdom.aspx|title=Kingdom of Saudi Arabia|website=mci.gov.sa|language=en-us|access-date=4 February 2019|archive-url=https://web.archive.org/web/20171106080038/http://mci.gov.sa/en/AboutKingdom/Pages/InvestmentInKingdom.aspx|archive-date=6 November 2017|url-status=dead}}</ref> However, the GDP per capita by 2020 had stagnated at $US20,000.<ref>{{Cite web |title=GDP per capita (current US$) - Saudi Arabia {{!}} Data |url=https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=SA |access-date=2023-01-13 |website=data.worldbank.org |archive-date=18 January 2023 |archive-url=https://web.archive.org/web/20230118135541/https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=SA |url-status=live }}</ref>

==Employment==
{{further|Saudization|Foreign workers in Saudi Arabia}}

As of 2008, roughly two-thirds of workers employed in Saudi Arabia were foreigners, and in the private sector the proportion was approximately 90%.<ref name=house-157>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia : Its People, Past, Religion, Fault Lines and Future| publisher=Knopf|year=2012|page=157}}</ref> In January 2014, the Saudi government claimed it had lowered the 90% rate, doubling the number of Saudi citizens working in the private sector to 1.5&nbsp;million (compared to 10 million foreign expatriates working in the kingdom).<ref name=McDowall/>

According to [[Reuters]], economists "estimate only 30–40 percent of working-age Saudis hold jobs or actively seek work", although the official unemployment rate is only around 12 percent. Most Saudis with jobs are employed by the government, but the International Monetary Fund has warned that the government cannot support such a large payroll in the long term.<ref name=McDowall>{{cite news|last=McDowall|first=Angus|title=Saudi Arabia doubles private-sector jobs in 30-month period|url=http://english.alarabiya.net/en/business/2014/01/20/Saudi-Arabiya-doubles-number-of-citizens-in-private-sector-jobs.html|access-date=12 May 2014|newspaper=Reuters|date=19 January 2014|archive-date=18 September 2018|archive-url=https://web.archive.org/web/20180918090907/http://english.alarabiya.net/en/business/2014/01/20/Saudi-Arabiya-doubles-number-of-citizens-in-private-sector-jobs.html|url-status=live}}</ref><ref name=house-159>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia : Its People, Past, Religion, Fault Lines and Future| publisher=Knopf|year=2012|page=159}}</ref> The government has announced a succession of plans since 2000 to deal with the imbalance by "[[Saudization]]" of the economy, but the foreign workforce and unemployment has continued to grow.<ref name=house-161>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia : Its People, Past, Religion, Fault Lines and Future| publisher=Knopf|year=2012|page=161|quote=Over the past decade, the government has announced one plan after another to 'Saudize' the economy, but to no avail. The foreign workforce grows, and so does unemployment among Saudis. .... The previous plan called for slashing unemployment to 2.8% only to see it rise to 10.5% in 2009, the end of that plan period. Government plans in Saudi are like those in the old Soviet Union, grandiose but unmet. (Also, as in the old Soviet Union, nearly all Saudi official statistics are unreliable, so economists believe the real Saudi unemployment rate is closer to 40%)}}</ref> Since the beginning of 2017, however, Saudi Arabia has seen record numbers of foreign workers leaving the country as the Saudi government imposed higher fees on expatriate workers, with more than 677,000 foreigners leaving the kingdom. This has done little to lower the unemployment rate, which rose to 12.9 percent, the highest on record.<ref>{{Cite news|url=https://www.ft.com/content/c710cf30-8441-11e8-a29d-73e3d454535d|title=Record numbers of foreign workers leave Saudi Arabia|last=Al Omran|first=Ahmed|date=10 July 2018|work=Financial Times|access-date=17 August 2018|archive-date=18 August 2018|archive-url=https://web.archive.org/web/20180818083840/https://www.ft.com/content/c710cf30-8441-11e8-a29d-73e3d454535d|url-status=live}}</ref>

Each year, about a quarter-million young Saudis enter the job market. With the first phase of Saudization into effect, 70% of sales jobs are expected to be filled by Saudis. However, the private sector still remains hugely dominated by foreigners. The rate of local unemployment is 12.9%, its highest in more than a decade.<ref name="blooms"/> According to a report published by Bloomberg Economics in 2018, the government needs to produce {{gaps|700|000}} jobs by 2020 to meet its 9% unemployment target.<ref name="blooms" />

One obstacle is social resistance to certain types of employment. Jobs in service and sales are considered totally unacceptable for citizens of Saudi Arabia—both to potential employees and customers.<ref name=house-172>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia: Its People, past, Religion, Fault Lines and Future| publisher=Knopf|year=2012|page=172|quote=[At one department store, Al Haram, of] 150 employees, only 25 ... are Saudi. All the Saudis are either cashiers or managers. The store manager, Ali al Qahtani, a Saudi, insists that even if a Saudi asked to work in sales (and none has ...) he would not permit it. 'I would put him at reception or cashier,' he says, 'because Saudi society wouldn't accept a Saudi salesperson.' Indeed, a Saudi intellectual who lives in the kingdom but travels often to Europe and the United States recounts his embarrassment at being served by a Saudi waiter in a restaurant. '... I didn't know what to do, it was so embarrassing.'}}</ref>

==Non-petroleum resources sector==
Saudi Arabia has natural resources other than oil, including small mineral deposits of gold, silver, iron, copper, zinc, manganese, tungsten, lead, sulfur, phosphate, soapstone, and feldspar.<ref name="HT2009: 44" /> The country has a small [[Agriculture in Saudi Arabia|agricultural sector]], primarily in the southwest where annual rainfall averages {{cvt|400|mm}}. The country is one of the world's largest producers of [[Date (fruit)|dates]]. Prior to 2009, wheat was grown using [[desalinated water]] for irrigation,<ref name="HT2009: 44" /> but was phased out by 2016 due to costly water usage.<ref name=sa-11-12-14>{{cite news|last1=Muhammad|first1=Fatima|title=Saudi Arabia to stop wheat production by 2016|url=http://english.alarabiya.net/en/business/economy/2014/12/11/KSA-to-stop-wheat-production-by-2016.html|access-date=12 February 2015|work=Saudi Gazette|date=11 December 2014|archive-date=6 December 2018|archive-url=https://web.archive.org/web/20181206102340/http://english.alarabiya.net/en/business/economy/2014/12/11/KSA-to-stop-wheat-production-by-2016.html|url-status=live}}</ref> As of 2009, the livestock population amounted to 7.4&nbsp;million sheep, 4.2&nbsp;million goats, half a million camels, and a quarter of a million cattle.<ref name="HT2009: 44" />

Although the jobs created by the roughly two million annual [[Hajj]] pilgrims do not last long, they employ more people than the oil industry—40,000 temporary jobs (butchers, barbers, coach drivers, etc.)—and generates US$2–3&nbsp;billion in revenue.<ref name="HT2009: 150">[[#HT2009|Tripp, ''Culture Shock'', 2009]]: p. 150</ref>

In 2008, the "Initiative for Saudi Agricultural Investment Abroad" was launched, leading to extensive billion-dollar purchases of large tracts of land around the world, including in [[Ethiopia]], [[Indonesia]], [[Mali]], [[Senegal]], and [[Sudan]]. Described as [[land-grabbing]] by critics, in various instances these purchases have also led to uproars in the respective countries. Competing industrializing nations with [[food security]] problems seeking agricultural land include China, [[South Korea]], and India, as well as the Persian Gulf States of [[Kuwait]], [[Qatar]], and the [[UAE]].<ref name="Middle East Eye">{{cite web | title=Saudi agricultural investment abroad – land grab or benign strategy? | website=Middle East Eye | url=http://www.middleeasteye.net/columns/saudi-agricultural-investment-abroad-land-grab-or-benign-investment-strategy-218650423 | access-date=23 January 2018 | archive-date=3 April 2018 | archive-url=https://web.archive.org/web/20180403235007/http://www.middleeasteye.net/columns/saudi-agricultural-investment-abroad-land-grab-or-benign-investment-strategy-218650423 | url-status=live }}</ref><ref name="Africa Faith and Justice Network">{{cite web | title=Africa up for grabs, Saudi Arabia takes its share | website=Africa Faith and Justice Network | date=17 November 2014 | url=http://afjn.org/africa-up-for-grabs-saudi-arabia-takes-its-share/ | access-date=23 January 2018 | archive-date=4 April 2018 | archive-url=https://web.archive.org/web/20180404003131/http://afjn.org/africa-up-for-grabs-saudi-arabia-takes-its-share/ | url-status=live }}</ref><ref name="Pearce 2012">{{cite web | last=Pearce | first=Fred | title=Land grabbers: Africa's hidden revolution | website=The Guardian | date=19 May 2012 | url=https://www.theguardian.com/world/2012/may/20/land-grab-ethiopia-saudi-agribusiness | access-date=23 January 2018 | archive-date=3 April 2018 | archive-url=https://web.archive.org/web/20180403234533/https://www.theguardian.com/world/2012/may/20/land-grab-ethiopia-saudi-agribusiness | url-status=live }}</ref><ref name="farmlandgrab.org 2010">{{cite web | title=King Abdullah's Initiative for Saudi Agricultural Investment Abroad: A way of enhancing Saudi food security | website=farmlandgrab.org | date=3 May 2010 | url=https://farmlandgrab.org/post/view/19060 | access-date=23 January 2018 | archive-date=5 April 2018 | archive-url=https://web.archive.org/web/20180405024201/https://www.farmlandgrab.org/post/view/19060 | url-status=live }}</ref><ref name="How We Made It in Africa 2012">{{cite web | title=What you should know about Saudi investment in African farmland | website=How We Made It in Africa | date=4 July 2012 | url=https://www.howwemadeitinafrica.com/what-you-should-know-about-saudi-investment-in-african-farmland/17985/ | access-date=23 January 2018 | archive-date=8 July 2015 | archive-url=https://web.archive.org/web/20150708183738/http://www.howwemadeitinafrica.com/what-you-should-know-about-saudi-investment-in-african-farmland/17985/ | url-status=live }}</ref>

==Automotive==
[[File:Flickr - plushev - Geneva2010 659.jpg|thumb|[[KSU Gazal-1]]]]

In 2010, the [[KSU Gazal-1]], an SUV built by students at [[King Saud University]], became the first mass-produced vehicle manufactured domestically in Saudi Arabia.<ref>{{cite news |author=<!--not stated--> |date= June 25, 2010|title= Saudi Arabia unveils 1st domestically made car |url= https://www.nbcnews.com/id/wbna37707041 |work=[[NBC News]], [[Associated Press]] |location= |access-date=September 23, 2023 |series=Business News}}</ref> In 2022, the US car company [[Lucid Motors]] announced plans to build an [[electric vehicle]] manufacturing plant in [[Jeddah]].<ref>{{Cite web|url=https://arab.news/zpfbr|title=Gearing up for a 'Made in Saudi Arabia' Lucid EV|date=1 March 2022|website=Arab News|access-date=23 March 2022|archive-date=18 January 2023|archive-url=https://web.archive.org/web/20230118135602/https://www.arabnews.com/node/2034266|url-status=live}}</ref> Construction began in May 2022, and the plant will have capacity for 150,000 vehicles.<ref>{{cite web | url=https://www.arabianbusiness.com/industries/construction/construction-begins-on-lucids-first-electric-vehicle-factory-in-saudi-arabia-with-investments-of-3-4-billion | title=Construction starts on Lucid's first electric vehicle factory in Saudi Arabia with investments of $3.4 billion | publisher=Arabian Business | date=19 May 2022 | access-date=7 June 2022 | author=Oommen, Anup | archive-date=8 June 2022 | archive-url=https://web.archive.org/web/20220608014334/https://www.arabianbusiness.com/industries/construction/construction-begins-on-lucids-first-electric-vehicle-factory-in-saudi-arabia-with-investments-of-3-4-billion | url-status=live }}</ref>

[[Toyota]] is the leading brand in Saudi Arabia, accounting for 30% of car sales in the country; they are followed by [[Hyundai Motor Group|Kia and Hyundai who together]] make up 26%, and [[Renault–Nissan–Mitsubishi Alliance|Renault/Nissan/Mitsubishi]] at 9%. The [[Big Three (automobile manufacturers)#United States|American Big Three auto makers]] ([[Ford Motor Company|Ford]], [[General Motors|GM]], and [[Chrysler]]) comprise the remainder.<ref>{{cite web |url= https://www.trade.gov/market-intelligence/saudi-arabia-automotive-market |title= Saudi Arabia Automotive Market|author=<!--Not stated--> |date= September 13, 2021|website=trade.gov |publisher= [[International Trade Administration]]|access-date= September 23, 2023}}</ref> As for the quantity of vehicle units sold, in the first half of 2023, Toyota had the highest in the country with 112,584 and the second-most was the [[Hyundai Motor Company|Hyundai badge]] with 47,218.<ref>{{cite web |url= https://amp.kedglobal.com/newsAmp/ked202309180021 |title= Hyundai eyes Saudi EV plant as Korea bets on Middle East boom |last1= Kim|first1=Il-Gue|last2= Bae|first2= Sungsu|editor-last=Nam |editor-first=In-Soo |date= September 18, 2023|website=amp.kedglobal.com |publisher=[[The Korea Economic Daily]] |access-date=September 23, 2023 }}</ref>

==Private sector==
Saudi Arabia's private sector is dominated by a handful of big businesses in the service sector, primarily in construction and real estate, such as [[Olayan Group|Olayan]], [[Zamil Industrial|Zamil]], [[Almarai]], [[Mobily]], STC, [[SABIC]], Sadara, [[Halliburton]], [[Baker Hughes]], [[Flynas]], [[Hilton Worldwide|Hilton]], Zain, Yanbu Cement, Alhokair, [[MBC Group|MBC]], Mahfouz, [[Al-Rajhi Bank|Al Rajhi]], and Alfanar. These firms are "heavily dependent on government spending", which is dependent on oil revenues.<ref name=house-165>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia: Its People, past, Religion, Fault Lines and Future|publisher=Knopf|year=2012|page=165}}</ref>

From 2003 to 2013, "several key services" were privatized—municipal [[Water supply and sanitation in Saudi Arabia|water supply]], electricity, [[Telecommunications in Saudi Arabia|telecommunications]]—and parts of [[Education in Saudi Arabia|education]] and [[Health care in Saudi Arabia|health care]], traffic control, and car accident reporting were also privatized. According to Arab News columnist Abdel Aziz Aluwaisheg, "in almost every one of these areas, consumers have raised serious concerns about the performance of these privatized entities."<ref name=Aluwaisheg>{{cite journal|last1=Aluwaisheg|first1=Abdel Aziz|title=When privatization goes wrong|journal=Arab News|date=29 September 2014|url=http://www.arabnews.com/news/464657|access-date=29 September 2014|archive-date=10 October 2017|archive-url=https://web.archive.org/web/20171010082906/http://www.arabnews.com/news/464657|url-status=live}}</ref>

A relatively small sector until a boom in the 1980s,<ref>{{cite news |last= Gassem|first= Lojien Ben|date= September 11, 2021|title= The growth of Saudi Arabia's food and beverage industry — from local startups to multinational chains|url=https://www.arabnews.com/node/1926611/saudi-arabia |work=[[Arab News]] |location= [[Riyadh]]|access-date=October 5, 2023}}</ref> the food service industry in Saudi Arabia today is valued at around $13 billion.<ref>{{cite web |url= https://www.trade.gov/market-intelligence/saudi-arabia-food-service-sector-opportunities-us-companies|title= Saudi Arabia food service sector opportunities for U.S. companies|author=<!--Not stated--> |date=August 9, 2023 |website=trade.gov |publisher= [[International Trade Administration]]|access-date=October 5, 2023 }}</ref>

To provide the best support for the private sector and entrepreneurs, the kingdom announced a decision approved by the Saudi Cabinet in July 2019 allowing businesses in the country to be given the option to remain open 24 hours a day.<ref>{{Cite web|url=http://www.arabnews.com/node/1526731/saudi-arabia|title=Cabinet gives go-ahead for businesses to open 24/7 in Saudi Arabia|date=17 July 2019|website=Arab News|language=en|access-date=18 July 2019|archive-date=17 July 2019|archive-url=https://web.archive.org/web/20190717135848/http://www.arabnews.com/node/1526731/saudi-arabia|url-status=live}}</ref> As of 2023, the average monthly salary for Saudis working in the private sector is [[Saudi riyal|SR]]9600, up 45% from SR6600 in the year 2018.<ref>{{cite news |date= September 19, 2023|title= Average monthly wages of Saudis in private sector jump 45% to SR9600 in 5 years|url= https://saudigazette.com.sa/article/635980/SAUDI-ARABIA/Average-monthly-wages-of-Saudis-in-private-sector-jump-45-to-SR9600-in-5-years#:~:text=RIYADH%20—%20There%20has%20been%20an,by%20the%20National%20Labor%20Observatory.|work=[[Okaz]]/[[Saudi Gazette]] |location= [[Riyadh]]|access-date=October 11, 2023}}</ref>

== Regional GDP ==
Data are for the year 2022. Data calculated by dividing total GDP with provided percentage.<ref>{{citation|title=Estimating Saudi Arabia's Regional GDP Using Satellite Nighttime Light Images|url=https://www.kapsarc.org/wp-content/uploads/2019/12/Estimating-Saudi-Arabia%E2%80%99s-Regional-GDP-Using-Satellite-Nighttime-Light-Images.pdf|website=www.kapsarc.org}}</ref><ref>{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2023/October/weo-report?c=456,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=2022&ey=2022&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=World Economic Outlook Database, October 2023 Edition. (SA) |publisher=[[International Monetary Fund]] |website=IMF.org |date=10 October 2023 |access-date=10 October 2023}}</ref>

{| class="wikitable"
|-
! Ranking
! [[Provinces of Saudi Arabia|Province]]
! GDP (billion<br />US$)
! Percentage<br />of total GDP
|-
| 1
| [[Eastern Province, Saudi Arabia|Eastern]]
| 243.793
| 22%
|-
| 2
| [[Riyadh Province|Riyadh]]
| 243.793
| 22%
|-
| 3
| [[Mecca Province|Mecca]]
| 144.059
| 13%
|-
| 4
| ''[[Provinces of Saudi Arabia|Rest of provinces]]''
| ''476.504''
| ''43%''
|-
| 5
| {{flag|Saudi Arabia}} 
| 1,108.149
| 100%
|}

== Trade ==
[[File:2006SaudiArabian exports.PNG|thumb|upright=1.5|Saudi Arabian exports in 2006]]

In April 2000, the government established the [[Saudi Arabian General Investment Authority]] to encourage foreign direct investment in Saudi Arabia. Saudi Arabia maintains a negative list of sectors in which foreign investment is prohibited, but the government planned to open some closed sectors such as telecommunications, insurance, and power transmission/distribution over time.<ref>{{Cite web |title=Foreign Investment Act and Executive Rules {{!}} The Embassy of The Kingdom of Saudi Arabia |url=https://www.saudiembassy.net/foreign-investment-act-and-executive-rules |access-date=2022-06-23 |website=www.Saudiembassy.net |archive-date=16 June 2022 |archive-url=https://web.archive.org/web/20220616002103/https://saudiembassy.net/foreign-investment-act-and-executive-rules |url-status=live }}</ref>

Saudi Arabia became a full World Trade Organization (WTO) member on 11 December 2005.<ref name="Saudi WTO">{{cite web|url=https://www.wto.org/english/thewto_e/countries_e/saudi_arabia_e.htm|title=Kingdom of Saudi Arabia – Member information|publisher=[[World Trade Organization]]|access-date=20 April 2021|archive-date=21 April 2021|archive-url=https://web.archive.org/web/20210421092349/https://www.wto.org/english/thewto_e/countries_e/saudi_arabia_e.htm|url-status=live}}</ref> In 2019, the government established the [[General Authority for Foreign Trade (Saudi Arabia)|General Authority for Foreign Trade]] to enhance the kingdom's international commercial and investment activities.<ref>{{Cite web|url=http://live.saudigazette.com.sa/article/561914/SAUDI-ARABIA/New-head-of-foreign-trade-thanks-King-for-his-trust|title=New head of foreign trade thanks King for his trust|date=24 March 2019|website=Saudigazette|language=en|access-date=9 July 2019|archive-date=9 July 2019|archive-url=https://web.archive.org/web/20190709174427/http://live.saudigazette.com.sa/article/561914/SAUDI-ARABIA/New-head-of-foreign-trade-thanks-King-for-his-trust|url-status=live}}</ref>

In early July 2020, Saudi Arabia announced the nomination of its former Minister of Economy and Saudi royal court adviser, [[Mohammad Al-Tuwaijri]], for the role of WTO's director-general.<ref>{{cite news|url=https://www.reuters.com/article/us-trade-wto-saudi-idUSKBN2492H2|title=Saudi Arabia nominates a candidate to head WTO: document|access-date=8 July 2020|website=Reuters|date=8 July 2020|archive-date=9 July 2020|archive-url=https://web.archive.org/web/20200709063523/https://www.reuters.com/article/us-trade-wto-saudi-idUSKBN2492H2|url-status=live}}</ref> The nominations were made public about a month after the WTO reported the kingdom for copyrights infringement following distribution of pirated sports broadcasting content on the state-owned broadcast service, [[BeoutQ]].<ref>{{cite web|url=https://www.wto.org/english/tratop_e/dispu_e/567r_e.pdf|title=Saudi Arabia – Measures Concerning the Protection of Intellectual Property Rights|access-date=16 June 2020|website=World Trade Organization|archive-date=17 June 2020|archive-url=https://web.archive.org/web/20200617063437/https://www.wto.org/english/tratop_e/dispu_e/567r_e.pdf|url-status=live}}</ref> The nomination of al-Tuwaijri received criticism from human rights groups in mid-August 2020, demanding the rejection of the Saudi nominee due to the kingdom's [[human rights in Saudi Arabia|violation of human rights]] in addition to his silence over it.<ref>{{cite web|url=https://www.adhrb.org/2020/08/wto-urged-to-reject-saudi-arabias-nominee-for-director-general/|title=WTO Urged To Reject Saudi Arabia's Nominee For Director General|access-date=17 August 2020|website=Americans for Democracy and Human Rights in Bahrain|date=17 August 2020|archive-date=26 September 2020|archive-url=https://web.archive.org/web/20200926142929/https://www.adhrb.org/2020/08/wto-urged-to-reject-saudi-arabias-nominee-for-director-general/|url-status=live}}</ref> On 7 October 2020, Al-Tuwaijri, along with other nominees from the UK and [[Kenya]], lost the bid for the role due to lack of support, as compared to the nominees from Nigeria and South Korea who qualified for the final round of selection.<ref>{{cite news|url=https://www.reuters.com/article/us-trade-wto/nigerian-south-korean-women-through-to-final-round-in-wto-chief-race-sources-idUSKBN26S2SH|title=Nigerian, South Korean make last round of WTO chief race – sources|access-date=7 October 2020|website=Reuters|date=7 October 2020|last1=Farge|first1=Emma|archive-date=9 October 2020|archive-url=https://web.archive.org/web/20201009091435/https://www.reuters.com/article/us-trade-wto/nigerian-south-korean-women-through-to-final-round-in-wto-chief-race-sources-idUSKBN26S2SH|url-status=live}}</ref>

Saudi Arabia is part of the following trade organizations:
* [[World Trade Organization]] (WTO)<ref name="Saudi WTO"/>
* [[International Monetary Fund]] (IMF)<ref name="kasinomics.com">{{cite web |url=http://www.kasinomics.com/articles/membership-of-key-economies-in-international-organisations/ |title=Membership of Key Economies in International Organisations |publisher=Kasinomics |access-date=28 September 2012 |url-status=dead |archive-url=https://web.archive.org/web/20130116170618/http://www.kasinomics.com/articles/membership-of-key-economies-in-international-organisations/ |archive-date=16 January 2013}}</ref>
* [[International Chamber of Commerce]] (ICC)<ref>{{cite web|url=http://www.iccwbo.org/id2620/index.html |archive-url=https://web.archive.org/web/20110221112857/http://www.iccwbo.org/id2620/index.html |archive-date=21 February 2011 |title=ICC – The world business organization |publisher=Iccwbo.org |date=21 February 2011 |access-date=28 September 2012}}</ref>
* [[International Organization for Standardization]] (ISO)<ref>{{cite web |url=http://www.iso.org/iso/about/iso_members.htm |title=Members |publisher=ISO |access-date=28 September 2012 |archive-date=3 May 2012 |archive-url=https://web.archive.org/web/20120503204538/http://www.iso.org/iso/about/iso_members.htm |url-status=live }}</ref>
* [[World Customs Organization]] (WCO)<ref>{{cite web |url=http://www.wcoomd.org/reports/default.aspx?lid=1&id=294 |archive-url=https://archive.today/20120918010012/http://www.wcoomd.org/reports/default.aspx?lid=1&id=294 |url-status=dead |archive-date=18 September 2012 |title=WCO – Reports |publisher=Wcoomd.org |date=3 May 2011 |access-date=28 September 2012 }}</ref>

==Challenges==
Among the challenges to the Saudi economy include halting or reversing the decline in per capita income, improving education to prepare youth for the workforce and providing them with employment, diversifying the economy, stimulating the private sector and housing construction, and diminishing [[corruption in Saudi Arabia|corruption]] and inequality. In answer to the question of why the Saudi economy is so dependent on foreign labor, the UN [[Arab Human Development Report]] blamed stunted social and economic development inhibited by lack of personal freedom, poor education, government hiring based on factors other than merit, and the exclusion of women.<ref name="ref=HT2009: 206">[[#HT2009|Long, ''Culture and Customs'', 2009]]: p. 206</ref>

===Income drop===

Despite possessing the second largest petroleum reserves in the world, per capita income dropped from approximately $18,000 at the height of the oil boom (1981) to $7,000 in 2001, according to one estimate.<ref name=Cordesman-244>{{cite book|last=Cordesman|first=Anthony H.|title=Saudi Arabia Enters the Twenty-First Century, Volume 1|publisher=Greenwood|page=244|year=2003|url=https://books.google.com/books?id=tjpExwQWtOsC&q=peak+saudi+per+capita+income&pg=PA244|isbn=9780275980917|access-date=5 October 2020|archive-date=13 June 2021|archive-url=https://web.archive.org/web/20210613081542/https://books.google.com/books?id=tjpExwQWtOsC&q=peak+saudi+per+capita+income&pg=PA244|url-status=live}}</ref> As of 2013, due to the rapid population growth of Saudi Arabia,<ref>{{Cite web|url=https://foreignpolicy.com/2013/01/04/longforms-picks-of-the-week-43/|title=Longform's Picks of the Week [Will Saudi Arabia Ever Change?]|last=Clark|first=Laura|website=Foreign Policy|date=4 January 2013 |language=en|access-date=23 April 2019|archive-date=23 April 2019|archive-url=https://web.archive.org/web/20190423204338/https://foreignpolicy.com/2013/01/04/longforms-picks-of-the-week-43/|url-status=live}}</ref> per capita income in Saudi was "a fraction of that of smaller Persian gulf neighbors", even less than petroleum-poor [[Bahrain]].<ref name=eakins>{{cite journal|last=Eakins|first=Hugh|title=Will Saudi Arabia Ever Change?|journal=New York Review of Books|date=10 January 2013|quote=Despite Saudi control of the largest petroleum reserves in the world, decades of rapid population growth have reduced per capita income to a fraction of that of smaller Persian gulf neighbors. Event the people of Bahrain, a country with little oil that has roiled with unrest since early 2011, are wealthier.}}</ref>

Unlike most developed countries, where GDP growth is a function of increases in productivity and inputs such as employment, in Saudi Arabia the fluctuation of oil prices is the most important factor in the growth or decline of domestic production. "Saudi reserves are steadily being depleted, and no significant new discoveries have been found to replace them," according to Middle East journalist Karen House.{{As of?|date=March 2023}} Saudi population grew sevenfold from 1960 to 2010,<ref>{{Cite web |url=http://esa.un.org/unpd/wpp/unpp/Panel_profiles.htm |title=World Population Prospects: The 2010 Revision |access-date=26 August 2014 |archive-date=11 June 2011 |archive-url=https://web.archive.org/web/20110611141930/http://esa.un.org/unpd/wpp/unpp/Panel_profiles.htm |url-status=live }}</ref> and petrol prices are subsidized and cost users less than equivalent quantities of bottled water.<ref name=house-245>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia: Its People, past, Religion, Fault Lines and Future|publisher=Knopf|year=2012|page=245|quote="In a country where a gallon of gasoline at roughly 53 cents is cheaper than bottled water and government energy subsidies are roughly $35 billion annually, Saudi energy consumption is rising at what one energy official calls an 'alarming rate.'"|title-link=On Saudi Arabia}}</ref> With production stagnant, growth in population and domestic energy consumption means a decline in per capita income unless oil prices rise to match that growth.<ref name=eakins />

After 2015, Saudi Arabia embarked on several initiatives, including Vision 2030, aimed at reducing its dependency on oil by investing in other sectors such as tourism, entertainment, and technology. [<ref>{{Citation |title=A vision for 2030 |date=2016-10-03 |work=Arab Development Outlook |pages=1–16 |url=http://dx.doi.org/10.18356/753c8f70-en |access-date=2024-08-05 |publisher=UN |doi=10.18356/753c8f70-en |isbn=978-92-1-058409-8|url-access=subscription }}</ref>] . Despite a decline in oil GDP, Saudi Arabia's GDP is expected to grow due to the increase in non-oil GDP. In the second quarter of 2024, Saudi Arabia's GDP contracted by 0.4% year-on-year, primarily due to an 8.5% decline in oil-related activities. However, non-oil activities grew by 4.4%, contributing to a seasonally adjusted growth of 1.4% compared to the previous quarter.<ref>{{Cite web |date=2024-07-31 |title=Economy records best reading since Q2 2023 in Q2 |url=https://www.focus-economics.com/countries/saudi-arabia/news/gdp/saudi-arabia-national-accounts-p-31-07-2024-economy-records-best-reading-since-q2-2023-in-q2/ |access-date=2024-08-05 |website=FocusEconomics |language=en-US}}</ref>

As of 2024, Saudi Arabia's GDP per capita has surpassed all other GCC countries except Qatar and the United Arab Emirates. Saudi Arabia's GDP per capita is estimated to be approximately $33,040 in nominal terms, ranking it 35th globally, and $70,333 in purchasing power parity (PPP) terms, ranking it as the 15th highest in the world [<ref name=":7" />]

===Demographics===
{{further|Demographics of Saudi Arabia}}
The Saudi population is young. About 51% of the total population are under the age of 25 (as of February 2012).<ref name=Murphy>{{cite web|last=Murphy|first=Caryle|title=Saudi Arabia's Youth and the Kingdom's Future|url=http://www.newsecuritybeat.org/2012/02/saudi-arabias-youth-and-the-kingdoms-future/|date=7 February 2012|publisher=Woodrow Wilson International Center for Scholars' Environmental Change and Security Program|access-date=13 May 2014|archive-date=26 February 2019|archive-url=https://web.archive.org/web/20190226064805/https://www.newsecuritybeat.org/2012/02/saudi-arabias-youth-and-the-kingdoms-future/|url-status=live}}</ref> According to a 2013 report by the [[International Monetary Fund]], up to 1.6&nbsp;million young nationals of the [[Arab states of the Persian Gulf|Persian Gulf countries]] (of which Saudi Arabia is the largest) will enter the workforce from 2013 to 2018, but the economies of those countries will have jobs in the private sector for less than half (approximately 600,000).<ref name=AP-2013>{{cite web|title=Saudi Arabia needs private sector growth to stem youth unemployment, business leaders say|url=https://www.foxnews.com/world/saudi-arabia-needs-private-sector-growth-to-stem-youth-unemployment-business-leaders-say/|date=3 December 2013|agency=Associated Press|work=Fox News|access-date=12 May 2014|archive-date=24 September 2015|archive-url=https://web.archive.org/web/20150924184700/http://www.foxnews.com/world/2013/12/03/saudi-arabia-needs-private-sector-growth-to-stem-youth-unemployment-business/|url-status=live}}</ref>

===Education===
{{further|Education in Saudi Arabia}}
According to ''[[The Economist]]'', the Saudi government has attempted in past years to raise employment by forcing "companies to fill at least 30% of their positions" with Saudi citizens. However, "employers complained bitterly about the lack of skills among young locals; years of rote-learning and religious instruction fail to prepare them for the job market." However, many argue that young Saudis couldn't compete with foreigners due to the low compensation and salaries most companies had used to offer for employees from Asian, Indian subcontinent, and other Arab poor countries, which this cheap labor happily accepts; in addition to the bad work conditions, culture, and environment present in most of the Saudi private sector, largely due to the fact that it was initially modeled to accommodate very-low-income employees from other nations, not the Saudi medium-income and somewhat highly educated population. As a consequence, "the quota has now been dropped and replaced with a more flexible system".<ref name=econ>{{cite news|title=Out of the comfort zone|newspaper=The Economist|date=3 March 2012|url=http://www.economist.com/node/21548973|access-date=13 May 2014|archive-date=14 October 2017|archive-url=https://web.archive.org/web/20171014041645/http://www.economist.com/node/21548973|url-status=live}}</ref>

According to scholar [[David Commins]], the kingdom depends "on huge numbers of expatriate workers to fill technical and administrative positions" in part because of an educational system that, despite "generous budgets", has suffered from "poorly trained teachers, low retention rates, lack of rigorous standards, weak scientific and technical instruction and excessive attention to religious subjects".<ref>{{cite book|last=Commins |first=David |title=The Wahhabi Mission and Saudi Arabia |publisher=I.B.Tauris |year=2009 |page=128|quote=Observers also note that in spite of generous budgets, Saudi education has been plagued by numerous problems: poorly trained teachers, low retention rates, lack of rigorous standards, weak scientific and technical instruction and excessive attention to religious subjects. Consequently, the kingdom has continued to depend on huge numbers of expatriate workers to fill technical and administrative positions.}}</ref><ref>{{cite journal|last=Roy |first=Delwin A. |title=Saudi Arabia education: Development policy |journal=Middle Eastern Studies|volume=xxviii|number=3 |year=1992 |pages=481, 485, 495}}</ref><ref>{{cite book|last=Abir |first=Mordechai |chapter=Modern Education and the evolution of Saudi Arabia education |title=National and International Politics in the Middle East: Essays in Honour of Elie Kedouirie| publisher=Routledge|year=1986|pages=481, 485, 495}}</ref>

A 2015 survey conducted by Bayt.com showed that over a quarter (28%) of professionals in North Africa and the Middle East believe that there is a skills shortage in their country of residence. This belief was even more prominent among respondents in Saudi Arabia (39%).<ref>[http://img.b8cdn.com/images/uploads/article_docs/bayt-salary-survey-0515-en_25290_EN.pdf ''The Middle East and North Africa Salary Survey – May 2015''] {{Webarchive|url=https://web.archive.org/web/20160304060858/http://img.b8cdn.com/images/uploads/article_docs/bayt-salary-survey-0515-en_25290_EN.pdf |date=4 March 2016 }}, Bayt.com. Retrieved 29 June 2015</ref>

===Innovation===

Saudi has not been a hotbed of technological innovation. The number of Saudi patents registered in the United States between 1977 and 2010 came to 382—less than twelve per year—compared to 84,840 patents for South Korea or 20,620 for Israel during that period.<ref>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia: Its People, past, Religion, Fault Lines and Future|publisher=Knopf|year=2012|pages=162–64}}</ref><ref>Source: USPTO website accessed 17 May 2011</ref> However, in 2017 Saudi Arabia was granted 664 patents by the [[United States Patent and Trademark Office]], ranking 23rd among 92 countries.<ref>{{Cite web|url=https://www.arabianbusiness.com/politics-economics/394306-saudi-arabia-leads-arab-world-in-patents|title=Saudi Arabia leads Arab world in patents| last=Debusmann | first=Bernd Jr. |website=ArabianBusiness.com|date=17 April 2018 |language=en|access-date=10 March 2019|archive-date=19 April 2018|archive-url=https://web.archive.org/web/20180419205109/http://www.arabianbusiness.com/politics-economics/394306-saudi-arabia-leads-arab-world-in-patents|url-status=live}}</ref><ref>{{Cite web|url=http://www.arabnews.com/node/1286031/saudi-arabia|title=KSA ranks 23rd in number of patents granted by the US Patent and Trademark Office|date=17 April 2018|website=Arab News|language=en|access-date=10 March 2019|archive-date=22 June 2018|archive-url=https://web.archive.org/web/20180622083042/http://www.arabnews.com/node/1286031/saudi-arabia|url-status=live}}</ref> The number of granted patents was double that of all Arab countries combined during the same period.<ref>{{Cite web|url=https://www.businesswire.com/news/home/20180416005914/en/Saudi-Arabia-Granted-664-Patents-2017-Double|title=Saudi Arabia Granted 664 Patents in 2017; Double of All Arab Countries Combined|date=16 April 2018|website=www.businesswire.com|language=en|access-date=10 March 2019|archive-date=20 July 2018|archive-url=https://web.archive.org/web/20180720091221/https://www.businesswire.com/news/home/20180416005914/en/Saudi-Arabia-Granted-664-Patents-2017-Double|url-status=live}}</ref>

===Bureaucracy===

Business journalist Karen House criticized the Saudi bureaucracy, explaining that someone seeking to start a business in Saudi Arabia:
{{blockquote|has to complete innumerable applications and documents at multiple layers of multiple ministries, which invariably requires seeking favours from various patronage networks and accumulating obligations along the way, most probably including having to hire less-than-competent dependents of his patrons. Then, for any business of any size, government contracts, not private competition, are the financial lifeblood. So this means more patrons, more favours, and more obligations. Not surprisingly, Saudi businesses that can compete outside the protected Saudi market are few.<ref>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia: Its People, Past, Religion, Fault Lines and Future|publisher=Knopf|year=2012|page=175}}</ref>}}

===Corruption===
{{further|Corruption in Saudi Arabia}}
The cost of maintaining the [[House of Saud|Royal Family]] is estimated by some to be about US$10&nbsp;billion per year.<ref name="HT2009: 44"/>

A 2005 survey by the Riyadh Chamber of Commerce found that 77% of businessmen polled felt they had to 'bypass' the law to conduct their operations. By 2012, "businessmen say it has only gotten worse".<ref name="house-167">{{cite book|author=House, Karen Elliott|title=On Saudi Arabia: Its People, Past, Religion, Fault Lines and Future|publisher=Knopf|year=2012|page=167}}</ref> Saudi Arabia has been severely criticized for failing to tackle money laundering and international terrorism financing. A report released by the [[Financial Action Task Force]] on 24 September 2018, says, "Saudi Arabia is not effectively investigating and prosecuting individuals involved in larger scale or professional [money laundering] activity" and is "not effectively confiscating the proceeds of crime".<ref>{{cite magazine|url=https://www.forbes.com/sites/dominicdudley/2018/09/25/saudi-arabia-accused-of-turning-a-blind-eye-to-international-terrorism-financing-by-global-watchdog/#2aa1fd4c6763|title=Saudi Arabia Accused of Turning A Blind Eye To International Terrorism Financing By Global Watchdog|access-date=25 September 2018|magazine=Forbes|archive-date=3 February 2019|archive-url=https://web.archive.org/web/20190203155921/https://www.forbes.com/sites/dominicdudley/2018/09/25/saudi-arabia-accused-of-turning-a-blind-eye-to-international-terrorism-financing-by-global-watchdog/#2aa1fd4c6763|url-status=live}}</ref>

===Poverty===

Estimates of the number of Saudis below the poverty line range from between 12.7%<ref name=lowWR>{{cite news|title=Saudi Arabia has tenth lowest poverty rate worldwide, says World Bank|url=http://english.alarabiya.net/en/business/economy/2013/11/03/Kingdom-has-tenth-lowest-poverty-rate-worldwide-says-World-Bank.html|access-date=2 October 2014|agency=Saudi Gazette|publisher=al-Arabiyya|date=3 November 2013|archive-date=6 December 2018|archive-url=https://web.archive.org/web/20181206103757/http://english.alarabiya.net/en/business/economy/2013/11/03/Kingdom-has-tenth-lowest-poverty-rate-worldwide-says-World-Bank.html|url-status=live}}</ref> and 25%.<ref name=Sullivan/> Press reports and private estimates as of 2013 "suggest that between 2 million and 4 million" of the country's native Saudis live on "less than about $530 a month" – about $17 a day – considered the poverty line in Saudi Arabia.<ref name=Sullivan>{{cite news|last1=Sullivan|first1=Kevin|title=Saudi Arabia's riches conceal a growing problem of poverty|url=https://www.theguardian.com/world/2013/jan/01/saudi-arabia-riyadh-poverty-inequality|access-date=2 October 2014|agency=Washington Post|newspaper=The Guardian|date=1 January 2013|quote=In a country with vast oil wealth and lavish royalty, an estimated quarter of Saudis live below the poverty line|archive-date=2 June 2016|archive-url=https://web.archive.org/web/20160602052426/http://www.theguardian.com/world/2013/jan/01/saudi-arabia-riyadh-poverty-inequality|url-status=live}}</ref><ref>A 2003 survey by the Ministry of Social Affairs found 40% of all Saudi citizens live on less than 3000 Saudi riyals ($850) a month, (source:{{cite book|author=House, Karen Elliott|title=On Saudi Arabia : Its People, past, Religion, Fault Lines and Future| publisher=Knopf|year=2012|page=159}}), while 19% of Saudis live on less than 1800 SR ([[Saudi riyal]]s) ($480) a month. (source: {{cite book|author=House, Karen Elliott|title=On Saudi Arabia: Its People, past, Religion, Fault Lines and Future|publisher=Knopf|year=2012|page=179|quote=... according to a 2003 survey by the Ministry of Social Affairs.}})</ref> 


According to [[UNESCWA]] Oman and Saudi Arabia have the highest poverty rates among [[Gulf Cooperation Council|GCC]] nations, at 10.1% and 13.6% respectively and Saudi Arabia saw a notable decline in poverty from 18.2% in 2010 to 13.6% in 2021.<ref name="UNESCWA2024">{{cite report |title=Policy Reforms to Lift Three Million GCC Nationals Out of Poverty |publisher=United Nations Economic and Social Commission for Western Asia (UNESCWA) |date=May 2024 |url=https://www.unescwa.org/sites/default/files/pubs/pdf/policy-reforms-lift-three-million-gcc-nationals-poverty-english_4.pdf |page=4|access-date=19 May 2025 |language=English}}</ref> 

The Saudi state discourages calling attention to or complaining about poverty. In December 2011, days after the [[Arab Spring]] uprisings, the Saudi interior ministry detained reporter Feros Boqna and two colleagues (Hussam al-Drewesh and Khaled al-Rasheed) and held them for almost two weeks for questioning after they uploaded a 10-minute video on the topic (''Mal3ob 3alena'', or 'We are being cheated') to YouTube.<ref>{{cite news|url=http://www.mcclatchydc.com/2011/12/04/132112/saudi-dissidents-turn-to-youtube.html|title=Saudi dissidents turn to YouTube to air their frustrations|first=Roy|last=Gutman|newspaper=McClatchy Newspapers|date=4 December 2011|access-date=16 March 2015|archive-date=23 April 2015|archive-url=https://web.archive.org/web/20150423191939/http://www.mcclatchydc.com/2011/12/04/132112/saudi-dissidents-turn-to-youtube.html|url-status=live}}</ref><ref name=youtube>{{cite web |url=https://www.youtube.com/watch?v=SlSBqgW5xx0 |title=Mal3ob 3alena: Poverty in Saudi Arabia English Version |publisher=YouTube |access-date=16 March 2015 |archive-date=10 July 2017 |archive-url=https://web.archive.org/web/20170710234543/https://www.youtube.com/watch?v=SlSBqgW5xx0 |url-status=live }}</ref> Authors of the video claim that 22% of Saudis are considered to be poor (2009) and 70% of Saudis do not own their houses.<ref>{{cite web |url=http://lebanonspring.com/2011/10/19/plot-to-show-foreign-poverty-in-foreign-saudi-arabia-arab-spring-youtube-video/ |title=A foreign Saudi plot to expose foreign poverty in foreign Saudi |work=Lebanon Spring |date=19 October 2011 |url-status=dead |archive-url=https://web.archive.org/web/20120103204944/http://lebanonspring.com/2011/10/19/plot-to-show-foreign-poverty-in-foreign-saudi-arabia-arab-spring-youtube-video/ |archive-date=3 January 2012}}</ref> 
Statistics on the issue are not available through the UN resources because the Saudi government does not issue poverty figures.<ref>{{cite news |url=https://www.npr.org/2011/05/19/136439885/poverty-hides-amid-saudi-arabias-oil-wealth |title=Poverty Hides Amid Saudi Arabia's Oil Wealth |newspaper=NPR |access-date=6 April 2018 |archive-date=25 November 2018 |archive-url=https://web.archive.org/web/20181125135147/https://www.npr.org/2011/05/19/136439885/poverty-hides-amid-saudi-arabias-oil-wealth |url-status=live }}</ref> Observers researching the issue prefer to stay anonymous<ref>{{cite web |url=http://observers.france24.com/content/20081028-poverty-exists-saudi-arabia |title=Poverty exists in Saudi Arabia too &#124; The Observers |publisher=France 24 |date=28 October 2008 |access-date=16 March 2015 |archive-date=1 April 2015 |archive-url=https://web.archive.org/web/20150401204459/http://observers.france24.com/content/20081028-poverty-exists-saudi-arabia |url-status=live }}</ref> because of the risk of being arrested, like Feras Boqna.<ref name=youtube/><ref>{{cite news |url=https://www.theguardian.com/world/2011/oct/23/feras-boqna-saudi-arabia-poverty |location=London |work=The Guardian |first=Amelia |last=Hill |title=Saudi film-makers enter second week of detention |date=23 October 2011 |access-date=14 December 2016 |archive-date=6 July 2018 |archive-url=https://web.archive.org/web/20180706132446/https://www.theguardian.com/world/2011/oct/23/feras-boqna-saudi-arabia-poverty |url-status=live }}</ref>

===Housing===

50% of Saudi Arabia's citizens owned their own home in 2017, a rise from 30% in 2011 but below the international average rate of 70%.<ref>{{Cite web|url=http://www.arabnews.com/node/1233301/saudi-arabia|title=Nearly 50% citizens own houses in Saudi Arabia|date=26 January 2018|website=Arab News|language=en|access-date=23 December 2018|archive-date=5 July 2018|archive-url=https://web.archive.org/web/20180705150709/http://www.arabnews.com/node/1233301/saudi-arabia|url-status=live}}</ref> In 2011, analysts estimated 500,000 new homes per year were needed to match the growth in Saudi population, but as of early 2014 only 300,000 to 400,000 houses per year were being built.<ref name=Sloan>{{cite web|last1=Sloan|first1=Alastair|title=Saudi Arabia's housing predicament|url=https://www.middleeastmonitor.com/articles/middle-east/10030-saudi-arabias-housing-predicament|website=Middle East Monitor|access-date=11 June 2014|ref=28 February 2014|archive-url=https://web.archive.org/web/20160304060135/https://www.middleeastmonitor.com/articles/middle-east/10030-saudi-arabias-housing-predicament|archive-date=4 March 2016|url-status=dead}}</ref>

One problem is that the government Real Estate Development Fund (REDF)—which provides 81% of all loans for housing—had an 18-year waiting list for loans due to pent-up demand. Another is that the REDF's maximum loan is 500,000 SR ($133,000), while in 2012 the average price for a small free-standing home in Riyadh is more than double that—1.23&nbsp;million SR ($328,000).<ref name=house-176>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia: Its People, Past, Religion, Fault Lines and Future| publisher=Knopf |year=2012 |page=176}}</ref> However, as part of the economic reforms undertaken by the government to enhance national living standards, new funding solutions have been established to boost the mortgages for existing and new borrowers to help finance their housing plans. This was announced in August 2018 by the Minister of Housing, Mr. Majed Al-Hogail.<ref>{{Cite web|url=http://www.arabnews.com/node/1353201/business-economy|title=New mortgages to boost home ownership in Saudi Arabia|date=8 August 2018|website=Arab News|language=en|access-date=23 December 2018|archive-date=26 August 2018|archive-url=https://web.archive.org/web/20180826155145/http://www.arabnews.com/node/1353201/business-economy|url-status=live}}</ref>

A major reason for the high cost of housing is the high cost of land. In urban areas, the price of land has been bid up because nearly all of it is owned by the Saudi elite (members of the royal family or other wealthy Saudis), who have lobbied the government for land "giveaways".<ref name=Sloan/> Landlords have seen prices rocket by 50% from 2011 to 2013.<ref name=Sloan/> The owners benefit from these price increases as they hold the land for future development.<ref>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia : Its People, Past, Religion, Fault Lines and Future| publisher=Knopf|year=2012|page=106|quote=A second youth video, ''Monopoly'', highlighted the near impossibility of owning a home in Saudi Arabia because a monopoly on land ownership by royals and other wealthy Saudi has put the price of land out of reach of a majority of Saudis. It struck a responsive chord in the population.}}</ref><ref name=House-151>{{cite book|author=House, Karen Elliott|title=On Saudi Arabia: Its People, Past, Religion, Fault Lines and Future| publisher=Knopf|year=2012|page=151|quote=In or around population centres, much of the open land is owned by various princes or a few wealthy families who are holding it for future development and profit.}}</ref> To deal with the key "land banking" issue, the Minister of Housing suggested in 2013 that vacant property within city limits could be subject to a tax. However, no firm plans for any tax have been unveiled.<ref name=Sloan/>

===Private sector growth===
In 2018, the imposition of a 5% [[value-added tax]] (VAT) brought private-sector growth to a halt. [[Consumer spending]] was also restrained after a sharp increase in prices for energy, electricity, and water earlier in 2018. The kingdom witnessed a mass departure of around 750,000 foreign workers after imposing new government levies on ex-pat workers. The government is also forcing small-business owners to hire Saudi nationals at comparatively higher wages than foreign workers. Gaining money from large, direct foreign investments is also not working in favor of the government. Rich Saudis are reluctant to invest within the kingdom due to the fear of triggering government scrutiny.<ref>{{cite news|url=https://www.wsj.com/articles/rising-oil-prices-are-bad-news-for-saudi-arabia-1537915829|title=Rising Oil Prices Are Bad News for Saudi Arabia|newspaper=The Wall Street Journal|access-date=25 September 2018|archive-date=4 December 2018|archive-url=https://web.archive.org/web/20181204033505/https://www.wsj.com/articles/rising-oil-prices-are-bad-news-for-saudi-arabia-1537915829|url-status=live}}</ref>

On 11 May 2020, the government announced that it would triple the kingdom's VAT on goods and services, raising it from 5% to 15%.<ref>{{cite web |url=https://cxm.co.uk/saudi-arabia-triples-on-vat-to-counter-the-economic-impact-of-covid-19/ |title=Saudi Arabia Triples on VAT to Counter the Economic Impact of COVID-19 |date=12 May 2020 |publisher=Chelsea Andrew |access-date=17 May 2020 |archive-date=22 October 2020 |archive-url=https://web.archive.org/web/20201022001345/https://cxm.co.uk/saudi-arabia-triples-on-vat-to-counter-the-economic-impact-of-covid-19/ |url-status=live }}</ref> It also stated that the increase in VAT—introduced due to the country's current [[financial crisis]] due to plummeting [[oil prices]] and impact of [[COVID-19 pandemic|coronavirus]]—would also be followed by a cut in monthly allowance for state workers worth approximately $266, and financial benefits for contractors.<ref>{{cite news|url=https://www.nytimes.com/2020/05/16/world/middleeast/saudi-arabia-coronavirus-prince.html|title=Saudi Arabia's Big Dreams and Easy Living Hit a Wall|access-date=16 May 2020|website=The New York Times|date=16 May 2020|last1=Yee|first1=Vivian|archive-date=16 May 2020|archive-url=https://web.archive.org/web/20200516151022/https://www.nytimes.com/2020/05/16/world/middleeast/saudi-arabia-coronavirus-prince.html|url-status=live}}</ref> 
Aramco decreased the production of its Arab Light grade of crude oil by a significant amount{{By how much|date=March 2023}} to be shipped to Asia. The firm also cut down oil pricing for its US buyers following wavering demand for fuel due to the global relapse of the coronavirus pandemic.<ref>{{cite news |date=5 September 2020 |title=Saudis Reduce Oil Pricing in Sign Demand Recovery Struggling |newspaper=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2020-09-05/saudis-reduce-oil-pricing-in-sign-demand-recovery-is-struggling |url-status=live |url-access=registration |access-date=5 September 2020 |archive-url=https://web.archive.org/web/20200906112519/https://www.bloomberg.com/news/articles/2020-09-05/saudis-reduce-oil-pricing-in-sign-demand-recovery-is-struggling |archive-date=6 September 2020}}</ref>

According to the [[General Authority for Statistics (Saudi Arabia)|General Authority for Statistics]], Saudi Arabia's inflation accelerated to 6.2% in August 2020, as compared to the same month last year. The report states that the annual inflation rate increased from only 0.5% (in June) to 6.1% (in July), before the increase of VAT to 15% from 5% was introduced, effective from 1 July 2020.<ref>{{cite web|url=https://www.stats.gov.sa/sites/default/files/CPI-August%202020-En-.pdf|title=Consumer Prices up 6.2% in August2020|access-date=7 August 2020|website=General Authority for Statistics(GASTAT)|archive-date=21 October 2020|archive-url=https://web.archive.org/web/20201021161720/https://www.stats.gov.sa/sites/default/files/CPI-August%202020-En-.pdf|url-status=live}}</ref>

== Investment ==
Saudi Arabia has two stock exchanges, the [[Tadawul]] and [[Saudi Parallel Market (Nomu)|The Saudi Parallel Market (Nomu)]], whose financial markets are regulated by the [[Capital Market Authority (Saudi Arabia)|Capital Market Authority]].<ref>{{Cite web|url=https://www.tadawul.com.sa/wps/portal/tadawul/knowledge-center/about/parallel-market?locale=en|title=Nomu – Parallel Market|date=2020|website=Tadawul|access-date=17 January 2020|archive-date=25 January 2020|archive-url=https://web.archive.org/web/20200125122537/https://www.tadawul.com.sa/wps/portal/tadawul/knowledge-center/about/parallel-market?locale=en|url-status=live}}</ref><ref>{{Cite web|url=https://www.tadawul.com.sa/wps/portal/tadawul/knowledge-center/about/Capital-Market-Overview?locale=en|title=The Saudi Stock Exchange (Tadawul)|date=2020|website=Tadawul|access-date=17 January 2020|archive-date=25 January 2020|archive-url=https://web.archive.org/web/20200125122539/https://www.tadawul.com.sa/wps/portal/tadawul/knowledge-center/about/Capital-Market-Overview%3Flocale%3Den|url-status=live}}</ref> The stock [[market capitalization]] of listed companies in Saudi Arabia is valued at $2.22 trillion. According to [[International Institute for Management Development|the International Institute for Management Development]], Saudi Arabia experienced the largest improvement in business competitiveness of all countries in 2019; the kingdom rose 13 places to 26th in the world.<ref>{{Cite web|url=http://www.arabnews.com/node/1503356/business-economy|title=Saudi Arabia most improved economy for business|date=28 May 2019|website=Arab News|language=en|access-date=28 May 2019|archive-date=29 May 2019|archive-url=https://web.archive.org/web/20190529081934/http://www.arabnews.com/node/1503356/business-economy|url-status=live}}</ref>

===Doing business===
Saudi Arabia is among the countries with the most notable improvement in doing business, according to the [[World Bank Group]]'s "Doing Business" 2020 report. The country jumped 30 places to rank 62nd in ease of doing business, compared to the previous year.<ref>{{Cite web|url=https://www.arabnews.com/node/1573646/business-economy|title=Saudi Arabia sees most improvement in ease of doing business: World Bank|date=24 October 2019|website=Arab News|language=en|access-date=24 October 2019|archive-date=25 October 2019|archive-url=https://web.archive.org/web/20191025041225/https://www.arabnews.com/node/1573646/business-economy|url-status=live}}</ref><ref name=":5">{{Cite web|url=https://www.worldbank.org/en/news/press-release/2019/10/24/doing-business-2020-saudi-arabia-accelerated-business-climate-reforms-joins-ranks-of-10-most-improved|title=Doing Business 2020: Saudi Arabia Accelerated Business Climate Reforms, Joins Ranks of 10 Most Improved|website=World Bank|language=en|access-date=24 October 2019|archive-date=24 October 2019|archive-url=https://web.archive.org/web/20191024200945/https://www.worldbank.org/en/news/press-release/2019/10/24/doing-business-2020-saudi-arabia-accelerated-business-climate-reforms-joins-ranks-of-10-most-improved|url-status=live}}</ref><ref>{{Cite web|url=https://openknowledge.worldbank.org/bitstream/handle/10986/32436/9781464814402.pdf?sequence=2&isAllowed=y|title=Doing Business 2020 report.|website=World Bank|access-date=24 October 2019}}</ref> Previously, the kingdom had been declining in the overall rankings, from 22nd in 2013<ref>{{cite web |url=http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual-Reports/English/DB13-full-report.pdf |title=Doing Business 2013 |access-date=2 February 2018 |archive-date=28 March 2018 |archive-url=https://web.archive.org/web/20180328184805/http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual-Reports/English/DB13-full-report.pdf |url-status=live }}</ref> to 92nd in 2018.<ref>{{cite web |url=http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual-Reports/English/DB2018-Full-Report.pdf |title=Doing Business 2018 |access-date=2 February 2018 |archive-date=6 September 2018 |archive-url=https://web.archive.org/web/20180906033419/http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual-Reports/English/DB2018-Full-Report.pdf |url-status=live }}</ref>

According to the World Bank in 2019, Saudi Arabia had conducted reforms in eight areas of business: (1) starting a business, (2) getting construction permits, (3) getting electricity, (4) getting credit, (5) protecting minority investors, (6) trading across borders, (7) enforcing contracts, and (8) resolving insolvency.<ref name=":5" />

Saudi Arabian companies dominate 2009's "MEED 100", with companies listed on the [[Tadawul]] accounting for 29 out of the region's 100 biggest publicly quoted companies ranked by market capitalization. Just three of the 20 companies that have dropped out of the top 100 over the past year are listed on the Saudi stock exchange.<ref>{{cite web |url=http://www.meed.com/sectors/construction/meed-100-special-report-the-middle-easts-top-100-listed-companies-in-2009/2000137.article |title=Special Report: MEED 100 – The Middle East's top 100 listed companies in 2009 &#124; Special Report |publisher=MEED |date=1 March 2009 |access-date=28 September 2012 |archive-url=https://web.archive.org/web/20120217090102/http://www.meed.com/sectors/construction/meed-100-special-report-the-middle-easts-top-100-listed-companies-in-2009/2000137.article |archive-date=17 February 2012 |url-status=dead}}</ref>

Foreigners are allowed to wholly own limited liability companies in the majority of industries. Non-Saudi nationals are required to obtain a foreign capital investment license from the [[Saudi Arabian General Investment Authority]].<ref>Saudi Arabia Company Formation [http://www.healyconsultants.com/company-incorporation/SaudiArabiaCompanyFormation.html Healy Consultants] {{Webarchive|url=https://web.archive.org/web/20130518111616/http://www.healyconsultants.com/company-incorporation/SaudiArabiaCompanyFormation.html |date=18 May 2013 }} Retrieved 3 September 2013.</ref>

With a total of 291 foreign investor licenses issued in the second quarter of 2019, the kingdom has witnessed an increase in international investment, reflecting the economic reforms under the Saudi Vision 2030. Obtaining a foreign investor license became more straightforward as it requires only two documents, and it is processed in three hours.<ref>{{Cite web|url=http://saudigazette.com.sa/article/577062/SAUDI-ARABIA/Saudi-Arabia-issued-5-new-foreign-investor-licenses-a-day-in-Q2|title=Saudi Arabia issued 5 new foreign investor licenses a day in Q2|date=11 September 2019|website=Saudigazette|language=en|access-date=12 September 2019|archive-date=13 September 2019|archive-url=https://web.archive.org/web/20190913003629/http://saudigazette.com.sa/article/577062/SAUDI-ARABIA/Saudi-Arabia-issued-5-new-foreign-investor-licenses-a-day-in-Q2|url-status=live}}</ref>

===Companies===
{{See also|List of largest companies of Saudi Arabia|List of companies of Saudi Arabia}}

====Saudi Aramco====
[[Saudi Aramco]] (officially the Saudi Arabian Oil Co.) is Saudi Arabia's [[national oil company|national oil, petroleum, and natural gas company]] headquartered in [[Dhahran]].<ref name=obg2009>{{cite book|title=The Report: Saudi Arabia 2009|year=2009|publisher=Oxford Business Group|isbn=978-1-907065-08-8|page=130|url=https://books.google.com/books?id=v6s3wtsA-HgC&pg=PA130|access-date=12 December 2015|archive-date=29 June 2016|archive-url=https://web.archive.org/web/20160629141236/https://books.google.com/books?id=v6s3wtsA-HgC&pg=PA130|url-status=live}}</ref><ref name=sa-aag>{{cite web|title=Our company. At a glance|url=http://www.saudiaramco.com/en/home.html#our-company%257C%252Fen%252Fhome%252Four-company%252Fat-a-glance.baseajax.html|publisher=Saudi Aramco|quote=The Saudi Arabian Oil Co. (Saudi Aramco) is the state-owned oil company of the Kingdom of Saudi Arabia.|access-date=12 May 2014|archive-date=17 June 2016|archive-url=https://web.archive.org/web/20160617144443/http://www.saudiaramco.com/en/home.html#our-company%257C%252Fen%252Fhome%252Four-company%252Fat-a-glance.baseajax.html|url-status=live}}</ref><ref>"[http://www.saudiaramco.com/irj/portal/anonymous?favlnk=%2FSaudiAramcoPublic%2Fdocsnav%2FContact+Us&ln=en Contact Us] {{Webarchive|url=https://web.archive.org/web/20120605235509/http://www.saudiaramco.com/irj/portal/anonymous?favlnk=%2FSaudiAramcoPublic%2Fdocsnav%2FContact+Us&ln=en |date=5 June 2012 }}." Saudi Aramco. Retrieved on 5 November 2009. "Headquarters: Dhahran, Saudi Arabia Address: Saudi Aramco P.O. Box 5000 Dhahran 31311 Saudi Arabia"</ref> Saudi Aramco was listed for public trading on 10 December 2019 and had a valuation as of US$2 trillion as of 12 December 2019.<ref>{{cite web|url=https://www.cnbc.com/2019/12/11/saudi-aramco-ipo-shares-surge-as-trading-begins.html|title=Saudi Aramco shares surge 10% as historic IPO begins trading|first=Natasha|last= Turak|website=[[CNBC]] |date=11 December 2019 }}</ref>

Saudi Aramco has both the second largest proven crude [[oil reserves]], which it claims to be more than {{convert|260|Goilbbl|m3|lk=in}}, and the largest daily oil production.<ref>{{Cite web|url=http://steelguru.com/news/index/2008/03/01/MzgxMjE%3D/Aramco_to_spend_USD_90_billion_to_enhance_production.html|archive-url=https://web.archive.org/web/20100408081650/http://steelguru.com/news/index/2008/03/01/MzgxMjE=/Aramco_to_spend_USD_90_billion_to_enhance_production.html |url-status=dead |title=SteelGuru – News<!-- Bot generated title -->|archive-date=8 April 2010}}</ref> The company operates the world's largest single hydrocarbon network, the Master Gas System. Its yearly production is {{convert|3.479|Goilbbl|m3}},<ref name="facts2012">{{Cite web|url=http://www.saudiaramco.com/content/dam/Publications/Annual%20Review/AnnualReview2010/Annual%20Review_2010_modified_080611.pdf|title=Saudi Aramco Annual Review 2010|access-date=12 May 2014|archive-date=6 August 2017|archive-url=https://web.archive.org/web/20170806181938/http://www.saudiaramco.com/content/dam/Publications/Annual%20Review/AnnualReview2010/Annual%20Review_2010_modified_080611.pdf|url-status=live}}</ref> and it manages over 100 oil and gas fields in Saudi Arabia, including 284.8 [[Orders of magnitude (numbers)#1012|trillion]] [[Standard cubic foot|standard cubic feet (scf)]] of natural gas reserves.<ref name="facts2012"/> Saudi Aramco owns the [[Ghawar Field]], the world's largest oil field, and the [[Shaybah]] Field, another one of the world's largest oil fields.<ref>{{Cite web|url=https://www.forbes.com/2010/01/21/biggest-oil-fields-business-energy-oil-fields.html|title=The World's Biggest Oil Reserves|first=Christopher|last=Helman|website=Forbes|access-date=26 August 2017|archive-date=24 January 2013|archive-url=https://archive.today/20130124020925/http://www.forbes.com/2010/01/21/biggest-oil-fields-business-energy-oil-fields.html|url-status=live}}</ref>

On 16 November 2020, Saudi Aramco announced hiring banks to sell dollar-denominated bonds with the aim of improving finances after the coronavirus pandemic caused a sharp fall in the global demand for crude oil. Aramco's multi-tranche offer was set to run between 3 and 50 years, depending on the market conditions. The banks hired for the transaction included Citi Bank, Goldman Sachs International, HSBC, JP Morgan, Morgan Stanley and NCB Capital.<ref>{{cite news|url=https://www.ft.com/content/c10dcb3b-89cf-4fc4-a1b2-bd434f79258b|title=Saudi Aramco to sell billions of dollars in international bonds|access-date=16 November 2020|website=Financial Times|date=16 November 2020|archive-date=16 November 2020|archive-url=https://web.archive.org/web/20201116085227/https://www.ft.com/content/c10dcb3b-89cf-4fc4-a1b2-bd434f79258b|url-status=live|last1=Kerr|first1=Simeon}}</ref> Other banks involved in the deal included [[BNP Paribas]], [[BOC International]], [[BofA Securities]], [[Crédit Agricole|Credit Agricole]], [[First Abu Dhabi Bank]], [[Mizuho Financial Group|Mizuho]], [[MUFG]], [[SMBC Nikko Securities|SMBC Nikko]] and [[Société Générale|Societe Generale]].<ref>{{cite web|url=https://www.reuters.com/article/us-aramco-bonds/aramco-plans-debt-market-comeback-with-multi-tranche-bond-deal-idUSKBN27W0IP|title=Saudi Aramco plans debt market comeback with multi-tranche bond deal|access-date=15 November 2020|website=Reuters|archive-date=16 November 2020|archive-url=https://web.archive.org/web/20201116075857/https://www.reuters.com/article/us-aramco-bonds/aramco-plans-debt-market-comeback-with-multi-tranche-bond-deal-idUSKBN27W0IP|url-status=live}}</ref>

In 2021, Saudi Aramco made a net-income of 95.5 billion riyals ($25.5 billion) in the second quarter alone, which was the highest level since 2018.<ref>{{cite web|title=Saudi Aramco sees highest profit since 2018 as economies reopen|author=Wallace, Paul|author2=Martin, Matthew|date=9 August 2021|website=aljazeera.com|url=https://www.aljazeera.com/economy/2021/8/9/saudi-aramco-sees-highest-profit-since-2018-as-economies-reopen#:~:text=Saudi%20Aramco%20followed%20its%20Big,since%20the%20end%20of%202018|archive-url=https://web.archive.org/web/20211011194309/https://www.aljazeera.com/economy/2021/8/9/saudi-aramco-sees-highest-profit-since-2018-as-economies-reopen#:~:text=Saudi%20Aramco%20followed%20its%20Big,since%20the%20end%20of%202018 |archive-date=11 October 2021}}</ref>

====SABIC====
The Saudi Arabian Basic Industries Corporation (SABIC) was established by a royal decree in 1976 to produce chemicals, polymers, and fertilizers. In 2008, SABIC was Asia's largest (in terms of market capitalization) and most profitable publicly listed non-oil company, the world's fourth-largest petrochemical company, the second-largest producer of [[ethylene glycol]] and [[methanol]] in the world, the third-largest producer of [[polyethylene]] and overall the fourth-largest producer of [[polypropylene]] and [[polyolefin]]. It ranked 186th as the world's largest corporation on the Fortune Global 500 for 2009. [[Standard & Poor's]] and [[Fitch Ratings]] claimed SABIC to be the world's largest producer of polymers and the Persian Gulf region's largest steel producer for 2005 and assigned SABIC an "A" corporate credit rating. In 2008, Fortune 500 ranking records SABIC revenues at $40.2&nbsp;billion, profits at $5.8&nbsp;billion, and assets standing at $72.4&nbsp;billion.<ref>{{cite web |url=http://www.arabnews.com/?page=6&section=0&article=127085&d=5&m=10&y=2009&pix=business.jpg&category=Business |title=SABIC climbing up the growth ladder |publisher=Arabnews.com |access-date=28 September 2012 |archive-date=26 May 2013 |archive-url=https://web.archive.org/web/20130526173123/http://www.arabnews.com/?page=6&section=0&article=127085&d=5&m=10&y=2009&pix=business.jpg&category=Business |url-status=live }}</ref>

====Ma'aden (company)====
Ma'aden was formed as a Saudi [[joint stock company]] on 23 March 1997 for the purpose of facilitating the development of Saudi Arabia's mineral resources. Ma'aden's activities have focused on its active gold business which has grown in recent years to include the operation of five gold mines: Mahd Ad Dahab, Al Hajar, Sukhaybarat, Bulghah, and Al Amar. Ma'aden is now expanding its activities beyond its gold business with the development of [[Phosphate minerals|phosphates]], aluminium, and other projects. In addition, since its formation, Ma'aden (through the [[Ministry of Petroleum and Mineral Resources of Saudi Arabia|Ministry of Petroleum and Mineral Resources]]) has collaborated with the government and local legislators to develop a regulatory framework for the governance of the mining industry.

==See also==
* [[Agriculture in Saudi Arabia]]
* [[Council of Economic and Development Affairs (Saudi Arabia)]]
* [[Energy in Saudi Arabia]]
* [[Entrepreneurship policies in Saudi Arabia]]
* [[List of Saudi cities by GDP per capita]]
* [[Tourism in Saudi Arabia]]

== References ==

===Notes===
{{notelist}}
{{reflist|group=note}}

===Citations===
{{reflist}}

===Further reading===
* {{cite book |last1=Niblock |first1=Tim |title=The political economy of Saudi Arabia |date=2007 |publisher=Routledge |isbn=978-0-415-42842-2 }}
* Colgan, Jeff D. 2021. ''Partial Hegemony: Oil Politics and International Order.'' Oxford University Press

== External links ==
* [https://www.cia.gov/the-world-factbook/countries/saudi-arabia/ Saudi Arabia]. ''[[The World Factbook]]''. [[Central Intelligence Agency]].
* [https://wits.worldbank.org/CountryProfile/en/Country/SAU/Year/LTST/TradeFlow/EXPIMP/Partner/by-country Saudi Arabia Export, Import, Trade Balance]

{{Saudi Arabia topics}}
{{OPEC}}
{{Asia in topic|Economy of}}
{{World Trade Organization}}

[[Category:Economy of Saudi Arabia| ]]
[[Category:Economy of the Arab League]]
[[Category:OPEC|Saudi Arabia]]
[[Category:Economic history of Saudi Arabia]]