1. Saudi Arabia
{ An Economic Profile

2. Figure Statistic
GDP (PPP) $622 billion
GDP growth rate 3.7% Index of
Population 26,131,703 Economic
Per capita GDP
Unemployment
$24,200
10.8% { Freedom
Ranking of
Inflation Rate 5.7%
54
Statistics

3. Brief History
 Unified on September 23, 1932
 Birthplace of Islam
 Home to Mecca and Medina
 Oil encompasses 90% of trade and
88% of government revenues
 Current leader is King Abdulla bin
Abd al-Aziz Al Shaud, been in
office since 2005

4. Political Environment
 Monarchy governed by Islamic law,
sharia
 Shift to regional politics under King
Fahd
 King Abdullah’s new initiatives
 Improving social welfare
 Diversification
 Reorganizing the government
sector

5. Trade
 Imports
 Machinery and equipment, foodstuffs,
chemicals, motor vehicles, textiles
 U.S., China, Germany, Japan
 Exports
 Petroleum and petroleum products
 Japan, South Korea, U.S., China
 Domestic Changes
 Demand for specialized skills in the
industry sector

6. Production and Trade
Flows
 Weighted average tariff rate was 3.9%
in 2009
 High tariff on agricultural goods and
ban on the imports of swine
 High protection on intellectual
property
 Low freedom of trade score was a
result of existence of nontariff barriers

7. Figure Statistic
Trade Balance $39,082 million
Current Account Balance $18,604 million
Level of External Debt $82.92 million
IIP ($7,832 million)
Exchange Rate of 3.75
Pegged to the U.S. dollar
International Finance

8. Financial Crisis
 “Oil was like a drug that drove
out other opportunities.”
-Vietor
 Oil shocks
 A bailout for OPEC

9. Regional Trade Agreement
 Gulf Cooperation Council
 Customs Union
 Official date of entry: January
1, 2003
 Benefits
 Fostering scientific research
 Unified military presence
 Further attempt to diversify
 Imports in years following signing
rose by over $40 billion (Vietor)