2. Main Industry Sectors
Economic Overview
Foreign Direct Investment [FDI]
FDI Government Measures
Country Strong Points
Country Weak Points
Foreign Trade Overview

3. Agriculture accounts for 3% of the GDP and employs 15% of the active population.
Saudi Arabia is not a very productive sector despite the huge state investments.
Saudi Arabia imports most of its agricultural and food product requirements because of the
geographical and climatic constraints.
Water scarcity is a serious regional problem that the country is likely to face in the coming
years, as growing cultivation of wheat presents a strong threat of water depletion.
The industrial sector represents two thirds of the GDP.
Saudi Arabia is dominated by non-manufacturing activities (oil drilling). The industrial sector
portion, other than oil, is growing due to Saudi state investments, to diversify the economy, the
kingdom having tapped into its financial reserves accumulated by the soaring oil prices.
The services represent 22% of the GDP. This sector is mainly dominated by tourism, financial
and insurance services and the banking sector.

4. The Saudi Arabian economy is entirely based on oil.
Saudi Arabia has the largest oil reserves in the World and is also the World's biggest oil
producer and exporter.
Oil accounts for more than 90% of the country's exports and nearly 80% of government
revenues.
The recovery of the demand in 2010 helped to stabilize growth and offers hope for a
favorable recovery in 2011.
The big construction works policy led by the government as well as direct foreign
investments and the solidity of the banking and financial system have allowed this
country to become the first economy in the region and one of the major ones in the
world.
Inflation, which had reached a record 10% in 2008, mainly due to the increase in the
prices of food products has decreased.
The kingdom's authorities wish to abolish all the existing subsidies, which will in fact
lead to an increase in prices.

5. The government wants to reduce the kingdom's dependence on the oil sector by
diversifying its economic activities and in developing mainly the agricultural, food, and
industry sectors.
The kingdom has a stable and high-quality banking and financial system.
Private investments are supported by generous government financing and incentive
plans.
The standard of living is one of the highest in the region with USD 15,352
GDP/inhabitant.
Saudi Arabia is still marked by an unemployment rate of about 11%. Tourism generates
highly significant revenues (nearly 4 million tourists per year), exclusively on account of
the pilgrimage to Mecca.

6. Long hampered by its unattractive regulatory framework, foreign investment in Saudi Arabia recovered
thanks to its accession to the WTO in late 2005 and especially thanks to the adoption of a more favorable
investment legislation in April 2000.
Saudi Arabia is the main recipient of the foreign direct investments in the Gulf and Middle-East with USD
24.3b.
FDI stocks are constantly on the increase.
The Saudi Arabian government has invested massively in national infrastructures in order to attract
investments.
FDIs are among the most efficient means of diversifying national economy and providing
investment for the young generations.

7. The authorities welcome FDI according to their capacity to bring in technology, employ and train the
workforce, aid economic development and valorize local raw materials.
With controlled inflation and relatively stable exchange rates, openness to foreign capital in upstream gas,
as well as extensive privatization programs are among the advantages attracting the investors into the
country.
The dynamic performance of the banking sector is driving the growth of the non-oil sector.
The access to the world's largest oil reserves, very low energy costs and a high standard of living are
decisive factors for foreign investors.

8. According to the law on foreign direct investment, revised in 2000, foreigners are now allowed
to invest in all sectors of the economy, except for specific activities on a negative list.
Foreign investors are no longer required to take local partners in a number of sectors and may
own real estate for company activities.
They are allowed to transfer their company money outside the country and can sponsor
foreign employees.
In order to facilitate investments in the Kingdom, the Saudi Arabian General Investment
Authority (SAGIA) has set up an Investment Services Centre (ISC).
The ISC must decide to grant or refuse a license within 30 days of receiving an application
from an investor.

9. Once Saudi Arabia became a member of WTO in 2005, the foreign investment climate in the
Kingdom substantially improved.
From an investor's point of view, the country's strong points are economic stability, the
large local market with a high spending power (and a population of over 27 million), sound
infrastructures and a well-regulated banking system.

10. The week points are the inadequate legal framework in resolving
commercial disputes, the lack of transparency in applying the intellectual
property legislation, the government imposed quotas of Saudi employees in
companies, the delayed payment of some government contracts, a restrictive
visa policy for all workers, a very conservative cultural environment and
enforced segregation of the sexes in most business and social settings.

11. The foreign trade share in Saudi Arabia is nearly 90% of the GDP.
Saudi Arabia recorded a highly significant trade surplus in 2008.
Despite the falling oil prices, the country should show a positive balance in the forthcoming years.
Saudi Arabia's main export partners are the United States, China and Japan, followed by Germany
and U.A.E., as well as the Southeast Asian countries
Saudi Arabia exports mainly crude oil (the black gold represents 90% of its exports), plastics,
organic products and chemicals.
Saudi Arabia’s main import partners are the United States, Japan, China and Korea, followed by
other Asian countries (India, Taiwan, Singapore).
Saudi Arabia mainly imports vehicles, machinery, electrical equipment, iron, steel and food
products.
In order to promote international trade, attract foreign investment and diversify the non-oil sectors,
the government has announced plans to establish four "economic cities" in different regions of the
country.

12. Visit us to download for related reports
Market Opportunities of products and Services in Saudi Arabia.
Export and investment sector opportunities in Saudi Arabia.
Overview of Trade Regulations, Customs and Standards Saudi Arabia.
Saudi Arabia Investment guide for beginners.
Business and Project Financing in Saudi Arabia.
Business Travel Advisory in Saudi Arabia.

13.  China  Australia
 Mexico  Germany
 United States  France
 India  Spain
 Canada  South Korea
 Russia  Vietnam
 Hong Kong  Saudi Arabia
 Colombia  Poland
 Brazil  South Africa
 Turkey  Nigeria
 Indonesia  Argentina
 Egypt  UAE
 Singapore  Netherland
 United Kingdom  Sweden
 Italy  Thailand
 Japan  Israel
and more….
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