Saudi Arabia Economy - 2004

Economy - overview:
This is an oil-based economy with strong government controls over major economic activities. Saudi Arabia has the largest reserves of petroleum in the world (25% of the proved reserves), ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 75% of budget revenues, 45% of GDP, and 90% of export earnings. About 40% of GDP comes from the private sector. Roughly five and a half million foreign workers play an important role in the Saudi economy, for example, in the oil and service sectors. The government in 1999 announced plans to begin privatizing the electricity companies, which follows the ongoing privatization of the telecommunications company. The government is encouraging private sector growth to lessen the kingdom's dependence on oil and increase employment opportunities for the swelling Saudi population. Priorities for government spending in the short term include additional funds for education and for the water and sewage systems. Economic reforms proceed cautiously because of deep-rooted political and social conservatism.

GDP:
purchasing power parity - $286.2 billion (2003 est.)

GDP - real growth rate:
4.7% (2003 est.)

GDP - per capita:
purchasing power parity - $11,800 (2003 est.)

GDP - composition by sector:
agriculture: 5.2%
industry: 50.4%
services: 44.4% (2002 est.)

Population below poverty line:
NA% (2001)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices):
1% (2003 est.)

Labor force:
7 million
note: more than 35% of the population in the 15-64 age group is non-national (1999)

Labor force - by occupation:
agriculture 12%, industry 25%, services 63% (1999 est.)

Unemployment rate:
25% (2003)

Budget:
revenues: $78.7 billion
expenditures: $66.7 billion, including capital expenditures of $NA (2003 est.)

Industries:
crude oil production, petroleum refining, basic petrochemicals, cement, construction, fertilizer, plastics

Industrial production growth rate:
1% (1997 est.)

Electricity - production:
122.4 billion kWh (2001)

Electricity - production by source:
fossil fuel: 100%
hydro: 0%
other: 0% (2001)
nuclear: 0%

Electricity - consumption:
113.8 billion kWh (2001)

Electricity - exports:
0 kWh (2001)

Electricity - imports:
0 kWh (2001)

Oil - production:
8.711 million bbl/day (2001 est.)

Oil - consumption:
1.452 million bbl/day (2001 est.)

Oil - exports:
7.92 million bbl/day (2001)

Oil - imports:
NA

Oil - proved reserves:
261.7 billion bbl (1 January 2002)

Natural gas - production:
53.69 billion cu m (2001 est.)

Natural gas - consumption:
53.69 billion cu m (2001 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
0 cu m (2001 est.)

Natural gas - proved reserves:
6.339 trillion cu m (1 January 2002)

Agriculture - products:
wheat, barley, tomatoes, melons, dates, citrus; mutton, chickens, eggs, milk

Exports:
$86.53 billion f.o.b. (2003 est.)

Exports - commodities:
petroleum and petroleum products 90%

Exports - partners:
US 18.9%, Japan 15.9%, South Korea 10.3%, Singapore 5.2%, China 4.7% (2002)

Imports:
$30.38 billion f.o.b. (2003 est.)

Imports - commodities:
machinery and equipment, foodstuffs, chemicals, motor vehicles, textiles

Imports - partners:
US 11.1%, Japan 8.7%, Germany 7.5%, UK 4.9%, France 4.8%, Italy 4% (2002)

Debt - external:
$24.2 billion (2003)

Economic aid - donor:
pledged $100 million in 1993 to fund reconstruction of Lebanon; since 2000, Saudi Arabia has committed $307 million for assistance to the Palestinians; pledged $240 million to development in Afghanistan; pledged $1 billion in export guarantees and soft loans to Iraq

Currency:
Saudi riyal (SAR)

Currency code:
SAR

Exchange rates:
Saudi riyals per US dollar - 3.75 (2003), 3.75 (2002), 3.75 (2001), 3.75 (2000), 3.75 (1999)