Saudi Arabia

Background:

This is an oil-based economy with strong government controls over major economic activities. Saudi Arabia possesses 25% of the world's proven petroleum 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. 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.

Indicators 2001 2002 2003

GDP (USD billion) 183.257 188.471 211.440

Real GDP growth (constant prices) 1.3% 1.0% 6.4%

GDP per capita (USD) 8598.756 8544.373 9261.519

Inflation rate -0.8% -0.6% 0.5%

Unemployment rate .. .. ..

External debt (USD billion) .. .. ..

Riyal rate on 12/31 (1 US$) 3.7502 3.7507 3.7505

Political System:

Saudi Arabia is an Islamic monarchy, it does not admit either election, parties, or trade unions and does not recognize nor guarantee any public or private freedom. The Parliament is composed of a consultative Council (maljis al Chara) of 90 members designated by the King, a cabinet, a legislative and executive authority. The Islamic law (Charia) represents the fundamental law of the State. There are no political