Saturday, April 30, 2011

Saudi Arabia Economic Forecast

World Economic outlook - Saudi Arabia Economic Forecast ; Saudi Arabia has long been known for its strong economy based on oil and gas. In addition, this country’s economy has skirted many of the problems other countries have faced primarily because of the government maintaining strong control. With Saudi Arabia possessing over 20% of the validated oil and gas national reserves in the world, it ranks as the largest exporter and is a leader for the Oil and Petroleum Exporting Countries, or OPEC. In fact, of the country’s budget earnings, the gas and oil sector accounts for about 80%, for Gross Domestic Product, 45%, and for export revenues, 90%.

In 2008, domestic public debt was paid down due to high oil and gas prices. In addition, with ownership of foreign assets, more private sector growth is being encouraged, specifically in areas of natural gas exploration, telecommunications, power generation, and petrochemicals. Other positive changes have been an increase of technical skills and education, along with facilities, infrastructure development, and government salaries putting the Saudi Arabia economy is a good position. Even so, some growth decreased in 2009 due to the global financial crisis, tighter than normal international credit, and lower prices for oil and gas but even with this, Saudi Arabia stands strong.

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