Saudi Arabia

Economy

Saudi Arabia has an oil-based economy with strong government controls over major economic activities. Saudi Arabia is known to be in possession of 260.1 billion barrels of oil reserves as of 2003, about 24% of the world's proven total petroleum reserves. It ranks as the largest exporter of petroleum and plays a leading role in OPEC. Moreover, the proven reserves increase gradually as more oil fields are discovered, unlike most other oil-producing countries. The petroleum sector accounts for roughly 75% of budget revenues, 40% of the GDP, and 90% of export earnings. About 35% of the GDP comes from the private sector. Saudi Arabia was a key player in the successful efforts of OPEC and other oil producing countries to raise the price of oil in 1999 to its highest level since the Gulf War by reducing production. Saudi Arabia announced plans to begin privatizing the electricity companies in 1999, which followed the ongoing privatization of the telecommunications company. The government is expected to continue calling for private sector growth to lessen the kingdom's dependence on oil and increase employment opportunities for the swelling Saudi population. Shortages of water and rapid population growth may constrain government efforts to increase self-sufficiency in agricultural products.

Related Topics:
Oil - OPEC - 1999 - Gulf War

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In recent years, Saudi Arabia has experienced a significant contraction of oil revenues combined with a high rate of population growth. Per capita income has fallen from $25,000 in 1980 to $8,000 in 2003, up from about $7,000 in 1999. The decline in inflation-adjusted per-capita income from 1980 to 1999 set a record, being by far the worst such decline suffered by any nation-state in history.

Related Topics:
1980 - 2003 - 1999

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Recently, with higher oil prices, however, Saudi Arabia's oil revenues have increased dramatically.

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Forced labor

Saudi Arabia is a destination for men and women from South and East Asia and East Africa seeking work. Hundreds of thousands of low-skilled workers from third world regions migrate voluntarily to Saudi Arabia. A minority of these immigrants are trafficked for the purpose of labor exploitation, begging, or involuntary servitude. Many of these involuntary workers suffer from abuse, non-payment or delayed payment of wages, the withholding of travel documents, restrictions on their freedom of movement and non-consensual contract alterations. Reports claim that young children from certain countries are also smuggled to Saudi Arabia to be used as jockeys in camel races and that the children are underfed before races to reduce their weight to lighten the load on the camel. In recent years, international pressure has mounted concerning use of children as camel jockeys.

Related Topics:
Trafficked - Begging - Involuntary servitude - Wage - Camel

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