Most of the GCC region’s private wealth (74 per cent) is controlled by affluent individuals in Saudi Arabia and the UAE, according to a new study by Strategy&, formerly Booz & Company.
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Ecoonomy of Saudi Arabia Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 20% 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 80% of budget revenues, 45% of GDP, and 90% of export earnings. Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. Diversification efforts are focusing on power generation, telecommunications, natural gas exploration, and petrochemical sectors. Almost 6 million foreign workers play an important role in the Saudi economy, particularly in the oil and service sectors, while Riyadh is struggling to reduce unemployment among its own nationals. Saudi officials are particularly focused on employing its large youth population. Riyadh has substantially boosted spending on job training and education, most recently with the opening of the King Abdallah University of Science and Technology - Saudi Arabia's first co-educational university. Due to a sharp rise in petroleum revenues in 1974 following the 1973 Arab-Israeli war, Saudi Arabia became one of the fastest-growing economies in the world. Mainly in the last ten years, with an average real GDP growth of nearly 3.5%, nominal GDP has witnessed a sharp increase from about $189 billion in 2000 to more than $434 billion in 2010. The nonoil sector is expected to primarily drive the Kingdom's real GDP growth, as the government continues to take initiatives to diversify away from oil and address social and development needs. The nonoil private sector's growth is estimated to stay above the real GDP forecast, with growth averaging above 5.5 percent. Population growth in Saudi Arabia is estimated to decelerate significantly in the coming decades following rapid growth in the last decade (2000-2010). Population growth is estimated to slow down to a CAGR of 2.0 percent between 2010 and 2020 and a CAGR of 1.4 percent during 2020-2030 vis-a-vis a CAGR of 3.2 percent in the previous decade (2000-2010). Saudi Arabia aims to create 3 million jobs for nationals by 2015 and 6 million jobs by 2030, partly through the Saudization initiative. In the past decade (2001-2010), Saudi Arabia saw average annual growth of 3.3 percent, reaching 3.8 percent in 2010, and 6.8 percent in 2011. The International Monetary Fund (IMF) has predicted that Saudi Arabia’s real GDP growth will average of 4.4 percent through 2016. According to the IMF data of 2015 the growth in the non-oil GDP was estimated at 5.5%. One of the main contributors of the Kingdom’s non-oil GDP is the construction industry.
Essential Information Area: 2,240,000 sq km Visa Requirements: Visas are obtainable from Saudi-Arabian consulates abroad. Arriving visitors are strongly advised not to attempt to carry any alcohol into the country, where it is strictly forbidden. Discovery of alcohol can lead to immediate expulsion from the entry point.
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