Saudi Arabia Economy - 2005

Economy - overview:
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, 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 - $310.2 billion (2004 est.)

GDP - real growth rate:
5% (2004 est.)

GDP - per capita:
purchasing power parity - $12,000 (2004 est.)

GDP - composition by sector:
agriculture: 4.2%
industry: 67.2%
services: 28.6% (2004 est.)

Labor force:
6.62 million
note: more than 35% of the population in the 15-64 age group is non-national (2004 est.)

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

Unemployment rate:
25% (unofficial estimate) (2004 est.)

Population below poverty line:
NA

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

Inflation rate (consumer prices):
0.8% (2004 est.)

Investment (gross fixed):
17.2% of GDP (2004 est.)

Budget:
revenues: $104.8 billion
expenditures: $78.66 billion, including capital expenditures of NA (2004 est.)

Public debt:
75% of GDP (2004 est.)

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

Industries:
crude oil production, petroleum refining, basic petrochemicals, ammonia, industrial gases, sodium hydroxide (caustic soda), cement, construction, fertilizer, plastics, commercial ship repair, commercial aircraft repair

Industrial production growth rate:
2.8% (2004 est.)

Electricity - production:
138.2 billion kWh (2002)

Electricity - consumption:
128.5 billion kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
0 kWh (2002)

Oil - production:
9.021 million bbl/day (2004 est.)

Oil - consumption:
1.55 million bbl/day (2003)

Oil - exports:
7.92 million bbl/day (2003)

Oil - imports:
0 bbl/day (2003)

Oil - proved reserves:
261.7 billion bbl (2004 est.)

Natural gas - production:
56.4 billion cu m (2002)

Natural gas - consumption:
56.4 billion cu m (2002)

Natural gas - exports:
0 cu m (2002)

Natural gas - imports:
0 cu m (2002)

Natural gas - proved reserves:
6.339 trillion cu m (2004)

Current account balance:
$51.5 billion (2004 est.)

Exports:
$113 billion f.o.b. (2004 est.)

Exports - commodities:
petroleum and petroleum products 90%

Exports - partners:
US 19.3%, Japan 16.4%, South Korea 8.7%, China 5.8%, Singapore 4.5% (2004)

Imports:
$36.21 billion f.o.b. (2004 est.)

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

Imports - partners:
US 9.3%, Germany 6.8%, Japan 6.7%, UK 5.4%, China 5% (2004)

Reserves of foreign exchange and gold:
$23.62 billion (2004 est.)

Debt - external:
$34.35 billion (2004 est.)

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 (code):
Saudi riyal (SAR)

Exchange rates:
Saudi riyals per US dollar - 3.745 (2004), 3.745 (2003), 3.745 (2002), 3.745 (2001), 3.745 (2000)