Saudi Arabia Basic Information
Official Name : Kingdom of Saudi Arabia
Political System : Monarchy
The King and the Prime minister : is the custodian of the two (2) Holy Mosques, King Abdullah Bin Abdul Aziz Al-Saud System of governance : System of governance is stipulated in the basic law of the governance which states the following: Art. 7: Governance of the in the kingdom of Saudi Arabia derives its authority from the Holy Quaran and the Sunnah of his Prophet Mohammed, both of which govern this law and all the laws of the state. Art. 8: Governance in the Kingdom of Saudi Arabia shall be based on justice, shura (consultation), and equality in accordance with the Islamic Shariah.
Location : The Kingdom of Saudi Arabia lies at the furthermost part of the South Western Asia. It is bordered to the West by the Red Sea, to the north by Kuwait, Iraq and Jordan, and to the South by Yemen and the Sultanate of Oman.
Capital : Riyadh
Area : 2,149,000 square kilometers
Climate : Tropical Climate, generally hot in Summer and cold in Winter
Official Language : Arabic, but English is commonly used, especially in commercial correspondences.
Main cities : Riyadh, Jeddah, Dammam, Makkah, Madinah, Taif
Administrative region of the Kingdom : The Kingdom of Saudi Arabia is composed of 13 administrative region and each is composed of a number of provinces. The Kingdom comprises 43 provinces of Category (B).
Labor Market
Total labor force 8.2 million
- Saudis 48.6%
- Non-Saudis 51.4$
Total Labor Force in the government sector 803.7 million
- Saudis 91.3%
- Non-Saudis 8.7%
Total Labor Force in the private sector 5.6million
- Saudis 12.8%
- Non-Saudis 87.2
Employment Distribution by Sectors
Labor cost: the average cost per labor in the private sector is $369/month. Source: Council of Saudi Chambers, Portal of Entry for the Middle East, Vol.7 September 2008.
Saudi Economy
The Economic System
The Kingdom of Saudi adopts the market forces or free economic system which is based on the supply and demand and on competition. There are no foreign exchange controls or quantitative restrictions on the imports of goods, except on small number of commodities which are prohibited for reasons pertaining to the national security and the protection of the public health of the citizens. Customs duties are very low, with some essential items entering duty-free.
The Regional and Global Importance of the Saudi Economy
- The Kingdom ranks at the top in global oil reserves, production and exports.
- Owns 25%of the international oil reserve
- Occupies the World’s 4th rank in the gas reserves
- The Kingdom has been classified as one of the Largest 20 economies in the world
- Rank number 23 amongst the top 178 countries in attracting the foreign investments.
- The largest producer of petrochemicals in the Arab World
- Ranks number 33 amongst the world biggest exporters
- Ranks number 12 amongst the world biggest importers
- One of the largest economies in the Middle East
- A major contributor in developing the economies of the third world countries
- A member of the WTO and many of the international and Arab Organizations
Some Indicators of the Development of the Saudi Economy in 2007
- The GDP of Saudi stood at 377$ billion (at current prices).
- The Sector contributions of the GDP were as follows:
- A. Oil Sector its 54.9%
- B. Non-oil sector 45.2%
- Private sector 63%
- Government sector 37%
GDP growth rate (at current prices 7.1%
Per capita GDP $15700.
Contribution of the major economic activities to the GDP can be seen on the chart below.
Source : Council of Saudi Chambers, Portal of Entry for the Middle East, Vol.7 September 2008
