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The economic growth of saudi arabia short essays
Impact of oil on the economy
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The main and the most important problem of Saudi Arabia's economy is a strong dependence on the oil sector. The oil sector accounts for about 58% of GDP. In this regard, appears the question of economic diversification. The development of diversification plan began in 1996, according to the second five-year plan of economic development. However, the plan still has not brought significant results (you can see it from the statistics in the appendix). One of the key points of the economy's diversification is the development of the gas sector. Saudi Arabia is ranked sixth in the world reserves of this type of fuel (which is 3.9% of the world's reserves), but this sector remains undeveloped. The Government is making big bets on the development of gas, as they suppose it will help Saudi Arabia to become less dependent on oil. But the development of the gas industry will not help Saudi Arabia to diversify its economy, because this industry is related to the oil and will only aggravate the kingdom dependence on hydrocarbons .
An important problem associated with the energy industry is a high level of energy consumption in the country. Government subsidized energy prices and carries an energy-intensive projects of industrialization and urbanization. According to the report of Saudi Electricity Company, in 2011 nearly a third of oil production in the Kingdom (8.5 million barrels per day) goes to local consumption. Moreover, the report's authors warn that if the consumption and production keeps the current level, by 2030 the country will be unable to meet the needs of the local population.
Another acute problem is the costs of small and medium business. The problem is that most businesses in the Kingdom are either government or belonging to ...
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...n the Saudi market, on the other hand, protect those, who already settled in this country and does not want the presence of competitors in their field. In this regard, the government is doing everything possible to protect the Saudi economy from the influx of foreign companies. Despite the strong statements of the government on the promotion of foreign companies in the Kingdom, it is just trying to attract more investments for their own needs .
The main problems facing the economy of Saudi Arabia, one can conclude, is that the state has a policy which aims to protect the kingdom. How long the country will be able to survive in such an environment – it is unknown. However , due to the fall of some regimes in the Middle East and the discontent of the local population, there may be some shifts in favor of opening up and modernization of the economy in the near future.
The quote given by George W. Bush on the top of this page laid down a strong game plan concerning the war on terrorism and where it is heading in the next few years. The result of declaring war on terrorism has seen much success over the past year and a half. However, in this war we have failed to apply two very crucial tactics in fighting terror; stopping the money sources and de-legitimizing terrorism. If we fail to apply these tactics, long lasting progress in the war against terror is doubtful if we continue to play the appeasement game with Saudi Arabia because this country has and will continue to remain the largest offender of both points. Saudi Arabia is a country that is run by a corrupt dictatorship which allows an extreme view of Islam called Wahhabism to thrive in the country as well as supplying funds for the spread of it throughout the rest of the world. We have cal...
Cultures are unique in many ways; it is irregular to see cultures that are exactly the same as another. While some may borrow parts from neighboring countries or villages, all in all, their unique differences are what make each culture significant. One of the things about the Saudi Arabia and the culture is how derived it is around history, faith, marketing, control, and how westernization affects the country. Other things that will be discussed about the country Saudi Arabia relates to what is important not only to me, but also the way we as Americans culturally identify ourselves with the women of the country.
Saudi Arabia and Qatar are both independent, Middle Eastern nations located on the Arabian Gulf peninsula. They share the same religion, same ruling style and same ruling religion. They are both Islamic monarchies where Wahhabism—a fundamentalist sect of Islam—is the primary faith among their people and the faith of their ruling families. Their economies follow nearly identical paths, as oil wealth is the primary sector of both of their Gross Domestic Products (GDPs) and largely controlled by the government. Both Saudi Arabia and Qatar are economically oil-driven Wahabist kingdoms; however, Qatar 's lack of reliance on Wahhabism coupled with its acceptance of its own ephemerality has
They increase the spending on connectivity and human resources (Saudi Arabia Emergence Innovation Kingdom, 2014). Saudi Arabia is the largest economy in the Middle East and the richest Arab country. The economy of Saudi Arabia is entirely based on oil (Smetoolkit.org, 2014). Saudi Arabia is the 19th largest exporter and the 20th largest import market in the world (Saudiembassy.net, 2014). Exports now in the kingdom include all economic sectors.
If the federal government support the small business financially, this may result in more prospurity, and co9vergae of clinical shortage . It is important to assign deligates to persuave some banks to l begin accepting applications from financial institutions who are interested in becoming Community Advantage lenders. It is essential to lobby the government to join thousands of partnerships , and focus on health,, education and welfare. The role will be more effective if we expand the partnership globally. global funding. Global funding can be significant in building program targeting HIV/AIDS, malaria and tuberculosis that are high risk from these diseases. Our focus should be focused on human development and not on energy development.
Relations between the United States and Saudi Arabia are complicated to say the least. Saudi Arabia is a major exporter of oil and in order to “protect a stable and cheap supply of oil” coming to the U.S. and our allies, military bases have been set up. Although the U.S. is there to aid Saudi Arabia, “the presence of bases fosters opposition to the regime they are there to protect”—classic catch-22 (Okruhlik).
Saudi Arabia is one of largest Muslim populated Countries in the world, which follows the Islamic culture. The laws are called “Laws of God”, which are apparently interpreted from the Quran. The “Laws of God” is also known as the Sharia laws. The Sharia laws have great impact on Saudi Arabian women, Muslim citizens and Non-Muslim expatiates. Women of Saudi Arabia have limited rights based on the countries Islamic beliefs. However, they are gradually making progress to uplifting some restrictions. Muslim citizens have rigorous rules set in place as well. Furthermore, Non- Muslim citizens are stripped of their rights to Freedom of Religion.
The U.S dependency on foreign oil presents many negative impacts on the nation’s economy. The cost for crude oil represents about 36% of the U.S balance of payment deficit. (Wright, R. T., & Boorse, D. F. 2011). This does not affect directly the price of gas being paid by consumers, but the money paid circulates in the country’s economy and affects areas such as; the job market and production facilities. (Wright, R. T., & Boorse, D. F. 2011). In addition to the rise in prices, another negative aspect of the U.S dependency on foreign crude oil is the risk of supply disruptions caused by political instability of the Middle East. According to Rebecca Lefton and Daniel J. Weiss in the Article “Oil Dependence Is a Dangerous Habit” in 2010, the U.S imported 4 million barrels of oil a day or 1.5 billion barrels per year from “dangerous or unstable” countries. The prices in which these barrels are being purchased at are still very high, and often lead to conflict between the U.S and Middle Eastern countries. Lefton and Weiss also add that the U.S reliance on oil from countries ...
The Saudi Arabia is a country with a huge culture and with many traditions. The culture is mostly influenced by their religion that is Islam. An example is that the women there is not allowed to drive a car, they can only got delivered by a family member or a driver. This Law is being used because of the holy Mekka Al-mukara...
Political and legal considerations were given first priority in this analysis with primary emphasis given to whether a country's legal or political system prohibits or impedes foreign investment. If a country's political or legal system discouraged or prevented foreign investment, that country was disqualified from further consideration. Factors considered when assessing the political and legal environment:
Crimes punishable by the death sentence in Saudi Arabia include murder, serious attacks on the Islam religion, adultery, dress codes, and since 1987, drug smuggling. Under Saudi Arabian law, serious crimes merit serious consequences. Repeated theft is punishable by amputation of the right hand, administered under anesthetic. Because most meals in Saudi Arabia are eaten by hand from a communal bowl and only the right hand may touch the food, this punishment effectively bans the convicted thief from society. The severity of this punishment has led to a slight softening of the law in recent years; now if the thief repents and makes restitution before the case is brought before a judge, the punishment can be reduced... furthermore, the victim of the crime may demand payment rather than amputation of the thief’s right hand, and in some cases the victim is even permitted to parden the criminal. In a typical year at least ten hands amputations are carried out for repeated thievery in Saudi Arabia. (Goodwin, 1943) Today in the United States, crimes such as theft are punishable by jail sentence if they have more than one thievery act.
This report draws from many publications written over the last twenty years exposing the unique situation in Saudi Arabia, while also utilizing recent headl...
Saudi Arabia’s capital market is considered to be young compared to other financial markets in the region. Saudi financial markets have been developing slowly because most enterprises in the country are either government owned or family-owned, most of which was funded through state budget, and as a result reduced the need for financing. In the recent past, Saudi Arabia has focused on a careful measurement for structural developments and regulatory changes. However, different phases of historical development of the capital market which can be classified into three phases; pre-industrialization phase, post industrialization phase and growth phase that sparked changes and shaped the kingdom 's capital market on
Over the past 200 years, mankind discovered the fossil fuels and they used this source to produce hug energy. This affects the environment in many negative ways and caused many issues worldwide such as urban air pollution and acid rain, oil spills and the high temperature of earth. Saudi Arabia has the biggest oil reserves in the world by 19.66% (the world factbook, 2011) and the second oil producer country in the world with roughly 10.121 million barrels a day – which account for 12% of the total world production of oil in 2010 (Fontinelle,2011). Moreover, the country relies heavily on oil industry. And the most successful companies in the country are thus whose work in oil industry such as ARAMCO Company. The reason behind this success is because most of these companies get financial support and attention from the Saudi government and sometimes the government owes these companies. Because of the massive reserve of oil and the high income that generated from oil, the country has less attention to seek for other sources of clean energy such as solar energy and wind energy which leads to the increase of air pollution in the country. However, oil is expected to last in the next 50 to 100 years (Hubbert, 1956). Furthermore, the International organizations have made many decisions to protect the environment and environmental resource such as Kyoto Protocol which decided to raise the use of solar energy to 50%of the total global energy use by 2020 (UNFCCC ,2005 ). Recently, these issues lead the Saudi government to realize problems, such as air pollutions, and start to invest in clean energy area but not as expected. These days many people in Saudi Arabia argue the uses of clean energy and replace with the fossil fuels. And they d...
...Arabia is a petrostate. Oil dominates the national economy, international exports, and the nation’s politics. It has greatly shaped what the kingdom is today. Having started out as somewhat of a tourist economy, the kingdom has become a world, monetary power. From their massive amounts of oil and extremely cheap production, the country has been able to gain large amounts of affluence and political power. With its large abundance of oil, the country has been able to profit immensely on sales and spur diplomatic outcomes to their benefit due to the great need of the resource. Without the discovery oil, Saudi Arabia would be of little importance in the modern world, having the Grand Mosque be the extent of its importance. But because of its discovery of oil, Saudi Arabia became of international importance, coming to be one of the greatest assets to world superpowers.