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Brief history of Saudi Arabia
Short summary of saudi arabia history
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Economic development in Saudi Arabia
Introduction
If you do a small comparison between Saudi Arabia nowadays and in the past, you will get amazed. Saudi Arabia economy is one of the prominent economy nowadays .It has a stable economy that based on many phases. The future of the economy in the whole world faces challenges but in the kingdom, it has many advantages. In this paper the economic development elements in the kingdom is being discussed and the evidence for developing the country is shown.
Historical overview
Before the declaration of the founding Saudi Arabia, the area was just a desert. Economy based on breeding sheep and camels. It was a primitive economy. The only source of income was small trades that depending on transporting because the Arabian Peninsula located in the middle of trade route between Europe and the Far East. The Arabs in the area depend on natural resources for their welfare. Some caught fish from seas, oceans and gulfs in the area. They traded with the Roman Empire in the north and the Persian Empire in the east. However, this did not lead to the welfare of the people in the area.
The Saudi economy is changing tremendously recently. It has taken short period to grow from agriculture economy to global economic power with modern infrastructure. Petroleum and oil products were the reason for the growth. Nowadays not only the country export petrol and oil products but also it exports other products. The government also issued laws to facilitate the transportation of trade from the kingdom to other countries.
The growth in Saudi economy based also on private sectors that is playing a larger role in the economic growth of the country. The private sector is responsibl...
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...nment need to do something to survive the poor economic results for the country as a whole. So the government decided to join world trade organization. Thus the government of Saudi Arabia has to take great measures to maintain its economic development.
Conclusion
Since the establishment of the new country of Saudi Arabia the new leaders exerted great efforts to modernize the country .they set up projects to change the face of the country from blunt desert to a modern place where its people enjoy high standard of living. The government built new companies like Aramco, SABIC and set up new industrial cities everywhere in the country. It encourages tourism and builds new hotels everywhere especially in Makah and Medina. It facilitates transportation and built new routes airports and seaports. Saudi Arabia now is doing its best to develop its economy by all means.
After the fall of the Roman Empire, no one imagined that the next great world power would emerge from Saudi Arabia. Especially, because ancient empires thought that the land was worthless, but they didn’t know that it had great trade routes. Trade brought them in connection with other civilizations and that’s how the city of Mecca, located in Saudi Arabia, became known. The city of Mecca was a mix of religious beliefs, they used to worship many gods and had their own rituals. The world of Islam took place in Mecca, where Muhammad was born in 570 CE.
... had control various territories. Many merchants learned the Islamic language and became custom to their traditions. This allowed for its culture to spread and Islam had received converts. The trading industry has a major effect on the economy and allows the spread of one’s culture.
Industrial revenue generates 30% of the GDP for Jordan. Industries include clothing and textiles, pharmaceuticals, fertilizers, mining, and refining of petroleum. Most of these industries are based on the natural resources found in Jordan and, although Jordan is naturally low on resources, industrial revenue remains their major source of income. Ergo, they rely on trade with other countries (Jordan in Perspective,
Although the United Sates and Saudi Arabia present the United States and Saudi Arabia’s relationship as excellent, there are actually two nations who have bitter disagreements but who allies through oil. The only thing that has held this alliance together is the US dependence on Saudi oil. The United States has felt and still fells that it is a necessity to have bases present in the Middle East to protect oil, and silently to protect Israel. The relationship began in 1933 when Standard Oil of California signed an agreement with the Saudi government. In 1943 FDR affirmed that the defense of Saudi Arabia was a vital interest to the United States and moved troops into the region. Future presidents would emulate this declaration and mobilization of troops to Saudi Arabia. Again in 1945 Abd al Aziz, the Saudi king, and FDR would cement this alliance, on a US warship in the Suez Canal. Soon after, airfields were constructed at Dhahran and other spots over Saudi Arabia; beginning a long tradition of US military facilities in Saudi Arabia. Abd al Aziz was the first of his line of successors to meet with US presidents. The relationship was only strengthened with the onset on the Cold war, as the US used the bases in Saudi Arabia as potential air force launch sites to the USSR and constructed more military facilities. In 1941 Harry S. Truman made another assertion of Americas protection and alliance with Saudi Arabia to Abd Al Aziz. Truman stated that “support for Saudi Arabia’s territorial integrity and political independence was a primary objective of the United States.” (Countrystudies.com) Another stipulation of this pact was that the US established a permanent military training mission in the Saudi Arabia. That mission lasted until 1992. Soon after the pact between Truman and Aziz was agreed upon the US-Saudi relationship would endure its first major disagreement. On May 14th, 1948 Israel was declared an independent state in the former Arab dominated Palestine. Israel’s independence was backed the United States. Saudi Arabia refused to acknowledge the country of Israel and to engage in any relations with them. The Saudis concerns of the Israel-US relationship were reinforced in the 1970’s and 1980’s when the US sold arms to Israel, but refused to sell arms to Saudi Arabia. In some cases congressional leaders refused to sell arms to Saudi Arabia on the grounds that Saudi Arabia might use them against Israel.
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.
First of all, Saudi Arabia and China have some similarities. The former has the international airports and the latter has too. Saudi Arabia keen on literature just as China does. Fast food is popular not only in China put also in Saudi Arabia, for examples, Mc Donald's hamburgers, French fries and Kentucky fried chicken. In addition, both Saudi Arabia and China have made a mutually enriching exchange of cuisine. There are Chinese restaurants in Saudi Arabia, where diners can enjoy Chinese food, for instance Chinese meal in Suzhou with rice, shrimp, eggplant and vegetable s...
In fact, occasional protests occurred particularly in the Shiite east of the country. But the regime successfully used its rich resources to keep the country stable. The revenues from the oil sector allowed Saudi Arabia to offer concessions that helped to depoliticize strategic sectors of society, and to finance and increase security and intelligence forces. When protests occurred in other Arab states, the government immediately imposed a nationwide ban on demonstrations. King Abdullah also announced a vast subsidy program. Furthermore, the royal family received a valuable support from the influential Council of Senior Islamic Scholars which said that demonstrations are not compatible with Islam and therefore declared a ban on protests.
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.
OPEC was established in the 1960's and ever since, Saudi Arabia gained a reputation of being the major power of the organization. Saudi Arabia has the biggest oil reserves in the world and production costs lower than any country. (economist.com 2003)This means that it is a natural monopoly and economies of scale arises; when the long run average total cost falls as the quantity of output increases as illustrated in figure 1. (Gans, J. King, S., Mankiw, N., 2003) Saudi Arabia is the undisputed leader of OPEC.
The largest world supplier oil company is Saudi Aramco. It is the most profitable company on the earth. Since it is the most powerful oil company, it has a great impact on the world economy. As a result, a strong international relationship was built with the Kingdom of Saudi Arabia. In addition, the strong developing of international relationship with other industrial countries resulted in massive contributions to the politics, economy, and many different aspects. In 1933, Saudi government bestowed oil concession to California Arabian Standard Oil Company (Chevron). The main factor for this grant was to explore the oil in the eastern region of the Kingdom of Saudi Arabia. After discovering a huge amount of oil, part of the grant was sold to other American oil companies in order to cooperate with each other to do more exploration and to deal with such a big job. In 1948, all these American companies were incorporated into Arabian American Oil Company (Aramco) shared 50% of its profits with Saudi government. Furthermore, the company’s shares had been acquiring by Saudi government to gain 100% of its ownership. In 1988, the name changed to Saudi Aramco. The Headquarter of Saudi Aramoc is located in Dhahran, a city in eastern region of Saudi Arabia. Saudi Aramco produces 10 million barrels of oil each day. The history of Saudi Aramco went through three major periods: exploring oil, interconnecting with the USA, and contributing to other many universal events.
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
The transportation & logistics industry is a form of industry that keeps people and products on the move, it includes airlines and airports, shipping companies, logistics service providers and other transportation companies. That’s why it is considered the backbone of modern global supply chains. In a place like the Kingdom of Saudi Arabia that has diverse geography with a dry desert and great temperature extremes and a large area of about 2.1 million square km, a transportation & logistics industry is a necessity. Imagine you need to move from one city to another (of course it will be so hard to cross large areas of empty deserts) you have only two options to transfer from one to another city; the first option is to drive and the second option is to fly and ship your car via a car transport carrier. The harsh climate in Saudi Arabia makes people to prefer using the second option, this cause the market of transport market to enlarge. Albassami International Group is one of the biggest companies established to satisfy those needs. It is considered one of the biggest companies specialized in vehicle transportation in the Middle East. The philosophy of the company is to serve the needs of the clients over the span of thirty two years, throughout which they constantly had an eye to the future by evaluating the most appropriate ways in which to make transporting clients’ vehicles via the best and safest answer. They operate round the clock to serve clients at all times.
Being Saudi Arabian is to be faithful and authentic to one important religious symbol of Islam which is being believer of Allah but no one else and being the believer that Mohammed is the prophet of Allah, which is considered very essential aspect of the culture. Saudi Arabians are the people who have strong affiliation and loyalty to the authentic, generous, wise Arab tribes who settled in the Arabian Peninsula many years ago. In addition, being Saudi Arabian represents being loyal to the country that fully contributed to providing free healthcare, education, and public services for the citizens. Saudi Arabians are the people who care and help others when they face life-threatening disasters. Saudi Arabia has many symbols that represent them.
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.
Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public