Economy of Saudi Arabia 2010

If we study the economy of Saudi Arabia in 2010, we find that economy of Saudi Arabia is at boom due to increasing the prices of Petrol Oil. Today in India its cost is more than Rs. 50 per liter. But I think, Saudi Arabia has to pay just Rs. 5 to Rs. 10 for its production. Saudi Arabia is only country whose 90% earning comes from oil industries. It means Saudi Arabia’s business and economy is fully dependent on petroleum.

If we measure economy of Saudi Arabia with two macro economics parameter, we can know that both GDP and Per Capita income is very high than other Arab countries. One more important factor of soundness of Saudi Arabia economy that it has large amount reserve of petrol, more than 260 billion barrels is still unused. Saudi Arabia is earning by selling this reserve oil. System of selling is very easy. Its government has appointed some companies. Main company is SAMAREC, its duty to withdraw the crude oil, clean it and then transport it through tankers or through underground pipelines.

Features of Economy of Saudi Arabia 2010

1. According to doing business report of World bank’s international finance corporation,” Saudi Arabia is 13th most economically competitive country.

2. Public debt is just 20% of total GDP.

3. Revenue is $ 167.7 billion.

4. Saudi Arabia is also big donor. It provides economic aid to Islamic countries in the form of donation. More than $ 1 billion has been given by Saudi Arabia to Islamic countries.

5. One of weak point of Saudi Arabia that there is no water in this country. More than 30% of its total import is just import of water. But if we compare, it with India’s economy, we can say that we have not petrol but we have unlimited reserve of pure water. But, I am very sad that Indians do not understand that this is our great asset like petrol and they are wasting water for just cleaning their cars. It is so bad.