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Name: Mohammed Abdullah Al Yami
ID :
201002440
Dr. Ali Al ghazo
Subject: Writing and Research
Year:
Fall Semester of 2012
The effect of the oil on the economy of the
KSA
Statement of purpose:Saudi Arabia has an economy which is based on oil
trading, exporting and oil industries and the
government controls the major economic activities.
The high increase in the oil prices that happened in
1973 led to a rapid improvement in the KSA terms of
trade which resulted to a high increase in the
proportion of oil receipts in the national income and
the total financial budget, and from the effect of these
developments was the rapid improvement in all
segments of the economy and it impacted all the
aspects of the Saudi life and economy.
Methodology:Saudi Arabia was the oil-producing country . In the first
round, oil prices went up three-fold, though not
further, thanks to Saudi efforts. In the second instance,
to recapture lost market share, Riyadh instigated a
price war that resulted in a severe drop in prices, by
1970, Saudi Arabia introduced the first series of
ongoing five-year development plans to build a
modern economy and society capable of producing
consumer and industrial goods that previously had
been imported. The country’s infrastructure was
expanded, allowing industry and commerce to
flourish.
Literature Review:This literature review is divided into many parts:-
Saudi Arabia in OPEC.
 What Saudi Arabia Does to Offset Price Rises.
 The New Age (OIL AGE).
 The history of oil in Saudi Arabia.
 The Importance of Saudi Arabia to the US Economy.
Findings:The Saudi economy mostly based on the oil and gas
revenues and industries. the oil industries is the base
of all the industries and the Saudi profits and the oil
prices controls the Saudi economy and social
development and also Saudi is one of the most
important countries that controls the oil prices. Oil
sector represented 90% of total export earnings, 80%
of government’s revenue and 45% of its GDP about
40% of GDP comes from the private sector. The
transformation in a few years the Saudis had gone
from herding camels to moving billions of dollars
around the world with electronic transfers.
Implications: The programs also addressed the fields of education,
health, and social welfare; the expansion and
equipping of the armed forces; and the creation of
petroleum based industries.
 Saudi Arabia has recorded strong economic growth
during 2003 until late 2008 on the back of increased
oil production and high oil prices.
 Efforts to reduce dependency on Gulf oil will persist
at least over the next decade as investments in energy
flow to develop new oil fields and to alternative
energy sources.
Conclusion: Saudi Arabia was the oil-producing country. .
 The Saudi economy mostly based on the oil and gas
revenues and industries.
 The oil industries is the base of all the industries and
the Saudi profits.
 Saudi is one of the most important countries that
controls the oil prices.
 Saudi Arabia is an oil-based economy with the crude
oil.
T
hank you for listening
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