Saudi Arabia is officially
known as the Kingdom of Saudi Arabia with
its capital as Riyadh. The country is situated in Western Asia
and is governed by an absolute monarchy. The nation is presently ruled by
King Salman bin Abdulaziz Al Saud. It is here that Islam
was born and the Muslims come to visit their shrines
in Mecca and Medina. It was ranked first in the Middle East
for having the largest economy in 2018. Their economy is dominated by oil which
forms a major part of their economy. Its GDP rank is 36th and 12th
in nominal and PPP respectively on as per the International
Monetary Fund standards, 2018. It has the 91st freest
economy in 2019 Index. Their overall score has gone up by
1.1 points because of the labor and business freedom, government spending,
freedom to invest and business freedom. It stands 9thamongst 14 countries
of the Middle East and North Africa. Saudi Arabian economy thrives on
petroleum and petroleum products. It holds 16% of the world’s
petroleum reserves and contributes about 85% of the revenue
of the Saudi government. Sunni and Shia sects
of Islam always cause communal fights and are
a threat to the economy. The government has undertaken several
measures to make reforms in the social and economic sectors in order to boost foreign
investment and strengthen its economy. Industries Saudi Arabia is the world’s largest
exporter of oil in the world and the second largest in the
world in terms of production. Extraction of oil is easy
because they are close to the surface of the earth
giving them an upper hand. Petroleum sector contributes
42% of their nation’s GDP. To reduce the dependency of the
population on oil the Saudi government has encouraged the expansion of
other sectors such as manufacturing. Some important manufacturing production
includes petrochemicals, pipes, rolled steel, plastics, cement, copper
wire, aluminum products and more. There are several other minerals that
are hidden in the Saudi Arabian lands which include – silver, gold, titanium,
lead, iron, cadmium, zinc and pyrite. There are deposits of non-metallic
resources that have been found which include gypsum,
limestone, gypsum and silica. Agriculture is a small
sector here because of the limited rainfall that
they receive in the year. However, you will find the
finest dates here making Saudi Arabia one of the
largest producer of dates. Rule of Law Islamic rules and practices govern
private property protection rights. The judicial system is not
independent and all the decisions are taken in co-ordination
with the executive branch. Although the government took several
steps to lower the corruption in the nation but culpability and honesty are
things that are missing in society. Since there is a monarchy in
the nation the royal family and the elites of Saudi Arabia
control the oil sectors. Saudi Arabia Present Saudi Arabia increased its exports
in their third quarter of 2018. This increase is expected to
grow in the fourth quarter too. However, their exports are
expected to go down by 2020.

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