Title: Saudi Arabia Economy | Economy Watch
Headings: Saudi Arabia Economy
Saudi Arabia Economy
Economic History
Current Economic Situation
Economic Forecast

Content: Current Economic Situation
Saudi Arabia faces a number of unique challenges. While its oil reserves are the second largest in the world, and Saudi Arabia is the world's leading oil exporter and second largest producer, petroleum makes up approximately 92.5 percent of Saudi budget revenues, 90 percent of export earnings, and 55 percent of annual GDP. Only 40 percent of GDP comes from the private sector. The government has encouraged private sector growth in an effort to reduce dependence on oil revenues, but oil undeniably remains the biggest part of the kingdom's economy. As a result, GDP can fluctuate wildly depending on global demand for oil. Aside from oil production, Saudi Arabia has natural resources that include gold, silver, iron copper, zinc, manganese, tungsten, lead, sulfur, phosphate, soapstone, and feldspar. Saudi Arabia also has a small agricultural sector, and the nation is one of the world's largest producers of dates. Tourism is also an important industry thanks to the millions of pilgrims who flock to Mecca and Medina each year. In fact, although oil revenues hugely dwarf tourism's contribution to the economy, tourism actually employs more people than the oil industry. The government remains a monarchy, which is highly anachronistic to many investors and foreign powers.