ASIAN FINANCIAL SERVICES ASSOCIATION

Country Report - 2018

Saudi Arabia

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With a current sustainable capacity to produce 11 million barrels of oil a day, Saudi Arabia is the single largest producer of oil in the world and is home to twenty five percent of earth’s known hydro carbon reserves, which at current rate of production would last many decades. In addition, the Kingdom has the largest minerals deposits in the Gulf, including about 20 million tons of gold ore, 60 million tons of copper, 10 billion tons of phosphates and million of tons of other elements; uranium, bauxite, coal, iron, tungsten, zinc and silver. Since early seventies oil revenues have helped to transform the Kingdom, it has now a world-class physical and technological infrastructure and a GDP per capita of more than US$ 25,000/-. Oil revenues account for more than seventy percent of government revenue and oil related economic activity contributes almost 45% to the GDP total.

US$

 

2008*

2009*

2010*

2011*

2012**

2013F

GDP Nominal in Billions

476.3

376.7

455.9

5917.1

653.9

657.7

GDP Per Capita

22,927

22,442

23,176

24,545

25,529

26,393

Population in millions

25.5

26.3

27.1

28.0

28.9

29.8

Inflation -% change

9.9

5.0

5.4

4.9

4.4

4.4

Exchange Rate SR / 1US$

3.75

3.75

3.75

3.75

3.75

3.75

Source: EIU Dec ’12 (* Actual, ** EIU Estimate, F EIU forecast)

Kingdom has used five year development plans to allocate its petroleum income to transform its relatively underdeveloped, oil-based economy into that of a modern industrial state while maintaining traditional Islamic values and customs. The economy has progressed rapidly, and the living standards have improved impressively. Dependence on oil revenue continues but manufacturing industry, agriculture and services now account for an increasingly large share of economic activity.

In last few years, Kingdom has overhauled its investment laws to encourage foreign investment in almost all sectors of the economy. A one-window operation has been initiated under The General Organisation for Investments and to date dozens of licenses have been issued with investments running into billions of US dollars. The multinational leasing companies in operation were licensed under the new investment rules. A new Securities Market Law and new Tax Law were introduced in 2004 with the objective of speeding up the development of capital markets and streamlining tax rules and structure with a single tax rate of 20%.

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