Economy Guide

Introduction

The Government through the public sector, plays a major role in the Kingdom's industrial activity but, in recent years, the private sector has, with the Government's encouragement under the Kingdom's system of free enterprise, become increasingly involved in and responsible for industrial development and diversification.

Following the peak years of oil revenues in 1980/81 - 1982/83 (1400/01 - 1402/03 AH), it became necessary to undertake a very considerable downward adjustment to the government's level of expenditure. At the same time, the economy as a whole had to come to terms with more modest circumstances.

The most remarkable feature of this process is the relative ease with which both the government and the private sector came to terms with the new circumstances. This is not to say that the process has not been difficult, demanding, even painful. But it is true that a decline in revenues which could have destabilized other economies has been taken as an opportunity to consolidate past achievements and to engender a more commercially realistic and efficient approach to all types of venture.

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Supreme Economic Council

On the 30th August, 1999, a royal decree was issued by Custodian of the Two Holy Mosques King Fahd bin Abdul Aziz announcing the formation of the Supreme Economic Council. The eleven-member Council was to be chaired by Crown Prince Abdullah bin Abdul Aziz, Deputy Premier and Commander of the National Guard. The decree said the formation of the new body had been prompted by the crucial role played by economic affairs in the countries of the world, their direct influence on the interests of citizens and the need to involve a wide circle of contributors in economic policy-making in the changing economic world of today.

The statement confirmed that the economic policy of the Kingdom was based on the pillars of comprehensive social welfare, the concept of a free economy, and a free market for capital, goods, services and products in order to secure the following goals:

• The welfare of society.
• Provision of jobs and optimum use of manpower.
• Control of public debt within secure and reasonable limits.
• Fair distribution of national income and opportunities for investment and labor.
• Diversification of the economic base and increase in the sources of public revenues.
• Development of savings and development of saving channels and frameworks for safe investment.
• Increase of the income of the state and linking it with the movement and growth of the national economy.
• Increase of investment of domestic capital and savings in the national economy.
• Increase of the contribution of the private sector, expansion of its contribution to the national economy and contribution to the Government's program for privatization.
• Enhancement of the ability of the national economy to cope efficiently with international economic changes.

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The Economy: Consolidation

To a very large extent, Saudi Arabia's success in adjusting to reduced revenues is attributable to the Kingdom's national planning process. The planning function which permeates all areas of government activity ensures that the country enjoys the benefits of a long-term economic strategy. Just as the earlier Development Plans ensured that the Kingdom's revenues were applied to the essential task of developing Saudi Arabia's infrastructure, its industry and agriculture, so subsequent Development Plans, taking into account the prevailing economic climate, have focused resources more on consolidation.

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Economic Indicators

This information was taken from:
http://www.saudinf.com/main/e13.htm

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>Civilian Employment

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References:

• The Royal Embassy of Saudi Arabia
• Saudi Diplomatic Missions Abroad

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