Economic Development in Saudi Arabia

Business & Finance, Economics, International Economics, Nonfiction, Social & Cultural Studies, Social Science
Cover of the book Economic Development in Saudi Arabia by Ahmed Al Rajhi, Abdullah Al Salamah, Monica Malik, Rodney Wilson, Taylor and Francis
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Author: Ahmed Al Rajhi, Abdullah Al Salamah, Monica Malik, Rodney Wilson ISBN: 9781136132827
Publisher: Taylor and Francis Publication: October 12, 2012
Imprint: Routledge Language: English
Author: Ahmed Al Rajhi, Abdullah Al Salamah, Monica Malik, Rodney Wilson
ISBN: 9781136132827
Publisher: Taylor and Francis
Publication: October 12, 2012
Imprint: Routledge
Language: English

The changing political situation in the Middle East poses challenges for the economies of the region, and some see none more vulnerable to collapse than Saudi Arabia's. Yet as this study demonstrates, the fundamentals of the Kingdom's economy are relatively robust, as over three quarters of GDP is accounted for by the non-oil sector, and impressive modern industries have been established, notably in petrochemicals. The financial system functions well, and despite substantial government debts, there is low inflation and currency stability. The private sector increasingly drives the economy, although job creation has been insufficient to prevent rising youth unemployment. The development challenges Saudi Arabia faces are similar to those of other middle-income countries, and three decades of diversification have made the economy less unique than it was in the oil boom years of the 1970s.

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The changing political situation in the Middle East poses challenges for the economies of the region, and some see none more vulnerable to collapse than Saudi Arabia's. Yet as this study demonstrates, the fundamentals of the Kingdom's economy are relatively robust, as over three quarters of GDP is accounted for by the non-oil sector, and impressive modern industries have been established, notably in petrochemicals. The financial system functions well, and despite substantial government debts, there is low inflation and currency stability. The private sector increasingly drives the economy, although job creation has been insufficient to prevent rising youth unemployment. The development challenges Saudi Arabia faces are similar to those of other middle-income countries, and three decades of diversification have made the economy less unique than it was in the oil boom years of the 1970s.

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