Capital City: Riyadh
	It is %T:%M %A in Riyadh

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Economic trends

The economy of Saudi Arabia is entirely oil based. The country has the largest oil reserves in the world (one-fourth) and is also the world's largest oil producer and exporter. Oil accounts for more than 90% of the country's exports and nearly 75% of the government revenues. Driven by strong government spending, rising foreign investment, increasing oil production and high oil prices; the country’s economic growth will remain robust in the coming years. The GDP growth rate was 6.1% in 2005, 4.3% in 2006 and 4.1% in 2007. The IMF forecasts a growth of 4.3% in 2008. The kingdom will also generate large oil-export driven current-account and fiscal surpluses. Inflation will remain relatively low (3% in 2007) and there will be no pressure on the Saudi riyal's peg to the US dollar.

Main branches of industry

The government wants to reduce the kingdom's dependence on the oil sector by diversifying its economic activity through privatization, focusing particularly on manufacturing and agricultural sectors. The manufacturing sector contributes only 10% to the GDP. Private investments are supported by generous government financing and incentive programs. The government is also pursuing its programme to "Saudiize" the labour force in order to reduce the number of foreign workers in the country and to create more jobs for locals. The unemployment rate in the country is estimated at around 12%. The agricultural sector is widely subsidized and accounts for 10% of the country's GDP (non-petroleum). Tourism generates huge revenues (nearly 4 million tourists per year), thanks particularly to Mecca.

International trade

Saudi Arabia being a member of the GCC and OPEC plays an important role in fixing the global oil prices by managing production and supply of petroleum. After becoming a member of WTO in December 2005, it has increased market access to foreign goods and services. The share of the foreign trade in Saudi GDP is nearly 87%. The top three export partners are: the U.S.A., Japan and South Korea. The country mainly exports crude oil, plastics and organic chemicals. The top three import partners are: the U.S.A, Japan and Germany. Saudi Arabia mainly imports vehicles, machinery, electrical equipment, iron & steel, and food products. Saudi Arabia is the world's largest barley importer.