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Introduction
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Diversification of the economy and strengthening the private sector have been two principal objectives of Saudi Arabia's economic policy. |
Saudi Arabia's economic system is based on free and private enterprise. Saudi citizens have the opportunity to initiate and participate in economic activities and reap the rewards of their enterprise and hard work. Respect for private property, freedom to engage in the economic field of an individual's choice and encouragement of private investment in the development of the nation are principles upheld by Islam and observed by the Kingdom of Saudi Arabia.
Opportunities for economic growth have increased steadily over the decades since King Abdul Aziz Bin Abdul Rahman Al-Saud founded the Kingdom in 1932. At that time, prospects for growth and development seemed limited. There were no airports and the only seaports dealt primarily with pilgrimage travel. Transportation between cities separated by miles of barren desert was on rough unpaved roads. Agriculture was limited and industry was almost nonexistent. The annual pilgrimage of Muslims to the Holy Cities of Makkah and Madinah represented a primary source of revenue.
Undaunted by these obstacles, the visionary King Abdul Aziz began to make plans for the laying down of the country's infrastructure. Addressing the most fundamental concerns, -- education, health, transportation, agriculture and industry -- he initiated the remarkable development that continues today. This development was enhanced by the discovery of oil in the 1930s.
Having invested approximately 900 billion U.S. dollars in developing its social and economic structure, Saudi Arabia has undergone a remarkable transformation over the relatively short time span of six decades. Where it once was forced to import all of the manufactured products it consumed, Saudi Arabia now has a vast industrial base and its factories supply a large portion of the needs of the country's domestic markets. Fishing villages on the Red Sea and the Arabian Gulf that were once a collection of huts have been transformed into bustling centers of industry, producing and exporting everything from petrochemicals to electronics to over 70 countries. One of the fastest developing countries in the world, Saudi Arabia is the most dynamic economic power in the Arab world and ranks 20th globally in the size of its economy. .
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