Podcast
Questions and Answers
What year did King Abdullah launch the economic cities in Rabigh, Hail, and Madinah?
What year did King Abdullah launch the economic cities in Rabigh, Hail, and Madinah?
What is the primary purpose of the five specialized credit institutions established by the government?
What is the primary purpose of the five specialized credit institutions established by the government?
Which industry does Saudi Arabia rank as the 19th largest in?
Which industry does Saudi Arabia rank as the 19th largest in?
Which economic city is located near Jeddah?
Which economic city is located near Jeddah?
Signup and view all the answers
What significant economic initiative began in 1970?
What significant economic initiative began in 1970?
Signup and view all the answers
Which type of banking service is specifically consistent with the principles of Islamic law?
Which type of banking service is specifically consistent with the principles of Islamic law?
Signup and view all the answers
What percentage of the nation’s GDP is accounted for by private companies in Saudi Arabia?
What percentage of the nation’s GDP is accounted for by private companies in Saudi Arabia?
Signup and view all the answers
What year was a new law introduced to benefit foreign investors in Saudi Arabia?
What year was a new law introduced to benefit foreign investors in Saudi Arabia?
Signup and view all the answers
What major discovery in 1938 significantly changed the economy of Saudi Arabia?
What major discovery in 1938 significantly changed the economy of Saudi Arabia?
Signup and view all the answers
What percentage of Saudi Arabia's GDP is accounted for by the private sector?
What percentage of Saudi Arabia's GDP is accounted for by the private sector?
Signup and view all the answers
Joining the World Trade Organization in 2005 aimed to achieve which primary objective for Saudi Arabia?
Joining the World Trade Organization in 2005 aimed to achieve which primary objective for Saudi Arabia?
Signup and view all the answers
What was one of the first actions taken by Saudi Arabia to modernize its economy in 1970?
What was one of the first actions taken by Saudi Arabia to modernize its economy in 1970?
Signup and view all the answers
As of the current economy, which sector is concentrated in industrial cities in Saudi Arabia?
As of the current economy, which sector is concentrated in industrial cities in Saudi Arabia?
Signup and view all the answers
What is the primary focus of Saudi Arabia's long-term economic plans?
What is the primary focus of Saudi Arabia's long-term economic plans?
Signup and view all the answers
Which major factors contributed to the initial economic growth in Saudi Arabia post-World War II?
Which major factors contributed to the initial economic growth in Saudi Arabia post-World War II?
Signup and view all the answers
Which products now make up more than 90 percent of Saudi Arabia’s non-oil exports?
Which products now make up more than 90 percent of Saudi Arabia’s non-oil exports?
Signup and view all the answers
Study Notes
Economy & Global Trade
- The Kingdom of Saudi Arabia was established in 1932 as an agricultural society reliant on farming, commerce, and pilgrimage-related trade.
- Discovery of oil in 1938 was a turning point, allowing substantial economic growth and infrastructure development post-World War II.
- Oil exports became the primary funding source for building roads, airports, seaports, schools, and hospitals.
- Saudi Arabia's economy has transformed into a regional and global power with a diverse modern infrastructure.
- The private sector contributes significantly, accounting for 48% of the GDP, with expectations of further growth through foreign investments.
- Joining the World Trade Organization (WTO) in December 2005 improved global market access for Saudi products, aiding job creation and foreign investment.
- The First Development Plan was launched in 1970, starting a series of five-year plans aimed at economic modernization and reducing imports of consumer and industrial goods.
Industrial Cities
- Over 90% of non-oil exports stem from industrial products, including petrochemicals, plastics, and metal goods.
- Major industrial cities include Jubail (Arabian Gulf), Yanbu (Red Sea), and King Abdullah Economic City near Jeddah.
- New economic cities were initiated in 2006 under King Abdullah in Rabigh, Hail, and Madinah.
Development Plans
- Economic transformation has required strategic planning and execution through clearly defined development objectives.
- Continuous series of five-year development plans initiated since 1970 focus on creating a self-sufficient economy.
Government Support for the Private Sector
- The government fosters private sector expansion by establishing five specialized credit institutions.
- These institutions provide loans for agricultural, industrial, and construction development projects, enabling previously competitive traders.
Banking
- Saudi Arabia's banking sector consists of 13 commercial banks offering various services such as retail, corporate banking, and investment.
- Islamic banking, in accordance with Shari’ah law, precludes interest and limits financial risk trading.
Trade
- Saudi Arabia ranks as the 19th largest exporter and 20th largest importer globally.
- Main exports include petrochemicals, plastics, metal goods, construction materials, and electrical appliances.
- Private companies significantly influence commerce, constituting 48% of the national GDP.
- In 2000, foreign investment laws were reformed to provide foreign investors with incentives equivalent to those available to Saudi citizens.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz focuses on the initial concepts of economy and global trade in Saudi Arabia as introduced in Lesson 1 of AS Saudi Studies. It covers the transition from an agricultural society to a modern economy since the establishment of the Kingdom in 1932. Test your understanding of these foundational economic concepts!
