AS Saudi Studies Lesson 1

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Questions and Answers

What year did King Abdullah launch the economic cities in Rabigh, Hail, and Madinah?

2006 (correct)

2005

2007

2008

What is the primary purpose of the five specialized credit institutions established by the government?

To finance government projects exclusively

To establish new banks throughout the Kingdom

To limit private sector competition

To provide economic opportunities to traders (correct)

Which industry does Saudi Arabia rank as the 19th largest in?

Export of petrochemicals (correct)

Manufacturing sector

Agricultural exports

Mining industry

Which economic city is located near Jeddah?

King Abdullah Economic City Signup and view all the answers

What significant economic initiative began in 1970?

First Development Plan Signup and view all the answers

Which type of banking service is specifically consistent with the principles of Islamic law?

Islamic banking Signup and view all the answers

What percentage of the nation’s GDP is accounted for by private companies in Saudi Arabia?

48 percent Signup and view all the answers

What year was a new law introduced to benefit foreign investors in Saudi Arabia?

2000 Signup and view all the answers

What major discovery in 1938 significantly changed the economy of Saudi Arabia?

Oil in commercial quantities Signup and view all the answers

What percentage of Saudi Arabia's GDP is accounted for by the private sector?

48 percent Signup and view all the answers

Joining the World Trade Organization in 2005 aimed to achieve which primary objective for Saudi Arabia?

Increase access to global markets Signup and view all the answers

What was one of the first actions taken by Saudi Arabia to modernize its economy in 1970?

Introduction of five-year development plans Signup and view all the answers

As of the current economy, which sector is concentrated in industrial cities in Saudi Arabia?

Petrochemical and oil-based industries Signup and view all the answers

What is the primary focus of Saudi Arabia's long-term economic plans?

Creating a modern economy capable of producing consumer goods Signup and view all the answers

Which major factors contributed to the initial economic growth in Saudi Arabia post-World War II?

Oil exports and infrastructure development Signup and view all the answers

Which products now make up more than 90 percent of Saudi Arabia’s non-oil exports?

Industrial products 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.

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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!