Saudi Arabia possesses a diverse and rich culture and religious history. Moreover, it is blessed with a remarkable position. As a result of Saudi Arabia’s significance to the Islamic world, it has earned the status of being the heart of the Muslim world.
Saudi Arabia is the 14th largest country in the world and is home to almost 35 million people. It is a land of picturesque beauty and vast reserves of mineral resources.
Saudi Arabia possesses nearly 17% of the world’s petroleum reserves. The latest Vision 2030 Saudi Arabia aims to encourage businesspersons to invest in Saudi Arabia even more.
How does the oil sector contribute to its economy?
Oil has played an essential role in the strengthening of the Saudi economy for over half a century. Oil was first extracted from Saudi Arabia in 1938 from the Dammam oilfield at a depth of almost 1,440 meters.
Saudi Arabia earns almost 50% of its gross domestic product through the oil and gas sector. Meanwhile, this industry accounts for 70% of export earnings. Besides, Saudi Arabia is also host to other natural resources such as natural gas, gold, iron, ore, and copper!
How does the oil sector influence the Saudi energy economy?
The energy base of Saudi Arabia is expanding rapidly due to several factors. Sound planning, based on an accelerated pace of recently announced reforms, is one factor. On the other hand, the Kingdom of Saudi Arabia has established political strategies and plans that adequately balance its current and long-term demands.
How do Saudi Arabia’s oil reserves affect its position in the Middle East?
Since Saudi Arabia is the world’s biggest oil producer and exporter, it plays a unique and significant role in the global energy industry. As a result, Saudi oil production and export policies have a considerable influence on the global economy and energy market.
The Kingdom of Saudi Arabia never fails to act in a time of crisis. This can be observed in historical events such as the Gulf Crisis 1990-91 and the Iraq war, which took place in 2003. Moreover, Saudi Arabia made generous efforts to restore stability during the market fluctuations in the 1990s. Therefore, it is not an exaggeration to say that the Kingdom of Saudi Arabia has done everything in its power to prevent the energy market from severe shocks and inflation.