Essay on Economic Analysis
History of Saudi Arabia
Saudi Arabia is a member of the Gulf Cooperation Council (GCC) (Bowen, 2008; Fasano and Iqbal, 2003). The country traces its origin back to the early empires of the Arabian Peninsula, which is an ancient trade centre. At present, Saudi Arabia serves a key role in the Islamic world, as it is the birthplace of Islam and the place where Mecca and Medina are located. Thus, the country frequently receives Islamic visitors during the annual Islamic Haj, as it owns the holy city of Mecca. The modern Kingdom of Saudi was established by King Abdulaziz Al-Saud, in 1932, and since then, the Kingdom has grown from a desert nation to a recent, classy state and a chief player on the global …show more content…
Last year, Saudi Arabia’s Real GDP increased to almost 3.8%. The oil segment, which is responsible for almost half of Saudi Arabia’s wealth, increased by an about 2.1% as the international economic upturn begun. Nevertheless, growth not related to oil was more than was predicted, at 4.4% YoY, with transport, utilities, non-oil production, communication and storage, all increasing by over 5% (Global Research Economy, 2012).
Government investment on infrastructure projects supported GDP expansion last year, with sum spending increasing to SAR626.5bn. The effect of government expenditure becomes mirrored in the official GDP figures of 2011, which indicates that the government segment increased by approximately 6% YoY.
Chart 1 Saudi Arabia’s GDP Growth
GDP Growth Rate
GDP of Saudi Arabia, in the first quarter of 2012, increased by approximately 5.9 %. This rise was also experienced in the first quarter of 2011, although, the last three quarters experienced higher growth. Expansion, in the first quarter, relied on the oil segment. In 2011, Saudi Arabia experienced a Gross Domestic Product (GDP) expansion of 6.80. Chart 2 demonstrates GDP growth of Saudi Arabia over the years. Besides, it is essential to note that Saudi