Economy Of Saudi Arabia

Agriculture(Economy Of Saudi Arabia)

At its founding, the kingdom inherited the simple, tribal economy of saudi Arabia. Many of the people were nomads, engaged in raising camels, sheep, and goats.

Agricultural production was localized and subsistent. The kingdom’s development plans have given domestic food production special attention,

and the government has made subsidies and generous incentives available to the agriculture sector.

Agriculture now contributes only a small fraction of the Saudi GDP and employs a comparable proportion of the workforce.

Less than 2 percent of the total land area is used for crops. Of the cultivated land, about half consists of rain-fed dry farming (mostly in Asir),

two-fifths is in tree crops, and the remainder is irrigated. Most of the irrigated areas—in the districts of Riyadh and Al-Qaṣīm, for example,

and near Al-Hufūf in Al-Sharqiyyah province—utilize underground water.

 

Petroleum(Economy Of Saudi Arabia)

The economy of Saudi Arabia is dominated by petroleum and its associated industries. In terms of oil reserves, Saudi Arabia ranks first internationally,

with about one-fifth of the world’s known reserves. Oil deposits are located in the east, southward from Iraq and Kuwait into the Rubʿ al-Khali and under the waters of the Persian Gulf.

The discovery of oil changed the entire economic situation of Saudi Arabia. As early as 1923, Ibn Saud granted an oil-prospecting concession to a British company,

but this concession was never exploited. Although oil was discovered in 1938, World War II curtailed oil-producing activities until near its end.

The Ras Tanura refinery was opened in 1945, and rapid expansion of the oil industry followed to meet increasing postwar demand.

 

Economy Of Saudi Arabia
Economy Of Saudi Arabia

 

Manufacturing of Saudi Arabia

The manufacturing sector has expanded widely since 1976, when the government established the Saudi Basic Industries Corporation (Sabic) in order to diversify the economy.

Its initial goal was to expand the manufacturing potential of sectors of the economy related to petroleum. Since then manufactures,

many associated with Sabic, have included rolled steel, petrochemicals, fertilizers, pipes, copper wire and cable, truck assembly, refrigeration, plastics,

aluminum products, metal products, and cement. Small-scale enterprises have included baking, printing, and furniture manufacturing.

 

 

Economy Of Saudi Arabia
Economy Of Saudi Arabia

 

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