Business Case

Saudi Arabia, a land of vast desserts and little rainfall is the largest country in West Asia in terms of area. Huge deposits of oil and natural gas lie beneath the country's surface making the main source of wealth for the "kingdom". Saudi Arabia was comparatively a poor nation before the discovery of oil but since the year of 1950 income from the oil has made the country wealthy. It is the birthplace of Islam and the population is estimated to be 25.1 million. The country has managed to bring a great growth to the work to the political structure. Oil has played a vital role in the nation's economy, and continues to do so in the present.

Saudi Arabia's has 266.7 billion barrels, representing 57% of the GCC(Gulf Cooperation Council) reserves, 29% of the OPEC(Organization of the Petroleum Exporting Countries) and almost 20% of the world total reserves. It is ranked as the largest producer and exporter of petroleum in the world. If Saudi Arabia were to produce less barrels of oil in a specific period of time resulting in a lower supply the oil, prices will rise intensely. However, in 2012, Saudi Arabia's oil ministry took a severe beating, producing less than 5 million barrels, which is main reason for record high oil prices in the past year.

Here is a very interesting fact, it costs the leading oil company, Saudi Armco less than $2 US dollars to produce a barrel of oil, sells it for a minimum of $55 US dollars resulting in large profit being earned. This amount covers to cost of running the country. Exports of crude were 2.521 billion barrels for the year, or about 6.9 million barrels a day.

The Saudi education has changed dramatically during the last decades because King Abdullah is very interested in the education field. He established international universities for men and women and these universities include scholarship pogroms. A prime example of this is King Abdullah of Science and Technology. This university brings the best scientists around the world and students from universities such as Harward will come and study in Saudi Arabia. Boosting their funding on the education field with improve their economic stability because it may bring down unemployment rate by a great amount. The labor force is at 8.012 million: 6.7% in agriculture, 21.4% in industry and 71.0% in services another plan from 2010-2014 was to eliminate poverty and increase development in infrastructure, medical services, educational capacity and residential housing. The plan also aims to increase real GDP by 15% over 5 years and calls for extensive government investment in human resource development in order to decrease Saudi unemployment from 9.6% to 5.5%. Although several billions of dollars will be used, the economic development such as building new infrastructures: schools, buildings, etc. it will benefit the country.

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