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The paper discusses how the Saudi economy today remains an oil-based economy, but the government is taking strong steps to diversify away from oil into other lucrative fields such as technology, insurance and banking and value-added manufacturing. The paper examines the government's plans and their economic implications and reveals that if these plans come to fruition, the economy will remain strongly influenced by world oil markets, but that influence will gradually decrease over the coming years and decades.
From the Paper:"The unemployment issue has become not only a pressing employment issue but a social issue as well. Young Saudi men have taken a view that it is better to be unemployed than to work in menial jobs they consider better for foreign workers (Hardy, 2006). To provide the jobs that Saudis want is a major part of the government's plan to increase private sector involvement in the economy and to increase the nation's educational infrastructure (Ibid).
"One element of this plan is the development of the King Abdullah University of Science and Technology (KAUST). This new school, opened in the fall of 2009, is part of a greater plan that has seen the number of state-run universities increase to 20 in recent years. The greater plan, known as aafaq, is a 25-year project that is intended to "improve higher education opportunities for women, boost scientific research" and increase the number of scientists (Sawahel, 2009). These are precisely the sort of jobs that young Saudis desire, but the lack of infrastructure has barred their access to such positions, which must then be filled by foreign workers. The government's renewed emphasis on education, therefore, is at the cornerstone of its long-term economic diversification plans. The nation is also placing emphasis in other major infrastructure developments, including power and water management, transportation and health care (Maktoob, 2009)."
Sample of Sources Used:
- Central Intelligence Agency. (2009). Saudi Arabia. CIA World Fact Book. Retrieved October 27, 2009 from https://www.cia.gov/library/publications/the-world-factbook/geos/sa.html
- World Bank. (2009). Key development data and statistics. World Bank. Retrieved October 27, 2009 from http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,contentMDK:20535285~menuPK:1192694~pagePK:64133150~piPK:64133175~theSitePK:239419,00.html
- Williams, J. (2009). Oil price history and analysis. WTRG Economics. Retrieved October 27, 2009 from http://www.wtrg.com/prices.htm
- Kawach, N. (2008). Saudi debt set to drop sharply this year. Emirates Business. Retrieved October 27, 2009 from http://www.business24-7.ae/Articles/2008/8/Pages/Saudidebtsettodropsharplythisyear.aspx
- Abocar, A. (2009). Saudi debt woes not derailing interest in mideast. Reuters. Retrieved October 27, 2009 from http://www.reuters.com/article/MiddleEastInvestment09/idUSTRE59P3NJ20091026
Cite this Term Paper:
Economy of Saudi Arabia (2012, May 17) Retrieved March 29, 2020, from https://www.academon.com/term-paper/economy-of-saudi-arabia-150991/
"Economy of Saudi Arabia" 17 May 2012. Web. 29 March. 2020. <https://www.academon.com/term-paper/economy-of-saudi-arabia-150991/>