Economy: Its Definition & Types, and System

By Tara Shwan

An economy is a system of organization and institution that either facilitate or play a role in the production and distribution of goods and services in the society.

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The Economy of South Arabia

December 09, 2016

The Economy of South Arabia:

Saudi Arabia has an oil-based economy with strong government control over major economic activities. Saudi Arabia possesses 18% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and played a leading role in OPEC for many years. The petroleum sector accounts for almost all of Saudi government revenues, and export earnings. Most workers, particularly in the private sector, are foreigners.

Population: The Kingdom has a total population of 28.7 million, of which 20 million are Saudi nationals and 8 million are foreigners.

Currency: Saudi Riyal (hal'l, SR)
Trade organizations: WTO, OPEC, G-20 major economies, BIS, ICS, IOS, WCO, GCC, World Bank IMF
GDP: $1.679 trillion (PPP; 14th), $752.500 billion (nominal; 19th)
GDP per capita: $55,400 (2015), (PPP; 10th)
GDP by sector: agriculture: 3.2%; industry: 60.4%; services: 36.4%
Labour force: 7.63 million (2009) note: about 80% of the labor force is non-national
Labour force by occupation: Agriculture: 6.7%; industry: 21.4%; services: 71.9%
Unemployment: 11.4% (2014)

Main industries: crude oil production, petroleum refining, basic petrochemicals, ammonia, industrial gases, sodium hydroxide (caustic soda), cement, fertilizer, plastics, metals, commercial ship repair, commercial aircraft repair, construction

Ease-of-doing-business rank: 82nd
Exports: $224.6 billion (2015)
Export goods: Petroleum and petroleum products 90%.

Main export partners:

China 13.1%
Japan 10.9%
United States 9.6%
India 9.6%
South Korea 8.5% (2015)

Imports: $136.8 billion (2012)

Import goods: machinery and equipment, foodstuffs, chemicals, motor vehicles, textiles.

Main import partners:

China 13.9%
United States 12.6%
Germany 7.1%
South Korea 6.1%
India 4.5%
Japan 4.4%
United Kingdom 4.3 %( 2015)

Revenues: $162 billion (2015), Expenses: $260 billion (2015)

Main data source: CIA World Fact Book.