Describe Economic System of Saudi Arabia, US and Russia (Essay Sample)

Economic System of Saudi Arabia
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Institutional Affiliation
Economic System of Saudi Arabia
The Energy Information Administration has indicated that Saudi Arabia is the world's second largest producer of oil and exporter behind the United States and Russia. Saudi Arabia is located in the middle east of Asia. In addition, the Petroleum Exporting Countries (OPEC) (2014), has identified Saudi Arabia's economy to be dependent on oil export. The Saudi currency exchange system has a fixed exchange rate to that of the United States dollar, with $1 being equal to 3.75 Saudi Riyals. Moreover, it is imperative to note that production plays a critical role in the country`s economy outside the petroleum industry in Saudi Arabian Gross Domestic Product (GDP). The nation`s economy has developed steadily due to the increased oil production. Through government development plans, the government spends more than quarter of GDP to investment in education. Moreover, number of university has been increased three times last decade. Therefore, this essay critically approaches the exportation and importation of main products. Finally, it will outline or give a general view of Saudi`s and its cities that are established to improve industrial in manufacture products. The core objective of this paper is to investigate economic system of Saudi Arabia.
First, the major economic earner of Saudi Arabia is oil and leads to about 80% of the total income. This similarly has lead to the establishment of leading companies owned in most by Saudi government to explore and produce oil products, such as petroleum derivatives, natural gas and other petrochemicals. Major companies well-known in Saudi Arabia are Arabian American Oil Company (ARAMCO) and Saudi Basic Industries Corporation (SABIC) (Energy Information Administration, 2014).
In addition, to concentrate on imported products, agricultural products are imported from neighboring countries such as Egypt, Syria and Jordan, although there are a small amount of agriculture (Ministry Of Agriculture, 2015). Also, the main partners of Saudi Arabia are Japan, China, and the USA. It is imperative to note that there are major economic challenges that have affected this nation today, such as unemployment rate having the fastest growing populations across the globe. Particularly, “an estimated nine million foreigners worker, they are the most employees in private sector”
Finally, as a part from government development plans, it has established economic cities to decrease unemployment and support economy in several aspects. According to Saudi Arabian General Investment Authority (2015), economic cities can be improved economic system to be more independently. Blanchard (2010), Saudi government expenditure on public-private partnerships to help their business is a core focus. To sum up, it is clear that government is planning to develop this country such as established economic cities and investment in education.
References
Blanchard, C, (2010), Saudi Arabia: Background and US Relations, Congressional Research Service, Chicago: DIANE Publishing, Available from: < HYPERLINK "/sgp/crs/mideast/RL33533.pdf"/sgp/crs/mideast/RL33533.pdf>, [accessed on 22nd January 2015].
Energy Information Administration, (2014), Country Analysis Brief: Saudi Arabia [online], Available from: <HYPERLINK "/countries/analysisbriefs/Saudi_Arabia/saudi_arabia.pdf"/countries/analysisbriefs/Saudi_Arabia/saudi_arabia.pdf > [Accessed 21st January 2015].
House, K, (2012), On Saudi Arabia: Its People, past, Religion, Fault Lines and Future, New York: Knopf.
Ministry of Agriculture, (2015), [website], Available from: <HYPERLINK "">, [accessed on 9thFebruary 2015].
Ministry of Labour Saudi Arabia, (2015), [website], Available from <HYPERLINK ""> [accessed on 21st January...