G20
TRACKER
Member Profile: Saudi Arabia
Saudi Arabia Structural reforms but a lower oil price
Our SWOT Analysis of the Saudi Arabia economy
1. Oil Reserves: Saudi Arabia possesses the world's largest proven oil reserves, making it a significant global oil exporter.
2. Energy Exports: The country is a major global energy exporter, with oil exports contributing significantly to its economy.
3. Strategic Location: Saudi Arabia's strategic location provides access to important trade routes and markets.
4. Infrastructure Development: The country has been investing in large-scale infrastructure projects to support economic growth.
5. Vision 2030: The Vision 2030 initiative aims to diversify the economy, reduce dependency on oil, and stimulate non-oil sectors.
1. Dependency on Oil: The economy's heavy reliance on oil revenues makes it vulnerable to fluctuations in oil prices.
2. Limited Workforce Participation: The workforce participation rate, particularly among women, is relatively low.
3. Youth Unemployment: High youth unemployment poses challenges for integrating young Saudis into the workforce.
4. Bureaucracy: Complex regulations and bureaucracy can hinder business growth and innovation.
5. Cultural and Social Constraints: Certain cultural and social norms can impact workforce participation and economic activities.
1. Diversification: The Vision 2030 initiative offers opportunities to diversify the economy into non-oil sectors, such as tourism, entertainment, and technology.
2. Tourism Development: Investing in tourism infrastructure and attractions can attract international visitors and boost revenue.
3. Renewable Energy: Developing renewable energy sources aligns with sustainability goals and can create new industries.
4. Foreign Investment: Attracting foreign investment can drive economic growth and bring in expertise to support diversification.
5. Youth Empowerment: Focusing on skills development and youth employment programs can harness the potential of the young workforce.
1. Oil Price Volatility: Fluctuations in global oil prices can impact government revenues and overall economic stability.
2. Global Economic Uncertainty: Saudi Arabia's economy is linked to global economic fluctuations, making it susceptible to external shocks.
3. Political Instability: Geopolitical tensions and conflicts in the region can impact stability and investor confidence.
4. Socioeconomic Discontent: Economic reforms and changes may face resistance and social challenges.
5. Sustainability Concerns: Environmental concerns and climate change may impact the country's energy-dependent economy.