Economy of Saudi Arabia and Canada - Research Paper Example

In this case it is worth noting that these two countries are of the developed world and for that matter are in the first world countries. The various similarities that come into play are going to be focused on. The Saudi Arabian economy is one which is majorly based on its oil production capabilities. In this case it is worth noting that the country produces a significant amount of oil on the global market. For this reason, the revenues that are generated from the oil activities are very influential in the developments that are taking place in the Saudi Arabian economy.

The other thing which is worth noting is that the Saudi government is an entity which has significant influence in the happenings of this economy. The revenue which is gotten from petroleum and its associated products accounts for close to 45 per cent of the total budget of the country. On the other hand, close to 40 per cent of the GDP in the country comes from the private sector. It is worth noting that the economy in the country is very encouraging to investments especially from the locals and also foreign investors.

This significant developments in the financial well-being of the country has attracted quite a lot of foreign workers in the country. The figure at the moment stands at close to six million foreign workers. These are centered in the oil industries and also the private sector. Initially before the inception of the oil phenomenon, the Saudi economy was largely dependent on nomadic pastoralism. This was until the discovery of oil in the country. After the oil crisis that occurred in the year 1973, the country realized significant growth in its GDP.

The GDP per capita in the 1970s went up by close to 2 per cent. As at the year 2009, the World Bank set Saudi Arabia as the strongest economy in Arab world. Saudi Arabia has the second largest oil reserves in the world. The figures that w4ere released by the government put this at close to 260 billion barrels of oil. This