It is acknowledged that the oil industry is a major contributor in the GDP of Saudi Arabia. However, one should not lose sight that other sectors also have significant roles in shaping the economy of Saudi Arabia. These other sectors, though currently not as significant as the oil industry have a considerable bearing in the performance of Saudi Arabia. Also, the Hubbert Peak Theory, which foretells the downslide in Saudi Arabian oil production, warns of the possible collapse of the oil industry's which will considerably reduce or even eliminate the significance oil to the country.
This paper will look at the economy of Saudi Arabia as a whole. The first part will talk about the country's GDP and its composition. Next, it will tackle the contributing sectors individually mostly concentrating on the oil industry. An assessment of the Hubbert Peak Theory and its opponent will also be done.
In general, Saudi Arabia has a robust economy supported by its strong oil industry. Saudi Arabia's economy began to flourish during after 1973, when the price of oil in the world market skyrocketed. ...Show more