What kind of country is Saudi Arabia?Why so rich?

Mondo International Updated on 2024-02-01

When we talk about Saudi Arabia, the first thing that comes to mind is often the vast desert, towering oil wells and people dressed in traditional robes. This country located on the Arabian Peninsula is not only geographically unique, but also has a distinctive economic and social structure. So, what kind of country is Saudi Arabia?And why is it so prosperous and rich on the world stage?

Overview of Geography and Humanities

The Kingdom of Saudi Arabia, commonly known as Saudi Arabia, abbreviates as Saudi Arabia. Saudi Arabia is located on the Arabian Peninsula in southwest Asia, bordering the Persian Gulf to the east and the Red Sea to the west, and bordering Jordan, Iraq, Kuwait, the United Arab Emirates, Oman, Yemen, Bahrain, Qatar and other countries. Saudi Arabia is a veritable "oil kingdom", with the world's largest oil reserves and production, making it one of the richest countries in the world.

Saudi Arabia is the birthplace of Islam, and the country is dotted with many Islamic holy sites. The official language of Saudi Arabia is Arabic, and the majority of the people are Muslim. Saudi Arabia's social system, customs, and way of life are deeply influenced by Islamic culture.

Pillar of the economy: the oil industry

Saudi Arabia owes its wealth above all to its abundant oil resources. The oil industry is the lifeblood of Saudi Arabia's economy and the main source of the country's wealth. Saudi Arabia has a significant portion of the world's total oil reserves, and most of its oil fields are concentrated along the eastern Persian Gulf coast, which is convenient for exploitation and transportation. This gives Saudi Arabia a significant position in the global oil market.

Saudi Arabia, with its rich oil resources, ranks among the richest countries in the world. As an important pillar of the country's economy, the oil industry contributes more than 70% of the fiscal revenue, which also makes it the country with the largest oil reserves and production in the world, and has won the reputation of "oil kingdom". In 2021, Saudi Arabia's gross domestic product (GDP) reached $833.5 billion, with a per capita GDP of nearly 2$350,000, making it one of the highest per capita income countries in the world. However, due to the underdevelopment of industry and manufacturing, Saudi Arabia has not yet reached the standards of developed countries.

The oil industry has brought huge wealth to Saudi Arabia and has also contributed to the modernization of the country. Saudi Arabia** uses oil revenues to vigorously develop infrastructure, education, medical and other public utilities, and improve the living standards of its citizens. At the same time, Saudi Arabia has also transformed its oil wealth into diversified economic benefits through foreign investment.

Diversification strategy

However, Saudi Arabia** is well aware of the risks of relying solely on the oil industry, so it has been working to diversify its economy in recent years. In addition to the oil industry, Saudi Arabia is also focusing on other industries such as tourism, manufacturing, and agriculture.

Saudi Arabia is rich in historical and cultural heritage and natural landscapes, such as the ancient medina market, spectacular desert scenery, etc., which are valuable resources for the development of tourism. Saudi Arabia** is gradually easing restrictions on tourism to attract more foreign tourists.

At the same time, Saudi Arabia is also actively introducing foreign capital and technology to develop manufacturing and high-tech industries. Through the construction of special economic zones and the provision of tax incentives, Saudi Arabia has successfully attracted a number of internationally renowned enterprises to invest and set up factories.

In terms of agriculture, although Saudi Arabia has relatively harsh natural conditions, it strives to improve agricultural production efficiency and ensure food security by vigorously promoting water-saving irrigation, desert agriculture and other technologies.

Social systems and cultural traditions

Saudi Arabia's social system and cultural traditions have also had a profound impact on its economic development. As an Islamic country, Saudi society lives strictly in accordance with the teachings of Islam. This religious belief not only shapes the way of life and values of the Saudis, but also influences the country's economic policy and social development to a certain extent.

In Saudi Arabia, for example, business activities must comply with Islamic rules and ethical principles. This limits the freedom and innovation of business activities to a certain extent, but it also makes Saudi Arabia's market economy uniquely stable and sustainable.

At the same time, Saudi Arabia's cultural traditions emphasize the close ties of family, community and country. This cultural tradition has enabled Saudis to unite and overcome economic challenges.

Conclusion

Saudi Arabia is a country of contradictions and harmony, tradition and modernity. Its abundant oil resources have laid a solid foundation for the country's prosperity, while its economic diversification strategy has opened up a broad path for the country's future development. At the same time, Saudi Arabia's social system and cultural traditions also provide unique soil and nutrients for its economic development.

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