ABSTRACT
The objective of this book is to provide an understanding of the problems facing Saudi Arabia’s economic development today, and to assess the success of the government in creating an economy which will satisfy the long-term needs of the Saudi population. The stress on ‘longterm needs’ is important. For states which benefit from substantial oil revenues, and a relatively small population, it may be easy to meet the immediate needs of the population. Revenues can be used to provide the services, subsidised provisions and employment which the population requires. Ultimately, however, the economywill need to survivewithout oil revenues, and must be geared to operate on a non-oil basis. At current rates of production, Saudi oil would last some 75 years. With the depletion of oil reserves in other parts of the world, however, the pressure on Saudi Arabia to increase its rate of production will increase-and thereby shorten the life-span of the oil resources. Conversely, there is the possibility that technological developments in the energy field may reduce global dependence on oil, lessening global demand for oil. In this case the oil revenues would last longer but perhaps not be so substantial. Whichever scenario is borne out in reality, the long-term needs of the population should not be dependent on the continued inflow of oil revenues. Saudi Arabia, moreover, has one of the highest rates of population increase in the world, so meeting the needs of the population will become steadily more expensive.
