ABSTRACT

In the non-oil sector, the production of goods and services results from appropriate combinations of the labour force and the stock of productive capital. The acquisition of labour depends upon the growth of the Saudi population, the structure of the Saudi labour force and the importation of foreign labour. The growth of the Saudi labour force depends upon such factors as the growth and the structure of the Saudi population as well as the jurisdictional organization of the labour market. The activity multiplier represents the proportion of the Saudi population constituting the Saudi labour force. The average efficiency of the foreign labour force is supposed to increase as productive capital per worker accumulates. The large monetary and financial reserves that Saudi Arabia is presently building up result from the kingdom’s willingness to produce crude oil at a rate far higher than its development needs call for and its economy can absorb.