ABSTRACT
It has become self-evident that the logical nexus among the economies of Saudi Arabia, Western industrialized countries, and the world in general is trade. As the world's third-largest oil producer endowed with approximately one-fourth of the world's proven oil reserves, Saudi Arabia is the world's leading exporter of crude and now commands a primary position in the international economy. The significance of that position wi.ll undoubtedly increase along with the increase in the global demand for energy resources. One cannot overstate the value of a working partnership with the Kingdom of Saudi Arabia, founded on the principles of mutual economic co-operation and benefit, nor its implications for the future. This 'special relationship' with the United States, and increasingly with Western Europe, may be applied in a broader context to both the developed and developing countries of the world. The fountainhead of this relationship may well be the development plans of Saudi Arabia, which call for extremely large expenditures. The Second Plan's $149,500 million is to be exceeded by the $235,000 million scheduled to be spent during the Third Plan. Whether or not the Saudi government will be able to spend this overwhelming amount by 1985 remains to be seen,l but, nevertheless, the Western industrialized nations have a significant stake in the growth and development of the Saudi economy.
