INTRODUCTION
Saudi Arabia is currently engaged in negotiations that will result in admission to the World Trade Organization (WTO). This report discusses the impact of WTO accession on the economy of Saudi Arabia. The benefits and negative effects are presented in the report.
1. PROBLEMS AFFLICTING THE SAUDI ECONOMY
1.1 Lack of diversity in sources of GDP
Saudi Arabia: GDP growth since 1997
Lack of diversity in sources of GDP and budgetary revenues continues to impede Saudi economic development. Oil and oil derivatives make up around 90-95% of total Saudi export earnings, 75% of budget revenues and approximately 35-40% of GDP. The government decision in May 2001 to reduce applied tariff rates on most imports to 5% resulted in lower customs receipts accruing to the budget.
Saudi Arabia has 260 billion barrels of proven oil reserves and up to 1 trillion barrels of ultimately recoverable oil. Saudi Arabia is one of the world’s largest producers (currently slightly more......
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Approximate Word Count: 3278
Approximate Pages: 13 (260 words per double-spaced page) |