Saudi Arabia's International Business Law
Saudi Arabia and Socio Economics
Oil wealth, which led to dramatic standard of living increases in the Gulf for much of the second half of the twentieth century, no longer is enough to ensure the prosperity of several states. Living standards in Saudi Arabia, Bahrain, and Oman have remained at a standstill in recent years. For example, from 1980 to 1998, the Saudi economy grew at an average of 0.2% a year -- a stagnation that ended only when oil prices soared in 1999 and 2000.
Gulf regimes have failed to diversify their economies beyond the oil sector. Oil dominates the Gulf economies, leaving them vulnerable to sudden price fluctuations. For example, about 40% of Saudi Arabia's GDP, and over 90% of its export earnings come from oil revenues. Many industries depend heavily on subsidized energy, as well as direct and indirect government subsidies, to...
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