In Saudi Arabia, the majority of the income is from the crude oil they export. They hold approximately 25% of the world's crude oil. Their main country they export to is the U.S. After September 11th the U.S. has been buying their oil from Canada. Since then their revenue has dropped accordingly making their economy. If it wasn't for Saudi Arabia the world would not have a lot the machines we depend on that use oil. With oil revenues making up to about 90-95% of total Saudi Arabia export earnings, 70% of state revenues, and around 35-40% of the country's gross domestic product. Saudi Arabia's economy depends heavily on oil. Since a great rebound in oil prices in 1999 the country's economic outlook is booming and in many ways helped the country from turning to alternate roots as reform and big changes. Although they do face short and long term pressures to reform the economy and increase private investment.
In 2001 they are expected to earn just over $62 billion dollars in crude oil, which is down 5.1% since 2000.
Saudi Arabia needs strong economic growth to keep up with the increasing of population and to also provide good jobs for its people. Over the past two decades, Saudi Arabia has fallen behind its economic growth and has caused low per capita income and high unemployment rates. The fact that they have a domestic debt, 100% of its GDP, which they do hope to repay in the future so it can replenish its foreign assets. In 2000, Saudi Arabia stayed within its budget surplus of $12 billion the first time in two decades.
They also prepare to accomplish a budget for 2001 of $57.3 billion dollars of revenues and spending, and fair oil price of $22 per barrel. The spending budget for 2001 appears to be mild in terms of spending and that any surplus will be used to pay off any public debt.
Despite the surge in oil revenues, Saudi Arabia government has accepted the need to reduce state involvement and to increase private sectors. This includes foreign affairs but has moved slowly because they still fear the loss of jobs for their fellow Saudis'.
Currently, big corporations, such as oil firm Saudi Aramco, the monopoly of the upstream oil development. It has been proven that Saudi Arabia has 259 barrels of crude oil for these companies to profit from. Saudi Arabia has also moved slowly forward towards taxes increases and financial sector reforms because they would e afraid of riots even though they see it as a "Strategic Move".