The influence of oil in Saudi Arabia has effected Saudi Arabia. For example they used oil accounts for more than 90% of exports and nearly 75% of government revenues, facilitating the creation of a welfare state. Another example is that the government is attempting to promote growth in the private sector by privatizing industries such as power and telecommunications. Saudi Arabia announced plans to begin privatizing the electricity companies in 1999, which followed the ongoing privatization of the telecommunications. These are some examples how influence of oil in Saudi Arabia has effected Saudi Arabia.
Political change took place in Saudi Arabia due to oil. For example The politics of Saudi Arabia takes place in the context of an Islamic absolute monarchy. The King of Saudi Arabia is both head of state and the head of government, but decisions are, to a large extent, made on the basis of consultation among the senior princes of the royal family and the religious establishment. The Qur'an is declared to be the constitution of the country, which is governed on the basis of Islamic law. Another example is that Government is dominated by the vast royal family, the Al Saud, which has often been divided by internal disputes and into factions. The members of the family are the principle political actors. Political participation outside of the royal family is limited, but there has been pressure for some time to broaden participation. In recent years, there has been a rise in Islamist activism, which has also resulted in Islamist terrorism.
In conclusion, the influence of oil in Saudi Arabia has effected Saudi Arabia. Also political change took place in Saudi Arabia due to oil. I never knew that oil could change a whole country like Saudi Arabia.
Yes, oil has had a profound influence on Saudi Arabia, both economically and politically. Here's a breakdown of how oil has affected the country:
1. Economic Impact:
- Oil accounts for more than 90% of Saudi Arabia's exports and nearly 75% of government revenues. This heavy reliance on oil revenue has shaped the country's economy.
- The abundance of oil wealth has facilitated the creation of a welfare state. Saudi Arabia has used its oil revenues to provide extensive social benefits, including healthcare, education, and subsidies for various goods and services.
- Infrastructure development and public investment projects have been funded by oil revenues, which have helped drive economic growth and create employment opportunities.
2. Privatization and Economic Diversification:
- Recognizing the need to reduce dependence on oil, the Saudi government has initiated policies aimed at promoting growth in the private sector.
- Privatization efforts have been undertaken in industries such as power and telecommunications. The government began privatizing the electricity companies in 1999, and ongoing privatization has been observed in the telecommunications sector.
- By diversifying the economy and encouraging private investment, Saudi Arabia aims to reduce its vulnerability to fluctuations in oil prices and create a more sustainable and diverse economy.
3. Political Change:
- Saudi Arabia is an Islamic absolute monarchy. The king holds both the position of head of state and head of government. However, decision-making is heavily influenced by consultation among senior princes of the royal family and religious authorities.
- The country's constitution is based on Islamic law, with the Qur'an declared as the constitution. The religious establishment wields significant influence over political matters.
- Political power is largely concentrated within the royal family, known as the Al Saud. Internal divisions and factional disputes within the family have shaped the political landscape.
- Political participation from outside the royal family is limited, but pressure for broader participation has been mounting. Islamist activism has gained prominence, with some instances of Islamist terrorism in recent years.
In summary, the abundance of oil resources in Saudi Arabia has resulted in significant economic development and the establishment of a welfare state. Oil revenues have shaped government policies and funded infrastructure projects. Additionally, political power is concentrated within the royal family, but there are ongoing discussions about expanding political participation in the country.