Table of Contents
This paper looks at Saudi Arabia in a very in-depth manner. The paper tries to unveil Saudi Arabia's foreign policy and how this affects its stand with the outside world. This paper also tries to find out Saudi Arabia's transformation list view. In doing this the paper brings out the position of the country's globalization process and the country's representation of the losers and the winners NIE, the Outliners, and the SPG OR Feminist Economics point of view.
The paper also looks at the development agenda and how social, economic and political factors have contributed to this. In this it tries to put clear on how developed Saudi Arabia is with regard to the international cities and the general competitive advantage that are brought about by the countries. The paper alto tries to find out the relationship between the state and the various companies and whether this relationship is a kind of market oriented capitalism, collective social or state.
The paper also tries to find out whether Saudi Arabia has been affected or not by the geographic politics that involves energy, water and other naturally occurring resources. This has been the case with her oil producing neighbors and so we look at this in the context of Saudi Arabia. In looking at this issue the paper also focuses on how Saudi Arabia does outsourcing and whether the country has positively handled its economic development impediments.
Saudi Arabia's foreign policy
Since the early 1950s Saudi Arabia has walked on the path of three principals. These principles are nationalism that is Arab based regional security and Islam religion. These principals have played a key role in the formulation of the policies concerning her relationship with other countries. It is of no coincidence that the country established a kingdom with close alliance with the United States in the wake of regional instability and the need to protect its oil resources.
The closeness of the kingdom often challenged its relations with other Arabian countries which considered the United States as an enemy. This enmity was due to the Saudi's support for Israel which most Arabian countries considered was against their national interests. This positioned weakened Saudi Arabia's solidarity with other Arabian nations.
The issue that is Arab nationalism is a key factor in the foreign policy of Saudi Arabia just as are the regional issiues.The government s relationship with the Arab world in the far east and North Africa have always been out of the influence of the Arab nationalist considerations. Saudi Arabia has, since the 1950s been in the forefront in pushing amicable solution for the Palestinian - Israeli conflict. However Saudi Arabia has never had an extreme view of the conflicts that are in the Middle East and hence it always took a moderate stand that would sometimes put it at loggerheads with its Arabian partners such as Iran and Iraq.
Saudi Arabia's Development
The long drawn economic stimulus and government policies have led to general development of the Kingdom. The fast rate of growth of its cities is a show of just how fast the kingdom is growing. The figures of the per capita income are always on the increase. This is a sign of empowerment of its own people. The stimulus has also been infrastructural based in the sense that the transport infrastructure has been well developed to allow for easy movement of goods and personnel from one place to the other.
Saudi Arabia boasts of having large cities that have actually employed millions of dwellers. Such cities being highly populated provides conducive environment for investments. The first four cities and their population as by 2005 include: Riyadh 4205961, Jeddah 2867446, Mecca 1323624 and Medina 1300000.The cities are cosmopolitan in nature hence attracting people from all places in the world to come either to work, tour or for pilgrimage.
Riyadh, the capital is a city that competes amongst the world's best. The development of many industries has attracted so many both foreign and local who earn their living in this great city. The city boasts of having good accommodation facilities and other infrastructure such as roads, schools and airlines. The hosting of the pilgrimage site by the city of Mecca has been a great boost to the economy of the Kingdom. The pilgrimage period together with tourists who tour the sites has generated millions of US dollars to the economy of the country.
Energy in Saudi Arabia
Saudi Arabia is the world's top producer and exporter of crude oil. As such the country economy is dependant on the industry for most of the revenue. Oil exported account for approximately 90% of the total exports by the country and Saudi revenues. This could sum up to about 40% of the total Gross Domestic Product.
The demonstration of Saudi Hydrocarbon sector by state owned oil company called Saudi Aramco is a show of capability that the government has in controlling its oil reserves without much dependence on the foreign powers for support. This company happens to be the worlds largest in terms of production and the reserves of hydrocarbons (Zuhur 71). The oil sector is directly under the oversight of the Ministry of Petroleum and Mineral Resources and the Supreme Council of Petroleum. The council draws members from various centers i.e. ministers from the government, royal family members and other leaders with expertise in the energy sector. The Kingdom is the largest consumer of petroleum in the Middle East. This is due to its wide grown transportation industry.
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The research carried by this paper was carried out through intertwining of the various factors and figure obtained from official records of the United Nations Development Programme and statistics from the various government agencies of the Islamic Kingdom of Saudi Arabia.
Further references have been obtained from the US Energy Information Administration. Statistics from key players in the Economy of the Islamic Kingdom of Saudi Arabia has also been incorporated in the research. The study of this figures and their comparability forms part of the findings of this research (Nino 81).
The conclusions arrived at in this paper is also based on the analysis of the stated internal factors that affect the factors of production in Saudi Arabia. The study of books on Saudi Arabia has also been of great help in accomplishing this works. Such books have provided a basis through which thorough analysis has been done to come up with substantial information on Saudi Arabia. Finally my interaction with former resident of Saudi Arabia provided me with second hand information that helped in coming up with this conclusions and recommendations (Niblock 61).
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The Kingdom that is Saudi Arabia is on a key note of development. This is attributed to a given number of factors. These factors are both naturally occurring and others are caused by humans' effort. The occurrence of the mineral deposits in the Kingdom has been a boost factor for the development of Saudi Arabia. The mining of the hydrocarbons has facilitated the exportation of crude oil hence earning revenue. The oil reserves in Saudi are large enough to facilitate widespread extraction.
Statistics from key players in the Economy of Saudi Arabia has also been incorporated in the research. The Saudi government has its own company that is involved in the control of the petroleum industry. The only outsourcing that is inevitable to the petroleum industry is the skilled manpower which it readily gets from its neighbor Egypt (Christopher 32).
Saudi Arabia's foreign policy is important to its economical growth. There are so many foreign based workers from all over the world that have been allowed to work in the country. Such have been able to provide the much needed skilled and non skilled personnel for the various industries in the kingdom.
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The fact that country rooted for a monarchical government system has worked well for it to have a stable government contrary to the state of other petroleum energy producing countries which are often embroiled in power struggles.
Conclusions and Recommendations
Saudi Arabia is a country that is on good economic course. Its foreign policies have played a great role in boosting good relations with different countries hence boosting its trade with such countries. The almost neutrality stand of Saudi Arabia has played a key role in ensuring peace in the kingdom hence promoting development. This has enabled the country to do away with the instabilities that characterize most countries in the Arab world (Anderson 68).
The large cities and the large populations of people in the cities has been a boost for the various industries in these cities. The ever growing industries have played a key role in ensuring the development of various infrastructures which has boosted the ratings of the Saudi cities. Having considered all the above ,it would only be okay if we conclude that Saudi Arabia is a success story that should be emulated by the rest of the countries in the Arabian world. The prospects are still high for the Kingdom to grow further. Saudi Arabia is a point in case to show how political stability is necessary for development.