Comparison of GDP of Saudi Arabia and the United States
The economy of the Kingdom of Saudi Arabia is oil-based economy with a strong control of its government over the major economic activities. Saudi Arabia owns 18% of the petroleum reserves of the entire world, and has been frequently ranked as the leading exporter of petroleum. Also, it has played a significant and leading role in OPEC for many years. The United States of America, on the other hand, has technologically the most dominant economy in the world. The firms of the United States are at the pole position in technological advancements, particularly, in the field of pharmaceuticals, computers, aerospace, and military equipment. This paper covers a comparative study between the economy of the Kingdom of Saudi Arabia and the United States on the basis of their Gross Domestic Product. The Economy of the
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05 billion, whereas, the total GDP of the United States is $15. 68 trillion, which is ranked 22 times greater than the GDP of Saudi Arabia. However, in the per capita exports sector, Saudi Arabia has been ranked as 22th with a figure of $ 13, 720.27, which is 3 times greater than the rank of the United States. United States ranked 50th with a figure of $ 4,972 (CIA, 2016).
The composition of GDP by Industry is 66. 9% in Saudi Arabia, which is four times greater than the United States as the GDP by industry in the United States is just 19. 1%. The per capita Gross Domestic Product in Saudi Arabia is $22, 939. 18, whereas, in the United States, it is $ 45, 759.46 per capita. Thus, the per capita GDP in the United States is twice as much as the per capita GDP of Saudi Arabia. The GDP by purchasing power parity is $ 883. 70 in the Saudi Arabia, whereas, it is $ 16. 24 in the United States, which is 18 times greater than the GDP by purchasing power parity of the Saudi Arabia (CIA,
"United States Oil - Exports - Economy." Index Mundi - Country Facts. Web. 26 May 2011. .
The GCC is claimed to be one of the most flexible world’s organizations consisting of the UAE, Bahrain, Oman, Qatar, Saudi Arabia and Kuwait. These countries are rich in oil that gives them important political and economic stimulus. The GCC, the author underlines, is very influenti...
Gross Domestic Product, measures the amount of goods/services produced within a border and translates it into monetary value. Each country has its own currency unit, so economists derived two methodologies in order to compare different GDPs. The first one is P.P.P. or Purchasing Power Parity; it compares GDP based on the national income in domestic market. Most goods in China are relatively cheap, so P.P.P boosts up China’s GDP. However, many experts are wary of this method; P.P.P estimates can be imprecise and misleading when comparing a developed country to a developing country (Forsythe). Consumer goods in a poor country tend to be cheap since its people don’t make a lot of money; if the goods are expensive, then the majority of the average Joe won’t be able to survive. The second, and more credible, method is the rate exchange method, which utilises the international market value. With this latter measure, “the United States’ economy remain nearly twice as big as China’s (Levi). Even if the rate exchange does show China’s GDP higher than the US’s, that alone does not prove that China is the better
Located in the Middle East between the Persian Gulf and the Red Sea, Saudi Arabia is about one-fourth the size of the United States, and Riyadh, the capital, is located in the central eastern part of the country (Nations Encyclopedia, 2015).
Saudi Arabia may be rich in oil, but it is richer still in fundamentalist Islamic sentiment. If one accepts the postmodern concept of delocalized topical boundaries between states, then in economic terms Saudi Arabia clearly lies on what Samuel P. Huntington has aptly called the "bloody borders" (55) of Islam, occupying a key commercial juncture between the Arab world and the United States. The Saudi regime has long "engaged in a deadly dance with religious extremism" (Zakaria 276), burying its failures in strong support for a highly conservative form of Islam (271) which views "the modern world and non-Muslims with great suspicion" (272), creating an external other to bolster internal unity.
Magee, S. P. (1977). Multinational corporations, the industry technology cycle and development. Journal of World Trade, 11(4), 297-321.
Saudi Arabia justice system is based on Sharia and Islamic law from the Quran and the Sunnah, which are the Muslim traditions formed from Islamic prophet Muhammad. Sharia has been adopted by Saudi Arabia in an unmodified method. The Saudi court system was created by King Abdul Aziz who founded the Kingdom of Saudi Arabia back in 1932, the kingdom was introduced to the country between 1927 and 1960. The Saudi Arabia first criminal method was issued in 2001, decisions are made without juries and usually by a single judge. Some of the punishments that are still practiced in Saudi Arabia are, stoning, beheading, amputation and lashing. Serious criminal behavior include murder, rape, theft, robbery, adultery, which craft, sorcery and apostasy.
It is bordered by Iraq and Jordan on the north, Kuwait, Qatar, Bahrain and United Arab Emirates on the east, Oman and Yemen on the south. The Arabian Gulf Sea surrounded from the east and the Red Sea from the west. Saudi Arabia is a traditional monarchy. Al Saud dynasty is a royal family of the kingdom. The population of the kingdom was estimated to be 29,369,428 in 2014 - the 43rd largest in the world (Worldpopulationreview.com, 2014). In the technology side, Saudi Arabia is becoming focused on technology. They increase the spending on connectivity and human resources (Saudi Arabia Emergence of Innovation Kingdom,
Currently, the government of Saudi Arabia controls the economy by limiting foreign investors and regulating business within its borders. Oil accounts for the majority of the country's income, accounting for 90 percent of export revenue and 80 percent overall (“Saudi Arabia,” n.d.). Prices over $105 per barrel is required for the budget to remain balanced. The current drop in oil prices places a strain on the Saudi Arabian economy; expansion into the bond market somewhat eases this strain (“Saudi Arabia,” n.d.). A McKinsey Global Institute report states that Saudi Arabia can double its GDP and create millions of jobs by changing its economy from a government centric style to “a more market-based approach” (Al-Kibsi et al., 2015). "Despite cuts and financial challenges, ongoing internal and external concerns are driving an increase in defense spending” (Hedges, as quoted by Mustafa, 2015). The last half decade has seen the defense budget of Saudi Arabia growing at a rate of 19 percent a year (Mustafa, 2015). This shows that the military, despite the economic downturn, continues to play an important role in the Saudi Arabian
GDP in the UK is at 2.5% and ranked number 122 in comparison to the rest of the world as of 2015, while the GDP of Sierra Leone is currently at -23.9% and is ranked number 224 in relation to the rest of the world as of 2015 (The World Factbook, 2016). Cleary seen from the GDP percentage of each country, the UK is doing better than Sierra Leone by a large margin. *Below this paragraph, a chart illustrating the GDP growth percentage of the UK and Sierra Leone through 2006-2016 can be found. Even though GDP is useful to see how much a country produces, GDP per capita offers a better way to compare the economic growth of two nations. GDP per capita is the measure of how much a country produces based on its population; it gives the average earning per person in a country. A high GDP per capita means that the economy is performing well and a low GDP per capita means the opposite. Using the current population of the United Kingdom, 64,088,222 people, and Sierra Leone, 5,879,098 people (The World Factbook, 2016), it is possible to establish the GDP per capita of both countries. The GDP per capita in the United Kingdom is $41,200 as of 2015 while GDP per capita in Sierra Leone is $1,600 as of 2015. Sierra Leone’s GDP per capita is almost 57 times less than that of the United Kingdom. This is substantial considering the population of the United Kingdom
Saudi Arabia, the leader of OPEC (Organization of Petroleum Exporting Companies), maintains a powerful position in negotiations with the U.S. and other countries. Its vast supply of oil directly effects per barrel pricing and is a unique bargaining tool in international politics. But Saudi Arabia is no ordinary country in today's world. Its borders are governed by a royal family of nearly 30,000 individuals, all of which share most of the wealth and almost all of the power. Its people, with foreign exceptions, are wholly Islamic and many practice the faith with a frightening sense of devotion. And despite the immense revenue generated by its oil reserves, part of its population still lives in absolute poverty. Although recently it has seen immense change, it is still a country fair behind the progressive world.
... has contributed to higher volumes of production. Saudi Arabia is endowed with large deposits of limestone making it a suitable location for cement manufacturing. Proximity to the source of raw materials also reduces the transport cost.
Saudi Arabia’s capital market is considered to be young compared to other financial markets in the region. Saudi financial markets have been developing slowly because most enterprises in the country are either government owned or family-owned, most of which was funded through state budget, and as a result reduced the need for financing. In the recent past, Saudi Arabia has focused on a careful measurement for structural developments and regulatory changes. However, different phases of historical development of the capital market which can be classified into three phases; pre-industrialization phase, post industrialization phase and growth phase that sparked changes and shaped the kingdom 's capital market on
Perfume sales in Saudi Arabia , the Gulf’s largest economy and the UAE reached 827.5million dollar and 205.8million in 2010.
First of all, Saudi Arabia and China have some similarities. The former has the international airports and the latter has too. Saudi Arabia keen on literature just as China does. Fast food is popular not only in China put also in Saudi Arabia, for examples, Mc Donald's hamburgers, French fries and Kentucky fried chicken. In addition, both Saudi Arabia and China have made a mutually enriching exchange of cuisine. There are Chinese restaurants in Saudi Arabia, where diners can enjoy Chinese food, for instance Chinese meal in Suzhou with rice, shrimp, eggplant and vegetable s...