The Middle East Economy

Saudi Arabia was declared the world’s fourth-largest defence spender after the US, China and Russia in the International Institute for Strategic Studies (IISS) 2014 “Military Balance” report. It estimated the Kingdom’s defence budget for 2013 was $59.6bn, putting it ahead of the UK, France, Japan and Germany. According to the Saudi Arabian Monetary...

While some Western countries may be seeing a return to cautious optimism and leading emerging economies are weighing the potential impact on capital flows of tapering in the US Federal Reserve’s quantitative easing programme, Saudi Arabia is seeing sustained growth buoyed by high global oil prices and internal investment in its own infrastructure. Some 15 years after Saudi...

Central to the Kingdom’s goals to diversify its economy and to transition from an investment-driven model to an innovation-driven approach to business by 2020 are its plans for its growing population of young people. The government envisages highly educated young Saudis pursuing private sector careers in Jeddah, Riyadh or one of the four economic...

With just four years to go until the target date for the opening of a rail network carrying passengers and freight around the six countries of the GCC, its member states are looking forward to the economic and strategic benefits that this new connectivity will bring, but they also face some more immediate practical challenges in the short term.

While its hydrocarbons resources provide Saudi Arabia and its citizens with prosperity and the prospect of continued economic growth, its climate and hydrology mean the Kingdom cannot hope to sustain its growing population with food grown within its borders. Attempts to do so have to be offset against considerable environmental risks.