Saudi Arabia

A

Petroleum

The Saudi oil industry was founded in 1938 by the Arabian-American Oil Company (Aramco) when a productive field was found at Ad Dammām. Aramco was originally owned by four American oil companies, but in 1974 controlling interest was gained by the Saudi government. The country’s vast reserves and high level of oil production have made Saudi Arabia a leading producer and a strong voice in OPEC, which has much influence over international oil pricing.

Saudi Arabia’s proven reserves of petroleum exceed 250 billion barrels. Production in 2004 was some 3.23 billion barrels of oil; output rose sharply after Iraq invaded Kuwait in 1990. Only the Soviet Union and the United States produced more petroleum. Most oil is produced in the eastern part of the country; offshore drilling takes place in the Persian Gulf.

To facilitate the movement of crude petroleum to major markets, the Trans-Arabian Pipeline, known as Tapline, was completed in 1950. It carries crude oil to Şaydā (Sidon) in Lebanon, on the Mediterranean Sea. Another pipeline, linking the eastern oilfields around Buqayq with the Red Sea port of Yanbu al Bahr, was completed in the early 1980s. Most oil, however, continued to be exported from Persian Gulf ports, especially Cape Tannurah and Ad Dammām. Saudi Arabia also produces considerable quantities of natural gas; the annual output in 2003 was 60.1 billion cu m (2,121 billion cu ft).

In 1995 private-sector activity increased by around 7 per cent and a rise in international petroleum prices resulted in reduced state spending and enhanced revenues. Further privatization, and “Saudiization” of the workforce is envisaged.

B

Agriculture, Forestry, and Fishing

Because Saudi Arabia has long been a food importer, agriculture is a key area of development. The lack of water has made less than 1 per cent of the land area useful for farming. Irrigated lands near oases have been virtually the only sites of cultivation. Many foreign workers and technicians are engaged in agricultural projects.

Saudi Arabia’s leading crops in 2007 (with annual output in tonnes) were wheat (2.70 million) and barley (47,000). Other major crops are dates, tomatoes, watermelons, sorghum, dairy products, onions, grapes, and citrus fruit. Livestock included 7 million sheep, 2.20 million goats, 260,000 camels, and 372,000 cattle.

Shrimp, the only significant fish harvest, are taken from the Persian Gulf.

C

Mining

Apart from petroleum and petroleum-related products, the only significant minerals mined in Saudi Arabia are limestone, gypsum, marble, clay, salt, and gold.

D

Manufacturing

Saudi Arabia’s manufacturing sector has been diversified since the 1970s. Saudi Arabia’s oil-associated industries are among the world’s most advanced. Major products include refined petroleum, petrochemicals, plastics, processed food, clothing, fertilizer, and cement.

E

Energy

In 2006 the country generated about 169 billion kWh of electricity, all produced by thermal installations.