About Saudi Arabia | CIC

People

As implied in the country’s name, the vast majority, some 90%, of Saudi citizens come from the various regional ethnic Arab groups native to the Arabian Peninsula. This includes Hejazis, Najdis, Hassawis, Southern Arabs and others. About one-third of Saudi residents are expats hailing from Southeast Asia, Africa and other Arab countries.

Until the 1960s, much of the population was nomadic and semi-nomadic. Today, however, more than 95% of the population is settled, with some 83% residing in urban areas. Male life expectancy is 73.2 years while females have a life expectancy of 77.4 years. It is estimated that there 1.19 male Saudis for each female Saudi.

The Kingdom’s population is quite young. In 2016, the World Bank estimated the population of Saudi Arabia to be 32.28 million, more than half of which is under the age of 25. The population has quadrupled since 1970 and is currently growing at a rate of around 2.5% annually.

Students in King Abdullah University of Science and Technology (KAUST)

With such a young population, education is one of the Kingdom’s top priorities. Significant educational reform has taken place over the past 50 years, and the Kingdom now ranks as the world’s top spender on education. The adult literacy rate stands at 97%.

Higher education has also been a primary focus. The King Abdullah Scholarship Program has allowed hundreds of thousands of Saudi university graduates to obtain Masters Degrees and PhDs at overseas universities after earning bachelor degrees at Saudi universities. King Abdullah University for Science and Technology (KAUST), a world-class research institute, also opened its doors to both Saudi and foreign post-graduates in 2009.

Saudi women have also experienced dramatic progress in recent years and female university graduates now outnumber male graduates.

History

The Mosque in Makkah

The history of modern Saudi Arabia began in 1930 when King Abdulaziz al Saud successfully sought to expand the influence of the Saud family beyond central Arabia to the rest of the peninsula. With the discovery of vast reserves of oil in the Kingdom’s al Hasa region along the Arabian Gulf in 1938, the young county began its journey to wealth and prominence on the world stage.

As home to Islam’s holiest cities – Makkah and Madinah – Saudi Arabia attracts millions of pilgrims every year. Makkah is the birthplace of Islam and many Muslims look to Saudi Arabia as the center of Islam. The Kingdom takes its role of protecting and administering the two cities very seriously. The King is referred to as the “Custodian of the Two Holy Mosques.”

King Abdulaziz shepherded the country through the first half of the 20^th century, allying with the US and its allies in World War II and making a pact with the US to supply the superpower with oil in return for a commitment to the Kingdom’s protection. King Abdulaziz died in 1953 and his son, Saud bin Abdulaziz, ascended to the throne. King Saud abdicated in 1964 and was replaced by his brother, Faisal bin Abdulaziz, who was assassinated in 1975.

Following the death of King Faisal, Khaled bin Abdulaziz assumed the throne until his death in 1982. He was followed by King Fahd bin Abdulaziz who served until 2005. He was followed by King Abdullah bin Abdulaziz, who passed way in January, 2015

Salman bin Abdulaziz assumed the throne at the time of the death of King Abdullah bin Abadulaziz al Saudi. In 2017, he made his son, Mohammed bin Salman al Saud, Crown Prince, making the next king the first not to be a son of the Kingdom’s founder. The Crown Prince has been instrumental in instituting economic and social reforms aimed at diversifying the economy away from its traditional dependence on oil, encouraging public-private partnerships, enabling entrepreneurial initiatives and opening the labor market and cultural fields to female participation.

Saudi Arabia became a signatory of the WTO in 2005 and is a member of the G20, the GCC and OPEC. The Saudi economy is considered the largest in the Middle East.

Tourism

The hospitality industry in Saudi Arabia has traditionally been based on religious tourism, especially pilgrims performing Hajj and Umrah. Some 17.5 million visitors come year-round to visit the Holy Sites. With the renovations and infrastructure growth currently taking place in Makkah and Madinah, it is expected that the number of pilgrims arriving for Hajj will increase from the current 2 million annually to 5 million in 2025. Overall, the number of annual tourists is predicted to reach 30 million by then.Today, the Kingdom is seeking to expand its tourism and hospitality industry by promoting the numerous historical and cultural sites as well as the ancient and modern cities that dot the Arabian Peninsula. Domestic tourism has long been subdued but the construction of both 5-star accommodation as well as high-quality budget facilities is expected to spur interest in exploring the natural and man-made wonders of Saudi Arabia.

Dive in Red sea.

The Red Sea with its unparalleled coral reefs and marine life offer world-class scuba diving opportunities while the Farasan Islands off the coast of Jizan are a perfect destination for a weekend of diving and relaxation. The dramatic Asir Mountains around Abha are the home to troops of hamadriyas baboons and offer stunning, almost prehistoric vistas.
The cosmopolitan Red Sea port city of Jeddah has served as the gateway to Makkah for centuries and offers an atmospheric old city that has been named a UNESCO World Heritage Site. A short distance away are modern shopping malls, top-quality restaurants and a corniche lined by coffee shops, kiosks, an aquarium and planetarium.

Mada’in Saleh Archaeological Site

To the north is Mada’in Saleh, an archeological site dotted by 2,000-year-old tombs carved into rock formations by the Nabateans, the same people who built the legendary city of Petra in nearby Jordan. Meanwhile, the southern one-third of the Kingdom is home to the Rub al Khali, the world’s largest contiguous sand desert at 650,000 sq km. Its massive dunes have already hosted many adventure tourists to a night under the star-cluttered sky. Also, the Jabal Qara Caves in al Hasa offer stunning trekking opportunities.And, of course, there is the world-famous cutting-edge architecture of the capital city of Riyadh.

Economy

With the world’s largest oil reserves lying within its borders, Saudi Arabia has long maintained an economy dependent on oil. Recent changes in the global oil market, however, have made it clear that the economy must be diversified if a sustainable and prosperous future is to be secured for Saudis. The first step toward diversification has been to reduce the government payroll – long the domain of the majority of employed Saudis – and spur the growth of the Kingdom’s private sector. The government has relaxed restrictions on both domestic and foreign investment in the Kingdom and vigorously pursued public-private partnerships as means of segueing to a privatized economy.

Saudi Arabia Stock Exchange

The development of King Abdullah Economic City (KAEC) and the adjacent King Abdullah Port, a privately developed and owned facility, are serving as the infrastructure for energized manufacturing and trade sectors. The adjacent Industrial Valley is the home to new manufacturing and warehousing facilities perfectly situated to take advantage of King Abdullah Port’s state-of-the-art facilities. Its deep-water berths are already receiving the world’s largest sea-going vessels. The port is expected to become the center of Red Sea trade as it provides, via a road and railway system, easy access to all markets on the Arabian Peninsula and is handling transshipments to and from West Africa, as well. The port is also providing many control room jobs for Saudi women.
The educational system is being reformed to produce graduates with the knowledge and skills required by the private sector, which has historically depended on expat labor. The growth of the private sector is expected to drive both development and consumption.

Part of previously government-owned corporations such as Saudi Arabian Airlines have been privatized and a relatively small piece of Saudi Aramco, the Kingdom’s oil company, is set for an IPO in 2018. The foundations of an entrepreneurial sector are also being laid, with previous restrictions removed to pave the way for young people, especially, to exploit the advantages of entrepreneurial endeavors.A new emphasis on education in the Kingdom is designed to allow young Saudis to assume positions of responsibility in the private sector, which will drive development and consumption.