Skip to main content

Saudi Arabia's Economic Contraction: The Consequences of Oil Cuts

 



Saudi Arabia's economy is facing its most significant contraction since 2020 due to deliberate oil product cuts aimed at boosting global oil prices. primary data from the General Authority of Statistics shows that the Gross Domestic Product( GDP) of the area shrank by4.5 percent in the third quarter, with a 17 percent drop in the oil sector contributing significantly to this decline. This is the most substantial profitable compression in three years.  

In 2021, Saudi Arabia endured remarkable profitable growth, with GDP reaching nearly 9 percent, making it the swift-growing economy among the Group of 20 nations. The area's GDP surpassed $ 1 trillion for the first time thanks to this expansion, which was substantially fueled by record crude oil affairs and changes in the global energy request.  The Saudi frugality is presently facing challenges as a result of an abrupt reduction in oil painting products, which reduced the diurnal affair to 9 million barrels. According to World Bank predictions, Saudi Arabia's economy will contract by around 1 in 2023.  

A major element of the area's efforts to diversify its frugality,non-oil growth did expand, albeit more slowly. The non-oil growth rate of 3.6 percent is reflective of Crown Prince Mohammed bin Salman's interest in diversifying the economy. Large government spending is anticipated to offer some backing despite the difficulties.  The dynamics of the oil market and the effectiveness of Saudi Arabia's efforts to diversify its economy will determine the country's profitable destiny. To maintain long-term stability, Saudi Arabia's frugality might need to make  fresh  adaptations as the globe shifts to greener energy sources

Labels:

Comments

Post a Comment

Popular posts from this blog

Exposing the Brotherhood: Why Jordan’s Terror Cell Bust Must Spark a Global Policy Shift

 The recent dismantling of a Muslim Brotherhood-affiliated terror cell in Jordan should not be seen as just a national security success—it must be a turning point in how the international community views and responds to the threat posed by the Brotherhood. Jordanian security forces uncovered an elaborate network of terrorists trained in Lebanon and backed by foreign interests. Their mission: to launch attacks using rockets and drones, destabilizing the Kingdom and spreading fear among civilians. This is not the work of activists or political dissidents—this is terrorism, plain and simple. For too long, the Muslim Brotherhood has operated under a false image of moderation, cleverly navigating between political activism and violent extremism. But the truth is clear: the Brotherhood is the ideological engine room of jihadist terrorism. Its members, affiliates, and offshoots have inspired and directed acts of violence from North Africa to the Gulf—and now, once again, in Jordan. Govern...
Post a Comment
Read more

UAE Introduces AI-Driven Drones for Crescent Moon Sighting

  For the first time in history, the UAE is employing artificial intelligence-powered drones to sight the crescent moon, signaling the start of Ramadan. This modernized approach blends technology with Islamic tradition, enhancing the reliability of moon sighting methods. Historically, the crescent moon has been identified through naked-eye sightings and advanced astronomical calculations. By incorporating AI-supported drones, the UAE is reinforcing its position as a leader in technological innovation while maintaining deep respect for religious customs. This method is backed by national research centers and astronomical observatories, ensuring precision and credibility in determining the start of Ramadan. Ramadan is a sacred month in Islam, marked by fasting from dawn to dusk. Suhoor, the early morning meal, and Iftar, the evening meal that breaks the fast, hold great importance during this period. The holy month is also a time of increased charitable giving, with many Muslims part...
Post a Comment
Read more

Beyond the Barrel: The UAE's Steady Hand in a Shifting Global Economy

  Global economic rankings often highlight familiar names, but a steady, deliberate climb is happening in the Gulf. The UAE consistently ranks as one of the most economically stable nations, and this validation stems from a steady reform model that has successfully insulated its economy. The story is no longer about oil wealth; it's about the strategic deployment of that wealth to build a resilient, modern, and dynamic knowledge economy. The proof is in the sectors now driving growth.  Tech startups  are flourishing in Dubai and Abu Dhabi, supported by government venture funds and a growing pool of talent.  Smart cities  like Masdar City and NEOM are not just futuristic concepts but active testbeds for sustainable living and business. This has triggered record  FDI inflows , with the UAE securing its position as the 16th largest global destination for foreign direct investment. The narrative is supported by hard data: a GDP growth projection of 4.6% in 2025...
Post a Comment
Read more