Saudi Arabia's economic performance has been exceptional over the years. The Kingdom largely benefited from the recent high oil prices and is projecting the nominal GDP of SR1.7trillion ($467.5 billion). The real GDP growth (exceeding 3.1 percent in the last two years) is expected to reach 4.2 percent and the nominal GDP growth at 22.0 percent in 2008. The Kingdom remains committed to the economic diversification activity in the country. The growth outlook for the Saudi Arabian economy looks robust, with public & oil sectors investment program exceeding $400 billion over next 5 years. Saudi Arabia, possessing more than 20 percent & 10 percent of world's oil & gas reserves, respectively, will further consolidate its position in post-GCC full economic union. Saudi Arabia, based on International Finance Corporation-World Bank 2009 Report on Ease of Doing Business, was ranked at 16 among 181 countries globally, and no.1 in MENA region. Another preliminary estimate that shows an encouraging fiscal position indicated the public debt to GDP ratio to drop from 18.7 percent in 2007 to 13.5 percent in 2008 with public debt (being completely domestic) closing at SR237 billion ($63.2 billion) in 2008. Kingdom's inward FDI flows of $24.3 billion in 2007 recorded an annual increase of 33 percent, and FDI to GDP ratio of 6.4 percent. Non-oil sector GDP growth of 4.5 percent, while the oil sector GDP increased by 8.0 percent in 2007. Increased oil production coupled with diversification benefits is likely to accelerate real GDP growth. The oil price of around $50/bbl would bring 2008-2009 budgets for Saudi Arabia into balance.
