Oil Revenues and Economic Development of Saudi Arabia (1971-2016)

The present work is an attempt to analyze the development drive of the Kingdom of Saudi Arabia. Since the inception of First Five Year Development Plan to the Tenth Five Year Development Plan (1971-2016) many spectacular changes have been taken place in the Kingdom. Keeping in view, the Kingdom¿s unique Geography, Religion, Culture and Economic base many models and theories have been inquired in this direction. So, the present study has been conducted in such a way that could generate a clear cut idea about the whole journey of economic development and growth. The economic evolution of the Kingdom in historical perspective can be conveniently divided into four major stages: (i) 1902-1938, (ii) 1938-1970, (iii) 1973-1981, and (iv) 1982-till date. During the first stage the economy was traditional and primitive. However, in the second phase and particularly in 1950¿s the Government, invested heavily in developing oil sector resulting in impressive growth rate of an average of 10.6 percent per annum. By the end of this, period key structural characteristics of expanding the economy could easily be identified as an inadequate infrastructure and shortage of manpower coupled with excess.