The Economy of Saudi Arabia
Oil Discovery and the Rise of the Kingdom
After the kingdom was unified in 1932, oil discovered in 1938 and developed by an American consortium transformed a poor desert land.
Oil created modern Saudi Arabia.
Before oil
The economy relied on herding, small farming, pilgrimage income and trade.
Discovery
Oil was found in commercial quantities in 1938 in the Eastern Province.
Aramco
An American consortium developed the fields, and the Saudi government gradually took control.
Nationalisation
Full ownership of Aramco passed to the Saudi state by 1980.
A pilgrimage economy
Before oil, fees from Hajj pilgrims were a key source of income.
Believing oil wealth arrived immediately
It took decades to build.
Key takeaways
- The kingdom was unified in 1932.
- Oil was found in 1938.
- Aramco was developed with foreign help.
- The state took control by 1980.
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