With Saudi Arabia being of immense importance both politically and economically in the Middle East, this book provides a much needed, broad ranging survey of the development of the Saudi economy from the 1960s to the present day.

Written by a highly reputable author, the book includes an analysis of how political and social factors have shaped policy, and how the Saudi state is coping with the dynamics of a rapidly changing economic and political situation.

With Saudi Arabia being of immense importance both politically and economically in the Middle East, this book provides a much needed, broad ranging survey of the development of the Saudi economy from the 1960s to the present day. Written by a highly reputable author, the book includes an analysis of how political and social factors have shaped policy, and how the Saudi state is coping with the dynamics of a rapidly changing economic and political situation.

The changing political situation in the Middle East poses challenges for the economies of the region, and some see none more vulnerable to collapse than Saudi Arabia's. Yet as this study demonstrates, the fundamentals of the Kingdom's economy are relatively robust, as over three quarters of GDP is accounted for by the non-oil sector, and impressive modern industries have been established, notably in petrochemicals. The financial system functions well, and despite substantial government debts, there is low inflation and currency stability. The private sector increasingly drives the economy, although job creation has been insufficient to prevent rising youth unemployment. The development challenges Saudi Arabia faces are similar to those of other middle-income countries, and three decades of diversification have made the economy less unique than it was in the oil boom years of the 1970s.

The changing political situation in the Middle East poses challenges for the economies of the region, and some see none more vulnerable to collapse than Saudi Arabia's. Yet as this study demonstrates, the fundamentals of the Kingdom's economy are relatively robust, as over three quarters of GDP is accounted for by the non-oil sector, and impressive modern industries have been established, notably in petrochemicals. The financial system functions well, and despite substantial government debts, there is low inflation and currency stability. The private sector increasingly drives the economy, although job creation has been insufficient to prevent rising youth unemployment. The development challenges Saudi Arabia faces are similar to those of other middle-income countries, and three decades of diversification have made the economy less unique than it was in the oil boom years of the 1970s.

Asia constitutes the hub of the transformation of global economic power today. The Gulf, itself part of Asia, is of increasing importance in this transformation. This book documents the growing interactions between the economies of the Gulf states and those of the rest of Asia. These relationships are critical to how the world economy develops over the next decade, and how economic (and perhaps strategic) power is distributed. This volume assembles cutting-edge thinking by 16 specialists on a wide variety of topics covering Arab Gulf relations with China, Japan, ASEAN, Korea and India, as well as with Russia, Iran and Turkey.