Saudi Arabia 

Saudi Arabia country policy

Policy established 11 July 2007

• ILC, bank guarantee or central public guarantee (conditional)
• The country ceiling is 2000 mln euro
• Early warning signal 1500 mln euro
• - of which was used as at 2012-02-29 125 mln euro

Country class: 2

Restrictions

• Extended DAL (Date of Ascertainment of Loss): 6 months

Saudi Arabia country facts

Atradius Dutch State Business Economic Research 

Country Report last updated 26 July 2011 
Country: SAUDI ARABIA

Political Situation
Reasonably Stable

Head of state
King Abdullah bin Abdel-Aziz al Saud.

Form of government
The King appoints the Council of Ministers (government) and the Consultative Council (advisory body) .
 
Internal Economic Situation
Risen Gdp-Growth

General situation
After a poor performance in 2009, higher GDP-growth thanks to risen oil prices and production, and from 2011 on due to the extra public sector spending, boosting private consumer demand and construction. Some major projects in the oil/gassector are coming on stream, also contributing to the sustained GDP-growth. But excessive bureaucracy and a restrictive visa policy keep it below potential. Extensive subsidization has prevented domestic food prices from rising, moderating inflation. Strong banking sector. 
 
External Economic Situation
Very Good

Main sources of foreign exchange
Crude/refined oil (86%).

Main foreign markets
Japan (15%), China (14%), USA (14%). 

Main expenses of foreign exchange
Machinery and transport equipment( 50%), food (15%); remittances non-residents.
 
Balance of payments
Very large current account surpluses, declining in the coming years as domestic demand sucks in imports. The Saudi Riyal is pegged to the US$.