Fueled by enormous revenues from oil exports, the economy boomed during the 1970s and ’80s. Unlike most developing countries, Saudi Arabia had an abundance of capital, and vast development projects sprung up that turned the once underdeveloped country into a modern state. During that time, unemployment was all but nonexistent—large numbers of foreign workers were imported to do the most menial and the most highly technical tasks—and per capita income and gross domestic product (GDP) per capita were among the highest in the non-Western world.
Long-range economic development has been directed through a series of five-year plans. The first two five-year plans (1970–75 and 1976–80) established most of the country’s basic transport and communications facilities. Subsequent plans sought to diversify the economy; to increase domestic food production; to improve education, vocational training, and health services; and to further improve communications routes between the different regions of the country. But the economic boom was not without a price. As world oil prices stagnated in the 1990s, government policies encouraging larger families led to a marked increase in population. GDP per capita actually began to fall in real terms, and the kingdom’s young, highly educated workforce began to face high rates of unemployment and underemployment for the first time. However, those trends reversed as oil prices again rose. In addition, five-year plans were directed toward increasing the share of private enterprise in the economy in an effort to move away from dependence on oil exports and to generate jobs.
Source: britannica.com
