Business Policy in an Era of New Prosperity: Strategic Investment Planning from 1970 to 1985

J. W. Wright and Muhktar M. Ballool

Chapter 2 in Business and Economic Development in Saudi Arabia, 1996, pp 33-52 from Palgrave Macmillan

Abstract: Abstract This chapter is mainly concerned with the investment strategy problems that faced Saudi Arabia in recycling the petrodollar surpluses that accrued to the Kingdom in the 1970s as a result of price hikes following the OPEC embargo. The embargo happened in the midst of the country’s first Five Year Development Plan, drastically altering the implementation of that plan and setting up completely new dynamics for writing investment objectives into the next two plans. Several issues complicated the investment planning process, not least of which was the fact that until then, and indeed until the late-1980s, the economy of Saudi Arabia had depended on a single, exhaustible natural resource as its sole source of income. In 1970, 80 per cent of Saudi GDP and 99.83 per cent of the government’s revenues were earned through the sale of oil and related gas by products.2 The government’s dependency on oil sales forced planning officials to question whether the exhaustible resources were being depleted too rapidly.3

Keywords: International Monetary Fund; Saudi Arabia; Absorptive Capacity; Business Policy; Foreign Labour (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-25096-7_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349250967

DOI: 10.1007/978-1-349-25096-7_3

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().