Saudi's impetus to change grows as it dreams of new riches beyond oil

…Oil is no longer enough for Saudi Arabia, Opec’s largest producer of the black gold.

Since 1975 its population has more than tripled to 25 million people from 7.3 million – and 57 percent of all Saudis are under the age of 25. As the population grows, the kingdom’s riches must be spread further. Last year, gross domestic product (GDP) per capita was less than $19 000 (R153 274), compared with $47 000 in the US and $103 000 in Qatar.

To create jobs for its citizenry, the government wants to build cities and diversify into new industries.

“The impetus to change has grown as the population has grown,” says Howard Handy, the chief economist at Samba Financial Group, a Riyadh-based bank. “They are very focused on how to find work for all these young people.”

The proposed economic city – 720km north of Riyadh – is one of four new metropolises that Saudi Arabia is planning in order to help create more than 1 million jobs by 2020.

Business Report