Evolution of the Saudi Arabian

¶ … evolution of the Saudi Arabian economy, and the factors that influenced the country's economic development. In the article, readers can also observe the international events that had a significant impact on the country's situation (U.S. Library of Congress, 2010). The main advantage of the article relies on the fact that it clearly presents the stages of economic evolution in Saudi Arabia, and the main sectors that are considered to be important in the region.

Saudi Arabia's economy can be easily attributed to the country's large oil resources. This is because before discovering oil in the region, the country's economy was not a unified entity, as the article puts it. Given the fact that the country's relief does not allow for a developed agricultural segment, the economy of various Saudi Arabian regions was represented by subsistence agriculture, trade, and others.

But the discovery of oil in 1938 changed this situation. The fact that Europe was trying to recover after World War II and that countries needed cheap sources of oil that could rely on, Saudi Arabia fully exploited this opportunity. This led to significant revenues for the king of Saudi Arabia, determining an increased political and economic control. Under the rule of the Saud family, the country's economy evolved from the traditional one to a modern, developed economy.

Given its precious and vast resources that address the growing needs of Europe and the U.S., Saudi Arabia became a strategic area for the Western civilization. The article mentions the interest for the oil in the region that led to the Kuwait invasion by Iraq. The important of Saudi Arabia on international level continued to increase, since the country made proof of its exceeding crude oil capacity. This situation, combined with the fact that countries from the former Soviet Union produced less oil, made the Western countries to consider Saudi Arabia their main oil supplier.

Saudi Arabia responded to the increased interest showed by the West by expanding its capacity plan for the oil industry. As a consequence, the largest Saudi Arabian companies in the industry increased their domestic crude oil capacity. These companies also invested in quality, not just in quantity. Although the country's economic relationships with the West significantly intensified, Saudi Arabia improved its regional trade sector by addressing markets like Iran, Central Asia, South Asia, and Kuwait.

However, the country was significantly affected by the Persian Gulf War. As a result of the war, the country's government finances were reduced. Not even the substantial revenues from oil could sustain the cost of the war. The country was forced to borrow money from international organizations and to reduce subventions to government companies.