Saudi Arabia lies above the largest known oil reserve in the world; therefore, the economy of Saudi Arabia is heavily oil-based, and the country is the largest exporter of oil in OPEC. The country’s oil sector accounts for 80% of the revenues and 80% of income from exports; for this reason, fluctuations in the global oil economy impact Saudi Arabia significantly due to lack of economic diversification.

Imports / Exports

Saudi Arabia also engages in “virtual water trade” whereby water is imported and exported where it is used as an input to production. For example, one study estimated that Saudi Arabia has net virtual water imports, most significantly for cereals, alfalfa and vegetables, and exported water through fruit. The study concluded that this virtual water trade “reduced pressure on water resources by 54%”. Further, the study found that 90% of Saudi Arabia’s water exports go to neighboring countries, and that more than 40% of water imports come from Asia.