Homework Question on Challenges in Saudi Arabia
- Choose a country and state why you chose it.
- Basic facts 3 challenges and 3 success .Write an essay about it.
Homework Answer on Challenges in Saudi Arabia
Kingdom of Saudi Arabia is a large country covering part of the Arabian land. I chose it because it is my home country. The challenges include:
Decline in oil prices
The nation plays a crucial role in the oil market globally because it accounts for 16% of oil reserves in the whole world. The fall in prices of oil has posed a challenge because the economy of the country is dependent on it. The overreliance on oil has as a source of income and revenue has made the country to undergo through economic challenges. This has raised concerns for decision makers and professionals in the country.
The stakeholders are putting in place measures to ensure that they deal with the situation by ensuring that alternative sources of revenue are sort. This will guarantee that the country does not over-depend on oil as a source of revenue. They are also putting in place strategies to counter the challenge by insulating the country from volatility that is being experienced in the global oil market. The overreliance on oil proceeds is being reduced by introducing other sources of income.
There are considerable uncertainties that may ruin the economy of the country if strategies are not put in place to counter the challenges. It has encountered supply shocks that have posed a challenge to the economy of the state. Oil supply has continued to exceed its demand, sustaining the dropping prices of oil in the world oil market is a major problem to the country because a fall in prices of oil has a direct negative effect on the economy of the country.