Impact of Oil Discovery on State-building in Saudi Arabia Essay

Impact of Oil Discovery on State-building in Saudi Arabia - Essay Example Unlike other countries that have a diversified economy, Saudi Arabia depends on oil revenue to build its economy. However, oil prices have become very volatile with prices surging up and down, an aspect that affects the consistency of the country’s economy. The reason is that the country depends heavily on the global oil market which is faced by very high risks and uncertainties in order to make its future plans regarding the progress of the economy. With the increasing levels of globalization resulting from the liberalization of markets, efficient flow of information and integration of economies across the world, it has become very hard for a single country to make its single decisions without considering the effects of the global market. However, unlike other countries which have a diverse source of revenues, Saudi Arabia has stuck with oil in order to spearhead growth and development of the economy. Therefore, since the financial crisis which had a major impact on the spend ing of many countries, the Saudi economy has been greatly affected. This aspect has stalled very many projects which could have stabilized the economy. The oil discovery has enabled the country to establish various structures that make it possible for the country to achieve economic growth. Research indicates that the Saudi government has been critical in investing in the education sector. The country has improved the infrastructures in this sector. It has equipped its research centers especially the departments that deal with oil production.