Saudi Arabia

Investment & Operational Criteria

Key Indicators

Risk Premia

1.625

%

Outlook

Neutral

Rating

C|2U|±

Ranking

90

Reserves (1P)

Total

mm boe

Oil

82

%

Summary

Recent geopolitical turmoil has acted to destabilise the outward perception of the new regime, resulting in a deteriorating outlook. However, independents' involvement is the O&G segment is minimal, with ARAMCO dominating the segment, which means that in international terms, Saudi Arabia has little importance as an operating destination.

Updated

June 15, 2021

Country Basics

Region

Middle East

Reserves (1P)

Oil

mm bbl

Gas

bcf

Location

Saudi ArabiaSaudi Arabia

Middle East, bordering the Persian Gulf and the Red Sea, north of Yemen.

Outline

Tax Regime
Type

Concession

Tax Regime
Notes

Concession-based fiscal regime, where concessions are exclusively and only applicable to new gas and condensate projects; any oil discoveries will revert to the owner- and operatorship of the national oil company (Saudi Aramco).

Investment & 
Operational
Climate

Saudi Arabia is the largest country in the Gulf region with a population of 33mm, and the largest economy in the Arab World with a GDP of $782bn. The Saudi Arabian Government exercises control over main economic activities of the country’s oil-based economy. Saudi Arabia has almost 16% of the world's proven petroleum reserves, plays a principal role in OPEC, is one of the world’s largest producer and exporter of crude oil, and is a large-scale oil refiner and producer of natural gas. According to Forbes Magazine, petroleum accounts for roughly 87% of budget revenues, 32% of GDP, and 81% of export earnings. The Saudi economy remains dominated by hydrocarbons, primarily the extraction and export of crude oil. Saudi Arabia has been the world’s largest oil exporter for over a decade. Hydrocarbons accounted for over 55% of GDP and 90% of export earnings in 2015, and their shares are recovering towards these levels following a fall in oil prices in 2016. Saudi Arabia also has gas reserves of 290.8tcf (4.4% of the global total), but its annual production of 4tcf is consumed domestically.

Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.

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