One of the Richest Nations: Economic Inequality in Saudi Arabia (2024)

FAQs

Which country has the most economic inequality? ›

The Saudi family is the richest in the world, worth an estimated total of $1.4 trillion, predominately due to its assets in petroleum. However, Saudi Arabia is still relatively poor; with 20 percent of people living in poverty, the problem of income inequality in Saudi Arabia is quite evident.

Its ability to influence global oil supply propelled Saudi Arabia to one of the richest countries in the world. The Saudi royal family became important players on the world stage. However, waning dominance in the oil market is forcing the Saudi government to think differently about its reliance on the commodity.

Worldwide gross domestic product in 2022 was at about 12,703 USD per capita. GDP in Saudi Arabia, on the other hand, reached USD 30,448 per capita, or 1.109 trillion USD for the whole country. Saudi Arabia is therefore one of the world's largest economies and is currently at rank 18.

Some causes of economic inequality are differences in marginal product, differences in tax structures, human capital, social capital, inheritance, discrimination, and the bargaining power within economic and social units.

High levels of inequality of opportunity discourage skills accumulation, choke economic and social mobility, and human development and, consequently, depress economic growth.

As a result, 6 Arab countries (Bahrain, the United Arab Emirates, Yemen, Saudi Arabia, Oman and Kuwait) were among the top 20 most unequal countries worldwide, the brief notes.

While more women are entering the workforce, disparities remain. According to the World Economic Forum's 2021 Global Gender Gap index, out of the 156 countries measured, Saudi Arabia was ranked at 147, Oman at 145, Kuwait at 143, Qatar at 142, Bahrain at 137, and the UAE at seventy-two.

Total GDP: US: Significantly higher, exceeding $23 trillion in 2023 compared to Saudi Arabia's roughly $1.07 trillion.

Is there poverty in Saudi Arabia? ›

It finds that 3.3 million GCC nationals were living in poverty in 2021. The poverty rates for GCC countries range between 0.4 per cent (Qatar) to 13.6 per cent (Saudi Arabia) of the countries' nationals. Oman and Saudi Arabia have the highest poverty rates for nationals, with 10.1 and 13.6 per cent, respectively.

The United States is significantly richer than Saudi Arabia in terms of GDP per capita. The GDP per capita of the United States is around $62,000, while the GDP per capita of Saudi Arabia is around $22,000.

As of today, no billionaire is within striking distance of becoming a trillionaire. Elon Musk is, at present, the world's richest person, with a net worth of $206 billion, while Jeff Bezos is in the number two position with $179 billion, according to Bloomberg.

Some estimates of the royal family's wealth measure their net worth at $1.4 trillion.This figure includes the market capitalization of Saudi Aramco, the state oil and gas company, and its vast assets in fossil fuel reserves, making them the wealthiest family in the world and the wealthiest in recorded history.

The Bottom Line. Alwaleed bin Talal is a Saudi royal and billionaire. A renowned international investor, his Kingdom Holding Company owns significant stakes in companies around the world, including Citigroup and Snap.

The U.S. also has the highest Gini coefficient among the G7 nations. The top 1% of earners in the United States earn about 40 times more than the bottom 90% of earners, and roughly 33 million U.S. workers earn less than $10 per hour, placing a family of four below the poverty line.

The United States exhibits wider disparities of wealth between rich and poor than any other major developed nation. We equate wealth with “net worth,” the sum total of your assets minus liabilities.

Not only is income inequality rising in the U.S., it is higher than in other advanced economies. Comparisons of income inequality across countries are often based on the Gini coefficient, another commonly used measure of inequality.