In a country as resourceful as Saudi Arabia and where there is an abundance of wealth, oil and money, it is simply hard to believe that an area known for its riches faces economic disadvantages with millions of its residents.
Poverty
Poverty in Saudi Arabia is a hidden problem that many Saudis hesitate to recognize. The Saudi Arabian government rarely releases data about its poorest people, making it difficult for the nation (and globe) to address the problem.
With the overall population at just over 32 million, the media has reported that an estimate of about 2 to 4 million of the country’s residents live on less than $530 a month ($17 a day) — a figure that analysts consider below the poverty line. In order for the government to tackle these issues at the source, there must be extensive programs that are proposed, including increasing development aid.
Education
Education is the key to eradicating the underlying issues of poverty. Understanding and comprehending basic skills, such as reading and writing, improvethe productivity of individuals in their daily lives which thereby bolsters industrialization.
This economic and social progression increases income distribution that has the potential to restore the people living in poverty in Saudi Arabia to their full potential livelihoods. In short, investment in education can result in big returns.
In 2013, Saudi Arabia’s King Abdullah approved a $21.33 billion (80 billion riyals) five-year education plan that is set to develop Saudi Arabia’s education sector. This plan includes: the construction of 1,500 nurseries, training for approximately 25,000 teachers, and the establishment of educational center and other projects related to the cause.
Influence of Education
Saudi has had difficulties producing employers in the science and engineering fields because of the education system’s concentration on religious and Arabic studies.In order to ease the influence of religion on education and expand the economy, King Abdullah has launched an excess of state schools and universities as a part of his education plan.
The reality for many families living in poverty in Saudi Arabia is a pattern that has impacted several generations — unstable surroundings that lead to poor academic preparation. Nonetheless, the situation can be improved if certain proposals, like the one implemented by King Abdullah, can continue to be enacted.
– Zainab Adebayo
Photo: Flickr
FAQs
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.
How to reduce poverty in Saudi Arabia? ›
Vision 2030: Poverty Eradication in Saudi Arabia
- Renewable Energy Revolution. ...
- Futuristic Commercial Hubs Could Make Saudi Arabia a Global Business Center. ...
- Investments in Smart Technology to Drive Entrepreneurship. ...
- Smart Technologies to Promote Health Care Access.
The Saudi government discloses little official data about its poorest citizens. But press reports and private estimates suggest that between 2 million and 4 million of the country's native Saudis live on less than about $530 a month – about $17 a day – considered the poverty line in Saudi Arabia.
Which country has the lowest poverty rate? ›
Iceland stands at the top of countries with the lowest poverty rates with a poverty rate of 4.9% in 2021. In 2017, Iceland's poverty rate even hit 0%, according to the World Bank.
Is Saudi Arabia a poor country True or false? ›
Saudi Arabia has the lowest reported poverty rate in the Middle East and the 10th lowest poverty rate in the world at 12.7 percent, as of 2017. However, the Saudi government does not release regular statistics regarding this information, resulting in varied estimates by outside agencies.
Is Saudi Arabia considered rich or poor? ›
Saudi Arabia is therefore one of the world's largest economies and is currently at rank 18. If this is calculated per inhabitant, taking purchasing power parity into account, then Saudi Arabia is in the list of the world's richest countries in place 28. Inflation in Saudi Arabia in 2022 was around 2.47%.
How do Muslims deal with poverty? ›
We must spend wealth in accordance with Allah Almighty's commands and instructions. It is obligatory to spend money in the way of Allah and refrain from spending wealth on things from which Allah has stopped us. In this way, Islam establishes a system for the financial assistance of the destitute and the needy.
What do Muslims do to help poverty? ›
Zakat is an inseparable, compulsory, and integral part of life for Muslims. It is an obligatory charity that a Muslim pays on superfluous wealth once every lunar year and usually amounts to 2.5%. The word 'zakat' is mentioned thirty-two times in the Qur'an.
What is Saudi Arabia's main income? ›
Oil exports account for approximately 87 percent of government revenue. With about 15 percent of the world's proven oil reserves, Saudi Arabia is the world's largest exporter of crude oil and a leader in OPEC.
Is Saudi richer than USA? ›
America's GDP hit a staggering $20.49 trillion in 2019, beating every other economy on the planet. The US is so incredibly wealthy, many states are actually richer than entire countries, including affluent nations such as Switzerland and Saudi Arabia.
There are 37.9 million Americans living in poverty, accounting for 11.6% of the total population, according to the U.S. Census Bureau.
Where does U.S. rank in poverty? ›
To summarize, when analyzing poverty as the number of persons who fall below 50 percent of a country's median income, we find that the United States has far and away the highest overall poverty rate in this group of 26 developed nations.
What are the 5 poorest countries? ›
In the world, the poorest countries are mostly located in Africa and Asia, with Burundi being the poorest country followed by Somalia, Mozambique, Central African Republic, and Madagascar.
What is a small fact about Saudi Arabia? ›
Saudi Arabia has the most oil reserves of any nation in the world. The biggest airport in the world is King Khalid Airport. It covers a staggering 192,000 acres of land, or roughly 300 square miles, in surface area. The airport is in the Saudi Arabian city of Dammam.
What is Saudi Arabia economy fact? ›
Saudi Arabia has an oil-based economy with strong government controls over major economic activities. It possesses about 16% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC.
What is the unemployment rate in Saudi Arabia? ›
RIYADH: Saudi Arabia's jobs targets outlined in Vision 2023 have borne results, with its overall unemployment rate falling 0.9 percentage points to 5.1 percent in the first quarter of 2023 compared to the same period a year ago, official data showed.
