Sensing that change in multiple forms is necessary for the growth of the economy, Saudi Arabia has begun massive and unprecedented reform. At the heart of the reform, the Saudi government recognizes the need to invest more for the improvement of its impoverished people. Here are the top 15 facts about poverty in Saudi Arabia.
Top 15 Facts about Poverty in Saudi Arabia
- 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.
- The country is highly urbanized with close to 85 percent of citizens living in cities and many impoverished citizens, estimated to be around four million Saudis, reside in slums on the outskirts of those cities.
- Saudis who do not even live in the slums still struggle to afford the home in the cities. An estimated 60 percent of urban Saudis cannot afford to own their homes outright.
- The unemployment rate has risen slightly from 12.8 percent in 2017 to 12.9 percent in the first fiscal quarter of 2018. Crown Prince Mohammed bin Salman and the Saudi government have made tackling unemployment a key component in their economic and social reform program Vision 2030.
- The government has implemented an insurance program for unemployed Saudis, but it is still difficult for recipients to survive when the cost of living is constantly increasing.
- A major factor in unemployment is the number of foreign workers in Saudi Arabia. There are roughly three million Saudis in the labor force compared to 11 million immigrants who work in similar fields.
- Vision 2030 discusses plans to reduce Saudi Arabia’s reliance on oil as the largest economic asset. Instead, the country plans to invest in other industries that will generate more jobs for unemployed Saudis.
- The government announced plans to implement nationalization quotas for small businesses and education programs to allow impoverished Saudis to prepare for the employment.
- Prince Salman believes that addressing poverty and unemployment is as necessary from the economic perspective as it is from the humanitarian perspective. He believes that by diversifying the economy and improving the poverty and unemployment rates, Saudi Arabia will attract more foreign investment.
- Saudi Arabia’s lifting of their long-standing movie theater ban has drawn AMC to create numerous theaters throughout the country, introducing service industry jobs for impoverished citizens who may not be qualified for more specialized positions.
- The government has lifted several bans preventing women from working and participating in the economy. With these barriers eliminated, women will be able to work and help provide for their families.
- Despite Prince Salman’s popularity and economic ambitions, many are still troubled by the vast wealth gap in Saudi Arabia. While many Saudi citizens live in poverty, Salman’s father, King Salman bin Abdulaziz Al Saud, has an estimated net worth of $17 billion.
- With the possibility of water and farmable land becoming scarce in Saudi Arabia in the next few decades, the government will likely need to establish new ways of ensuring food production and food availability at a rate that can support the country’s population.
- Saudi Arabia has a history of refusing help from the nongovernmental organization because of the fears of deterring investors, but the government has recently begun to change its policies in favor of helping its impoverished citizens.
- Changes will take time. While it is clear that Saudi Arabia is in need of immediate change in some aspects, it will take time for sustainable growth to be implemented.
As Saudi Arabia finds itself in a highly transitional period in terms of social reform and economic reevaluation, its citizens face great uncertainty. However, despite what some of these top 15 facts about poverty in Saudi Arabia may suggest, the country’s leadership has made clear that their top priority is to build the economy into something that will work for, rather than against, the Saudi people.
– Rob Lee
Photo: Flickr
FAQs
Oman and Saudi Arabia have the highest poverty rates for nationals, with 10.1 and 13.6 per cent, respectively. Bahrain ranks third with a poverty rate of 7.5 per cent. One in every seven nationals in Saudi Arabia, one in ten nationals in Oman and one in thirteen nationals in Bahrain are living in poverty.
What are the causes of poverty in Borgen Project? ›
“Natural” causes of poverty include agriculture cycles, droughts, flooding, natural disasters and warfare. These phenomenons contribute to hunger and especially effect farmers. Limited resources and infrastructure to respond to such crises in developing countries also perpetuate inequality.
Who is mostly affected by poverty? ›
Children are disproportionately affected. Despite comprising one third of the global population, they represent half of those struggling to survive on less than $2.15 a day. An estimated 333 million children live in extreme poverty.
How much of Saudi Arabia is in poverty? ›
Although the government rarely releases statistics, it is estimated that around 20 percent or more of the 34 million Saudi citizens live in poverty. Many of them are women or members of female-headed households.
Is Saudi Arabia rich or poor country? ›
Saudi Arabia had a total wealth of $2.26 trillion in 2022. Since 2012, Saudi Arabia's total wealth has increased by 80.80%. Ranked 25th on our list, Saudi Arabia is one of the wealthiest countries by per capita net worth.
How does The Borgen Project help? ›
Advocate: We meet with U.S. Congressional leaders to secure support for crucial poverty-reducing legislation. Mobilize: We mobilize people across the globe behind efforts to make poverty a political priority. Educate: We teach basic advocacy skills that allow citizens to communicate with their government.
What has The Borgen Project done? ›
The Borgen Project advocates for those living on less than $1.25 per day. The organization educates the public regarding the U.S. International Affairs budget and programs that improve global health and living conditions. The Borgen Project's network of volunteers expands to over 830 cities.
Is Borgen project reliable? ›
The Borgen Project is highly ranked on the top charity watchdog sites. For nearly 20-years, the organization has been advocating for the world's poor and is very respected in it's field.
How does 10 define poverty? ›
Poverty is about not having enough money to meet basic needs including food, clothing and shelter.
What is the #1 cause of poverty? ›
The United Nations Social Policy and Development Division identifies “inequalities in income distribution and access to productive resources, basic social services, opportunities” and more as a cause for poverty. Groups like women, religious minorities, and racial minorities are the most vulnerable.
According to HHS's measurement, a family of four in 2023 would be considered impoverished if their income is $30,000 or lower. Alaska and Hawaii use a slightly different measure due to a higher cost of living in those states. The poverty guideline is $37,500 in Alaska and $34,500 in Hawaii.
Does poverty cause crime? ›
Poverty does not directly cause crime; instead, it is a factor in the cause but, independently, it is not the root source (Barr 5). During the Great Depression, poverty levels were much higher than they are today, but crime actually declined (Barr 5; fa*gan 3).
What is the poorest country in the world? ›
Africa
- Somalia.
- South Sudan.
- Sudan.
- Tanzania.
- The Gambia.
- Togo.
- Uganda.
- Zambia.
National Poverty in American Awareness Month wallpaper with US flag colors and typography in the center. Aired; January 18th, 2024. January is National Poverty in America Awareness Month. Almost 38 million people are living in poverty in the U.S.
What is considered poor in Saudi Arabia? ›
People are hungry." 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.
How do the poor live in Saudi Arabia? ›
The Saudi state offers free health care and education, but little in the way of income assistance or food stamps. Many poor Saudi families rely on handouts from private citizens instead. Muslims are expected to give a portion of their annual income to charity, and many go beyond the bare minimum.
What is Saudi Arabia economy fact? ›
The Saudi economy is highly reliant on its petroleum sector. Oil accounts on average in recent years for approximately 40% of Saudi GDP and 75% of fiscal revenue, with substantial fluctuations depending on oil prices each year. $1.106 trillion (Nominal, 2024 est.) $3.354 trillion (PPP, 2024 est.)
How many Arabs live in poverty? ›
According to a 2022 report from the Cuban Human Rights Observatory (OCDH), 72 percent of Cubans live below the poverty line. 21 percent of Cubans who live below the poverty line frequently go without breakfast, lunch or dinner due to a lack of money. Pensions are among the smallest in the Americas at $9.50/month.
