2000 words paper on the topic Has Oil Really Affected Saudi Arabia and Saudis Positively. The story of modern Saudi Arabia traces its way back to 1933 when King Al-Saud granted oil prospecting rights to Standard Oil of California, which was later to be renamed Chevron. By 1938, the company had already discovered vast oil quantities and limited oil exports began by 1940 before increasing substantially by 1945 and the end of WWII (Sinkler 72). Standard Oil of California joined a consortium of oil companies in the late 40s in Saudi Arabia, creating the Arabian American Oil Company, or ARAMCO, which pushed Saudi Arabia to become the world’s largest producer of oil by the 70s. The government finally assumed full ownership of ARAMCO in the 80s, which saw the country enter a new era and renaming the company Saudi ARAMCO. .
1.1 Oil discovery and revenues from its exports portended economic changes for the country and its people, of which growth in oil export revenue has enabled the Saudi government to undertake 5-year economic development plans that set out to re-distribute petroleum incomes (Al-Rasheed 34).
1.2 The biggest impediment to the economic diversity envisioned under the nine sequences of five-year plans has been a mismatch between private market job needs and Saudi graduate job skills, resulting in foreigners making up 80% of the entire private-sector workforce. The first two five-year plans in the 70s focused on infrastructural development with impressive results that tripled the length of tarmac roads, increased seaport capacity tenfold, and improved power generation 28 times (Al-Rasheed 35).
1.4 Although expansion and diversification of industries failed to rise as planned, the cities of Yanbu and Jubail that were based on refined oil products, fertilizer, petrochemicals, and steel were completed, benefiting the local people (Al-Rasheed 36). The 4th 5-year plan of the late 80s encouraged private enterprise as the government realized that education and training remained as areas of concern. The private sector rose to account for 70% of GDP, not from the oil sector, especially in construction, banking, agriculture, and industry.