Saudi Arabia is an oil-based economy with the biggest proven crude oil reserves in the world at 266.7 billion barrels, New oil and gas fields has been discovered in the past three years, representing more than 57% of the (GCC) Gulf Commission Council Countries reserves, nearly 29% of the OPEC and almost 20% of the world total reserves. It ranks as the largest and biggest producer as well as exporter of petroleum in the world and plays a leading major role in the OPEC, producing almost 30% of the total OPEC oil production. Oil sector represented 90% of total export earnings, 80% of government's revenue and almost 45% of its GDP. About 40% of GDP comes from the private sector. The average OPEC basket oil price stood at US$34.39 per barrel in the 1st four months of 2016 compared to $91.48 a barrel in the same period of 2008, recording a huge annual decrease in the government revenue.
Saudi Arabia aggressively encourages foreign investment, mainly if the projects have a strong and essential developmental effect on the country's economy and encourage industrialization and technology transfer to the Kingdom. Saudi law requires that technology transfer must occur in any foreign invested projects to benefit the country industrial development. Moreover, foreign investors can invest and own their assets in their own name. However, the petroleum and mineral extraction industries are owned and controlled by the government and are usually closed to foreign investment except big organizations in this industry that can guarantee access to this industry thru Joint venture with local companies