Case Study - The Impacts of Oil Exploitation on Saudi Arabia

• Saudi Arabia

  • located in the Middle East, between the Red Sea and the Persian Gulf

  • the majority of land in Saudi Arabia is desert

  • until oil was discovered in the 1930s, Saudi Arabia was a poor country

  • it was inhabited by nomads, called Bedouin, who wandered from place to place with herds of camels and goats

  • the discovery of oil led to the development of oil-based industries
• Environnemental Impacts - Positive

  • Oil is an efficient fuel that does not emit a lot of smoke.
  • Compared to other fossil fuels, it gives off a lot of energy when burned.
• Environmental Impacts - Negative

  • Oil spills can kill fish, birds and animals.
  • It emits harmful greenhouse gases (e.g. carbon dioxide) and adds to the formation of acid rain.
• Economic Impacts - Positive


  • The oil industry has brought huge wealth to Saudi Arabia, making it one of the richest countries in the world.
  • The state oil industry employs 80,000 people globally. The oil industry is responsible for massive job creation in other sectors of Saudi Arabia.
  • Saudi Arabia has started to diversify and develop other sectors of the economy.
• Economic Impacts - Negative


  • Oil is a finite resource that will run out in approximately 100 years. This could lead to an economic collapse.
  • Non-nationals, who make up one third of the population, were attracted by available jobs. As income from oil decreases, many of these non-nationals may lose their jobs.
• Social Impacts - Positive

  • People in Saudi Arabia enjoy a high standard of living. The country has excellent health, education and infrastructural services.

  • Demand for workers in the oil industry has led to inward migration from places such as Egypt, Pakistan, Europe and the USA, and towns and cities have expanded.
• Social Impacts - Negative


  • As the job market shrinks, non-nationals will be more affected. A recent government law banned non-nationals from selling or maintaining mobile phones and accessories.
  • Increasing wealth has led to a gap between those with wealth and those without.