Overview

The Kingdom of Saudi Arabia is the largest Arab country of the Middle East. It is bordered by Jordan and Iraq on the north and northeast, Kuwait, Qatar, Bahrain and the United Arab Emirates on the east, Oman on the southeast, and Yemen on the south.

The origins of Saudi Arabia go back to 1744 with the establishment of the first Saudi State. The formation of the current Kingdom began in 1902, when Abdulaziz bin Rahman Al Saud (Ibn Saud) captured the Al-Saud's ancestral home of Riyadh, and culminated in 1932 with the proclamation and recognition of the Kingdom of Saudi Arabia.

Political overview

Saudi Arabia is a monarchy. His Highness King Salman bin Abdulaziz Al Saud succeeded to the throne on 23 January 2015, following the death of his brother, the late King Abdullah bin Abdulaziz Al Saud. The second in line to the throne is the son of the King, Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud. The Crown Prince has functioned as the de facto Head of State since his appointment in 2017 and was appointed Prime Minister in September 2022.

The King is assisted by a Council of Ministers that he appoints. In recent years the consultative Shura Council, which consists of 150 members (including 30 women) appointed by the King, has developed a modest but increasing role in public debate. Municipal elections were last held in December 2015, with women granted the right to vote and to run as candidates for the first time.

Saudi Arabia has embarked on a program of economic reform and diversification called the Vision 2030 plan. This plan includes social reforms as a driver of economic diversification. From June 2018 women have been granted the right to drive and, in August 2019, elements of the male guardianship system were dismantled to grant women additional rights (e.g. the ability to obtain a passport, and to remove barriers towards work in all fields of employment).

Saudi Arabia is a member of the Gulf Cooperation Council (GCC). It is also a member of the Arab League, the G20, the United Nations, World Trade Organization (WTO), the Organization of Petroleum Exporting Countries (OPEC) and co-chairs the Organization of Islamic Cooperation (OIC). Saudi Arabia hosted the G20 in 2020 and will be the host of the World Expo in 2030.

Bilateral relations

Australia and Saudi Arabia's friendly relationship is underpinned by strong people-to people contacts, trade and commercial ties and shared membership of the G20. This is complemented by Australia's engagement with the GCC and OIC, which are both headquartered in Saudi Arabia (Riyadh and Jeddah respectively).

Australia and Saudi Arabia have well-established cooperation in countering terrorism and are both members of the Global Coalition to Defeat-ISIS and the International Syria Support Group.

Economic overview

With a population of around 35.9 million (2023) and nearly 20 per cent of the world's conventional oil reserves, Saudi Arabia is the Middle East's largest economy. It was the fastest growing G20 economy in 2022, with GDP growth was around 7.8 per cent, and non-oil growth was 4.6 per cent in 2022.

The Saudi Government initiated structural reform measures in the 1990s designed to encourage privatisation, liberalise foreign trade and reform investment regimes. Commercial laws were revised and initial steps were taken to free up foreign investment and privatise parts of the state sector. Education and skills development are a major focus for the government, as the policy of 'Saudisation' looks to increase the percentage of Saudi citizens working in the private sector.

An approximately $5 billion scholarship program was launched in 2005, funding over 185,000 young Saudis to undertake tertiary studies abroad. The Custodian of the Two Holy Mosques scholarship program  is focused on ensuring  closer alignment between scholarships and in demand skills. The Saudi Government is also engaged in a major program for the construction of educational institutions in Saudi Arabia.

As part of Saudi Arabia's economic reform plans it has introduced a new tourism e-visa for Australians wishing to travel to the Kingdom.

Trade and investment

Saudi Arabia is an important trading partner for Australia. In 2023, two-way goods and services trade totalled $2.7 billion. Saudi Arabia is a substantial market for beef, sheep meat, barley, wheat, dairy products, cosmetics, pharmaceuticals, vehicle parts and accessories, and vegetables. There is significant potential for economic ties to grow, given areas of complementarity in agriculture, mining services, education and construction. Vision 2030 also provides potential opportunities for Australian business in priority sectors.

Saudi Arabia is also an important source of investment into Australia with an estimated $3 billion worth of assets (2023). Saudi Arabia's annual Future Investment Initiative is the Kingdom's premier investment forum for discussion of the global economy and investment trends.

Exports of services, notably education, are also significant. There are around 3,397 Saudi students studying in Australian educational institutions – many under scholarship arrangements. Saudi Arabia represents one of the largest cohorts from the Middle East region.

Saudi Arabia's needs are well suited to Australian capabilities - a fast-growing and young population, a well-managed banking system, good infrastructure, and generally low import duties and barriers. Its business community is sophisticated and familiar with Western practices. Austrade is represented in Riyadh.

Information on doing business and opportunities in Saudi-Arabia

High level visits

• June 2023: The Hon. Tim Watts MP, Assistant Foreign Minister, attended the D-ISIS conference in Riyadh.
• October 2022: Saudi Minister of Industry and Mineral Resources, Bandar bin Ibrahim Al-Khorayef made an official visit to Australia. 
• September 2018: A delegation from Saudi Arabia's Shura Council visited Australia. The delegation was invited by the Parliament of Australia.
• September 2018: Saudi Assistant Minister for Defence visited Adelaide to attend Land Forces 2018.