A deeply conservative country, Saudi Arabia is facing up to the challenge of reconciling new ways of doing business with traditional values as it engages more closely with the world economy.

Accession to the World Trade Organisation last December has accelerated reform through further liberalisation of the kingdom’s trade regime, the opening up of the economy and the establishment of a more transparent and predictable environment for foreign investment.

As the world’s leading oil producer with 25 per cent of the world’s known petroleum reserves, Saudi Arabia has profited hugely from the spike in international oil prices. The kingdom achieved one of its highest ever levels of economic success last year, posting a 6.5 per cent increase in gross domestic product and benefiting from a massive surplus in government revenues.

The upsurge is forecast to continue, but the government is looking to longer-term sustainability and the need to create jobs for a fast growing population. Plans have been announced to spend huge sums on expanding economic infrastructure and improving health and education services.

There is a drive to reduce the country’s dependence on oil exports and strengthen the contribution of the private sector. Last year, private sector growth was at its highest in 20 years and non-oil exports were at record levels.

Privatisation, liberalisation and diversification are all on the agenda and key sectors such as banking and insurance, telecommunications, the postal service, power and water and tourism are being opened up to private sector participation. Meanwhile, steps have been taken to make the kingdom more investor friendly.

Already ranked as one of the most open Arab economies, the kingdom aims, over the next five years, to become one of the top ten global locations for foreign direct investment.