Official Site - The Legatum Prosperity Index is the world's only global assessment of wealth and wellbeing; unlike other studies that rank countries by actual levels of wealth, life satisfaction or development, the Prosperity Index produces rankings based upon the very foundations of prosperity – those factors that help drive economic growth and produce happy citizens over the long term.
The 2009 Legatum Prosperity Index
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81

Saudi Arabia  


Fast Facts

Population 28.7 mn (2009 est.) GDP (per capita) $20,500 (2008 est.) Inflation 4.2% (2007)
Life Expectancy 61 years (2003) GDP (PPP) $576.5 bn (2008 est.) Unemployment 6% (2007)
Average Life Satisfaction 7/10 (2008) GDP (growth) 4.2% (2008 est.) Freedom House Rating Not Free (2009)
Political System Monarchy (2009)

Sub-Index Rankings

Compare Countries:

Index Comparisons
(Rank / Number of countries)

Legatum Prosperity Index81st / 104
Average Life Satisfaction Ranking22nd / 104
Per Capita GDP Ranking34th / 104
WEF Global Competitiveness Index28th / 133
UN Human Development Index55th / 179
Heritage/WSJ Economic Freedom Index59th / 178
TI Corruption Perceptions Index80th / 180
Vision of Humanity Global Peace Index104th / 144

 

Regional Ranking:
Middle East and North Africa

27= Israel
47 United Arab Emirates
52= Kuwait
68 Tunisia
80 Jordan
81 Saudi Arabia
83 Morocco
86 Lebanon
88 Egypt
94 Iran
96 Algeria
101= Yemen

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Economic Fundamentals - Ranked 44th

Saudi Arabia has one of the highest domestic savings rates but very little foreign direct investment

Saudi workers have access to a significant amount of physical capital such as offices, factories, and production machinery, ranking the country in the top 25 on this variable. The unemployment and inflation rates are low at 6% and 4%, respectively, while the domestic savings rate, at 49% of GDP, is the sixth highest worldwide. Saudi Arabia ranks towards the global average for household expenditure. However, the country receives very little foreign investment. The percentage of non-performing loans in the banking system is very low at just over 2% and net interest margins are low at three percentage points, suggesting there is a high level of banking competition and efficiency. Saudi Arabia’s raw material concentration is extremely high at 81% much of which is provided by the oil industry. Saudi Arabia has moderately high export revenues relative to the cost of the goods it imports, indicating strong terms of trade.

Entrepreneurship and Innovation - Ranked 81st

R&D in Saudi Arabia is hampered by an overall low level of technology

A high number of legal procedures are required to start a business in Saudi Arabia, creating significant barriers to entry. The country’s overall internet bandwidth is near the international average, but the number of secure internet servers is very low at only 4.6 per one million people. Access to personal computers is above the international median, at nearly 15 personal computers per 100 people. ICT and high-tech exports are both extremely low as a percentage of manufactured exports and value added within the service industry is also extremely low. R&D expenditure is also very low at 0.3% of GDP.

Democratic Institutions - Ranked 101st

Saudi Arabia is a stable monarchy with no checks and balances on the executive

Citizens in Saudi Arabia have no political rights and very few civil liberties. Saudi Arabia is classified as a complete autocracy, with no recognised political parties or national elections. In the absence of executive competition as well as checks and balances, political actors have free rein to act according to their own preferences. While there is a well-regulated electoral process for the executive branch, the legislature is mainly unelected, and there is no separation of powers. Further, the judiciary is entirely dependent on the rule of the executive. There is stability in the political system as the last regime change in Saudi Arabia occurred over 80 years ago.

Education - Ranked 56th

Saudi education is lacking at the primary level, but it improves through secondary and tertiary levels

For primary education, Saudi Arabia is ranked 91st, with only a 78% enrolment rate. However, the country rises to 52nd with respect to secondary enrolment rates, and tertiary enrolment rates are also about average at 27% of the eligible population. Student to teacher ratios are very favourable, with 11 pupils per primary school teacher. Female to male enrolment rates are high at 102 girls for every 100 boys in school. The average worker enjoys moderate levels of secondary education, suggesting good levels of human capital, while tertiary levels are near the global average at 3.1 years per worker.

Health - Ranked 42nd

Moderate infant mortality figures and scarcity of hospital beds are setbacks for an otherwise healthy Saudi population

Saudi Arabia has a standard number of doctors and nurses, with 14 per 10,000 people, but, by contrast, a very low number of hospital beds at just 23 per 10,000 people. Health-adjusted life expectancy is comparatively high at 61 years. Just 4% of Saudi citizens are undernourished, a very low percentage, globally, but infant mortality rates are moderate, at 21 deaths in the first year per 1,000 births. Sanitary conditions in Saudi Arabia are extremely high, with 99% of people having access to improved sanitation facilities, ranking the country 30th worldwide , and a similarly high 70% of citizens are satisfied with their water quality.* In addition, 92% of Saudis are satisfied with their personal health, 72% feel they are well rested, and only 20% indicate they have health problems and felt pain the previous day.*

Safety and Security - Ranked 56th

Saudi Arabia has severe national security challenges, but a relatively low crime rate

Saudi Arabia scores poorly on a number of national security variables, registering significant problems related to refugees or displaced persons, and a serious issue with the presence of social groups with a history of discrimination or other grievances. Human flight has depleted some of Saudi Arabia’s human capital, but it still ranks in the best quartile of countries for this category. Saudi Arabia scores poorly on variables that assess the degree to which the government uses violent methods against its own citizens. The country has also suffered some casualties due to civil war and ethnic strife in 2008, and remains inside the lowest quartile of countries on this variable. The number of homicides in Saudi Arabia is relatively low, placing the country 30th, internationally. Despite a high 18% of citizens having had some property stolen in 2008, about three- quarters of people feel safe walking in their area alone at night, a high number, globally, and only 7% have been mugged or assaulted in 2008, a comparatively low number.*

Governance - Ranked 67th

Confidence in both businesses and government is high despite the low quality of commercial regulation and government efficiency

Enforcement of the rule of law in Saudi Arabia ranks above the global average. However, the quality of regulation of economic and commercial activity, as well as government efficiency and quality of bureaucracy, is classified as low. Despite this, only 51% of people think that local businesses or local government are corrupt in Saudi Arabia, placing the country in the top 15 countries on both variables. The right to self determination through free and fair election does not exist in Saudi Arabia, meaning citizens have no right to change the laws and officials that govern them. Nevertheless, confidence in electoral honesty in Saudi Arabia is high.* There were no data available on confidence in military and court approval.

Personal Freedom - Ranked 98th

Only six out of 10 Saudi citizens are satisfied with the level of choice they have in their daily lives

Saudi citizens have very limited freedom to practise their religious beliefs, speak freely without fear of government censorship, and travel freely within and out of their own country. Only 57% are satisfied with the level of choice in their daily lives, ranking the country 92nd on this variable.* More than half of people felt that the place where they live is a good place for immigrants; however, only 44% feel it is a good place for ethnic minorities, ranking Saudi Arabia 93rd on the latter variable.*

Social Capital - Ranked 43rd

A generally high level of social networks characterises Saudi Arabian life

Social trust in Saudi Arabia is generally high, with 53% of respondents believing that other people can be trusted. In the same vein, a high number of people feel friends are important to them and a similarly high number of people believe that they can rely on family and friends, indicating a strong social network. Donations to charitable organisations and the number of citizens who have helped a stranger in 2008 are about average compared to other countries surveyed.* However, a very low 12% of citizens engaged in voluntary work.* Saudi Arabia is among the 25 most religious countries in the world, with the majority of people having potential access to a religious support network.*

* Data taken from the Gallup World Poll