Analyze of Saudi Arabia international trade policy under the perspective of neo-liberalism theory

Abstract

The globalization, privatization, and opening-up process of developing countries attract the world. These policies are helpful for the development of developing countries. This article uses Saudi Arabia as an example to study the execution of globalization, privatization, and opening-up policies. The article also discusses the influence of these policies in Saudi Arabia. The literature review method is applied in this article to explore the privatization and open-up policy of Saudi Arabia. This study mainly relies on information gathered from former academic reports and articles analyzing the economic reform of Saudi Arabia and some media articles. This article studies Saudi Arabia's economic globalization process and uses neo-liberalism theory to conduct qualitative research on the decisions of Saudi Arabia. The economic structure of Saudi Arabia profoundly relies on its resources. The economic system of Saudi Arabia also has some flaws, including the corruption and low efficiency of its bureaucratic system and public sector. The economic system highly relies on the global oil market, and there is also potential employment risk. The article uses the neo-liberalism theory to analyze globalization, privatization, and geopolitics in Saudi Arabia. The article studies the intentions of Saudi Arabia to strengthen its oil industry and financial market and solve the problem of low-efficiency public sectors and the contradiction between economic development and geopolitics conflict between Israel. This article found out that the neo-liberalism theory does influence the decisions made by the authorities of Saudi Arabia. However, the decisions of Saudi Arabia are also influenced by some factors, like the geopolitical conflict with Israel, which is outside the paradigm of the neoliberalism theory. This article may help developing countries make decisions in the international trade system, especially developing countries that are highly reliant on natural resources.