Arab World - Total natural resources rents (% of GDP)

Total natural resources rents (% of GDP) in Arab World was 20.32 as of 2019. Its highest value over the past 49 years was 58.16 in 1979, while its lowest value was 12.83 in 1998.

Definition: Total natural resources rents are the sum of oil rents, natural gas rents, coal rents (hard and soft), mineral rents, and forest rents.

Source: Estimates based on sources and methods described in "The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium" (World Bank, 2011).

See also:

Year Value
1970 13.25
1971 14.86
1972 17.17
1973 22.21
1974 49.50
1975 40.00
1976 39.86
1977 38.53
1978 34.45
1979 58.16
1980 51.94
1981 38.53
1982 24.94
1983 24.69
1984 24.17
1985 21.31
1986 13.85
1987 17.99
1988 17.11
1989 24.20
1990 24.75
1991 20.77
1992 21.43
1993 20.89
1994 19.30
1995 19.84
1996 22.55
1997 19.51
1998 12.83
1999 16.76
2000 26.12
2001 21.01
2002 20.36
2003 23.20
2004 28.49
2005 35.52
2006 35.75
2007 32.49
2008 38.17
2009 24.90
2010 29.33
2011 36.35
2012 35.43
2013 32.30
2014 28.63
2015 17.00
2016 14.01
2017 17.92
2018 22.88
2019 20.32

Development Relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future.

Limitations and Exceptions: This definition of economic rent differs from that used in the System of National Accounts, where rents are a form of property income, consisting of payments to landowners by a tenant for the use of the land or payments to the owners of subsoil assets by institutional units permitting them to extract subsoil deposits.

Statistical Concept and Methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the world price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs (including a normal return on capital). These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Environment Indicators

Sub-Topic: Natural resources contribution to GDP