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The main purpose of this study is to reveal the factors of growth in the economy of Saudi Arabia, which is the leading exporter of petroleum in the world market. The author, relying chiefly on an endogenous growth model with a built-in mechanism of technical progress and describing the political background, analyses various aspects of Saudi Arabia's modern economic development. He comes to a conclusion that the role of oil and gas wealth is still important but shows a diminishing trend in time. This makes necessary increased efforts to diversify the national economy, which can be assisted by promoting creative technical progress based on the economic role of human capital. As an example of implementing diversification, the development of manufacturing industry is examined.The monograph is intended for a wide range of readers interested in the theory and practice of development in petroleum producing and exporting countries.