The government cannot totally get away with regional problems, but can only reduce the impact that the problem poses. Unemployment, for instance, has been a regional problem that has been a concern in most developing countries. Policy makers face the problems of trying to negate the effects of regional problems because of the repercussions that these problems have on a country. For unemployment, for instance, policy makers will have to balance between unemployment, inflation and costs of living (Cordesman 2003). The reason is that one directly or indirectly affects the other. High levels of unemployment, for example, reduce the rates of inflation and vice versa. Regional problems have been obstacles that deter the growth of an economy in every country. This paper will focus on unemployment in Saudi Arabia, which is a Middle East country. Despite being one of the main oil producers in the globe, Saudi Arabia has been having difficulties in providing ample employment opportunities for its young population. Unemployment in Saudi Arabia is due to systematic and fundamental shortcomings, such as a stagnant private sector. The sector solely depends on a foreign labor force and a lac