Introduction Resources are scarce and need to be utilized in an appropriate way to feed the entire population; however, this is not the case in many countries. Saudi Arabia is a fast growing economy which is not exempted from resource misallocation. Misallocation of resources in the country takes the form of misuse, inefficiency in resource utilization, resource distribution inequality, and practices which do not support sustainable development. Industries, companies, government, and individuals are all responsible for the misallocation in one way or another. When there is a misallocation of resources, the resultant is social and economic damage to the environment (Madawi, 2002). This paper discusses social damage caused by the misallocation of resources in Saudi Arabia. Inequality Resource Distribution In Saudi Arabia, resources are not evenly distributed in the country. There are some parts and some individuals who do not have a fair share of the available resources. One of the resources that are not evenly distributed is Oil. The country is a leading oil exporter in the world with Saudi Armco as the main mining company for the product. The inequality, especially for oil benefits, has resulted in social rivalry among people of different regions in the country. The country has a larger portion of it being on a desert environment, and thus the default believe is that the people should be sharing the available resources equally, which has not been the case. Oil exploitation was being undertaken in the conditions of the desert, and thus there was a lot to be encountered; the capital owners exploit the laborers since they are aware that there is no other form of employment they can get. The first challenge to the laborer is harsh desert conditions with the hot sun during the day and extreme cold at night. This leads to diseases and makes the exploitation difficult day by day. It is worth to note that the accommodation facilities that are available for laborers are not of a good standard (U.S. Department of States, 2010). Uneven development Oil as the major resource for the country has controlled how development pattern is adopted in the country. Those places that have the reserves have been given the priority in development at the expense of other parts of the country. For example, around Saudi Armco, there have been increased developments of infrastructures, which include railway line, road, and pipeline to assist the company in its production. This is not even in other parts of the country. When a country has no even distribution of resources and development, it results in a country which has extremes; some people are extremely poor while some others have large deposits of resources. Social Evils There are huge inequalities in the distribution of resources; there are the extremely rich people in this country and those who live from hand to mouth. The level of poverty has increased so much that dying out of hunger is common in the country. The low employment rate has made people who are well learned to look for alternative means to survive. The alternatives that are taking the course are social evils. There is increased insecurity in the country; the rate then is working to the bad of the country since no