|
 Background
A key element in the Saudi Arabian government's economic strategy is industrial diversification, a process which has as its primary objective the reduction of the Kingdom's dependence on oil revenues. To this end, the government has encouraged the development of a wide range of manufacturing industries.
The government has provided a range of incentives to encourage the private sector to participate in the Kingdom's industrial effort. Eight industrial estates provide private Saudi manufacturing companies with the necessary infrastructure and services at a very low cost. Credit facilities on generous terms are readily available for such enterprises.
The Kingdom has adopted a free market economic model. The financial, industrial and trade sectors of the economy have made rapid progress, enabling the private sector to play an increasingly important role in the development and diversification of the economy, especially in the fields of construction and farming.
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Factories Licensed
| Productive Factories licensed under the National Industries Protection and Encouragement Law and the Foreign Capital Investment Law (1981-2001) |
| Industrial Sector |
1981 |
1985 |
1989 |
1994 |
2001 |
| Manufacture of food and beverages |
144 |
216 |
275 |
346 |
539 |
| Textile, wearing apparel and leather industries |
15 |
25 |
40 |
81 |
167 |
| Manufacture of wood and wood products including furniture |
27 |
46 |
70 |
100 |
174 |
| Manufacture of paper products, printing and publishing |
70 |
104 |
119 |
148 |
211 |
| Manufacture of chemicals and petroleum, coal, rubber and plastic |
116 |
200 |
273 |
399 |
693 |
| Manufacturing of construction materials, chinaware and glass |
225 |
309 |
359 |
439 |
570 |
| Basic metal industries |
4 |
6 |
8 |
10 |
12 |
| Manufacture of fabricated metal products, machinery and equipment |
226 |
361 |
484 |
633 |
948 |
| Other manufacturing industries |
10 |
25 |
45 |
57 |
83 |
| Transport and storage |
13 |
21 |
21 |
21 |
21 |
| TOTAL |
850 |
1,313 |
1,694 |
2,234 |
3,418 |
This information was taken from:
http://www.saudinf.com/main/e522.htm
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Saudi Arabian Basic Industries
The Saudi Arabian Basic Industries Corporation (SABIC) is an example, par excellence, of the practical results of the Kingdom's blend of long-range planning, long-term major investment and the judicious use of public and private sources of finance.
SABIC was established by Royal Decree in 1976 (1396/97 AH) - its task being to set up and operate hydrocarbon and mineral-based industries in the Kingdom of Saudi Arabia. The Public Investment Fund provides long-term loans to SABIC on highly concessional terms. The balance of SABIC's capital requirements come from SABIC's joint venture partners. In addition, SABIC can make use of normal commercial loans. With these sources of finance, SABIC is able to undertake industrial projects considerably in excess of its own authorized capital of 10,000 million Saudi Riyals.
Saudi Basic Industries Corporation (SABIC) Web Site
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Saudi Consulting House
The Saudi Consulting House, established in 1967, was a Government consulting corporation which provided a range of research and consultancy services for industry in the Kingdom. The Saudi Consulting House operated under four main departments:
- Industrial Development
- Industrial Engineering
- Industrial Information
- Finance and Administration
The Saudi Consulting House offered the following types of service:
- Identification of new opportunities for industrial development
- Identification of opportunities for the expansion of existing industrial projects
- Provision of technical advice for industry at all stages of project implementation
- Provision of professional advice to government agencies, on request
- Provision of consultancy services in such areas as marketing, cost control and quality control
On 10th April, 2000, the Saudi Consulting House was dissolved. All its duties and rights were transferred to the newly-established GCI.
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General Commission for Investment (GCI)
On 10th April, 2000, it was announced that the Cabinet had approved the formation of the General Commission for Investment (GCI). At the same time, the Cabinet dissolved the Saudi Consulting House and transferred all its duties and rights to the newly-established GCI.
Saudi Arabian General Investment Authority Web Site
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Jubail and Yanbu: The Industrial Cities
The industrial cities at Jubail and Yanbu have played a key part in the Kingdom's determination to develop hydrocarbon-based and energy-intensive industries. The Royal Commission for Jubail and Yanbu, established by a Royal Decree, dated 21st September 1975 (16 Ramadan 1395 AH), has created the basic infrastructure for these two cities, often described as the jewels in the Kingdom's industrial crown.
By the end of the Third Development Plan (1405 AH: 1985), fifteen primary industrial projects (ten at Jubail and five at Yanbu) were operational.
Jubail is the largest industrial city. By 1999, it had more than 70,000 full-time residents, 17 basic industrial plants, 16 secondary industrial plants and 100 supporting and light industries plants, as well as a dedicated desalination plant, a vocational training institute and a college. Yanbu is a major industrial site with a modern port from which products manufactured locally and in other areas of the Kingdom are exported. By end of 1999, Yanbu had 72,740 full-time residents, eight basic industrial plants, eleven secondary industrial plants and 33 supporting and light industrial plants.
Royal Commission for Jubail and Yanbu
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Mineral Resources and Mining
Geological surveys and mineral exploration have revealed that, in addition to vast oil reserves, the Kingdom of Saudi Arabia possesses large deposits of various minerals, including bauxite, copper, gold, iron, lead, silver, tin and a number of non-metallic minerals.
On 23rd March 1997, in order to coordinate projects and promote efficiency in the mining industry, the Saudi Arabian Mining Company (Maadin) was created, with
an initial capital of more than $1 billion. Maadin is responsible for regulating mineral exploration and overseeing its progress. Mining projects which are owned by the Government or in which the Government is participating are to be consolidated and rebuilt commercially. Maadin will also provide sufficient basic infrastructure for mining projects located in remote areas. MAADIN owns Mahd adh-Dhahab and as-Sukhaibirat mines and has obtained exploration licences for the gold deposits in Wadi Bidah, Al-Hajar, Ad-Duwaihi, Samran, Sheban, Zalm and Hamdah, for phosphate ore in Wadi Al Sarhan and Turaif, for magnesium in Zargat, Jabal Abt and Jabal Al Rukham, for zinc in Al Khnaiguiyah, as well as licenses for exploration of industrial metals in Jabal Sodah. The company's articles of association stipulate that it will be reorganized as a joint stock company within five years of establishment.
Saudi Arabian Mining Company
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Saudi Geology Survey Bureau
On 25th October, 1999 (corresponding to 16 Rajab 1420 AH), the Council of Minister issued decision No 115, approving the establishment of the Saudi Geology Survey Bureau, an independent juristic organization to conduct all geological survey operations for the Kingdo?s onshore and offshore areas. The objectives of the Bureau were defined as follows:
- To Explore, investigate and record mineral resources.
- To develop and upgrade geological database.
- To conduct, on its own or through others, research and studies and to provide consultation services concerning its operations and activities to Government and
private entities.
- To provide geological services to the community and to lay down specifications for the geological environment and mining operation safety.
- To develop specialized national manpower and to promoting Saudization.
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