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The government has attached great importance to the industrial development by
providing all kinds of supports and facilities to the industrial sector. As a
result, the Saudi industry has made significant progress that was clearly
manifested in the growth of industrial investment throughout the period. The
following table illustrates the progress in the number of producing factories
and volume of their investments, between 1395H and 1427H, broken down by major
sectors.
Number of Operating Factories and Size
Of Their Investments: 1395 - 1426H
Sector
|
Number of Factories
|
Size of Investments (SR ‘Millions)
|
| |
1395H
|
1427H
|
1395H
|
1427H
|
Food and Beverages
|
73
|
605
|
1,144
|
24,792
|
Textiles, readymade clothes and leather
|
12
|
192
|
66
|
4,812
|
Wood, wooden products and furniture
|
25
|
191
|
232
|
2,912
|
Paper, printing and publication
|
46
|
229
|
338
|
8,794
|
Chemical industries and plastic products
|
63
|
895
|
1,460
|
175,601
|
|
Building materials, glass, ceramic and metal basic industries
|
91
|
618
|
4,359
|
39,075
|
|
Manufactured metals, machines and equipment
|
159
|
1081
|
2,159
|
39,064
|
Other industries
|
3
|
95
|
121
|
1,483
|
Total
|
472
|
3,906
|
9,879
|
296,533
|
Source: Ministry of Commerce & Industry
As indicated in the previous table, the industrial base in the Kingdom has
experienced a wide expansion over the past 30 years. The number of operating
factories has increased from 472 factories in 1395H to 3,906 factories in
1427H, an increase close to 8 times. Parallely, invested capital has increased
from SR 9,879 million in 1395H to about SR 296,533 million in 1427H, an
increase equal to 30 times.
The sectoral composition structure of the operating factories in the Kingdom at
the end of 1427H shows that the Manufactured Metal Products, Machinery, and
Equipment Sector is heading all other sectors in terms of the number of
factories (1081 factories representing 28% of total operating ones), while the
Chemical Industries and Plastic Products sector occupied the leading position
among the other industrial sectors by size of investments (SR 175,601 million
representing 59% of total investments of operating factories). Other important
sectors include: Building Materials, Ceramics, Glass and Food and Beverages.
The latest two sectors collectively account for 31% of the total number of
operating factories, and 22% of total investments.
As one form of support for the national industries, the government, represented
by the Ministry of Commerce & Industry, has constructed and developed
several industrial cities in the various regions of the Kingdom and provided
them with all required services and utilities. Table below shows the areas of
the existing industrial cities in the Kingdom and costs of their development.
Distribution of Existing Industrial Cities
By Area and Cost of Development
Name of Industrial City
|
Total Developed Area
(Thousand M2 )
|
Riyadh
|
17,150
|
Jeddah
|
12,100
|
Dammam
|
8,600
|
Al Hassa
|
1,300
|
Al Qassim
|
1,340
|
Makkah
|
760
|
Al Madinah
|
1,750
|
Assir
|
910
|
Al Jouf
|
600
|
Tabuk
|
1,350
|
Hail
|
770
|
Najran
|
750
|
Total
|
47,380
|
Source:
Saudi Organization for Industrial Estates & Technology Zones.
Here we have to note that the figures in the previous table do not include
areas and cost of development of the two major industrial cities of Jubail
& Yanbu which are considered strategic locations for hydrocarbon and energy
intensive industries. The two industrial cities have played a key part in the
Kingdom’s determination to develop and exploit the Kingdom’s natural advantage
cheap energy and raw material by higher rates of economic efficiency. Area
under Jubail and Yanbu industrial cities are estimated at (1000) and (185)
square kilometers respectively, including a number of basic industrial plants,
secondary industrial plants, supporting and light industrial plants, as well as
public service utilities, roads, rail lines and full-service residential
compound that include housing, schools, hospitals, clinics and recreation
centers.
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