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Production of the manufacturing industries in the Kingdom has witnessed a
steady progress over the past years. As shown by figure below, total value
added (in constant prices) achieved by the manufacturing industries increased
from the level of SR 15 billion in 1974G to about SR 92.6 billion at the end of
2006G. Also, the rate of the manufacturing industries' growth continued to
increase throughout this period, at an average of 6% annual growth rate, which
is considered the highest among the other economic sectors. Owing to the
substantial growth achieved by the manufacturing industries during this period,
the contribution of the sector in the country's GDP has increased from 4.1 %
in 1975G to 11.6 % at the end of 2006G. Parallely, the contribution of the
manufacturing industries sector in the non-oil GDP increased from 7.8 % in
1975G to 17.3% in 2006G. These rates show the success of the development plans
in pushing forward the industrial progress and the fruitful cooperation these
plans received from the private sector.
Gross Domestic Product of the Manufacturing Sector
in the Kingdom: 1975 - 2006G (in constant prices)
Source: Central Department of Statistics, Ministry of Economy & Planning -
2006G
A more important aspect in the development of the manufacturing industries in
the Kingdom is indicated by the change that occurred in the sectoral
composition of the Saudi manufacturing over the past period, where the majority
of the manufacturing value added was generated by Oil refinery sector (67%) in
1975G (at current prices). However the share of the other manufacturing
industries (other than oil refining) of the total value added (in current
prices) experienced a steady increase to become the major sector's share of GDP
(65%) by the end of 2006G. This trend reflects the dynamism of the Saudi
manufacturing industries sector (other than oil refining). In this regard, we
refer in particular, to the substantial progress and expansion experienced by
the petrochemical industries in the Kingdom over the last two decades under the
auspices of SABIC.
The Statistics and analysis made by SIDF show that the GDP's mix for the
manufacturing industries sector, (excluding oil refining) has been a subject of
a substantial growth throughout the past two decades. Since early nineties,
the Chemical Products Sector has been occupying the leading position of GDP's
mix of manufacturing industries, (excluding oil refining). Other sectors that
have been showing a notable growth include: Machinery and Equipment, Building
Material Products, and Food Products. At present, these four sectors contribute
the major part of the Saudi manufacturing industries' GDP.
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