While the foundations for the industrial development of the Kingdom were laid before Crown Prince Fahd became King, the vigor with which the program of industrialization has been pursued is largely attributable to King Fahd who, both as Crown Prince and King, has always seen industrialization as the best way to reduce the Kingdom’s dependence on oil.

To achieve this end and to reduce the Kingdom’s need for imported goods, the Saudi Government has encouraged the development of a wide range of manufacturing industries. During the period 1970 to 1999, the number of operating factories increased from 199 factories, employing 13,865 workers to 3,163 factories, employing 291,621. Capital investment also increased, from SR 2.8 billion in 1970 to SR 231.2 billion in 1999. In 1999 alone, ninety-one new factories opened.

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 available for such enterprises.

• Table showing growth in number of Operating Factories