In recent times, the program of Saudization (replacement of foreign labor by Saudi nationals) has accelerated. To some extent, the surge in revenues engendered by the oil price increase of 1979–80 tended to foster false expectations amongst the population. The gradual realization that the “boom” period could not continue indefinitely encouraged the Saudi workforce to adopt a more realistic and, in the longer run, much healthier attitude to the role they can and must play within the Saudi Arabian economy, both in the public and private sectors.

This change of attitude would have occurred in due course even if the oil price had not fallen. By the end of the Third Development Plan (which ran from 1980 to 1985), most of the Kingdom’s infrastructure was in place. Industrial sectors such as construction were inevitably facing a very considerable contraction. The rationale behind all the Kingdom’s development plans has been to create a diversified economy, with thriving agricultural and industrial sectors, manned and managed by Saudi citizens. It is therefore fair to say that diminished revenues have simply hastened a process which was an essential element in King Fahd’s long-term strategy.

• Continue