Industrial development in Saudi Arabia

Abstract

The aim of this thesis was to survey the three main sectors of the heavy industries of Saudi Arabia to see what part they play or could play in an economy which is heavily dependent on oil. Several aspects of the iron and steel, petrochemical, and cement industries have been considered, including geographical location, the links and cooperation between their component parts, markets and the repercussion of their rapid development on Saudi culture and society. Despite the speedy growth of these industries most of the country's revenue still emanates from oil. It seems clear that the Saudi economy will continue to depend heavily on oil for the foreseeable future and despite planning and attempts to develop the industrial sector it will contribute only a small percentage of GNP, (presently 4 per cent). It is important to be aware that the aim of the Saudi Arabian government in developing these industries was not solely economic but was to extend the base of Saudi society. These industries were seen as part of the overall package of development which included, for example, education, health and communications. It is to the credit of the Islamic culture and influence that Saudi Arabia has been able to achieve such rapid industrial development and modernisation without destabilising its society. This is an achievement which, when compared with many developing countries deserves proper recognition.