The Saudi Business Center
Petrolium and Minerals
Though distinctly present since the founding of the Kingdom
of Saudi Arabia, attention given to industry has increased rapidly since the establishment
of the Ministry of Industry in 1975 (1395 H) Industry in the Kingdom is divided into two
Industry & Electricity
- Conversion Industries.
- Basic Industries.
Encouraged by the State and run by the private sector, the conversion industries
produce enough consumer goods and materials to meet the needs of the local market. The
number of conversion industry factories in the Kingdom rose from 199 in 1970 - 1971 (1390
- 1391 H) with a total capital of SR 2.8 billion, to 2,458 in 1995 (1415 H), with a total
capital of some SR 162 billion.
* The value of conversion industries exports totaled SR 5,436 million.
* The number of workers in these industries increased from 14,000 in 1960 - 1971 (1390
-1391H) to 218,000 in 1995 (1415 H).
* Loans extended for the Kingdom's industrial projects in 1994 - 1995 (1414 - 1415 H)
totaled SR 55.6 billion, up from SR 35 billion in 1974 (1394 H), an increase of 40.1%.
The planning and execution of these industries is carried out by the State, which has
built the two industrial cities of Jubail and Yanbu. The two cities are built to the
highest technological standards of hydrocarbon industries and their derivatives as well as
ancillary and secondary industries. Jubail city is located on the Kingdom's eastern
Arabian Gulf coast, while Yanbu is situated on the Kingdom's western Red Sea coast. The
two cities contain the complexes of the Saudi Arabian Basic Industries Corporation
and those of the General Organization for Petroleum. They are supervised by the Royal
Commission for Jubail and Yanbu, whose Board of Directors is chaired by the King.
* The actual production of SABIC'S factories totaled 21,950,680 tons in 1995 (1415 H).
* The number of workers of SABIC and its affiliated projects totaled 11,474, of which the
Saudis constitute 63%.
* SABIC'S net profits totaled SR 6,281 million in 1995 (1415 H), compared to SR 148
million in 1985 (1405 H) (one dollar = SR 3.75).
* The value of SABIC'S petrochemical exports totaled SR 9,991 million, 66% of total
* SABIC'S industries recorded a 30% annual growth rate during the period 1984 - 1992 (1404
- 1412 H).
Investment in electricity in the Kingdom of Saudi Arabia highlights the private sector's
vital contribution to the Kingdom's free market economy. Although the General Electricity
Corporation runs and operates the power utilities in rural areas, investment in this
sector is undertaken by shareholder companies. The State has fully financed the
services-oriented projects of these companies since 1995 (1415 H) through long-term,
interest free loans extended by the Saudi Fund for Industrial Development. The Saudi
Government guarantees seven percent of the private investor's shares in the capital of
these companies. The Government's assistance to electricity companies during the period
1970 - 1995 (1390 - 1415 H) totaled R 21.6 billion. The Government's policy of merging
approved electricity companies into one big company resulted in the emergence of four
consolidated government-assisted companies in the Central, Eastern, Western and Southern