The Private Sector In Saudi Arabia
Emergence of the issue
When the modern Kingdom was established in 1932, the Arabian Peninsula was an agricultural society that depended on farming and commerce – especially date exports and trade generated by pilgrims coming to Makkah and Madinah. It lacked the infrastructure needed to support the kind of economic growth envisioned by its founder, King Abdulaziz bin Abdulrahman Al-Saud.
The discovery of oil in commercial quantities in 1938 changed that. Soon after World War II, steady oil exports provided the funds to build a basic infrastructure of roads, airports, seaports, schools and hospitals.
In 1970, Saudi Arabia introduced the first of a series of ongoing five-year development plans to build a modern economy capable of producing consumer and industrial goods that previously had been imported. The country’s infrastructure was expanded, allowing industry and commerce to …show more content…
Today, Saudi Arabia is one of the fastest developing countries in the world.
Saudi Arabia is the 19th largest exporter and the 20th largest import market in the world. Exports now represent all economic sectors. Topping the list of exports to some 90 countries are petrochemicals, plastics, metal goods, construction materials, and electrical appliances. Saudi Arabia’s commercial sector is growing rapidly. This is mainly due to generous government incentives such as the provision of long-term interest-free loans and support services and facilities. In addition, chambers of commerce and industry in the major cities and regions promote commercial ventures. There are some 584,000 licensed firms involved in commercial activities in the Kingdom. Their total invested capital is estimated at more than $54 billion. The sector is overseen by the Saudi Arabian General Investment Authority (SAGIA), which offers private entrepreneurs free consulting and support services and publishes lists of investment opportunities. SAGIA announced plans to open offices abroad, including in China, the United States, Britain and Germany to attract investment in infrastructure