The Non-Oil Sector—The Industrialisation Process
In the last chapter the rationale of developing the oil sector was outlined. Here the uses to which oil revenues are put will be explored in relation to their impact upon the industrialisation process in Saudi Arabia. Given a decision to industrialise it then becomes necessary to select those industries most suitable to the endowments of Saudi Arabia. Significantly the kingdom has a cheap energy source, and it seems logical to exploit this in industries requiring a relatively high-energy input. What the country lacks in the short run is an adequate supply of skilled labour; therefore there is a further pressure to concentrate upon capital intensive production. With only a relatively small domestic population industry must have a competitive edge in world markets; it becomes imperative to concentrate upon those sectors in which it has a comparative advantage.
KeywordsSaudi Arabia Industrial Policy Royal Commission Industrial Estate Industrial Project
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