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Government Support
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The agricultural sector meets a sizable portion of domestic demand for fruits and vegetables, with excess supplies exported to countries around the world. |
The government plays an essential role in industrial and economic development. The Ministry of Planning assists in formulating the five-year development plans that set long-term economic goals. The Ministry os Finance and National Economy supervises implementation of the nation's economic policies. The Saudi Arabian Monetary Agency, the nation's central bank, oversees the country's fiscal policy.
To facilitate the expansion of the private sector's role in the national economy, the government has established five specialized credit institutions which provide economic opportunities to many Saudis who were previously unable to compete in the marketplace.
In 1974, the Saudi Industrial Development Fund (SIDF) was the first government agency set up to provide interest-free soft loans to enable Saudi businessmen to establish industrial plants. By 1992, the fund had lent a total of 5.78 billion dollars. These loans can be used to finance up to 50 percent of the capital for a new factory. SIDF loans have helped launch 1,216 new factories and expand 316 existing facilities.
Since it was founded in 1963, the Saudi Agricultural Bank has provided 7.06 billion dollars worth of loans for agricultural projects, farm machinery and production requirements. The Real Estate Development Fund has been financing residential and commercial construction since 1974. By the end of 1992, total loan commitments amounted to 27.06 billion dollars. Unique in the world, the fund provides interest-free loans that are repayable in 25 years.
Launched in 1971, the Public Investment Fund offers credit to public and semi-public corporations. By 1992, loan commitments equaled approximately 17.2 billion dollars. The Saudi Credit Bank was founded in 1973 to provide personal loans for home repair, as well as vocational and crafts training. Loans committed by the end of 1992 amounted to 1.14 billion dollars.
In addition to the specialized credit institutions, the government offers an array of incentives to the private sector. A sweeping reduction in utility and public service fees, implemented in early 1992, lowered operating and production costs for private companies, making their products more competitive with foreign goods.
Private entrepreneurs are also given access to government information systems specifically created to help local manufacturers target the best market for their products. Government agencies such as the Saudi Consulting House provide free consulting and support services and publish lists of investment opportunities for the production of goods in demand in Saudi Arabia.
Government tenders also give priority to locally manufactured products and to Saudi companies. Saudi industries are also exempted from paying customs duties on the import of machinery and supplies used in the production of goods domestically. To facilitate the transfer of technology and expand the operations of the private sector, the government also provides various incentives to foreign companies that enter into joint ventures with Saudi firms.
SAUDI CONSULTING HOUSE
PO Box 1267
Riyadh 11431
Saudi Arabia
tel: 966-1-448-4533
fax: 966-1-448-1234
e-mail: Saudi.Consulting.House@DM.KRINFO.CH
The Saudi Consulting House (SCH) is a government consulting corporation which was established in 1967. Its mission is to provide support to the industrial sector in the Kingdom of Saudi Arabia. Its activities include:
•identifying new opportunities for industrial investment; •conducting studies for the expansion of existing industrial projects; •conducting industrial surveys; •providing technical advice to Saudi industrial projects both during construction and operation; •providing professional advice to government agencies upon request; •providing technical services to Saudi industrial firms in such areas as quality control, marketing, and cost reduction; •disseminating information to Saudi industrialists.
The four main departments are general directorates for Industrial Development, Industrial Engineering, Industrial Information, and Finance and Administration. Contact the Deputy Directors for Development, Engineering, and Information, or the Director-General.
Publications of Saudi Consulting House
Books:
Investing in Saudi Arabian Industry, first edition, 1994, 61 p.
Available in Arabic, English, Japanese, Chinese, and Spanish, this book portrays the investment climate in Saudi Arabia by:
•giving the basic facts about the Kingdom's political and legal systems as well as its geography and history; •outlining the structure and potential of the Saudi economy; •presenting an overview of industrial policy and the government institutions supervising it; •describing investment legislation in Saudi Arabia.
Guide to Industrial Investment, eighth edition, 1992, 325 p.
Available in Arabic, English, and French, with a ninth edition forthcoming, this book contains up-to-date information on various facets of industrial and economic development in Saudi Arabia.
Periodicals:
Saudi Consulting House Annual Report
Available in Arabic and English, the report covers SCH goals and objectives as well as activities and achievements each year.
Al-Nashra Al-Sinai'yah (Industrial Bulletin) Bi-monthly from 1981
Available in Arabic and English, the bulletin has sections covering, among other topics, industrial news, reports of industrial meetings, review of investment opportunities, technological resources, and follow-up on various sectoral matters.
Ad Hoc Publications:
List of Investment Opportunities
List of Licensed Industrial Opportunities
Ad Hoc Reports dealing with industrial issues
Maps:
Prospects of Petrochemical Industry in Saudi Arabia.
To order any of the above publications, please contact:
Saudi Consulting House, Industrial Information Department
PO Box 1267
Riyadh 11431
Saudi Arabia
fax: 966-1-448-1234
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