Dissertation_Dr Faisal Almubarak

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Owners and their apprentices joined the wage-earning labor force while their young family
members joined the schooling system. The bazaar-oriented self-sufficient economies have
transformed into consumer-oriented economies which offer higher income attracting urban
merchants, traders, and countrymen alike.
Table 3.2
Distribution Of The Labor Force, Saudis and Non-Saudis, By Economic
Activity.
Type of Services Finance Trans- Trade Constru-Utilities Manufac Mining Agricult-
Activity portation ction -turing ure
No. of 765,000 33,000 125,000133,000 53,000 32,000 37,000 51,000 145,000
Saudis
Percent. 55% 2% 9% 10-% 4% 2% 3% 4% 11%
Non- 620,425 59,500 105,230 461,763 820,334 32,978 283,004 10,503 91,595
Saudis
Percent. 25% 3% 4% 19% 33% 1% 11% * 4%
Total 1,385,4132,500 230,230 594,763 873,334 64,978 320,004 61,503 236,595
* Number of workers is less than 0.5%
Source: Ministry of Planning. Fifth Development Plan: 1410-1415/1990-1995. Riyadh: Ministry of
Planning Press, c.1989.
Secondly, the vigorous development programs of the state, coupled with promotion
industrial policies favoring Saudi establishments in particular, created a lucrative business
environment. Considerable sums of national income were channelled into nonproductive
sectors such as construction and trade, finance and services, which account for 28.1
percent and 31.4 percent of the national labor forces respectively. Therefore, private
investment has concentrated in the lucrative growing construction sector during the 1970s
and early 1980s. Since the mid-1980s, it concentrated on the growing markets of services
and consumer goods.
To encourage Saudis and foreign industrial enterprise, the government introduced the
Protection and Encouragement of National Industries Ordinance in 1963. Under this
Ordinance, Saudi entrepreneurs were entitled to free land for their factories, custom-free