Dissertation_Dr Faisal Almubarak

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employed 37,000 and 26,000 respectively, indicating the preponderance of the tertiary
sector over the industrial. In 1987, the number of government employees increased to
183,000. This figure comprises 39 percent of the city's employed labor force, totaling
474,000. Seventy-eight percent of the Saudi working force was employed by the
government. 41
Table 6.2 illustrates Riyadh's beneficial status of being the seat of government. The
table lists the funds allocated for the provision of municipal services in some Saudi cities.
In 1975, Riyadh boasted a population approximating 700,000 and its Municipality (Amanat
Madinat Arriyadh) received SR 2.6 billion while Jeddah, populated by 600,000 was
allotted only SR 1.3 billion.
In terms of Riyadh's non-governmental economic growth, that is the private sector, it
ranks first in terms of the number of industrial establishments among the nation's cities. In
1963, the city had 6,894 non-government private establishments enlisting 15,400
employees. By 1976, Riyadh had 30,611 private establishments. In the same period, the
City's labor force engaging in urban activities tripled from 94,991 to 272,376. 42 Table
6.3 exhibits the growth in number of establishments and employees in selective Saudi
cities. The tremendous growth in the private sector corroborates the intensity of urban
growth in the Kingdom's major cities in general and Riyadh in particular. In 1981, Riyadh
possessed 74 percent of the Central Region's private establishments alone and housed 89
percent of the Central Region's labor force employed by the private sector. The Capital
contained 21 percent of the Kingdom's total private establishments (surpassing Jeddah by
1,960 establishments) and 27 percent of the private sector's labor force. This attests to the
massive benefits bestowed upon the city for being the seat of the government.
Yet, the consumptive nature of Riyadh is evident in the fact that only 16 percent of the
City's consumer goods are made and assembled by its specious industries (which employ
8% of the City's manpower); 76 percent are imported from outside the country and 8
percent are imported from the country's regions. Moreover, 70 percent of Riyadh's
production is consumed locally. In short, the markedly active urban economy heavily
depends on the government. Both the private construction sector, which employs 30
percent of the City's private man power, and the private service sector 24 percent, rely on
state spending (Table 6.3).