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A Guide to the Saudi Arabian Economy by John R. Presley (auth.) PDF

By John R. Presley (auth.)

ISBN-10: 134905741X

ISBN-13: 9781349057412

ISBN-10: 1349057436

ISBN-13: 9781349057436

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The Macro Economy 15 capital formation attributable to construction might be over SR 140 billion; this estimate assumes that the government maintains its 80-90 per cent share of construction spending, and that the private sector is generating between SR 20-30 billion expenditures on construction. 2 indicates the government's assessment of sectoral GDP by 1405 corresponding to the execution of the projects listed in the Third Plan. There is undoubtedly increased activity in the non-oil manufacturing sector, 7 but it is unlikely that the construction sector will have been subjected to such a drastic decline in its contribution to non-oil GDP by 1405 as the Third Plan predicts.

18 Second, not all licences granted result in production, planned projects may not materialise. The number of licences granted within each industrial classification shows how the private sector 'feeds otr public spending. The growth of particular industries reflects the development strategy. *"'". ~· - . - . manufacture of building materials / . { /' / X I 1 - - manufacture of paper and / / paper products, printing/· / . / ,," ,, •.. x·,,,' / J , 1// ,,_,fl' ····-;. ,I, ,_/ 1/ , / ,,'' 200 , ••,.

This applies particularly to the building of the industrial cities of Yanbu and Jubail, the gas-gathering programme and many other infrastructure projects. Changes in the Allocation of Government Spending and Economic Development Given the dominance of the public-sector and government expenditure in the country the allocation of that expenditure by the government amongst its spending agencies is the key determinant of sectoral development. Saudi Arabia is currently completing what might conveniently be described as the first phase of development.

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A Guide to the Saudi Arabian Economy by John R. Presley (auth.)


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