Industrial development in Saudi Arabia: disparity in growth and development
-
DOIhttp://dx.doi.org/10.21511/ppm.18(2).2020.03
-
Article InfoVolume 18 2020, Issue #2, pp. 23-35
- Cited by
- 3004 Views
-
1021 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Industrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.
- Keywords
-
JEL Classification (Paper profile tab)O14, L70
-
References21
-
Tables6
-
Figures0
-
- Table 1. Yearly growth movement analysis of all industries of the manufacturing sector of Saudi Arabia
- Table 2. Relationship (long-term and short-term) between the number of establishments and gross earnings
- Table 3. Relationship (long-term and short-term) between the number of establishments and employees engaged
- Table A1. Variations in growth in all manufacturing establishments (activity-wise) and average gross earnings, net earnings, and operational ratio
- Table B1. Multiple correlations among growth in all manufacturing establishments (activity-wise) and average gross earnings, net earnings, and operational ratio
- Table C1. Growth and development of manufacturing industries in Saudi Arabia
-
- Ahmad, S. Z. (2012). Micro, small and medium-sized enterprises development in the Kingdom of Saudi Arabia. World Journal of Entrepreneurship, Management and Sustainable Development, 8(4), 217-232.
- Al Bakr, A. (2015). Challenges to Production Base Diversification in Saudi Arabia (SAMA Working Paper No. WP/15/8). Economic Research Department, Saudi Arabian Monetary Agency.
- Ali, A., & Husain, F. (2014). MSMEs in India: problems, solutions and prospectus in present scenario. International Journal of Engineering and management Sciences, 5(2), 109-115.
- Almosabbeh, I. A., & Almoree, M. A. (2018). The relationship between manufacturing production and economic growth in the Kingdom of Saudi Arabia. Journal of Economic Studies, 45(4), 674-690.
- Alzahrani, J. (2018). The impact of e-commerce adoption on business strategy in Saudi Arabian small and medium enterprises (SMEs). Review of Economics and Political Science, 4(1), 73-88.
- El-Khasawneh, B. S. (2012). Challenges and remedies of manufacturing enterprises in developing countries: Jordan as a case study. Journal of Manufacturing Technology Management, 23(3), 328-350.
- General Authority for Statistics. (2011–2017). Economic Statistics. Industry and Business.
- Gupta, P. D., Guha, S., & Krishnaswami, S. S. (2013). Firm growth and its determinants. Journal of Innovation and Entrepreneurship, 2(15), 1-14.
- Hakeem, M. M. (2019). Innovative solutions to tap Micro, Small and Medium Enterprises (MSME) market: A way forward for Islamic banks. Islamic Economic Studies, 27(1), 38-52.
- Hashim, F. (2015). SMEs’ impediments and developments in the internationalization process: Malaysian experiences. World Journal of Entrepreneurship, Management and Sustainable Development, 11(2), 2015, 100-119.
- Kaur, M., & Kiran, R. (2008). Indian Manufacturing Sector: Growth and Productivity under the New Policy Regime. International Review of Business Research Papers, 4(2), 136-150.
- Kayed, R., & Kabir Hassan, M. (2011). Saudi Arabia’s economic development: entrepreneurship as a strategy. International Journal of Islamic and Middle Eastern Finance and Management, 4(1), 52-73.
- Maghrabi, A. S., Jefery, Y. A., & Sabbaan, S. A. (2009). The market competition of Saudi small- sized manufacturing firms: an exploratory study. International Journal of Commerce and Management, 19(4), 309-320.
- Mandhachitara, R., & Allapach, S. (2017). Small business performance in Thailand: key success factors. Journal of Research in Marketing and Entrepreneurship, 19(2), 161-181.
- Mehta, Y., & Rajan, J. A. (2017). Manufacturing Sectors in India: Outlook and Challenges. Procedia Engineering, 174, 90-104.
- Rafiki, A., Hidayat, S. E., & Al-Mana, A. (2018). Factors affecting small and medium family businesses’ internationalisation in Saudi Arabia. International Journal Islamic Marketing and Branding, 3(1), 45-64.
- Sadi, A. M., & Henderson, J. (2011). Franchising and small medium-sized enterprises (SMEs) in industrializing economies. Journal of Management Development, 30(4), 402-412.
- Saleem, M. A. (2012). The impact of socio-economic factors on small business success. Malaysia Journal Society and Space, 8(1), 24-29.
- Saudi Industrial Development Fund (SIDF).
- Taiwo, M., Awolaja, A., & Bako, Y. (2012). Impact of small and medium enterprises on economic growth and development. American Journal of Business and Management, 1(1), 18-22.
- Thakkar, J., Kanda, A., & Deshmukh, S. G. (2011). Supply chain issues in Indian manufacturing SMEs: insights from six case studies. Journal of Manufacturing Technology Management, 23(5), 634-664.