Saudi Arabia's Industrial Transformation Since 1976; Industrialization, Diversification and Global Influence, An Empirical Analysis and Forward-Looking recommendations

Abstract

Over the last four decades, Saudi Arabia has undergone profound industrial transformation starting with the establishment of Saudi Basic Industries Corporation (SABIC) in 1976. This research critically examines the nation's industrialization process, analysing econometric data, historical context, and policy effectiveness. From 1974 to 2018, Saudi manufacturing GDP surged from SAR 32 billion to SAR 319.5 billion, with the share of non-oil manufacturing in total manufacturing rising from to , reflecting real diversification efforts. Current data show industrial sector growth of annually post-2015, a increase in industrial facilities since 2016, and manufacturing accounting for of GDP with aspirations to reach by 2030. Econometric models and predictive analysis underscore the crucial roles of capital accumulation, export sophistication, and labor market reforms. Despite remaining oil-reliant, Saudi Arabia's industrial policies, bolstered by Vision 2030, have positioned the Kingdom as a regional econsauditazion” policy, at same time who give transparent citizenship process to businessmen, talents, investors and leveraging technological adoption for sustainable diversification, who will create the “image” of a diversified country to world public and not more a “oil dependent” to global stakeholders.