By John R. Presley (auth.)
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Extra resources for A Guide to the Saudi Arabian Economy
Oil is a very capital intensive industry, it is not a large employer of labour, accounting for less than 40000 employees. By its very nature it is a highly localised industry; it is concentrated almost exclusively in the Eastern Province. For these reasons the oil sector is partially isolated from the rest of economic activity; the only major links are the financial surplus and cheap energy which allow other sectors to be built and to flourish. It is convenient therefore to talk of a separate oil sector in Saudi Arabia; increasingly the economy splits into three major sectors: the traditional sector of agriculture, the oil sector and the 36 A Guide to the Saudi Arabian Economy growing modern sector of the country embracing industrial and manufacturing activities and a wide range of service industries.
Even though the public sector dominates the economy it by no means reduces the contribution of the private sector to a minimal level. The growth of public-sector projects has had its impact upon the share of gross capital formation that the private sector holds, reducing it from 38 per cent in 1394/5 to approximately 25 per cent in 1400/l, but this disguises a very high growth rate in the absolute level of investment undertaken by the private sector. 4B in 1393/4 to SR 28. 5 percent per annum in value SouRcEs SAMA Reports, various.
Its objectives are to survey and record the geology of the country, to provide an inventory of mineral resources and to assure the assimilation of the mineral industry with industrialisation in Saudi Arabia. The first objective has already been achieved with the assistance of the Bureau de Recherches geologiques et minieres, the Rio Finex and the United States Geological Field Missions. To date, 700 precious-metal occurrences have been identified; these are mainly to be found on the Arabian Shield (Western Region) and include deposits of uranium, zinc, tungsten, molybdenum and tin.