Jeddah Guide Facts and Figures

Transcription

Jeddah Guide
Facts and Figures
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Jeddah Chamber of Commerce and Industry
Chapter One
General Information
About the
Kingdom of Saudi Arabia
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Location:
The Kingdom of Saudi Arabia lies at the further most part of South Western Asia: it is
bordered by the Red Sea in the West The Arabian Gulf; United Arab Emirates, Qatar
and Kingdom of Bahrain in the East; Jordan, Iraq and Kuwait in the North; Yemen
and Sultanate of Oman in the South.
Area:
The Kingdom of Saudi Arabia occupies about four fifths of the Arab Peninsula with a
total area of about 2,149,790 Square Kilometers.
Geographical Features:
Because of its large area the Kingdom has diverse topography, the Tihama Coastal
Plain about 1,100 Kilometers long and 60 Kilometers wide extended from North to
South at the Red Sea Coast. To the East of this Plain lies a chain of Sarawat Mountains
extended from North to South, these mountains rises 9,000 feet in the South and
gradually fall to 3,000 feet in the North. Several large valleys slope from these
mountains, the famous of which are Najran Valley, Al Himdh Valley, Ramah Valley
and Yanbu Valley. To the East of the chain lies Najd Plateau which extends eastward
to Samman Desert, Dahnaa Dunes and Southward to Empty Quarter Desert, and
stretches Northward to Nefud Desert. Some Valley slope from this Plateau the famous
of which are Dawaser Valley, Al Rimmah Valley, and some Oasis, there are some
mountains such as Tawwaig, Aja and Salma and Al Aridh mountains. The nlies the
Eastern Coastal Plain long 160 Kilometer parallel to the Arabian Gulf Coast. It
contains two important Oasis – Qatif and Al Ahsa, beside the important oil fields in
the Kingdom. The South Eastern part of the Kingdom represents the Empty Quarter
Desert area of which is about 640 Kilometers.
Climate:
The climate of the Kingdom varies from one region to another according to the
diversity of the topographical features. As a result of the subtropical high pressure
system the Kingdom's climate is generally hot in summer, cold in winter where rain
falls. Moderate climate is observed in the Western and South Western Heights, in the
Central Region hot dry summer and wet cold winter are observed. The high
temperature and humidity is observed in the Coastal areas. The rain is usually of small
quantity except in the Southern Area which is heavy in summer.
Political System and Jurisdiction:
The Political System in the Kingdom is a Monarchal System. The Constitution is the
Holy Quran and the Prophet Speech.
The Political System is working in accordance with following mechanism:
1) The Principal Ruling System issued vide Royal Decree No. A/90 Dated 27.8.1412
H. contained 82 articles that cover all Political, Economical, Social Aspects and
the International Relation. It is the basic reference of all rules and regulation.
2) Shora (Parliament) Council Law.
3) Council of Ministers Law.
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4) Regions Law.
5) Bayaa (Pledge of Allegiance) Organization Law.
The bayaa organization law was the last law according to issuance date. This Law
issued on 29.9.1429 H with the aim to develop and modify the mechanism of power
transference, the organization composed of the Royal Family Members. It chooses the
King and the Crowned Prince in case the position is vacant with the condition that the
chosen person is famous of uprightness and well qualified.
These Systems are integrated, and the country is ruled through three main institutions:
1) The Council of Minister:
It is chaired by His Majesty the King, The Council composed of the Deputy
Premier, The Ministers and the State Ministers in addition to King's advisors who
are all appointed through Royal Decrees. The Council is composed of the
following departments:
a) Divan of the Council of Ministers.
b) The General Secretariat of the Council of Ministers.
c) The Consultants Organization.
These organizations are working together to look after the public interest and
supervise the performance of the government departments and execution of Rules,
Regulation and Proceedings. Moreover to look after execution and follow up of
development plans and forming committees to look after the performance of the
Ministries and government departments.
2) Majlis Al Shora (Parliament)
The Council is composed of experts in different fields of knowledge, they are
appointed by the King every four years. The Council provides the King and the
Council of Minister with advices and opinions in General Policy of the Kingdom as
well as issuance of rules and regulations that are subject to approval of the Council
of Ministers. All rules and regulation should not contradict with Islamic Teachings,
and should observe the norms and traditions of the ARAB society. It should look
after the solidarity of the nation.
Jurisdiction:
The First Jurisdiction Law issued vide Royal Decree No. 109, Dated 24.1.1372 H that
stated the concentration of Sharia Law and specified the specialties of the Sharia
Courts, Justice Offices, Ministry of Finance Departments (Bait-ul-mal). The Law was
amended Vide the Royal Decree No. 64/M, Dated 14.7.1395 H which gives the
Judiciary System full independence, and the Judges are fully free and only observe the
Islamic Sharia Teachings, and the Laws. Nobody can interfere in the court decision
and resolutions. The Judiciary System has observed many amendment last of which
was Jurisdiction and appeal court law along with the mechanism of execution, issued
Vide Royal Decree No. 87/M, Dated 19.9.1428 H with the aim to develop the
Judiciary System in terms of Man Power, Equipments, and Court Buildings within
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comprehensive Project name King Abdullah Project to develop Judiciary System
according to this project the courts organized as follows:
1) The High Judiciary Council (Majlis Al Qadaa Al Aala):
This institution is supposed to look after the Judges affairs, issuance of internal
proceedings that regulate the work and Judges affair.
a) Issuance of rules of court.
b) Issuance of Courts, Merger or Cancellation of Courts.
c) Naming the Head of First Class Courts and their Deputies.
d) Issuance of Rules that regulate the responsibilities of the Courts Chairmen
and their Deputies.
e) Issuance of the Principals on which the Judges should be appointed, and the
proceeding of their deputation for Higher Education.
2) The Supreme Court:
The Court looks after the iplementation of the Sharia Law, Rules and Regulations
issued by the government, in the following fields:
a) Revision of the Courts Resolutions, or the Resolutions approved by the
appeal court such as Sanctions to Death, or Cutting or Stoning or Infliction of
punishment.
b) Revision of resolution issued or approved by appeal courts, without going in
the details of the case whenever the objection related to the following:
 Against the Sharia Law or any of the prevailing rules and regulations.
 Issued by incompetent court or department.
 Wrong proceeding in describing the facts of the case.
3) Divan of Complaint: (Diwan Almazalim )
It is an independent organization directly related to the King. The Judges of these
courts are enjoying all the guarantees stipulated in the judicial law.
4) Appeal Court:
These courts look into the resolutions of the First Class Court in accordance with
the legal proceedings of Sharia Law.
5) Administrative Judiciary Council:
Having the same authorities of the High Judiciary Council or Divan of Complaint,
the President of this Council enjoys the same powers of the President of the High
Judiciary Council.
6) High Administrative Court:
Looking after the appeals and protestation raised against appeal Courts resolutions
whenever the protestation related to:
a) Contradicting to the Sharia Law or the prevailing rules and regulations.
b) Mistakes in implementation of rules including wrong interpretation of rules
and regulation or contradicting with previous resolution of established case.
c) Issuance of resolution by incompetent Court.
d) Wrong justification of proceedings of the case.
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e) Judgment of the disputes other than similar one in the same case.
f) Disputes over specialization of Divan Courts.
7) First Class Courts:
First Class Courts will be established in the capital of regions or provinces
according to the actual needs and will be formed from the following:
a) General Court: These courts are formed of specialized departments such as:
b) Execution Departments.
c) Departments for proof proceeding other than those related to other courts and
Justice Offices.
d) Settlement of Traffic cases and all offenses stipulated in Traffic Law and
Regulations. The administration should have at least one Judges or three
according to the situation decided by the High Judiciary Council.
Court of Jurisdiction Summary:
1) Department of cases of punishment and penalty.
2) Department of reinforcement cases.
3) Department of delinquent cases.
Each department composes of three Judges except those ones which are decided by the
High Judiciary Council.
Commercial Courts:
The courts are composed of specialized departments; each one should have one judge
appointed by the High Judiciary Council.
1) Labor Courts: The courts are composed of specialized departments each one
should have one Judge or more in accordance with the High Judiciary Council
decision.
2) Personal Affairs Courts: The court composes of one department or more, each
department should have one Judge or more in accordance with High Judiciary
Council decision. It is allowed that some of them should have specialized
department if needed.
3) Administrative Courts: The Administrative Courts are authorized to settle the
following cases:
a) The cases stipulated in the Civil Services and Military Service Rules, Pension
Rules and all Regulations related to Government Employees, as well
Independent and Corporate Bodies or their Legal Heirs.
b) Cases to cancel the administrative decisions submitted by competent
authorities.
c) Compensation cases submitted by competent authorities.
d) Cases against employees filed by competent authorities.
e) Cases related to contracts, signed by competent authorities.
f) Other administrative disputes.
g) Execution of resolutions issued by foreign courts or international arbitrators.
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Administrative System:
The Kingdom gives great interest of importance of how to run the State on modern
principles, and how to raise the performance of the various government departments in
all regions, to achieve this goal Royal Decree No. A/92, Dated 27.8.1412 H had been
issued. Vide this decree the number of regions have been increased from Five Regions
to Thirteen Regions. Each region governed by a Governor, and a Deputy Governor.
Each Administrative Region composed of a number of provinces of class "A" and "B",
and each Province composed of Centres "A" and "B", putting into consideration
demographical and geographical aspect beside ecological factors and transportation
means. The country has been divided into Thirteen Provinces as follows:
Region
Makkah Mukarramah
Madinah Munawarrah
Riyadh
Qaseem
Hail
Al Jouf
Tabuk
Northern Frontier
Eastern Region
Baha
Aseer
Jazan
Najran
Capital
Makkah Mukarramah
Madinah Munawarrah
Riyadh
Buraidah
Hail
Sakaka
Tabuk
Arar
Dammam
Baha
Abha
Jazan
Najran
Population:
The government of Saudi Arabia believes in the importance of provision of
information as a necessary element for accurate planning of development projects. The
Kingdom conducted three censuses of population and housing (1974–1993 and 2004).
The number of population is 22,673,538 according to the last census, out of them
16,529,302 are Saudis constitutes 72.9% of the total population. The number of
foreigners 6,144,236 constitutes 27.1% of the total population. More than two thirds of
the populations (65%) 14,613,491 are living in three regions i.e. Makkah Mukarramah,
Riyadh and Eastern Region. The remaining portions are living in the remaining Ten
Regions. The growth rate of population is about 2.18%.
The total number of inhabited houses in the Kingdom are 3,990,559 houses out of
which 2,671,677 (67%) are in the above regions and the remaining 33% are in the
remaining Ten Regions.
National Day:
The Kingdom of Saudi Arabia celebrates its National Day every year on 23rd of
September on commemoration of the Day of Unifying and founding the Kingdom by
His Majesty King Abdul Aziz Bin Abdul Rehman Al Saud in the year 1932.
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Flag of the Kingdom:
The Flag of the Kingdom of Saudi Arabia is rectangular width of which is two thirds
of its length. It has Green background inscribed in the middle with Islamic Testimony
(Shahada) "La Elaha Ella Allah, Mohammed Rasool Allah", (There is no God but
Allah, Mohammed is a Messenger of Allah). It is written in Arabic calligraphic form
called "Thulth" beneath it is an Arab Sword the handle of which turned to the direction
of the Flag's mast. The Flag of Saudi Arabia must not be hung at half mast or touch the
ground or water in respect of the written Testimony (Shahada).
National Emblem:
The National Emblem of the Kingdom of Saudi Arabia consists of a Palm Tree on top
of Two Crossed Arab Swords. Swords symbolize Strength, Stamina and Sacrifice,
while the Palm Tree symbolized Vitality, Growth and Prosperity.
Capital: Riyadh City.
Important Cities:
The Kingdom has many cities some of them have got their importance from religious,
location, or economical position. The important of them are:
1) Makkah Mukarramah: Sacred Capital, which is the most sacred place on earth for
Muslims and it is their "Qiblah" direction of prayers.
2) Madinah Munawarrah: Second Sacred place for Muslim in which the Prophet
Mosque is located.
3) Jeddah: Commercial Centre, Sea, Land and Airport, it is the main gate of
Pilgrimage and visitors.
4) Dammam: Seaport and the capital of Eastern Region.
5) Dhahran: Military city, The Headquarter of Saudi Aramco Company, which is
one of the biggest oil companies in the world.
6) Jubail and Yanbu: Jubail at Arabian Gulf, Yanbu at Red Sea, they have two big
industrial cities of Petrochemicals.
Currency of the Kingdom:
The currency of the Kingdom is Saudi Riyal which is covered with Gold, convertible
to other foreign currencies divided into 100 Halalas. It has the following
Denomination:
Paper notes: One Riyal, Five, Ten, Twenty, Fifty, One Hundred, Two Hundred and
Five Hundred Riyals.
Coins: One Riyal, Fifty Halalas, Twenty Five, Ten and Five Halalas.
The exchange rate is 3.75 Riyals per one U.S. Dollar.
Economic System:
The Kingdom of Saudi Arabia is adopting free economy. The Supreme Economic
Council chaired by the Custodian of the Two Holy Mosques the King is responsible of
making the Economic Policy of the State and looking after the execution of these
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policies through various executive bodies in the Kingdom. It also issued the rules and
regulations that help in finding a suitable atmosphere that attract foreign investment.
Saudi Arabian General Investment Authority is responsible of looking after foreign
investment affairs. All government departments, such as Ministry of Commerce &
Industry, Ministry of Economic & Planning, Ministry of Finance, Customs
Department are cooperating in execution of the policies and plans made by the
Supreme Economic Council. They work together to achieve the goals of the
comprehensive development of the national economy so as to develop the Saudi
Society. All these departments are trying to find out good investment environment that
attracts the foreign investors and encourage the national ones through participation of
the private sector in building the strong and safe economic base, and to help the
government in administration and operation of the public utilities through adoption of
privatization programs.
Measures and Weights:
The Kingdom is using the Metric System for measures, and Kilograms for weights.
Calendar:
The Kingdom is adopting Hijri Calendar based on the migration (Hijra) of Prophet
(Peace be upon him) from Makkah Mukarramah to Madinah Munawwarrah. The year
has 354 days divided into 12 Lunar Months. The Hijri Calendar is the official one but
some of the companies of the Private Sector are using Gregorian Calendar in their
daily work and their Fiscal Year, it has 365 days.
Weekly Working Days:
The working days for Government Departments and some of the Private Sector Firms
are from Saturday to Wednesday, and up to Thursday in some of Private Sector Firms.
Working Hours:
Government Departments work from 7.30 a.m. to 2.30 p.m.
Private Sector: Most of the Private Sector Firm works in two shifts, the morning one
from 8.00 a.m. to 12.00 noon. The evening from 4.30 p.m. to 7.30 p.m. and on
Thursdays only morning shift. But the Banks working hours start from 8.30 a.m. to
4.30 p.m.
Some of the Commercial Stores in the markets working hours starts from 10.00 a.m. to
12.00 noon and from 4.00 p.m. to 10.00 p.m. during the whole work except on Fridays
on which the work starts at 4.00 p.m. In some Commercial Stores the work extended
up to 12.00 midnight.
Official Holidays:
The official holidays are as follows:
1) Weekend: In Government Departments Thursdays and Fridays. In most of the
Private Sector Firms the weekend is only Friday.
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2) Eid-ul-Fitr: The holiday from 25th of Ramadhan to 5th of Shawwal for duration of Ten
Days extended up to Two Weeks if it starts before or on Weekends.
3) Eid-ul-Adha: From 5th to 15th of Thul Hajja, all Government Institutions and
Departments are closed during these holidays, where as it is less in the Private Sector
Firms.
Difference in International Timing: +3 GMT.
International Telephone Code is: 00966.
International Internet Code is: sa.
Transportation and Communication:
The Kingdom of Saudi Arabia has a good net work of Asphalted roads, and Rail Road
Line connected Riyadh and Dammam for transportation of goods and passengers.
Beside Eight Seaports on both Coasts of Red Sea and Arabian Gulf, and 27 Airports
out of which four are International Ones, and Seven Domestic/Regional Ones, and
Good Communication Network. The Communication Services are provided by the
three independent companies.
Hotels and Furnished Apartments:
The total number of Hotel is about 1,139 up to the end of 2006. From various Grades
spread all over the cities in the Kingdom with total number of Room 171,000 out of
which 61 are Excellent Class, 236 First Class, 468 Second Class and 358 Third Class
plus 16 Rest Houses.
The total number of Furnished Apartment is about 3,053 building composed of 64,000
Residential Units located in different cities of the Kingdom.
Health Services:
The Health Services are providing to the people from both Public and Private Sector
Health Institutions. The total numbers of hospitals are 379 up till the end of 2007 out
of which 132 are governmental owned and run by the Ministry of Health and some
other government departments. The Private Dispensaries are 1,055. The total numbers
of beds are 53,192. The number of Doctors 43,348, Nurses 79,994 and 45,973 of
different Medical Specialties.
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Chapter Tow
Jeddah City
2-1
2-2
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Makkah Mukarramah Region and Jeddah Province.
Jeddah City.
2-1 Makkah Mukarramah Region and Jeddah Province:
Makkah Mukarramah region is composed of 13 provinces, the biggest of which in
term of population is Jeddah, Makkah Mukarramah, and Taif provinces. Jeddah
province composed of three centres which are Jeddah, Thoul and Bahra Centres.
The administrative head quarter of Makkah Mukarramah region is in Jeddah.
Jeddah province is managed by a Governor of Jeddah. The development process is
shared by both the governorate and Jeddah Municipality.
2-2 Jeddah City:
1) The Name:
Jeddah is pronounced by its inhabitants as Jiddah, and some pronounce it as Jaddah
or Juddah. There are three assumptions about the origin of the name:
a) Jeddah: This naming is related to old Sheikh, Sheikh of Qudha'a Tribe, his
name was Jeddah Bin Gurm Bin Rayan Bin Helwaan Bin Ali Bin Usamah Bin
Qudha'a. He is connected with the Prophet (PBUH) ancestors in the ninth
grandfather.
b) Jaddah: This means grandmother (the mother of a father or mother) and above.
It is believed that the city was named after Eve (PBUH) the Mother of
Mankind. When Adam and Eve were sent to Earth from Paradise, she was in
Jeddah Place and Adam was in India, and they met in Arafat Valley. It is
believed that she was buried in Jeddah and her grave is still there and the grave
yard called "The Cemetery of our Mother Eve".
c) Juddah: This name is related to the Arabic meaning of Seacoast as narrated by
the Arab travelers Yaquot Al Hamawi and Ibn Batutah in their travels writings.
But the factual position today Jeddah is called by the three names up to date by
people in and outside the Kingdom.
2) The Location:
Jeddah is situated at the East of the Kingdom of Saudi Arabia in the Middle of the
Eastern Coast of the Red Sea at the joining point of Latitude 29.2º North and
Longitude 39.7º East South of Tropic of Cancer and extended up to Tihama Plains
in the East. It is known as the pride of the Red Sea. It is the main seaport for
reception of the Pilgrims who come to visit the Holy Mosque in Makkah
Mukarramah, and the visitors of the prophet mosque in Madina Munawarrah.
3) Historical Back Ground:
The History resources showed that Jeddah was built by a number of fishermen
before more than 3000 years, and after the destruction of Maarib Dam around
1115 B.C. Binu quddaa migrated to Jeddah and settled there. Some archeologists
said that it was inhabited before that time because some writings related to
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Thamood time were found in Breiman and Buwaib Valleys at the East of the
present city.
The historical sources indicated that Alexander the Great (323-356 B.C.) visited
Jeddah and stayed for sometime during his invasion to South East Asia.
The main historical conversation took place during the time of the Third Khalif
Othman Bin Affan – May God be pleased with him, the people complained to him
against the Coral Reef in Shoaiba Port, he chose Jeddah in 647 (26 H.) to be the
New Port as entrance to Makkah. It was named as the Home of Consuls. The city
expanded in area, buildings and commercial activities. Jeddah was under the
Islamic Authorities all through the Islamic Califate from the Umaya, Abbasi,
Ayyubi Califate up to the Ottoman Empire time which was ended in the First
Quarter of the last century. Al Maqdasi (died 990 A.D.) wrote about it in his book
The Best Distribution in knowing the regions, "it is a fortified city inhabitant with
big number of population, they engaged in commerce, it is the treasury of Makkah,
Siri mosque was there. But there was scarcity of drinking water despite the
availability of big number of pools. The water brought from far area, the majority
of inhabitants are Persian living in marvelous palaces, it has narrow straight
streets, it was very hot."
It was described by the Persian Traveler Nasir Khusro who visited HIjaz as haji in
1050; he said "it was a Commercial City with great number of commodities, big
buildings, clean city inhabited by about 5,000 persons."
Ibn Jubair who lived in Six Hijri Century (1217 A.D.) described it as "most of the
population of this city and its suburbs are Ashraf, Alawyun, Hussainyun,
Hassaneyun and Jaaferayun, May God be pleased with their ancestors. They were
very poor, that everybody helped them they worked in any profession like hiring
Camels, selling Milk or Water, and what so ever they gather like Dates and Wood,
and this might be practiced by their Sharif Ladies." The changing of Jeddah people
situation referred to the changing in the Islamic people at that time during the
crusade wars, and the struggle between the Ayyubis and Slagiqa.
When the Ayyubi won the war they tried to secure the Hajj Roads, Salahuddin Al
Ayyubi defeated the Crusaders and named himself as the Guardian of the Two
Holy Mosques.
After the collapse of the Ayyubi State and the Mamaleek seized power in Egypt
they occupied Jeddah and controlled the trade and Hajj Roads and looked after the
safety of Pilgrimage. They appointed Governor General of Jeddah and named him
"Jeddah Deputy". In a trial to encourage the trade in Jeddah they reduced the
custom duties and prevent Egyptian and Shami Trader to trade in Jeddah and
doubled the custom duties for the trader who passed through Aden Port.
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In a step to prevent Jeddah from any invasion Prince Hussain Al Kurdi built a wall
boundary with Two Gates one to Makkah side and the other to the Sea side and
dug a trench to fortify the city. The wall was furnished with Six Towers, later on
Six Gates were made: Bab Makkah, Bab Shareef, Bab Jadeed, Bab Alnabt, and
Bab Al Maghariba. At the beginning of the Twentieth Century one more Gate was
added i.e. Bab AlSabb. This wall was known for centuries till it was removed
during the time of King Abdul Aziz Al Saud in 1947 A.D. Due to the expansion of
the city, Jeddah was joined to the Kingdom, after a long seize as per the surrender
agreement between King Abdul Aziz Al Saud and Al Shareef Ali Bin Al Hussain
in 1925 A.D. and it became the Capital of Hijaz Regions.
After the Kingdom was unified in 1932 A.D. Jeddah entered a new time and it was
highly developed in all Political, Economical and Social life, this development
related to the production of oil in 1938 in the Eastern Region, since then Jeddah
became the Administrative Capital of the Western Region, and the place of the
King Deputy. When The Ministry of Foreign Affairs was established it was built
in Jeddah and all Embassies and Consulates were built and remain there till the
end of Twentieth Century, and still there are about 60 Consulates in Jeddah. Apart
from the importance of Jeddah as Commercial Port and Gate to the Two Holy
Mosques it expanded in all directions, new building came into existence beside the
Head Quarters of the Giant Local and Foreign Companies, consequently there was
expansion in the services like Transportation, Communication and Health Projects,
as well as expansion in the Public Utilities like Water and Electricity and all other
Infra Structure Projects. Now Jeddah is changed from a small city surrounded with
wall boundary to a big city known as the Pride of the Red Sea.
4) Natural Features:
Jeddah situated at the Eastern Coast of the Red Sea at the joining point of Latitude
29.2º north, and Longitude 39.7º East. In the middle of the Red Sea Coast, it is
bound by Sarawat Mountains, it is considered as part of Tihama Plain and
depression of Hijaz Hills, from the West by the Read Sea famous of Coral Reef
which was an obstacle for navigation till it was moved before sometime and the
entrance of the port was enlarged.
Climate:
The climate of Jeddah is affected by its geographical location; the temperature is in the
Forties Centigrade during summer because of the hot air resulted from the seasonal
Tropical Depression, with high humidity due to increase in temperature of the Sea
Water. In winter the weather is moderate the temperature decreased as well as
humidity.
The wind in Jeddah is North West One with moderate speed in most of the year days.
Sometimes Southern winds are observed during winter and spring. Sometimes the
wind is speedy and sandstorms are observed with thunder rains.
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The rain is usually of small quantity in winter and spring.
1) The Most Important Land Marks in Jeddah:
Jeddah has developed rapidly throughout the history in various fields such as
Economical, Commercial and Social Fields. Many rulers had ruled Jeddah, and
inhabited by diversified people from different parts of the world. This is because
of its location as a Port and Gate to the Two Holy Mosques. This movement of
people left so many architectural buildings some of them had been destroyed and
some are still existing, the most important of these are:
a) Archeological Landmarks:
 Jeddah Wall Boundary.
 Our Mother Eve Cemetery and Her supposed grave.
 AlShafie Mosques:
located in Mazloom District at Mosque Market, it is one of the oldest
mosques, its minaret was built in the Thirteen Century. It is a unique mosque
of square shape open in the middle to avail air. The mosque was reinovated,
and the prayers are performed till today.
 Othman Bin Affan Mosque:
It is called Ebony Mosque, because there were two panels made of Ebony
Wood. It is located in Mazloom District. It has huge minaret. This mosque
was built during the Ninth an Tenth Hijri Centuries. It was the mosque
mentioned by the travelers Ibn Batutah and Ibn Jubair.
 Al Basha Mosque:
The mosque is located in Sham District built in 735 A.D. by Bakr Pasha, the
Governor of Jeddah. It has unique minaret, and remained as it was till
destroyed in 1978 when the mosque was destroyed and rebuilt.
 King Saud Mosque:
Located in the center of the city. It was built by King Saud, capacity of
which is about five thousand persons. The prayers still performed in it.
 Hamid Bin Nafie Cemetery:
Located at old Makkah Road, known as Sheikh AlAsad Cemetery, related to
Sheikh Hamid Bin Nafie who was related to Ibi Malik Bin Sheikh AlQasim,
the Prince of Madinah Munawarrah.
2) Important Institutions in Jeddah:
After the unification of the Kingdom Jeddah was highly developed and new
institutions were built like:
a) King Abdul Aziz University:
It started as Private University and converted to Government University by
King
Abdul Aziz who made free education to all Saudi and Foreigner
students from Saudi Mothers. It is one of the biggest Saudi Universities at
present time. The number of students exceeds 35,000 and the staff members
are more than 2,300 Lecturers.
b) Islamic Conference Organization:
The Organization was established in 1969 in Rabat the Capital of Morocco.
During the Summit Conference of the Muslim World Rulers after the burning
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of Al Aqsa Mosque in August in the same year, Jeddah was chosen as
temporary place of the Organization till the liberation of Jerusalem which is
considered by the Muslim Leaders as permanent place of the Organization
head quarter.
c) Islamic Development Bank:
It is an Islamic Bank related to the Islamic World League with its Head
Quarter in Makkah Mukarramah. The bank aiming to develop the Islamic
communities through establishment of development projects in the Islamic
States, or through partnership so as to strengthen the cooperation and alliance
of the Islamic Nation. The bank is considered as nuclear of the Islamic Central
Bank through which it is supposed that money exchange transactions will take
place with the aim to free the Islamic States Economy from Usury (Riba)
System. The General Secretariat of the bank is formed from the Finance
Ministers of the Islamic States.
d) The International Islamic Relief Organization:
The organization is affiliated to the Islamic World League working in the field
of rescue and all charity works. It is Islamic Organization with International
Mission; it has offices in more than fifty countries. It works to redeem the
grievances of the people of the regions that face crisis due to natural disasters,
wars or compulsory migration to any group of people in any place of the
world. It works in various fields like instant rescue, rehabilitation, housing and
settlement of the people suffering from war and disasters.
e) Jeddah Islamic Port:
The Port was established in 647 A.D. at the time of the Third Caliph Othman
Bin Affan, it was developed since then, and the newest development was
during the present Saudi System. It is one of the biggest ports in Saudi Arabia.
It is the first port in Saudi Arabia in respect of passenger; more than 94% of
the passengers come through it. More than 40% of ships come to the Saudi
ports are received by Jeddah Port.
f) King Abdul Aziz International Airport:
It is located in North of Jeddah received Domestic and International Flights. It
contained two big lounges one for Saudi Airlines Flights and the other for
International Airlines Flights. Beside the airport of Pilgrimages which is
special Airport with Special Lounge to receive the Pilgrims during Hajj season
every year. It is well equipped Lounge so as to provide comfort and complete
services to the Pilgrimage.
g) Chamber of Commerce:
It is the first Chamber of Commerce in the Kingdom. It was established in
1946 after the Second World War to work as House of Merchants to provide
the required services to them and to society, as well as provision of
information to both the Saudi and Foreign Investors. The Chamber of
Commerce is playing an important role since then and up to now. It extended
its services to cover all aspects of life including society service through many
channels such as Promotion Programs, Campaigns, Periodical and Annual
Festivals.. etc.
- 16 -
h) Abdul Raouf Khalil Museum:
It is a Museum that shows the archeological acquisitions of the modern and
medieval Saudi History. Some of the acquisitions referred to the Ottomon
Empire Time. Then all the Saudi State in its three phases, beside that there are
some antiques, folklore items belong to different times. The Museum is open
for visitors all through the week.
Tourism Place:
1) Corniche:
Jeddah Corniche is considered as one of the best landmarks of Jeddah City. It
extended from North to South of the Red Sea Coast for about one hundred
Kilometers. The covered asphalted paved area is about three and Half Million
Meters, Twelve Thousand Light Poles, and Public Parking for Thousands of Cars.
The cost of construction is about 700 Million Saudi Riyals.
The Corniche is an open gallery for Ornaments, and Art Works from famous
Artists and Stone Dressers from different parts of the world. There are many
works of Farsalley that study the relation between the color degrees and the
Triangle and Square Shades. Also some of the work is of International Stone
Dresser Henry Moore, and the French Artist Ceasar and others. Moreover the
Corniche has green areas for families and children and some race tracks.
The Corniche contains Playgrounds, Fun Cities, Restaurants, Buffets, Hotels,
Motels and Beach Cabins for reception of Jeddah visitors.
2) Historical Area:
Old Jeddah was divided in many Districts, the District is named as Hara, these
Haras are named according to their geographical location, or the population or
some of the incidents took place in the area:
a) Harat Al Mazloom:
This District is named after Mr. Abdul Karim AlBarazanji who was killed by the
Ottomon Governor; it was located at the North East inside the old wall boundary,
North of AlAlawi Street. One of its famous landmarks is Al Shafie Mosque and the
mosque market.
b) Harat Al Sham:
Situated in the Northern portion inside the wall boundary at the direction of Bilad
AlSham.
c) Harat Al Yemen:
Situated at Southern portion inside the boundary, South of Al Alawi Road, it is at
Bilad Yemen direction.
d) Harat Al Bahar:
Situated at the South West of Jeddah at the coast of the sea.
- 17 -
Harat Al Quarantine:
Situated at the South of Jeddah facing the Seaport. The Pilgrimage Quarantine was
built there for quarantining the Haji with infectious diseases. All health care
proceedings were done there before allowing the Pilgrimage to go to Makkah. In later
time the water was paved and the new Jeddah Islamic Port and the Petrol Refinery
were built. The present Hara is near Jeddah South Refinery known as Petromin or
Masfat District.
- 18 -
Chapter Three
Population, Manpower and
Standard of Living
3 – 1 Population in the Kingdom of Saudi Arabia.
3 – 2 Manpower
3 – 3 Standard of living.
3 – 4 Standard of living comparative study for the main Saudi cities.
- 19 -
3-1 Population of the Kingdom of Saudi Arabia:
The census of the population considered as a main source of the information about
population because it shows the number, and demographic and economic
characteristics, of the population and their distribution among administrative level.
This information is important because it is a base for development planning, and how
to measure the success of the development plans in achievement of goals. This goal is
stipulated in the fourth goal of the Eighth Development Plan:
"The Development of Human Resources and raising their qualifications to increase
their contribution in the economical life and to meet the needs of the national
economy."
Because of this government took interest in doing the census in the years 1974, 1992
and 2005. According to 1974 census the total population of the Kingdom was 7
Million, 6.2 Million are Saudis, and 791 Thousands are Non-Saudis.
In 1992 census, the total population of the Kingdom was 16.9 Million, out of them
12.3 Million (72.6%) were Saudis, 4.6 Million (27.4%) expatriates, and according to
the results of the third census which was conducted on 15-4-2004, the total population
was 22,673,538 with increase in number by 5,725,150 (33.8%). The number of Saudi
Nationals is 16.948,388 represents (72.9%) of the total population, with increase in
number by 4,219,249 (34.3%). The number of Non Saudi was 6,144,236 represents
(27.1%) of the total population with increase in number by 1,505,901 (32.4%). This
results showed that the percentage of distribution of population as per nationality
(Saudi and Non Saudi) approximately remain the same.
The results showed that the Saudi Society is Youth Society because the percentage of
the population whose age is less than 15 years is about (40.4%), and the median age is
about 17.3 years i.e. half of the population are less than 17.3 years of age. Moreover
the age group 15 to 65 years represents 79% of the total population, this group
represents the Labor Force in the Kingdom.
The results showed that the percentage of Saudi Males represents 50.1% and the
percentage of Saudi Females 49.9% i.e. the distribution of Saudi population as per sex
is almost equal. The percentage of Non Saudi Males is 69.5% and Females is 30.5%
i.e. the number of Males is almost double as shown in the Table No. (1-3).
In general the rate of growth of Saudi population during twelve years is about 2.5%,
this increase of rate is because of high fertility rate among females who are in the age
of reproduction (15 – 49). It is estimated that each lady can produce 5 children which
is considered as high rate. Despite the increase of celibacy rate between Females, it
increased from 20 years 1988 to 24.9 in 2001. The main reason of increase of fertility
rate is due to the mode rate of giving birth which is measured by the period between
every two successive births. The period between every two births is estimated to 28
months which is considered short compared to other countries.
- 20 -
Table (3 – 1)
Distribution of Population of the Kingdom according to
Sex and Nationality as per Census
GRAPH
- 21 -
3-1-1 Geographical Distribution of Population As Per Region:
The Kingdom composed of Thirteen Administrative Regions. The population
concentrated in two centers as "T" shape, the first center extending from East to West
inhabited by 16 Million of population represents (71%) of the total population, it
extended from Dammam to Jeddah and Makkah Mukarramah. This center included
Eastern Region, Riyadh Region, Madinah Munawarrah Region and Makkah
Mukarramah Region.
The second center extending from North to South, it includes Tabuk, Yanbu, Jeddah,
Makkah Mukarramah, Taif, Abha and Jazan. Besides these two centers there are many
population groups in the suburbs. As shown in the census results the distribution of
population is concentrated in the urban areas about (70%) and the rural areas (30%). It
is noticed that the Non-Saudis are of big number in the urban areas and they are of
small number in rural areas. This is because of the nature of their work. They
concentrated in Makkah Mukarramah, Madinah Munawarrah, Riyadh and Eastern
Regions, their percentage in these regions is about (83.2%).
The results showed that the expatriate's percentages clearly affect the rate of growth of
the population, because their average is almost quarter of the population in four main
regions i.e. Makkah Mukarramah, Riyadh, Madinah Munawarrah and Qasim areas.
Moreover the results showed that Makkah Mukarramah region is occupied by 25.6%
of the total population i.e. more than quarter, then Riyadh region 24.1%, the Eastern
region 14.8%, Aseer region 7.4%, Madinah Munawarrah region 6.7%, Jazan region
5.2%, Qasim region 4.5%, Tabuk region 3.1%, Hail region 2.3%, Najran region 1.8%,
Baha region 1.7%, Jouf region 1.6% and Northern Frontier region 1.2% as shown in
Table (3-2) below.
- 22 -
Table (3 – 2)
Distribution of Population among the Administrative Region as per
Sex and Nationality (Saudis and Non Saudis)
- 23 -
Saudis Total
Non Saudis Total
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
3-1-2 Distribution of Population In Makkah Mukarramah Region:
Makkah Mukarramah region composed of Twelve Provinces, inhabited by total
number of population 5,797,971 persons. The number of population in Jeddah Province
is 2,883,169 persons representing about half of the region population (49.7%) and
12.7% of the Kingdom population. This indicates the high density of the province
population. Because it is more than double the population of any region in the
Kingdom other than Makkah Mukarramah, Riyadh and Eastern Regions, next to
Jeddah is the Holy Capital with a total population of 1,338,341 representing 23.1%,
third Taif Province with total population of 885,474 representing 15.3% of the total
population of the region. This means that about 88% of the population of Makkah
Mukarramah Region is living in these three provinces as shown in Table (3-3) below.
- 24 -
Table (3 – 3)
Distribution of Population of Makkah Mukarramah Region According to Provinces as per Sex and
Nationality (Saudis and Non Saudis)
- 25 -
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Saudis Total
Non Saudis Total
3-1-3 Distribution of Population of Jeddah Province:
Jeddah Province composes of three centers Jeddah, Thoul and Bahrah. The number of
Thoul Center population is 8,669 persons and of Bahrah Center is 63,919 i.e. the total
number of these two centers is 72,588 persons representing 2.5% of the total number
of Jeddah province. This means that Jeddah city is inhabited by 97.5% of the total
population of the province numbering 2,883,199 persons.
Regarding the number of occupied houses in Jeddah province are 635,001 houses
representing 54% of the houses in Makkah Mukarramah region (1,177,457 houses)
and 16% of the total houses of the Kingdom (3,990,559 houses).
The number of the houses in Jeddah city are 622,718 houses representing 98% of the
houses of the province and 52.8% of the house of Makkah Mukarramah region and
15.6% of the total houses of the Kingdom, as shown in Table (3-4) below:
- 26 -
Table (3 – 4)
Distribution of Population and Houses of Jeddah Province as per Sex and Nationality (Saudis and Non
Saudis)
- 27 -
Distribution of Population as per Age Groups:
When looking at the distribution of population as per age group it is clear that the
Saudi Society is Youth Society because the majority of populations are young. 78% of
the population are less than 40 years, their number is about 18.73 Million i.e. about
Four Fifth of the population.
This number of the population in the Childhood Group 0 – 14 years is about 7.78
Million representing 32.5% of the total population. The population from 15 – 39 are
about 10.95 representing 45.7% of the total population. The number of population in
Labor Age 15 – 64 is about 15.5 persons i.e. 64.7%. This means that about Two Thirds
of the population is in labor age. Moreover the percentage of sustenance for the age
group 15 – 64 is about 55% as in 2008 i.e. every 100 persons are supporters of 55
person of the group who are less than 15 years of age or for those who are more than
65 years of age in addition to themselves as shown in Table (3-5).
It is noticed that the number of males is exceeding the number of females despite the
fact that Saudi females are more than the Saudi males, but the reason for that is the
addition of Non-Saudi males to the total males, because the Non-Saudi males are more
than the Non-Saudi females. This increase in number of males has direct effect in the
population as well as in labor market.
Table (3 – 5)
Distribution Of Population As Per Sex And Age Group As Per Demographic Research Conducted In 2008
Age Group
Males
%
Less than One Year
1–4
5–9
10 – 14
15 – 19
20 – 24
25 – 29
30 – 34
35 – 39
40 – 44
45 – 49
50 – 54
55 – 59
60 – 64
65 – 69
70 – 74
75 – 79
More than 80
Total
261,361
1,132,503
1,311,229
1,221,827
1,113,549
1,113,086
1,316,696
1,426,831
1,317,849
1,005,506
728,678
499,010
310,485
193,305
120,822
99,745
58,630
70,057
13,301,169
2
9
10
9
8
8
10
11
10
8
5
4
2
1
0.9
0.7
0.4
0.5
100
Females
255,755
1,100,446
1,284,262
1,215,613
1,091,466
1,029,842
988,451
947,093
779,905
560,793
408,416
313,656
217,214
162,092
116,922
86,164
50,465
73,110
10,679,665
%
2
10
12
11
10
10
9
9
7
5
4
3
2
2
1
0.8
0.5
0.6
100
Total
517116
2,239,949
2,595,491
2,437,440
2,205,015
2,142,928
2,305,147
2,373,924
2,095,754
1,566,299
1,137,094
812,666
528,699
355,397
237,744
185,909
109,095
143,167
23,980,834
Percentage
2
9
11
10
9
9
10
10
9
6
5
3
2
1
1
0.9
0.5
0.6
100
Source: General Department of Statistics and Information. Results of General Census 2005
- 28 -
3-2 Labor Force:
The Demographic Researches showed that there is unbalanced distribution of the
population among regions and cities. Therefore the government is adopting
Demographic Policy with aims to achieve certain target related to population with the
development plans and the rural development programs through radical changes in the
population distribution and the rate of growth so as to achieve balancing in the
population distribution according to the potential resources of the country. Therefore
the government established Economic Cities, Productive Projects aiming to achieve
rural development and encourage reverse migration from big cities to rural areas
through execution of huge projects that work for settlement of the citizens in their own
original areas.
The government is trying to activate the role of the private sector and enhance its
investment aiming to expand in new productive project to create some new job
opportunities. It is expected that these policies may lead to achieve good rate of
growth of economic development, consequently increase in demand of labor force.
Therefore the development plans considering the development of Human Resources
through implementation of Educational and Training Policies aiming to improve the
qualification of the Saudi Citizen and enhance their skills and knowledge so that they
will be competent to compete in the Labor Market, and able to perform the job
requirements. The government has also adopted a number of policies giving privileges
and preference to employ nationals. These policies are incorporated in the Government
Development Plans which aims to raise the standard of living of the citizens. This has
been stipulated in the Third Target of the Eighth Development plan narrated as
follows:
"Enhancement of the standard of living and improvement of life conditions and
provision of work opportunities for the citizens through accelerating the development
operation and enhancing the rate of growth of Economic Development and the
Qualitative and Quantitative expansion in the Educational, Health and Social
Services."
The fourth target of the said plan is narrated as follows:
"Development of manpower and improvement of its qualification to increase its
contribution to meet the requirements of the national economy."
Before entering into manpower statistics it is important to know something about the
characteristics of the Saudi Labor Market that faces some deficiencies because of the
volume of the Foreign Labor Force that dominate some of the sectors, specially in the
private sector.
- 29 -
3-2-1 Characteristics of the Saudi Labor Market:
The Saudi Labor Market is supervised by two Ministries, The Ministry of Labor that
regulates the Labor Market related to the Private Sector. It is responsible for initiating
the policies, settlement of disputes arising between related parties. The Ministry of
Civil Service that regulates the work policies of work in the Government and Public
Sector. The Saudi Labor Market is characterized by the following:
1) The statistics of the last five years showed that the professional composition of the
Labor Force as per nationality (Saudi/Non-Saudi) there is increase in the
percentage of nationals in the services sector (32.6%), and the scientific and
technical sector (25.9%). Whereas the Foreign Labor concentrated in the jobs of
Production and Transport Equipments (39%) and the Services Sector (28.4%). The
national labors are less in the production sector because these type of jobs need
skilled or semi skilled laborers. The foreigners are dominating this sector; there are
about 4.4 Thousand Foreign Laborers against One Thousand Nationals.
2) Regarding the structure of the Labor Market according to economical sectors, it is
observed that the production and services sector in the private sector are
representing 96.5% of the total Foreign Labor Force, and 70% of the National
Labor Force, and 56% of the total labor force in the private sector.
3) The Labor Market is characterized by the low contribution of the females to the
economic activities. The contribution of females in the Labor Force at present is
estimated to 10.25% compared to 63.64% of males; this low contribution is due to
the limited opportunities of job available for ladies in the economical fields.
4) The Saudi Labor Market depends on the Foreign Labor Force specially the Private
Sector. It is estimated that against each 1.5 Thousand Foreigner there are One
Thousand Nationals at the National Level, and Two Thousands Foreigners against
One Thousand National in the Private Sector. The Labor Force Statistic showed an
increased rate of unemployment among the Saudi Citizen, it is estimated to 9.7%,
while it is estimated to 0.4% among the foreigner.
The above mentioned characteristics of the Saudi Labor Market are forming big
challenges to the policy makers in the Educational Training, Vocational and
Recruitment Fields; and how to develop the Educational Training Programs to cope
with the market needs.
3-2-2 Development of Labor Force During The Development Plans (from the First Five
Years Plan 1970/75 to the Seventh Development Plan 2000/2005 :
The leap in petroleum prices in the last third of the twentieth century lead to
preparation of ambitious development plans aiming to construct an effective
infrastructure in the Kingdom. The private sector firms played an important role in
execution of the big government projects through partnership with specialized
international companies, or performed the job by themselves depending on their own
Human and Financial Resources. As a result of this role the need of foreign labor
emerged, especially skilled labor to execute the projects that have limited time.
- 30 -
Therefore it is necessary to recruit foreign labors to fill in the gap of needed laborers in
the light of scarcity of skilled Saudi Labors.
This situation resulted in an increase of the percentages of foreign labors and decrease
of the percentage of Saudi Labors during the years of the Seven Development Plans.
The percentage of the Saudi Labor Force in the Labor Market has dropped from 80.4%
in the First Five Year Plan 1970 – 1975 to 33.3% at the end of the Fourth Five Year
Plan 1995 – 2000. This regression of the percentages of the National Labor Force
leads to the call of Saudization, and to avoid dependence on Foreign Labor Force.
Consequently the concerned authorities give importance to development of the Human
Resources and make all possible efforts to expand horizontally and vertically in the
Educational, Vocational and Training Institutions in with target to qualify the Saudi
Nationals technically to take over the responsibilities of the available jobs in the
market and consequently to enhance their contribution in the Total Labor Force. These
efforts have resulted in some positive results. The percentage of Saudi Nationals
started to increase in the labor force from the beginning to the Fifth Development Plan
up to the end of the Seventh Development Plan, and during the first years of the Eighth
Development Plan. The percentage increased from 33.3% (1990) to 39.4% in 1995,
then to 46.3% in 2000 and to 56.9% at the end of the Seventh Plan in 2005. Table
number (6-3) shows the above.
Table (3 – 6)
Development of the National and Foreign Labor Force (In Thousands)
During the Seven Development Plans1970 to 2005
Saudi Labor
Non Saudi Labor
Total
Years of the Plan
No.
%
No.
%
No.
First Plan 1970 – 1975
1286
80.4
314
19.6
1600.01
Second Plan 1975 – 1980
1411
57.0
1059
43
2471.2
Third Plan 1980 – 1985
1786
34.1
3458.6
65.9
5244.6
Fourth Plan 1985 – 1990
1923.2
33.3
3848.6
66.7
5771.8
Fifth Plan 1990 – 1995
2357.1
39.4
3628.2
65.7
6867.7
Sixth Plan 1995 – 2000
2876
46.3
3328
53.6
7059.4
Seventh Plan 2000 – 2005
4270
56.9
3234
43.1
7504.4
%
100
100
100
100
100
100
100
Source: Ministry of Planning, gathered information of the performance of the Five Year Plan (Development Plans Facts and Figures) .
.Saudi Labor No
.Non Saudi Labor No
5000
4000
3000
2000
1000
0
Seventh Plan
2005– 2000
- 31 -
Sixth Plan
2000– 1995
Fifth Plan
1995– 1990
Fourth Plan
1990– 1985
Third Plan
1985– 1980
Second Plan
1980– 1975
1970 First Plan
1975–
3-2-3 Distribution of the Labor Force in Private Sector as per Regions and Nationality:
The total labor developed radically, it increased from 4,648,530 workers in 2005 to
5,826,856 workers in 2008. It increased by 1,178,326 workers i.e. (25%).
The number of male workers increased from 4,560,869 workers to 5,678,806 workers
during the same period. They increased by 1,117,937 workers i.e. (24.5%).
The number of female workers increased from 87,661 workers to 148,050 workers,
they increased by 60,389 i.e. (69%). Despite the big increase in the number of female
workers, their contribution to the Labor Market remains very low. It does not exceed
2.54% up to the end of 2008.
Regarding the distribution of labor according to region, Riyadh Region is in the First
Place all through the period. The number of workers is 1,906,290 workers in 2008, it
increased by 505,999 workers i.e. 36% than in 2005. The total number of Riyadh
workers represents 32.7% of the total number of workers in the Kingdom.
Makkah Mukarramah Region came in the Second Place. The number of workers is
1,364,063 workers in 2008, it increased by 213,251 workers than in 2005, i.e. 18.5%.
The total number of Makkah Mukarramah workers represents 23.4% of the total
number of workers in the Kingdom.
Eastern Region ranked in the Third Place, the total number of workers is 1,274,598
workers in 2008, it increased by 285,346 workers than in 2005 i.e. 28.8%. The total
number of workers in the Eastern Region represents 21.9% of the total number of the
workers in the Kingdom. The total number of workers in the above three region is
4,544,951 workers represents 78% of the total number of workers in the Kingdom.
This means that only 22% of the workers are distributed among the remaining ten
provinces at varies ratios as shown in the Table (3-7) below:
- 32 -
Table (3 – 7)
Distribution of Labor Force in the Private Sector according to Regions and Sex from 2004/2005 to
2007/2008
- 33 -
Males 2004/2005
Females 2004/2005
Males 2005/2006
Females 2005/2006
Males 2006/2007
Females 2006/2007
Males 2007/2008
Females 2007/2008
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
3-2-4 The Workers of Private Sector Firms in Jeddah As Per Main Jobs and Sex
Compared to Makkah Mukarramah Region and the Kingdom:
The total number of workers in the Private Sector in Jeddah City till the end of
2006/2007 is about 909,799 workers represents 68% of the workers in Makkah
Mukarramah Region and 16% of the total workers in the Kingdom.
The percentage of the Males working in the Private Sector in Jeddah is 98% while the
percentage of working Females is only 2%.
The percentage of the working Males in Jeddah City is 66% compared to the Males in
Makkah Mukarramah Region and 16% compared to the working Males in the
Kingdom, while the percentages of the working Females compared to the Females in
Makkah Mukarramah Region and the Kingdom are 77% and 17% respectively.
The percentages of the workers in all profession in Jeddah compared to the workers in
Makkah Mukarramah Region ranging from 23% as a minimum in the profession of
Agriculture and Livestock and 84% as maximum in the profession of Managers, and
High Executives. When compared to the Kingdom the percentage is ranging between
3% as minimum and 24% as maximum for the same professions as shown in Table
(3-8).
- 34 -
Table (3 – 8)
The Workers in Private Sector Firms in Jeddah City according to main Profession and Sex compared to
Workers in Makkah Mukarramah Region and the Kingdom as in 2006/2007
- 35 -
3-2-5 Workers in Private Sector Firms in Jeddah City according to Economic Activities
Compared to Makkah Mukarramah Region and the Kingdom:
The workers of Finance, Insurance and Real Estate Services Sector came First
compared to the workers in Makkah Mukarramah and the Kingdom percentages of
which are 83% and 20% respectively.
The workers in Wholesale Trade activity came in the Second position (74%), then in
the Third position Transportation and Warehousing activity (72%), in Fourth position
Building and Construction (69%) and in Fifth position Convertible Industries activity
(68%), in the last position Agriculture, Forest and Fisheries activities 20% i.e. about
one fifth.
This means that the average of the worker according to Economic activities compared
to Makkah Region is about 68% i.e. more than two thirds of the workers in the region.
When comparing the percentages workers in Jeddah to the worker in the Kingdom,
they are ranging from 1% as Minimum for Mines, Petroleum and Gas activities, and
25% as Maximum for Wholesale Trade activities. The average workers in the Private
Sector in Jeddah according to Economic activity compared to the Kingdom is about
16% as shown in Table (3-9).
- 36 -
Table (3 – 9)
The Workers in Private Sector Firms in Jeddah according to Economic Activities and Sex compared to
the Workers in Makkah Mukarramah Region and the Kingdom as in 2006/2007
- 37 -
3-2-6 Development in Numbers and Percentage of the Labor Force in Public Sectors
from 2004/2005 to 2007/2008:
The numbers of employees of the Public Sector increased in the last four years from
763,265 in 2004/2005 to 829,985 in 2007/2008, they yincreased by 66,720 i.e. (9%).
The annual average ratio of growth of Government employees during the last years is
about 2.7%, keeping in mind the effect of recruitment in the Government Institution in
the Labor Market is negligible because of:
The total Labor Force in both Public and Private Sector is 6,656,841 as in 2007/2008.
The Labor Force in the Private Sector represents 87.5% of the total, while the Public
Sector Labor Force represents 12.5%. This means that the burden of recruitment of
Manpower heavily depend on the Private Sector due to its radical expansion and rapid
development, and effective contribution to execution of the big Government Projects
that need big number of workers, who either recruited to work directly in the project or
to work in supporting activities as shown in Tables (3-9) and (3-10).
Table (3 – 10)
Development in Numbers and Percentages of the Labor Force in the Public Sector
from 2004/2005 to 2007/2008.
Year
Employees
%
Workers
%
Total
2004/2005
685156
90
78109
10
763265
2005/2006
705258
90
78018
10
783276
2006/2007
726206
90
77457
10
803663
2007/2008
757543
91
72443
-829985
%
100
100
100
100
Source: Ministry of Civil Service Annual Reports from 2004 to 2008.
757543
726206
705258
685156
800000
700000
600000
500000
Employees
400000
Workers
300000
72443
78018
77457
78109
200000
100000
0
2007/2008
2006/2007
2005/2006
2004/2005
3-2-7 The Average Monthly Salary in Private Sector in K.S.A. according to Sex:
In the last four years a continuous decrease in salaries and wage has been observed.
The average salaries are decreased from SR. 1,385 in 2004/2005 to SR. 1,354 in
2007/2008 at a rate of 2.2%.
- 38 -
This decrease affected the monthly salary of both sexes, the average monthly salaries
of Males decreased from SR. 1,376 in 2004/2005 to SR. 1,342 in 2007/2008 at
percentage of 2.5%. The annual rate of decrease is about 2.3%.
The salaries of Females decreased from SR. 1,851 in 2004/2005 to SR. 1,810 in
2007/2008 at a percentage of 2.2%. The annual rate of decrease is about 2.2% as
shown in Table (3-11).
This decrease in salaries in the Private Sector Firms is due to the big number of the
Foreign Labor Force keeping in mind the majority of the expatriates are drawing low
salaries.
Table (3 – 11)
Average Monthly Salary in the Private Sector in the Kingdom According to Sex
from 2004/2005 To 2007/2008
Year
Males
Females
Average
2004/2005
1376
1851
1385
2005/2006
1370
1165
1359
2006/2007
1373
1883
1384
2007/2008
1342
1810
1354
Source: Ministry of Labor, Information Center. Data base 2008.
1810
1342
1883
1851
1373
1370
1165
1376
Males
Females
2007/2008
2006/2007
2005/2006
2000
1800
1600
1400
1200
1000
800
600
400
200
0
2004/2005
3-2-8 Average Monthly Salaries of Saudis in Public Sectors:
Statistical Data showed that the average salaries of Saudis working in the Public
Sectors ranging from SR. 1,732 as minimum salaries for workers and SR. 8,980 as
maximum for Assistant Judge.
The average of the maximum level of the salaries ranging from SR. 3,812 for workers
as minimum, and SR. 28,750 for University Staff Member as maximum.
If the workers are excluded because of their low salaries compared to other
Government employees, the average of salaries will go up at all the two levels
- 39 -
maximum and minimum. The average of the minimum salaries will be SR. 2,530 for
Public Servants and the average of the maximum salaries will be SR. 13,237 for
Educational Jobs as shown in Table (3-12).
Tables (3-11) and (3-12) showed the big differences between the monthly salaries of
the employees of the Private Sector and the Saudi Employees working in the Public
Sector. More than 95% of the Public Sector is Saudized. No doubt these differences in
salaries have clear and direct impact on the purchasing power of the Labor Force
considering the fact the Labor Force of the Private Sector is four times the Labor Force
in the Public Sector.
Table (3 – 12)
Monthly Average Salaries of Saudi Employees working in the
Public Sector (in SR)
Minimum Average
Maximum Average
Particulars
Grade
Salary (SR)
Salary (SR)
Public Servants
1 – 15
2,530
20,625
Educational Jobs
1–6
7,330
13,237
Judges
From Judge to Court
8,970
26,945
President
University Staff
From Teaching Assistant
8,300
20,460
Members
to Professor
Investigating
Investigator to Deputy
6,415
28,750
Organization Members
President
Health Jobs
Health Assistant (B) to
5,829
17,980
Consultant
Workers
31 – 33
1,732
3,812
Source: S.A.M.A. Annual Reports No's. 43 and 44, 2007/2008.
3-2-9 Average Monthly Salaries of Saudis in Public Sectors:
It is well know that the Ministry of Labor is responsible for recruitment and Labor
Affairs as well as issuing and executing the policies of Labor Market through the
regional offices of Labor. The Ministry tried all efforts to provide jobs for the Saudi
Nationals and to cut down recruitment of Foreigner except the jobs and professions
that need special skills and qualification. Apart from this the Ministry started the
National Recruitment Campaign since 2005 with the aim to consolidate all efforts to
find a job for any Saudi.
3-2-10 National Recruitment Campaign:
Apart from the General Policy of the Government to find jobs for the Saudi Nationals
and to accommodate them in the Private Sector through provision of information about
the job seekers, and the potential jobs in the Private Sector. The Deputy Ministry for
Planning and Development through (37) Labor Offices in the different regions of the
Kingdom started the National Recruitment Campaign with the aim to remedy the
deficiencies in the National Labor Market by regulating the Supply and Demand in the
Labor Market, and work out to achieve Quantitative and Qualitative conformity of the
- 40 -
Supply and Demand, consequently to reduce the rate of unemployment, and meet the
actual needs of the Private Sector.
In order to accelerate the campaign the Ministry took a series of measurements to
solve the difficulties and hindrances that face recruitment of the Saudi Citizens, the
important of which are as follows:
1. Limitation of recruitment of Foreign Labors specially the unskilled labor with low
salaries.
2. Activation of the role of Human Resources Development Fund to support the
Saudization Programs through Direct Recruitment or Training with a purpose to
recruit within the National Formation Program for Joint Training.
3. Provision of more information about the potential jobs in the Private Sector and
make it available for the Saudi job seekers.
4. Provision of information about the Saudi job seekers e.g. Qualifications,
Experience, Age, Required Job, Demanded Salary… etc. and make it available for
the employers.
5. Preparation and creation of the suitable Administrative and Organizational
environment that encourage the citizens to join the Private Sector, specially the
Small and Medium Establishments.
The National Recruitment Campaign worked on the above principles and the
following results have been achieved:
1) Results of the National Recruitment Campaign up to the end of 2008:
The total registered job seekers with all Labor Offices since 2006 and up to the
end of 2008 were 381,544 persons. 73,826 persons were registered during 2006
and 151,346 persons were registered during 2007, and 156,372 persons were
registered during 2008.
77,520 persons recruited during 2007 representing 34.3% and 88,700 persons
recruited during 2008 representing 57%. This means that the Labor Offices
succeeded in finding jobs for more than one third of the job seeker in 2007, and
more than half (57%) in 2008.
2) Jeddah City came in the first place; the total number of job seekers is 63,577
persons till the end of 2008 representing 18% of the total, 23,251 persons were
employed representing 36.6% of the job seekers in Jeddah, and 6.1% of the job
seekers in the Kingdom.
3) Riyadh City came in the Second Place, the total number of job seekers is 56,465
persons representing 14.8% of the total, 28,957 persons were employed
representing 51.3% i.e. more than half of the job seekers in Riyadh, and 7.6% of
the job seekers in the Kingdom.
4) Dammam City came in the Third Place, the total; number of job seekers is 46,875
persons representing 12.3% of the total 22,468 persons were employed
representing 48% of the job seekers in Dammam and 12.3% of the job seekers in
the Kingdom.
- 41 -
5) The number of job seekers in Taif is 17,198 persons representing 4.5% of the total,
4,099 persons were employed representing 25% of the job seekers in Taif and 1%
of them in the Kingdom.
6) The number of job seekers in Khobar is 33,474 persons representing 8.7% of the
total, 19,027 persons were employed representing 57.2% of the job seekers in
Khobar and 5% of them in the Kingdom. The percentage of employed ones is the
biggest in one city.
7) The total number of job seekers in Abha is 20,517 persons representing 5.3% of
the total, 9,376 persons were employed representing 45.7% of the job seekers in
Abha and 2.5% of them in the Kingdom.
8) The total number of the job seekers in Makkah Mukarramah region is 90,087
persons representing 24% of the total, 30,442 persons were employed representing
33.8% of the job seekers in the region and 7.9% of them in the Kingdom.
The total number of the job seekers in the above Six Cities is 238,819 persons
representing 62.6% of the total, i.e. about two thirds and the remaining percentage
37.4% distributed between the remaining 31 cities at different percentages as shown in
Table (3-13) below.
- 42 -
Table (3 – 13)
Number of Registered Job Seekers since starting of National Recruitment Campaign and those who were
employed through Labor Offices till the end of 2008.
Offices
Job Seekers since Inception
Persons Employed
2006
2007
2008
2007
2008
Riyadh
11,632
20,563
24,279
8,940
20,017
Kharj
2,199
2,797
2,905
598
1,148
Buraidah
1,946
2,699
1,457
753
638
Dammam
6,246
16,459
24,170
10,213
12,255
Ras Tanura
1,883
3,399
2,653
1,516
1,806
Jubail
1,752
4,534
6,853
2,782
2,774
Baqaiq
724
1,545
1,674
821
607
AlAhsa
2,763
6,649
10,309
3,886
5,311
Jeddah
12,955
28,244
22,378
15,289
9,048
Madina Munawarrah
4,105
10,494
4,382
6,389
4,086
Abha
1,314
3,321
15,882
2,007
7,369
Taif
6,134
10,231
833
4,097
2
Makkah Mukarramah
2,590
3,986
1,455
1,396
1,474
Yanbu
1,656
3,748
,283
2,092
6
Khobar
663
6,454
16,862
5,791
13,236
Tabuk
842
1,800
1,609
958
1,231
Hail
2,245
4,512
1,840
2,267
393
Najran
868
1,788
1,921
920
515
Hafrul Batin
1,058
1,589
-531
-Baha
424
523
1,588
99
882
Beesha
711
1,193
750
482
400
Jazan
1,917
3,438
5,320
1,521
2,452
Arar
511
845
990
334
800
Khafji
314
678
311
364
2
Jouf
1,447
2,768
-1,321
-AlRas
778
1,052
739
274
354
Unaizah
491
843
1,692
352
510
Majmaa
90
219
87
129
24
Dawdmi
695
927
1,172
282
652
Qurayyat
553
835
16
282
-Shaqra
235
325
36
90
-Zulfi
223
267
297
4
114
Olla
277
365
501
88
90
Wadi AlDawasir
330
516
832
186
270
Qunfudah
522
744
6
22
-Wajh
507
605
188
98
109
Teraif
285
391
130
106
125
Total
73,826
151,346
156,372
77,520
88,700
Source: Information Center, Data Base – Ministry of Labor.
3-3 The Cost of Living Index:
The Saudi Government is working hard to avail comfortable life to all citizens, and
each citizen should find his basic needs of food, clothes, mcdiecnes and shelter at the
least possible cost that commensurate with his income. To achieve this goal the Saudi
Government adopted the following measures:
1) Reduction of custom duties on the necessary goods, especially foodstuff.
2) Direct subsidy to strategic commodities.
- 43 -
3) Encourage the farmers to grow some crops and the government buys these crops at
special prices, and then sells to the public at competitive prices.
4) Prevention of monopolizing the production or import for all, and then perfect
market for all, and then perfect competition will take place, consequently the
prices will remain the same or further may be decrease.
5) Preserve supply of all necessary goods and materials in the market to meet the
increased demand resulted from the natural and artificial growth of population due
to recruitment of Foreign Labor.
The prices of the necessary foodstuff such like price of Wheat went up rapidly during
the year 2007/2008, due to this some sort of inflation took place. The available
statistical data showed that the foodstuff had the biggest share in the inflation package
because it represents more than quarter of price index (26%). Since the increase in
foodstuff prices represents social phenomena that affect everybody in the society, the
government moved immediately to find solutions so as to prevent it to be converted to
political problem that works negatively on the peace and stability of the society.
The Council of Ministers issued resolution in March 2008 to reduce the custom duties
on about 180 commodities included all the foodstuff and some of the other consumer
goods and building materials. This reduction will continue at least for three years. The
cost of the commodities related to this resolution is about SR. 4.5 Billions.
Moreover the government waive out the demurrage charges, and storage charges at the
sea ports and international airports so as to reduce the cost of goods to the traders.
The government increased the salaries of the government employees by 15% in a trial
to increase the individual income to enable him to meet the cost of living.
The concerned government departments are keenly observing the market to know the
change in prices, one of these measures was issuance of Monthly Bulletin for Price
Index and Standard of Living Index.
3-3-1 Goods Average Prices:
General Department of Statistics and Information chose more than 400 commodities
and 16 Big Cities in the Kingdom. Riyadh, Jeddah, Makkah Mukarramah, Madinah
Munawarrah, Dammam, Buriadah, Abha, Taif, Hafuf, Tabuk, Najran, Jazan, Hail,
Jouf, Arar, and Baha. The Department of Price Index collected the prices of these
commodities and observed the changes in these prices so as to prepare the Price Index
of the cost of living; more six cities were added in 2007.
Collection and observation of prices is subject to Scientific Measurements for
choosing both the goods and the stores and supermarkets. Five Foodstuff Goods and
Three Consumer Goods are chosen every month. Half of the goods will be priced, and
the other half will be priced in odd month with observation of changing of prices
considering the differences between the specification of goods and the differences
- 44 -
between the cities. Then the calculation of average prices of wholesale and retail took
place so as to reach the nearest accurate figure to state the Price Index of the cost of
living.
3-3-2 the Cost of Living Index:
The Prices Statistic Division used to circulate a bulletin containing the Prices Indices
of the cost of living for all the population of the chosen cities using the Laspeyresme
Equation and population weight and the cost of living depending on the family
expenditure survey conducted by General Department of Statistics. Then the collected
information will be processed through certain statistical methods to come out with the
Price Index for each month showing the wholesale and retail prices for the chosen
goods. These goods are categorized in Main Eight Groups:
1) Foodstuff.
2) Maintenance, Rent, Fuel and Water.
3) Clothes, Readymade Garments and Shoes.
4) Furniture.
5) Medical Care.
6) Transportation and Communication.
7) Education and Entertainment.
8) Other Goods and Services.
Below is the Price Index of wholesale and retail of the goods for total population of the
chosen cities in the Kingdom. The comparison was done in years instead of months
because of the long series of months.
3-3-3 Indices of Wholesale Prices of main commodities during the years 2007/2008:
The commodities are grouped in Ten Main Groups. The indices of wholesale prices for
all commodities in 2008 was 132.7, they increased by 5.7% compared to 2007.
The biggest increase in indices of wholesale prices for the group of Raw Material
except Fuel was 184.6 and 193.6 in the years 2007/2008 respectively which means that
they increased by about 5%.
The group of other goods showed an increase in Price Index from 127 to 145.7, which
means that it increased by 14.7%.
It has been observed that all cost of living indices for wholesale prices were increased
between 0.6% for Beverages and Tobacco and 14.7% for other commodities as highest
percentage with exception of Fuel Group which showed decrease in wholesale price
indices by 4% and this was due to the decrease of Fuel Prices and introduction of new
product of Benzene 91 which sold at low price. These two factors affected the price
indices of this group as shown in Table (3-14).
- 45 -
Table (3 – 14)
Relative changes in Indices of Wholesale Prices of Main Groups of Commodities during
2008 compared to 2007
General Index
General Index
Percentage of
Main Groups
2007
2008
Change
General Index
125.5
132.7
5.7
Foodstuffs and Livestock
132.6
147.1
10.9
Beverages and Tobacco
128.9
129.7
0.6
Raw Materials except Fuel
184.6
193.6
4.9
Fuel and Related Products
192.6
184.8
(- 4)
Oil and Vegetable and Animal Fats
114.7
118.3
3.1
Chemical Materials and Related Products
143
156.4
9.4
Fabricated Categorized Goods
120
126.2
5.2
Machinery and Transport Equipments
114.4
119.3
4.3
Other Fabricated Goods
100.9
106.5
5.6
Other Commodities
127
145.7
14.7
Source: Central Department of Statistics and Information, The Price Statistics Division.
3-3-4 Annual Average of Cost of Living Index for all Cities Population:
The Statistical Data showed that the General Index for Main Expenditure Groups
rapidly increased from 2003/2004 to 2007/2008. It was increased by 4.1% from 98.6 to
106. All main groups of commodities showed increase in Price Index ranging from
0.2% for the group of Education and Entertainment to 8.1% for the group of
Maintenance, Rent and Fuel. Two groups showed regular decrease during the last four
years i.e. Textiles, Readymade Garments and Footwear. The Index was decreased by
(-2.4) i.e. from 91.8 in 2003/2004 to 85.6 in 2007/2008. The Second Group is
Transportation and Communication, the Index was decreased by (0.9%) from 94.8 to
88.1 for the same period. This decrease was due to the competition between the
operating companies in the communication field, and the low price of Fuel.
The groups that showed highest increase in Index was Foodstuffs, the Cost of Living
Index was increased from 100.6 in 2003/2004 to 120.1 in 2007/2008, it was increased
by 7%. This increase was due to the high increase in prices of strategic Foodstuffs in
the internal market like Rice, Wheat, Sugar and some local products due to the
increase of Raw Material prices like Cooking Oil as shown in Table (3-15).
Table (3 – 15)
Annual Average of Cost of Living Index for all Cities Population from 2003 to 2008.
Main Groups
General Index
Foodstuffs
Maintenance, Rent and Fuel
Textiles, Readymade Clothes and
Footwear
Home Furniture
Medical Care
Education and Entertainment
Transportation and Communication
Other Goods
2003/04
2004/05
2005/06
2006/07
2007/08
98.6
100.6
100
91.8
98.8
103.4
100.3
89.6
100
107
100
88
101.8
112.2
101
87.7
106
120.1
109.2
85.6
% of
Change
4.1
7
8.1
(-2.4)
96.2
101
98.7
94.8
103.2
94.5
101.4
98.1
94.2
103.9
95
101
98
92
106
95.2
102.7
98.7
88.9
114.6
96.4
107
98.9
88.1
120.7
1.3
4.2
0.2
(-0.9)
5.3
Source: The Price Statistics Division, Central Department of Statistics and Information.
- 46 -
Other Goods
Transportation and Communication
Education and Entertainment
2003/04
Medical Care
2004/05
Home Furniture
2005/06
Textiles, Readymade Clothes and Footwear
2006/07
Maintenance, Rent and Fuel
2007/08
Foodstuffs
General Index
600
500
400
300
200
100
0
3-3-5 Cost of Living Index and Main Expenditure Groups for all Cities in the Kingdom:
The Price Statistics Division of C.S.D.I. chose some main commodities within the
main groups so as to reflect the clear picture of the real cost of living. They chose 50
commodities distributed among the main groups as follows:
1) Foodstuffs – 17 Commodities.
2) Textiles, Clothes and Footwear – 6 Commodities.
3) Maintenance, Rent and Fuel – 4 Commodities.
4) Home Furniture – 7 Commodities.
5) Medical Care – 3 Commodities.
6) Transportation and Communication – 4 Commodities.
7) Education and Entertainment – 4 Commodities.
8) Other Goods – 3 Commodities.
The Price Indices of some commodities were varied within the same group, no one of
them showed a drop in Price Index.
1. All the main commodities in Foodstuff Group, the Price Index range between
0.3% for Nuts and Peanut Seeds as minimum and 29.8% for Legumes and Tubers
as maximum.
2. All the main commodities in other goods the Index Range between 0.3% of
Hygiene items as minimum and 16.7% for personal goods as maximum.
The commodities and services that showed drop in the Price Index within the whole
group were the commodities and services of Transportation and Communication, the
drop percentages range of the Price Index were between 0.9% for Transportation and
1.4% for Communication.
Textiles, Clothes and Footwear Group showed a drop in the Price Index for all
commodities, the percentages range were between 0.9% for Men Textiles and 66.1%
for Women Readymade Garments. The only item among this group that showed
- 47 -
increase in Price Index was Tailoring of Women Dress, the Index increased by 4.9% at
the end of 2008.
All the commodities of Maintenance, Rent and Fuel showed increase in the Price
Index, the percentages range were between 0.4% for Energy and Fuel, and 10.1% for
Rent, except on Commodity that showed decrease in Price Index by 2.6% for Rent and
Maintenance.
Most of the commodities of Home Furniture showed decrease in Price Index, the
percentages range from 0.1% for Home Appliances and 1.3% for Furniture and Carpet,
three commodities in this group showed increase in Price Index, the high percentage
was 8% for Home Services and 0.3% for Household Small Items and 0.4% for Basic
Home Appliances.
All the Price Indices for the commodities of Medical Care Services showed decrease
except Medical Care expenses that showed increase by 9.8%.
All the commodities and services of the Education and Entertainment showed decrease
in Price Indices except Education expenses that showed increase by 1.4%.
The conclusion of this discussion showed that all necessary commodities and services
such as Foodstuff and Medical Care showed increase in Prices Indices. While the
commodities that showed decrease were Luxurious items such as Games and
Entertainment items, and this is a natural result when the prices went up people will
cut down the expenses and give priority to the necessities. Beside that some
commodities and services showed decrease in Price Indices because of the competition
between services providers or commodity suppliers such as Transportation and
Communication. Table (3-16) showed that:
- 48 -
Table (3 – 16)
General Index of Cost of Living and Price Indices for Main Groups of Commodities in the Main Cities
in the Kingdom from 2004 to 2008.
General Index and Group of Commodities
2003/04
2004/05
2005/06
2006/07
2007/08
General Index
1. Foodstuff Group
Seed and Cereals
Meat and Poultry
Fish and Shellfish
Milk and Diary Products
Eggs
Oil and Fats
Fresh and Dried Vegetables.
Preserved and Canned Vegetables
Fresh Fruits
Preserved and Canned Fruits
Nuts and Peanuts
Legumes and Tubers
Sugar and Preparations
Beverages
Other Foodstuffs
Out of Home Meals
Tobacco
2. Fabrics, Clothing and Footwear
Men's Fabric
Women's Fabric
Men's Readymade
Women's Readymade
Tailoring
Footwear
3. Maintenance, Rent and Fuel
Home Maintenance and Repairs
Rents
Water Supply Expenditure
Fuel and Energy
4. Home Furniture
Furniture and Carpet
Home Furnishing
Small Home Appliances
Kitchen and Tableware
Household Small Items
Home Services
Basic Home Appliances
5. Medical Care
Medical Care Expenses
Other Medical Care Expenses
Medicines
6. Transportation and Telecommunication
Transport Means
Operation of Private Transport Means
Public Transport Fees
Telecommunication and Related
7. Education and Entertainment
Entertainment Expenses
Education Expenses
Entertainment Devices
8. Other Items and Services
Personal Hygiene Care Items
Personal Goods
Other Expenses and Services
98.6
100.6
97.6
98.9
112.2
90
106.6
95.6
102.9
106.8
109.3
102.9
96.4
120.5
103.8
99.3
103.6
99.5
101.8
91.8
89.9
91.6
94.3
87.6
99.4
92.3
100
101.5
99.8
100.2
101.1
96.2
92.5
93.6
94.3
95.9
98.7
104.6
95.4
101
100.6
101.9
100.9
94.8
89.8
98.2
1117.7
87.9
98.7
94.2
102
80.5
103.2
97.1
106.1
104
98.8
103.4
98.2
103.2
120.2
92.1
104.1
97.4
109.1
108.9
115.3
103.9
96.3
126
105
98.1
104.3
99.7
102.2
89.6
88.6
92
91.1
85.6
101.3
89.6
100.3
103.1
100
101.2
100.8
94.5
89.2
92.8
93.1
94.7
97.9
105.6
93.9
104.4
100.8
102
101.8
94.2
88.5
98.5
111
86
98.1
93.2
102.1
73.9
103.9
96.2
113.6
102.9
100
107
99
106
127
94
107
99
121
108
123
104
101
125
108
98
106
100
101
88
88
92
89
84
103
87.0
100
105
100
101
101
95
90
93
93
93
94
107
96
101
101
103
101
92
87
100
114
74
98
93
103
71
106
97
121
104
101.8
112.2
99.4
112.6
142.2
95.5
114.2
99.7
143.3
107.6
133.9
103.2
101.2
148.8
112.2
98.2
108.7
101.2
101.5
87.7
87.8
93.3
88.3
82.3
113.5
86.2
101
105.5
100.7
104.6
100.9
95.2
89.5
92.5
93.5
92.9
94.1
109.6
96.3
102.7
103.8
102.4
101.3
88.9
86.4
92.2
124.9
73.6
98.7
93.3
103.5
68.8
114.6
98.5
146.3
108.8
106
120.1
106
119.5
159.3
100.8
125.8
105.3
160.3
111.1
149.9
104.1
104.3
193.2
112.5
99.7
111.7
104.4
104
85.6
87
92.2
87.5
76.9
119.1
84.9
109.2
102.6
110.9
105.5
101.3
96.4
88.3
91.9
93.2
92.8
9404
118.4
96.7
107
114
101.7
101.2
88.1
85.6
91
126.6
72.6
98.9
89.5
105
62.7
120.7
98.8
170.7
110.2
% of
Change
4.1
7
6.6
6.1
12
5.5
10.2
5.6
12.1
3.3
11.9
0.9
3.1
29.8
0.3
1.5
2.8
3.2
2.5
-2.4
-0.9
-1.2
-0.9
-6.6
-4.9
-1.5
8.1
-2.6
10.1
0.9
0.4
1.3
-1.3
-0.9
-0.3
-0.1
-0.3
8
0.4
4.2
9.8
-0.7
-0.1
-0.9
-0.9
-1.3
1.4
-1.4
0.2
-4.1
1.4
-8.6
5.3
0.3
16.7
--
- 49 -
3-4 Cost of Living Index in Jeddah City from 2003 to 2008 compared to Main Cities in
the Kingdom:
The general Cost of Living Index in Jeddah City showed increase by 3.3% but it was
less than the increase in the main cities by (0.8%). Foodstuff and Beverages group
showed an increase in the Index range between Zero for Beverages and 67.2 for
Legumes and Tubers which as the Highest Price Index in all commodities. It was
higher than the Index in the main cities by 37.4%. The Price Index of the commodities
in the main cities was 29.8%.
It has been observed that Three Commodities had shown decrease in Price Index
which are Fresh Fruits (-1.6), Sugar and Preparation (-1%) and other Foodstuff
(-2.2%). The decrease of Indices is due to the low cost of Transportation, because the
Fresh Fruits and Foodstuff are discharged in Jeddah Port and Airport or Manufactured
in Jeddah factories like Sugar and Related Products.
All the commodities of Fabric, Clothing and Footwear Group showed decrease in
Price Indices in Jeddah similar to that of the main cities, the decrease range between
(-0.5) for Women Readymade Clothes and (-5%) for Men Readymade Clothes, but at
the same time Tailoring showed a High increase 21.5% which was more than that of
the Main Cities by 16.6%.
The Price Index of commodities of the Maintenance, Rent, Fuel and Water in Jeddah
City showed an increase by 3.9%, but it was less than that of the main cities by 4.2%.
The Price Index of the commodities of Home Furniture in Jeddah City was 2.9%,
which is bigger than that of the main cities by 1.3%. But it has been observed that
some commodities within this Group showed decrease in the Index, small home Items
4.4%, Kitchen and Tableware is ( -0.3%)
The Price Index of the Medical Care Services showed big increase 11.3% which was
bigger than that of the main cities by 7.1%. This increase is because of the increased
demand of Medical Services due to Hajj and Umrah, beside the Seasonal Religious
Tourism. It has been observed the expenditure of other Medical Service showed a
decrease of (-2.9%) which was less than that of the main cities by 2.2%.
The Price Index of Transportation and Telecommunication Services showed an
increase by 1.1%, while it showed decrease in the main cities by (-0.9%). It was
observed that the Transportation Fees in Jeddah showed a big increase 14.3%
compared to the main cities 1.4%, this big difference might be explained by the
increased demand for the Public Transport Means and Rent-a-Car due to the increasing
numbers of Pilgrimage and religious visitors (Umrah) during the last two years.
The Price Index of Education and Entertainment Service in Jeddah showed an increase
by 1.3% compared to the main cities 0.2%. It was noticed that the Expenditure of
- 50 -
Entertainment Services was decreased by (-9.9%) showing a difference of 9%
compared to the main cities. This difference was due to the wide range and big number
of Entertainment places in Jeddah compared to some other cities in addition to the
Seasonal Festival and activities during which low priced services were provided to
attract families and children.
The Price Index of other Commodities and Services in Jeddah City showed a decrease
by (-4.1%) while it showed an increase in the main cities 5.3%. Some Commodities
within this group showed a decrease range from (-0.7) for Hygiene Materials and
(-10.2%) for other service, this decrease was because of big supply of these goods in
Jeddah, and low cost of Transportation because of the Seaport and the Factories that
produced these commodities and created perfect competition in the market. Table
(3-17) showed above explained facts:
- 51 -
Table (3 – 17)
General Index of Cost of Living and Price Indices for Main Groups of Commodities in Jeddah compared
to the Main Cities in the Kingdom from 2004 to 2008.
General Index and Group of Commodities
2003/04
2004/05
2005/06
2006/07
2007/08
General Index
1. Foodstuff Group
Seeds and Cereals
Meat and Poultry
Fish and Shellfish
Milk and Diary Products
Eggs
Oil and Fats
Fresh and Dried Vegetables.
Preserved and Canned Vegetables
Fresh Fruits
Preserved and Canned Fruits
Nuts and Peanuts
Legumes and Tubers
Sugar and Preparations
Beverages
Other Foodstuffs
Out of Home Meals
Tobacco
2. Fabrics, Clothing and Footwear
Men's Fabric
Women's Fabric
Men's Readymade
Women's Readymade
Tailoring
Footwear
3. Maintenance, Rent and Fuel
Home Maintenance and Repairs
Rents
Water Supply Expenditure
Fuel and Energy
4. Home Furniture
Furniture and Carpet
Home Furnishing
Small Home Appliances
Kitchen and Tableware
Household Small Items
Home Services
Basic Home Appliances
5. Medical Care
Medical Care Expenses
Other Medical Care Expenses
Medicines
6. Transportation and Telecommunication
Transport Means
Operation of Private Transport Means
Public Transport Fees
Telecommunication and Related
7. Education and Entertainment
Entertainment Expenses
Education Expenses
Entertainment Devices
8. Other Items and Services
Personal Hygiene Care Items
Personal Goods
Other Expenses and Services
99.0
100.5
97.2
104.7
92.7
90.7
96.9
90.9
38.8
116.3
123.1
99.6
104.6
129.6
113.3
96.2
112.7
97.6
98.2
86.2
96.3
90.2
92.1
81.3
103.1
79.5
99.9
98.6
99.9
97.6
100.9
98.5
94.3
91
98
98.8
98.4
14.1
95
101.1
98.5
105.2
101.4
90.3
81.1
99.1
138.9
89.2
102.4
109.3
103.6
82.1
100.3
97.8
101.1
101.5
99.9
104.1
97.1
109.7
94.6
93.9
97.1
95.9
100.2
121.3
137.7
101.1
102.2
151.5
113.8
94.8
115.9
97.8
98.2
90.5
97.3
91.2
88.1
84.8
134.9
92.2
99.9
97
99.9
96.8
100.9
97.4
90
89.6
99.4
100.4
99.5
103.4
93.5
101
98.5
105.1
101.2
98
74.3
94
139.7
87.9
102.1
106.8
103.9
79.1
101.3
98.2
104
102.2
100.1
107.3
97.7
112
95.9
95.7
96.6
95.1
116.2
115.3
150.7
103
108.7
155.3
119.8
95.4
120.1
98
98.2
93
103.6
91.9
88.8
85.3
153.5
97.9
97
94
96.4
97.9
100.9
96.1
89.6
89.1
101.4
98.8
90.8
102.6
98
100.5
98.5
105.1
99.2
92
77.6
95.2
134.4
77.4
103.4
110
105
76.8
104.9
101.1
106.6
106.5
101.7
111.1
98.4
117.6
101.9
96.6
101.9
94.9
133.9
114.1
185.6
103
101.6
173.6
124.3
95.5
123.1
98.2
98.2
93.1
108.8
94.3
88.3
78.1
211.5
97.8
97.4
98
96.9
97.2
100.9
96.9
90
87.9
103.2
98.9
92.3
103.9
98.1
102.7
102.8
105.5
99.1
98.2
90.3
95.8
138.2
77.1
102.6
110.3
104.2
77.3
113
102.1
124.2
115.2
105.3
119.7
105
128.1
103.1
102.5
111.8
99.2
149
117.9
184.1
103.9
114.4
240.8
123.3
95.5
121.9
102.6
101.8
91.1
103.8
93.8
85.4
73.7
223.5
96
101.3
112
101.2
91.7
100.6
99.8
91.5
88.9
98.8
98.6
93.3
111.1
98.9
114
128.1
102.6
99.4
90.3
94.7
83.5
152.5
76.8
101.3
100.4
104.4
72.4
108.9
101.4
130.2
105
% of
Change
3.3
8.6
616
10.5
1.2
5.9
9.9
4.3
15.1
3.8
-1.6
0.9
9.8
67.2
-1
0
-2.2
4.4
3.6
-2
-5
-0.5
-2.9
4.4
21.5
1.8
3.9
14
4.3
-2.5
-0.3
2.9
1.5
1
-4.4
-0.3
1
7.2
0.8
11.3
25.3
-2.9
-0.3
1.1
4.4
-2.3
14.3
-0.3
1.3
-9.9
0.2
-4.9
-4.1
-0.7
6
-10.2
- 52 -
Chapter Four
Infrastructure and Basic Equipments
Transport, Communications and
Public Utilities
4-1
4-2
4-3
4-4
4-5
4-6
- 53 -
Transport and Communications
Jeddah Islamic Port
King Abdul-Aziz International Airport in Jeddah
Communications
Postal Corporation
Public Utilities (Electricity, Water, Gas)
4 Infrastructure and Basic Equipments:
The Government of the Kingdom Focused on the development of its economy in all
areas, and as the economy and growth depends mainly on the structure of a strong and
coherent infrastructure the Kingdom has given infrastructure and basic preparations
full attention, and the most important components of infrastructure are Transport,
Communications Sector, and Public Utilities in the sectors of Electricity, Water,
Sewerage Sanitation, Fuel Stations, Fuel and Gas.
4-1 Transport and Communications:
The means of transport and communications acquire a major importance in the
economic and social development as they help the development requirements to be
transferred from abroad to home and their distribution in the homeland, and the speed
of delivery to beneficiaries, it is also helping to communicate between decision makers
and community groups, and between the Kingdom and other countries. Therefore it
gave importance to the development of means of transport and communication as
corner stone to build a true development, because of the long spacing distances
between the cities of the Kingdom and its settlement centers. The government spent
thousands of billions of Riyals for the provision of equipment, and machinery for this
sector; it was entrusted with the task of development to be split into two ministries and
three independent bodies and institutions which are:
1) The Ministry of Transport, which looks after the roads and road transport.
2) The Ministry of Communications and Information Technology, which owns and
looks after the infrastructure of the means of communications, looking after the
installations and operators of telecommunications services and regulates these
activity.
3) Saudi Railways Organization which owns the infrastructure of rail transport in
addition to the operation of trains on railway lines.
4) Port Authority which owns the infrastructure in seaports in the Kingdom and looks
after the operation.
5) The General Authority of Civil Aviation which owns the infrastructure of the
Civilian Airports in the Kingdom and looks after their operation.
4-1-1 Paved, Agricultural and Earth Roads:
One of the most important infrastructure projects for transport are highways which
played an important role in the transport of goods and passengers, because of the
vastness of the Kingdom and the divergence of the geographic and cultural centers
and cities, basic scarce or no other means of transport.
The total length of roads in the last ten years from 1998/1999 to 2007/2008 about
142,465 km out of which 38,022 km paved roads, and 104,443 Kilometers of earth and
farm roads, in 1998/1999, 178,946.3 Kilometers, about 52,123 Kilometers paved, and
126,823 Kms. of earth and farm roads in the last year (2008, which represented an
- 54 -
increase of about 32% of the total length of roads during the period, Table (4-1) below
shows that.
Table (4 – 1)
Development of Paved and Agricultural Roads in the Kingdom from Year 1998/1999 to 2007/2008.
Year
Agricultural and Earth Roads
Paved Roads
Total
1998/1999
1999/2000
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
104,443
104,444
104,445
104,446
104,447
104,448
104,449
104,450
124,157
38,022
38,023
38,024
38,025
38,026
38,027
38,028
38,029
74,520
142,465
142,467
142,469
142,471
142,473
142,475
142,477
142,479
198,677
2007/2008
126,823
52,123
178,946
Source: Ministry of Transport 2008.
Agricultural and Earth Roads
Paved Roads
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
The city of Jeddah linked to the cities of the Kingdom across the network of highways,
linked to Makkah Mukarramah by a highway 78 KM long, and Madinah
Munawwarrah by a highway 410 Km long, and a coastal road north to Turiaf, length
of which 1650 Km, and extended south to Jazan with a length of 725 Km, and a
highway linking the capital Riyadh length of 958 Km and continues to link the cities
of Hufuf and Dammam at the coast of the Arabian Gulf and the distance between two
cities and Jeddah is 1287 Km, 1370 Km respectively.
Riyadh also linked with the city of Jeddah through the Madinah Munawwarrah and
Qassim highway with a length of 1279 Kms.
- 55 -
4-1-2 Lengths of Roads in the Province of Jeddah:
Jeddah Province has a great interest as the gate of the Two Holy Mosques it is the
most populated province with heavy commercial and physical movement, so it needs
better facilities and services that help to maintain and progress of the renaissance. The
Municipality of the city of Jeddah supported of the authorities of the province to give
all the facilities that keep Jeddah in high position. Jeddah, has been a renaissance in
the field of road construction, and available information on the last two years
2005/2006, with lengths of existing paved roads, and the lightened ones and trees are
in 2005 are about 1,805 Kilometers representing 11.4% of the total roads in the
Kingdom, and 64% of the total roads in the region of Makkah Mukarramah, and the
length of paved roads only 4,273 Kilometers representing 11% of the total roads in the
Kingdom and 59.2% of the total roads in the region of Makkah Mukarramah, and the
number of lampposts are 38,348 column 5% of the total number of columns in the
Kingdom, and 26.3% of the total number of columns in Makkah Mukarramah region.
The total length of roads under construction lightened ones is 2 Kilometers, or 0.1% of
total roads in the Kingdom and 2% of the total roads in the region of Makkah
Mukarramah, and the total length of paved only 32 Kilometers, or 0.4% of total roads
in the Kingdom, and represents 8% of the total roads in the region of Makkah
Mukarramah, the total number of 3,359 in Jeddah represents 6% of the total of the
Kingdom, and 62% of the total columns in the region of Makkah Mukarramah.
The proposed roads has been lightened being paved and trees are 4,971 Kilometers
represent 41% of the total roads in the Kingdom, and 94.4% of the total roads in the
region of Makkah Mukarramah, and the total length of being paved roads only 10,861
Kilometers represent 46% of the total roads in the KINGDOM and 95% of the total
roads in the region of Makkah Mukarramah, the total number of columns 102,254
represent 42.2% of the total number of columns in the Kingdom, and 94% of the total
columns in the region of Makkah Mukarramah. Comparing the data of the roads in
2006 the total constructed asphalted roads and the lightened and trees 1,770
Kilometers represent 10.2% of the total roads in the Kingdom, and 60.3% of the total
roads in Makkah Mukarramah region.
The total length of 4,257 Kilometer only being asphalted roads represent 9.4% of total
roads in the Kingdom, and 56.2% of the total roads in Makkah Mukarramah region,
and the number of columns 38,227 represent 4.7% of the total columns in the
Kingdom, and 26.1% of the total columns in the Makkah Mukarramah region.
The total length of roads under construction is 7 Kilometers represent 0.1% of total
roads in the Kingdom, and 8% of the total roads in Makkah Mukarramah region, and
the total length of asphalted roads is only 7 Kilometers long, representing 0.1% of total
roads in the Kingdom, and 2% of the total roads in the Makkah Mukarramah region,
and the total number of 2,480 columns represent 4% of the total columns in the
Kingdom, and 34.3% of the total columns in Makkah Mukarramah region.
- 56 -
The proposed lightened, asphalted roads and trees under construction are of total
length of 5,001 Kilometers represent 42% of the total roads in the Kingdom, and 95%
of the total in Makkah Mukarramah region, and the total length of asphalted roads only
is 10,901 Kilometers represent 41% of the total roads in the Kingdom, and 82.3% of
the total in Makkah Mukarramah region, and the number of columns 103,254 column
represent 33.2% of the total columns in the Kingdom and 96.2% of the total in
Makkah Mukarramah region.
It is clear from this explanation that the existing roads in the province of Jeddah during
the past two years are not less than 10% of the total roads in the Kingdom, and nearly
two-thirds of the roads in Makkah Mukarramah region (more than 60%), although the
roads are under construction are at least about 1% of total roads in the Kingdom and
more than 4% of the total roads in Makkah Mukarramah region, and the percentage of
the number of columns is at about 5% of the total of the Kingdom and about a quarter
of the columns in Makkah Mukarramah region (26%). This is an indication that the
structure of roads and lighting within the province of Jeddah, are about to be
completed, but the proposed and under construction roads and trees and the lightened
has been at the average percentage of more than 40% of the total of the Kingdom, and
more than 95% of the total roads in Makkah Mukarramah region, although the
proportion of asphalted roads only is about 42% of the total roads in the Kingdom, and
more than 95% of the total of the proposed roads in Makkah Mukarramah region, and
the proportion of the columns is of more than one third of the proposed columns in the
Kingdom (33%) and 95% of the total columns in Makkah Mukarramah region. This
indicates that the future development plans in the area of roads, lighting and the
physical expansion of Jeddah province is a priority and drawing the attention of the
government of the Kingdom as a whole as well as Makkah Mukarramah region in
particular, Table (4-2) below shows that.
- 57 -
Table (4 – 2)
Roads and Lighting Pillars in Jeddah Province and their Percentages to the Kingdom and Makkah Mukarramah Region during the
year 2005 – 2006 (in Kilometers)
- 58 -
4-2 Jeddah Islamic Port:
Geographical Location: Jeddah Islamic Port is characterized by its unique geographical
position; it is located in the middle of the east coast of the Red Sea between Latitudes
21 and 28 degrees north and Longitude 10 and 39 east.
Also located in the middle of the distance between the ports of Suez and Aden in the
north and the Strait of Bab Al Mandab in the southern Red Sea, and it is the most
busiest shipping lines that link the five continents of the world, and serves, the Holy
cities of Makkah Mukarramah and Madinah Munawwarrah, and it is the main port in
the Kingdom handling 59% of the volume of transported goods through eight ports of
the Kingdom. Jeddah Islamic Port has become one of the largest ports in the Middle
East because of the ongoing development work carried out during the seven five-year
plans from 1970 to 2005.
4-2-1 Characteristics of Jeddah:
1) Jeddah Islamic Port is the prime ports of the Red Sea coast that provides modern
facilities for the international maritime activity, in the model because of its
handling of cargo trans-shipment and transit lines and its association with shipping
passing through the Red Sea.
2) The port is working around the clock, seven days a year.
3) The port used the latest equipment and machinery, and equipped with the latest
navigation equipment to be operated and well maintained in order to provide the
best services.
4) Effective management systems for the movement of goods and operating to
provide courses for a quick stay of ships at the anchorage and at the port perths.
5) The assignment of services to private sector companies specialized in the
provision of maritime services.
4-2-2 Marine Services:
Jeddah Port is well equipped to enable it to provide quick services, where it has a fleet
of naval vessels such as tugboats and drag-and-rescue, fire fighting boats, boats for
combating pollution and waste compile, install, a ship floats pilot age, a number of
boats docking and guidance, and mobile and floating cranes that lift up to the load of
200 tons.
The movement of vessels is controlled from the watch tower of marine with latest
communications equipment, radar, and advanced electronic control systems to serve
and control the navigation of ships.
4-2-3 Goods Services:
The Port Authority was Established in 1976 (1386 H) with a view to develop the ports
and since inception the development of Jeddah Islamic Port as the main port of the
Kingdom is going on such as the expansion of the piers, where the number increased
- 59 -
from 10 piers to 58 piers equipped with the latest equipment and other facilities up to
the highest international standards.
Jeddah Islamic Port area is of 11.4 Square Kilometers, with a total length of 11.2 Km
and deep water up to a depth of 16 meters to accommodate the latest generation of
container vessels and cargo up to 6500 TEUs.
The port provides services for handling all kinds of goods through eight specialized
goods stations distributed as follows:
Table (4 – 3)
Distribution of Cargo Handling Stations in Jeddah Islamic Port
Depth of Ship Draft (m)
The Number of Piers
Stations as per the Type of Handled Goods
12 - 16,
14.1 - 15
7.7 - 14.2
10.4 - 13.5
10.8 - 12
7.8 - 11
11.6 - 13
8
4
1
7
12
11
4
Container Terminal in the South
Container Terminal in the North
ro-ro and Passenger Station
Bulk Grain Terminal
General Cargo Southern Station
Northern General Cargo Terminal
Refrigerated and Frozen Goods
13 - 13.7
2
Livestock Station
Source: Database of the Saudi Ports Authority 1429 H.
4-2-4 Storage Services:
The port is provided with covered and open areas suitable for storage area of which is
about 4 Square Kilometers of the total area of the port, and divided as follows:
1) An open storage area is about 3.5 Square Kilometers.
2) Covered storage areas is about 5.4 square kilometers, consisting of 59 warehouses
and transit sheds and dangerous goods stores, freezers, refrigeration warehouses in
addition to general cargo and container docks roll-on/roll-off cargo docks (RORO)
and cattle sheds, and silos for the storage of grain and edible oil tanks.
4-2-5 Cargo Handling Equipment:
Jeddah Islamic Port is one of the largest ports in the Middle East and pioneer in using
modern equipment with high-technology, there are modern specialized equipment for
handling cargo such as container cranes, Bridges, container carriers, Bridge cranes,
mobile cranes for the handling of all the different types of goods, and various types of
cranes such as tower cranes, forklifts and trailer with high and low loads, also the port
equipped with various port equipment for the unloading of bulk grain, and has a
number of cooling of refrigerated containers to provide electricity for all of these
works and equipment of the integrated handling equipment for loading and
discharging of all types of cargo, and there is sufficient backup equipment to ensure
- 60 -
the quick handling of the goods without delay to shorten the waiting time of ships, and
speed up of delivery of the goods to their owners.
4-2-6 Shipyard:
King Fahd shipyard is the major ship repair unit in the Jeddah Islamic Port, which is
equipped with the latest equipment for the maintenance and repair of ships and small
boat-building, which contains of two floaters to receive ships up to the weight of
45,000 tons, and contains two piers length of which is 170 meters to receive ships up
to the weight of 60,000 tons.
4-2-7 Re-Exports Zone:
There was rapid growth in re-export goods trade in recent years, special area has been
prepared in the port to provide storage facilities for re-exported goods, operations
started on 29/8/2000 to serve the importers of goods who re-exported them and the
zone now a day's provides services of car storage containers.
During the 2007 contract was signed for the establishment and operation of a new
container terminal with the "Export Co." The project includes the constructions and
operation of sea and wharf facilities and equipment support, and is expected to be
financed by the local and foreign investments of about 1600 million, and this project
will increase capacity to handle containers at the port between 1.5 - 2 million TEUs
and is expected to start operations during 2009.
4-2-8 Commercial Assignment:
In the course of activating the role of the private sector in the management and
operation of public facilities and enforcement of the Royal Decree No. 7/b/16941,
dated 6/11/1417 H, that stated to give all port services to the private sector under
lease, in the light of the policy of the Saudi Ports Authority a number of 27 contracts
were signed until the end of 2007 with a total investment of more than two billion
Saudi riyals, out of which ten contracts for the operation of Jeddah Islamic Port. The
private sector companies are taking care of management functions, operation and
maintenance of marine facilities, cargo station and the re-export zone, duration of
these contracts extended between 10 to 20 years.
4-2-9 Passenger Terminal and the Pilgrims:
The port is equipped with terminal with tow quays for passengers and pilgrims to
receive ships, and all the necessary facilities for completing the procedure of entry and
exit, big halls were built to accommodate the passengers at the gate before boarding on
the steamboats.
Jeddah Port acquires special importance as the largest port in the Kingdom,
performing an important role for international navigation, and it is the gate to receive
the pilgrims and Umrah performers and visitors of the Islam's Two Holy Mosques. As
- 61 -
a result of the leap in oil prices in the middle of the last century the Kingdom planned
and executed great renaissance of development led to an increase in exports and
imports to supply the development needs. Therefore the Saudi Port faced bottlenecks
in the reception of vessels particularly in the port of Jeddah, prior to the establishment
of the Ports Authority as it was normally ships wait for two and half to three months
and the waiting time in some cases in Jeddah Port goes up to five to six months and the
proof of that is explained as it is in the position of ports in the month of Ramadan 1396
H (1977) as shown in the following table:
Table (4 – 4)
The expected number of ships in the ports of the Kingdom in the month of Ramadan 1396 H (1977)
Port
Number of the Ships
Total Cargo Tonnage
Jeddah
Dammam
Yanbu
Jazan
Total
200
125
19
16
360
900,660
747,478
178,790
29,407
1,856,335
Number of the Ships
Yanbu Jazan
%5 %4
Dammam
%35
Jeddah
%56
It is clear from the above table that the total expected ships to be discharged in the
territorial waters of the Kingdom had reached 360 ships loaded 1.9 million tons of
cargo, including 200 ships waiting at port of Jeddah, which is equivalent to 56% of the
total ships loaded, and the total is equivalent to 49% of the total weight of expected
ships. So the government interested in the development of port of Jeddah in order to be
able to accommodate the growing traffic, and to increase the number of platforms, and
bring in modern equipment, training and qualifying workers, and the assignment of the
management and operating facilities to the global and local experienced companies
with the ability to operate the port at high efficiency.
- 62 -
4-2-10 Number of Piers in Saudi Ports:
The total number of piers in all ports of Saudi Arabia 183 piers, and this means that the
ports can accommodate 183 ships at one time, including 58 piers in the port of Jeddah
Islamic Port or approximately one third (32%) of piers of the total piers in the ports of
the Kingdom, Table No. (4 -5) below illustrate this.
Table (4 – 5)
The Distribution of Piers in the Ports of Saudi Arabia
Port
Piers Number
Percentage
Jeddah Islamic Port
King Abdul Aziz Port in Dammam
Yanbu Commercial Port
Jubail Commercial Port
Jazan Port
Port of Duba
King Fahd Industrial Port in Yanbu
58
39
9
16
12
3
23
31.6
21.3
5.9
8.7
6.5
1.5
12.5
King Fahd Industrial Port in Jubail
Total
23
183
12.5
100.5
Piers Number
King Fahd
Industrial Port in
Yanbu
%12
King Fahd
Industrial Port in
Jubail
%13
Jeddah Islamic
Port
%32
Port of
Duba
%2
King Abdul Aziz
Port in Dammam
%21
Jazan Port
%6
Jubail
Commercial Port
%9
Yanbu
Commercial Port
%5
4-2-11 Distribution of Piers of Jeddah Islamic Port:
Statistical data showed the increase of navigation movement in the Jeddah Islamic
Port, the movement has grown up to more than 70% of the traffic passing from the
Red Sea, and received more than 70% of cargo to and from Saudi Arabia. The port
received the attention, and the horizontal expansion has been made to construct 58
piers, equivalent to one third of piers in all ports of the Kingdom, as the port receives
various types of goods and passengers at the same time the port is the main one to
receive the Livestock in the Kingdom. Therefore piers were distributed to meet the
requirements of cargo, 39 piers were allocated for general cargo and seven for
containers, seven for the grain bulk and seven rolling and two each of them is for
- 63 -
refrigerated cargo and bulk cargo, livestock and passengers, Table (4-6) shows the
distribution of piers according to usage.
Table (4 – 6)
Distribution and Types of Piers at Jeddah Islamic Port according to usage
Pier Type
Number
General Cargo
Container
Grain Bulk
Roll-On/Roll-Off
Refrigerated Cargo
Bulk
Livestock
Passengers
Total
29
7
7
7
2
2
2
2
58
Source: Database of the Ports Authority.
Container; 7
General
Cargo; 29
Grain Bulk; 7
RollOn/RollOff; 7
Passengers; 2
Bulk; 2 Refrigerated
Cargo; 2
Livestock;
2
4-2-12 Machinery and Equipment in Jeddah Islamic Port:
The Port Authority made great efforts to develop Jeddah Islamic Port to accommodate
the increased traffic and provided a lot of tools, equipment and machinery, taking into
account the horizontal and vertical expansion in terms of numbers and techniques and
in view of the entry of new generations of giant container ships and general cargo
vessels with large cargo, the Port Authority renovated the equipment of Jeddah Islamic
Port by introducing new equipment to keep pace with the rapid development of the
movement of cargo handling at port. The port was equipped during the last five years
with about 18 Cranes of different loads, 202 Forklifts with different loads ranging
from 4 tons - 41 tons, 84 Trailer Head, and 20 Equipment prepared to discharge the
grain and Bulk materials. Table (4-7) below shows that:
- 64 -
Table (4 – 7)
Renewal of Equipment and Machinery in Jeddah Islamic Port during the years 2001/2002 To 2006/2007
- 65 -
4-2-13 Ensure Navigation Safety and Industrial Security:
Because of the importance of ports in the national economy, as means of imports,
exports and storage area of goods and property worth thousands of millions of riyals,
as well as machinery and equipment owned by the Port Authority and Support
Companies in addition to manpower working in the management and operation of the
port, the preservation of this property and life is one of the priorities of the Port
Authority and thus the priorities of Jeddah Islamic Port administration. There is a
department of navigation safety and security in order to help the management to carry
out these duties to ensure that traffic was in order during the period from 2001-2007 as
follows:
1) Deepening the water of two container Stations to the Northern and Southern
Stations.
In 2003 the installation of two electronic operation stations of differential GPS
accuracy of 5 meters, covering an area of more than 250 nautical miles (stems
from the north to Bab Almandab to the south, several improvements and
modernization of the system have been made, and developed to become the Saudi
location identification system).
In 2005 was the operation of the Saudi System GPS started and it was integrated
system that combines GPS systems using ground-wave long-range systems,
satellite positioning and its differential, and broadcast transmissions from the
system on the low frequency 100 KHz, and provided corrected data for identifying
sites with high accuracy on Land, Sea, and beside navigation some other sectors
benefited from this system such as Police, Civil Defense, Space and the Oil
Companies etc.
2) Comprehensive survey of the Red Sea has been completed, 83 Maps are now
serving navigation and all ships come to the Kingdom.
In the area of Industrial Security during this period, the modernization of
machinery and equipment, mechanisms and processes were assigned to specialize
local and international companies to provide the services and safety systems, fire
fighting. Jeddah Islamic Port was provided during this period by the following:
a) 6 fire trucks, big and small sizes.
b) 4 ambulances.
c) Installation of devices to monitor and record calls.
d) Installation of radar at Jeddah Islamic port and other ports to monitor traffic at
sea, and the movement of transport and cargo handling.
e) Construction of a security boundary wall around the building of administration
controlled with cameras and electronic entry and exit gates at the tower.
f) Lighten boundary walls at storage areas.
g) Preparation of thousands of copies of pamphlets about Jeddah Islamic Port,
which were distributed to specialists and the clients of the port.
h) Provision of equipment for issuance of magnetic cards for the staff of the port
and employees of contracting companies working with the port.
i) Provision of cars to safety patrols.
- 66 -
All these facilities and equipments were provided to the port in order to ensure safe
movement of ships, handling of goods, materials and equipment till to be delivered to
their owners, or even shipped on board the ships until leaving the territorial waters of
the Kingdom.
4-2-14 Number of Vessels Received By the Ports of the Kingdom and Jeddah Islamic
Port during the Years 2001 - 2007:
It is clear as already explained the Port Authority made great efforts to qualify and prepare
the Saudi ports to receive local and international ships with different loads at different
ports. The most important of these ports is Jeddah Islamic Port which is receiving more
than 40% of the traffic in the Kingdom, because of the big facilities and the speed in
loading and discharging of the ships and because of provision of equipment and
machinery and tools and capable management that able to operate the ports efficiently.
Saudi ports received at least an average of 10,500 vessels annually and Jeddah Islamic
Port received at least 43% of them. Table (4-8) below shows that.
It has been observed that there is a decrease in the number of vessels in some years
due to declining of use of some shipping companies of giant cargo ships of 60,000
tons, as well as giant container ships carrying more than 65,000 containers.
Table (4 – 8)
The number of vessels received by the ports of the Kingdom and Jeddah Islamic Port during the years
2001/2002 – 2006/2007.
Years
All The Ports
Jeddah Port
The Percentage of Jeddah to Total
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
10,653
10,989
10,805
10,613
11,412
4,240
4,438
4,654
4,874
4,770
40
40
43
46
42
2006/2007
11,255
4,850
43
Source: Port Authority Annual Reports from 2001/2002 - 2006/2007.
All The Ports
11,255
11,412
10,613
Jeddah Port
10,805
10,989
10,653
12,000
10,000
8,000
4,850
4,770
4,874
4,654
4,438
4,240
6,000
4,000
2,000
0
2007 /2006
2006 /2005
2004/2005
2004 /2003
2003 /2002
2002 /2001
4-2-15 Average length of stay of ships in the Saudi Ports:
The length of stay of vessels in the ports for loading and unloading is an important
factor that affects the movement of navigation, because the cost of the transporting
- 67 -
goods is increased or decreased on the basis of the expected duration of arrival of the
vessel to the port of destination and length of stay in the port. Duration of ships stay in
the Kingdom ports continued to decline due to the efforts of the Saudi Ports Authority
through provision of necessary equipment, machinery and tools that help ports to
receive the ships and raise operational efficiency in decreasing the length of stay of
vessels from months to weeks to days, then in recent years to hours more than a day.
Average length of stay of ships in port during the study period is about 35.2 hours per
ship which is very short period compared to the international port, where the average
is of the best stay period in the port is of Singapore Port which is about 39 hours per
ship. Table (4-9) below shows that.
Table (4 – 9)
The average length of stay of ships in Saudi Ports during the period from 2002/2003 – 2006/2007.
Years
Hour / Ship
2002/2003
27.85
2003/2004
38.83
2004/2005
31.78
2005/2006
39.46
2006/2007
38.92
Source: Port Authority Annual Reports from 2002/2003 - 2006/2007.
Hour / Ship
38.92
39.46
38.83
31.78
27.85
40
30
20
10
0
2007 /2006 2006 /2005 2005 /2004 2004 /2003 2003 /2002
4-2-16 Handled Exported and Imported Goods in all Ports in the Kingdom during the
years 2001 – 2008.
Ports of the Kingdom used to receive the development needs of imports, which are
mostly in foodstuffs, construction materials and consumer goods and the export of
national products which are of different products. The average Saudi exports represent
about 70% of handled cargo while the average imports is about 30% of handled goods
in all ports of the Kingdom. The average total cargo for the period under discussion is
about 120 million tons, out of which more than 80 million tons of exports and about 40
million tons of imports. Table (4-10) below shows the details of handled goods.
- 68 -
Table (4 – 10)
Handling of Exported and Imported Goods in all Ports of the Kingdom during the years 2001 to 2008
(quantity in millions of tons)
Exports
Imports
Total
Years
Tons
%
Tons
%
Tons
%
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
68.9
67.6
71.3
76.5
80.6
81.5
68.5
65
63.2
63.8
61
61
31.7
36.6
41.6
43.4
51.6
52.3
31.5
35
36.8
36.2
39
39
100.6
104.2
112.9
119.9
132.2
133.8
100
100
100
100
100
100
2007/2008
83.3
59.2
57.5
40.8
140.8
100
Source: Port Authority Annual Reports from 2001 - 2008.
83.3
57.5
81.5
52.3
80.6
51.6
76.5
43.4
100
71.3
41.6
67.6
36.6
68.9
80
60
31.7
40
20
0
/2007
2008
/2006
2007
/2005
2006
/2004
2005
Exports Tons
/2003
2004
/2002
2003
/2001
2002
Imports Tons
4-2-17 Handled Goods at Jeddah Islamic Port during the period from 2001 – 2008.
Jeddah Islamic Port received about one third of the total handled goods in al Saudi
Ports during the last three years (30%), this steady increase is due to the facilities for
reception of goods and services provided by the distinguished naval port of Jeddah.
The period has seen an increase in cargo handling, where more than double represents
(114%) during the period from 2001 and 2008. This increase in quantity and quality is
considered as evidence of the importance of Jeddah Islamic Port.
It is also noticed that Jeddah Port is the main to receive the imports, accounting for
more than three quarters (75%) of cargo handled during the first three years of the
period under discussion, and more than two thirds (67%) during the last four years. In
spite of that the steady increase in the quantities of handled cargo during the last three
years was noticed and this considered as indication of the demand of exporters of
Jeddah Port services because of the good services provided to them. Table (4-11)
below shows that.
- 69 -
Table (4 – 11)
Handling of Exported and Imported Goods in Jeddah Islamic Port during the years 2001 to 2008
(quantity in millions of tons)
Exports
Years
Imports
Total
GDP Ratio
78
77
74
68
67
67
19.7
22.6
28.1
33.5
39.5
40.3
19.5%
21.7%
25%
28%
30%
30%
66
42.2
30%
Amount
%
Amount
%
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
4.4
5.3
7.4
10.8
12.8
13.5
22
23
26
32
32
33
15.7
17.3
20.7
22.7
26.7
26.8
2007/2008
14.4
34
27.8
27.8
26.8
26.7
22.7
14.4
/2007
2008
13.5
/2006
2007
12.8
/2005
2006
20.7
10.8
/2004
2005
Exports Amount
17.3
7.4
/2003
2004
15.7
5.3
4.4
/2002
2003
/2001
2002
30
25
20
15
10
5
0
Imports Amount
4-2-18 Numerical and Percentage Distribution of Handled Containers at all Saudi Ports
and Jeddah Islamic Port from 2001 – 2007.
The last ten years Witnessed significant changes in the means of maritime transport,
with increased reliance on carrying container ships due to the availability of protection
of the goods from damage and theft, and the quick handling of loading and unloading
beside easy completion of customs clearance and detection procedures of inspection of
goods. This change came after the introduction of a new generation of Mega Container
Carriers that carry more than 60,000 containers of cargo. This change has positive
effect on Jeddah Islamic Port and other ports of the Kingdom. The number of
container handled in Saudi Port was doubled, where increased from 1.7 million TEU
to 3.86 million TEUs, i.e. 127% increase during the years from 2001 to 2007. Jeddah
Islamic Port received more than 75% of the containers and the number of handled
containers was doubled from 2001 to 2007 from 1.19 million TEU to 2.97 million
TEU, where the percentage increased by 150%. The reasons for this big increase in
number of containers at Jeddah Islamic Port illustrated the importance of Jeddah port
due to the large number of container piers and wharves, which numbered to 7 piers.
Table (4-12) shows that.
- 70 -
Table (4 – 12)
Numerical and Percentage Distribution of Handled Containers at all Saudi Ports and Jeddah Islamic Port
for the year 2001/2002 to 2006/2007 (number in millions)
Years
The number of Containers in
all Saudi Ports
The number of Containers in
Jeddah Islamic Port
Percentage of Jeddah to the
Kingdom
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
1.7
1.95
2.44
3.19
3.73
1.19
1.36
1.77
2.4
2.83
71
70
75
75
76
2006/2007
3.86
2.97
77
Source: Port Authority Annual Reports from 2001/2002 To 2006/2007.
3.86
2.97
3.73
2.83
4
3.19
2.44
2.4
1.77
3
1.95
1.36
1.7
1.19
2
1
0
2007 /2006
2006 /2005
2005 /2004
The number of Containers in all Saudi Ports
2004 /2003
2003 /2002
2002 /2001
The number of Containers in Jeddah Islamic Port
4-2-19 Number of Trans-shipment Container in Jeddah Islamic Port:
When the Port Authority was established in 1397 H (1976) there were no facilities and
piers for the container vessels in the ports of the Kingdom, and the container handling
equipment was same as those of ordinary ships which form an obstacle to the reception
of this type of ships. The Port Authority in same year grant license to a British
company to operate container terminal at Jeddah Port. The work in this field was
expanded and many container freight stations in Jeddah and Dammam were build in
1982.
Since the handling of goods from the vessels to another known as (Trans-shipment) is
profitable naval operations. This activity started in Jeddah Islamic Port in 1988 when
shipping lines were allowed to discharge transit containers from one ship in the
container terminal in Jeddah. It is then re-loaded on another ship to be shipped to final
destination. The work in this area was developed rapidly, the total trans-shipment
containers in 2001 approximately 235 thousand containers in the next year jumped to
354 thousand containers i.e. increased by about 51% and in 2003 the Port Authority
issued a decision to reduce the wages of the handling of container trans-shipment by
50% to attract more container ships to container terminal in Jeddah Islamic Port and
King Abdul Aziz Port in Dammam. This reduction had good effect on the number of
containers trans-shipment called on Jeddah Islamic Port that raised steadily, the total
number of containers reached approximately 1.5 million containers in 2007 which
- 71 -
means that the number doubled more than six times, i.e. increase of (638%). Table
(4-13) below shows that.
Due to these radical changes Jeddah Islamic Port was change to attractive port over the
past decades when it changed from port that received shipments of general cargo to a
port that received shipments in containers, especially after the deepening of the
entrances of port to a depth of 16 meters and 1,500 meters long. Therefore the port
became the only one in the Middle East, which receives ships with a draft of 14.5
meters that need 15.8 meters depth at the entrances of the port for safe navigation. The
development of container terminals was accompanied by Re-export Zone (Free Trade
Zone) to be used as Duty Free Zone and redistribution facilities for re-export of goods
that works with higher efficiency around the clock.
Table (4 – 13)
The Number of Trans-shipment Containers in Jeddah Islamic Port
Years
All The Ports
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
234,882
354,122
658,518
1,100,000
1,488,967
2006/2007
1,498,993
1,498,993
1,488,967
1,600,000
1,400,000
1,100,000
1,200,000
1,000,000
658,518
800,000
354,122
600,000
234,882
400,000
200,000
0
2007 /2006
2006 /2005
2005 /2004
2004 /2003
2003 /2002
2002 /2001
4-2-20 Numbers of Handled Livestock at Jeddah Islamic Port:
Jeddah Islamic Port is the largest port in the world of handling of livestock, due to
import of large number of Sheep and Goats to meet the needs of sacrifice (Al Adahi)
and immolation (Hadi) during the pilgrimage season each year, as well as the normal
needs of the population of Sheep and Goats. Jeddah Islamic Port received at least an
average of 2.5 million head of Cattle each year. Statistical Data showed that the total
number of livestock in 2001/2002 was about 2.6 million head, and the number
increased each year until it reached 4.3 million head in 2007 i.e. increased by about
98% during the past six years.
- 72 -
It should be noted that the percentage of Sheep and Goats more ways than 99% of the
total livestock followed by Cattle and Camels (1%). Table (4-14) below shows that.
Years
2001/ 2002
2002/ 2003
2003/ 2004
2004/ 2005
2005/ 2006
Table (4 – 14)
Number of Handled Livestock at Jeddah Islamic Port from 2001 - 2007
Camel/Cow
Sheep/Goat
Total Number
Tonnage
Buffalo
2,543,380
19,466
2,562,846
118,330
2,642,005
23,275
2,665,280
115,869
2,470,116
11,653
2,481,769
101,412
2,829,678
48,598
2,878,276
125,702
3,472,456
40,595
3,513,051
149,378
2006/ 2007
4,213,340
83,189
4,296,983
171,147
Source: Port Authority Annual Reports from 2001 - 2007, Database of said organization.
4,213,340
3,472,456
2,829,678
83,189
2007 /2006
40,595
2006 /2005
48,598
2005 /2004
Sheep/Goat
2,470,116
11,653
2004 /2003
2,642,005
23,275
2003 /2002
2,543,380
19,466
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
2002 /2001
Camel/Cow Buffalo
4-2-21 Numerical and Percentage Distribution of Passengers in all Ports and Jeddah
Islamic Port during the period from 2001 – 2007.
Jeddah Islamic Port is the main gate of the Two Holy Mosques; this role has been
played by the Port since its inception at the beginning of the second half of the First
Hijri Century 26 H), and up today. Despite the attention given by the Kingdom to
Pilgrims, Umrah performers and visitors, and the opening of new other ports to receive
passengers at Yanbu and Dhuba. Jeddah Port remains at the forefront of receiving
passengers. It receives an annual percentage ranging between 50% to 65% of the total
passengers in the ports of the Kingdom. The biggest number of passengers was nearly
2 million passengers in 2002/2003; the share of Jeddah Port was about 1.2 million
passengers (63%) of the total as shown in Table (4-15). It is clear that Jeddah Islamic
Port continued to maintain its role in the reception of the passengers of Pilgrims,
Umrah performers and visitors up to this day which proved the right saying it is the
main gate of the Two Holy Mosques despite the competition from other ports of the
Kingdom.
- 73 -
Table (4 – 15)
Numerical and Percentage Distribution of Passengers in all Ports and Jeddah Islamic Port
(number in millions)
The number of Passengers The number of Passengers
Years
% to the Kingdom
in all Ports
in Jeddah
2001/2002
1.8
1.1
61
2002/2003
1.9
1.2
63
2003/2004
1.86
1.08
58
2004/2005
2.05
1.1
54
2005/2006
2.18
1.11
51
2006/2007
1.32
0.65
2.18
1.32
1.11
2.05
1.1
49
2.5
1.9
1.86
1.2
1.08
1.8
1.1
2
1.5
1
0.65
0.5
0
2007 /2006
2006 /2005
2005 /2004
The number of Passengers in all Ports
2004 /2003
2003 /2002
2002 /2001
The number of Passengers in Jeddah
4-2-22 Numerical and Percentage Distribution of Repair and Maintenance of Ships in
King Fahd Complex for repair and Maintenance of Vessels during the period from
2001-2007.
Port Authority interested since inception to provide integrated services to help and
facilitate international navigation. The Port Authority introduced many projects to
provide essential services to ships in the ports of the Kingdom, one of them was
Support Services that provide maintenance and repair of ships, and set up for this
purpose, two complexes in Jeddah Islamic Port and the King Abdul Aziz Port in
Dammam and equipped with latest machinery and equipment to provide services at
competitive prices. The management and operation of these complexes was assigned
to specialized companies in this field.
The aim of these complexes is to provide large amounts of money in contribution to
the national economy of Saudi Arabia from the activity of local ship repair in the
country and also benefit from the repair of foreign vessels to add additional income to
the Port Authority as well as the national economy.
The two complexes did the periodic maintenance for 4,078 ships since their operation,
out of which 839 ships during the last six years and 438 ships were in Jeddah i.e. King
Fahd Complex or about (52%) of the total, Table No. (4-16) showed the details of
Saudi and Foreign Ships that were repaired in the two companies.
- 74 -
The Port Authority made plans for developing an industry beside the repair and
maintenance to include manufacturing and construction of marine engines and spare
parts instead of importing them from abroad, and already started in 2004, King Fahd
Complex in Dammam constructed two locomotives marines pertained to Saudi
Aramco and continued to work in the construction of locomotives naval service. Since
then the work continued in order to achieve a number of benefits including:
1)
2)
3)
4)
Introduction of new services in the ports of Saudi Arabia.
Manufacturing of spare parts and services at competitive prices.
Reduction of elements of cost of transport and freight charges.
Attract new customers to the ports of Saudi Arabia.
The two complexes are performing the periodic maintenance observing the latest
international standards to ensure the continuity of the work.
Table (4 – 16)
Numerical and Percentage Distribution of the repaired and maintained ships in King Fahd Complexes for
repair and maintenance of Saudi and Foreign Ships in Jeddah and Dammam during the period
2001/2002 – 2006/2007.
Jeddah
Years
Dammam
Total
Percentage of
Jeddah
95
88
95
14
30
181
149
198
95
83
47.5%
41%
52%
85%
47%
79
133
41%
401
839
52%
Saudi
Foreign
Total
Saudi
Foreign
Total
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
60
39
40
26
22
13
86
61
103
81
53
36
50
20
59
38
10
2006/2007
44
10
54
55
24
Grand Total
438
Source: General Organization of Ports, the Annual Reports from 2001 - 2007.
60
59
55
60
50
44
40
24
10
50
36
40
26
22
20
10
39
38
30
20
13
0 0 0 0
0 0 0 0
2005 /2004
2004 /2003
10
0
2007 /2006
2006 /2005
Jeddah Saudi
Jeddah Foreign
2003 /2002
Dammam Saudi
2002 /2001
Dammam Foreign
4-3 King Abdul Aziz International Airport in Jeddah:
4-3-1 Introduction:
The General Authority of Civil Aviation looks after the Civil Airports in Saudi Arabia.
It experienced several stages since its formation in 1364 H (1944) at the time of King
- 75 -
Abdul Aziz - "May Allah bless his soul". In 1378 H (1959) the Saudi Arabian Airlines
was separated from Civil Aviation and in 1386 H (1966), its name was changed to the
Civil Aviation Authority, and in 1397 (1977), its name once again was changed to the
Presidency of Civil Aviation, and has been converted to a Public Organization with
legal entity, financial and administrative autonomy on (8/3/2004) to run airports on
commercial basis and therefore rely on its own income sources, since then it is called
General Authority for Civil Aviation.
The functions of the Board of Civil Aviation were divided into three main sections
which are:
1) Operational Functions:
a) Establishment, Management, Operation and Maintenance of Civil Airports.
b) Supervision of personnel in airports and support with technical equipment.
c) Application of air navigation systems in accordance with international
standards.
2) Regulatory Functions:
a) Implementation and enforcement of international and domestic rules and
regulations of civil aviation sector and air transport industry in the Kingdom.
b) Issuance of required licenses and permits for civil aviation aircraft, crews and
maintenance stations, institutions and companies working in this area.
c) Holding of bilateral air agreements between the Kingdom and other countries.
d) Development of policies and controls to ensure standard security of airports
and air transport safety and operation and maintenance.
e) Lay the foundations for the development of revenue from airports in the
Kingdom.
f) Preserve the investments and promotion of investment opportunities in the
sector.
3) Service Functions:
a) Establishment of Management, Operation, Maintenance of air navigation
systems and development of organization of air traffic and granting of permits
for transit and landing.
b) The Authority is looking after the twenty-seven airports in the Kingdom
including four international airports which are: King Abdul Aziz Airport in
Jeddah, King Khaled Airport in Riyadh, King Fahd Airport in Dammam,
Prince Mohammed Bin Abdul Aziz Airport in Madinah and seven regional
airports in Qassim, Hail, Taif, Abha, King Abdullah Bin Abdul Aziz Airport
in Jazan and Tabuk airports, and sixteen domestic airports in major cities in
the Kingdom.
4-3-2 King Abdul Aziz Airport in Jeddah and Equipment:
Jeddah Airport is the first airport in the Kingdom; it was established in the reign of
King Abdul Aziz. At the beginning the airport was in the east of Jeddah, and the city
expanded at the beginning of the fourteenth Hijri century. The airport was transferred
to its current premises in the state's plans for the development of international airports.
- 76 -
The airport was opened officially in April 1981, it is located in the north of Jeddah
about 19 Kilometers. It was built in the flat plain between the Red Sea and the
mountains of Hijaz.
The area of the airport is 105 square Kilometers; it includes the main airport building,
support facilities, accommodation of staff, facilities and the Royal Saudi Air Force's
Western Region, and areas for future expansions.
The airport consists of:
1) Five Terminals which are:
a)
b)
c)
d)
e)
South Terminal for Saudi Arabian Airlines.
North Terminal for Foreign Airlines.
Royal Terminal.
Terminal for Private Aircrafts.
Terminal for Pilgrims, which consists of 12 lounge with covered roof of huge
210 tents area of which is 0,425 square kilometers.
2) Runways:
The airport equipped with three runways, the length of the Middle one is 3,300
Meters long and 60 Meters width, the Western one is 3,800 Meters long and 60
Meters width, and the Eastern one is 3,690 Meters long and 45 Meters width.
The present infrastructure at the airport is prepared to serve the estimated capacity
of more than 8.5 million passengers annually, and the movement of air cargo
estimated to 206,000 tons, and air traffic of more than 88,433 flights a year. Since
air traffic has been increased by more than 16 million passengers in 2008 and
exceeded 520,000 tons of cargo. Therefore the expansion of the airport project is
running at present time and the following was completed until the end of the
August 2008.
a) The North Terminal was operated in December 2007.
b) Completion of the Southern Terminal and it was operated in June 2008.
Thus increasing the capacity of passenger traffic by more than 15 million passengers a
year.
4-3-4 Commercial flight operations at all airports in the Kingdom
2000/2001 - 2007/2008:
from the year
Kingdom is witnessing a steady increase in Commercial Domestic and International
Air Traffic, where Commercial Air Traffic increased in all Kingdom Airports from
264,068 operations in 2000/2001 to 390,892 operations in 2007/2008 i.e. it increased
by 126,824 operations or (48%), and the proportion of operations in Domestic Airports
is more than a quarter of the operations in all years where the ratio varies between
25.2% in 2005/2006 and 27.6% in 2007/2008. Therefore the proportion of operations
in International Airports are around three quarters of operations (75%) and this
indicates that the three International Airports are popular with International Airlines
and more than 45 airlines are using these airports as shown in Table (4-17) below:
- 77 -
Table (4 – 17)
Commercial Aviation Operations at all Kingdom Airports for the period from 2000/2001 – 2007/2008.
Domestic
International
Years
%
%
Total
%
Airports
Airports
2000/2001
68,834
26
195,234
74
264,068
100
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
68,605
68,810
68,470
70,613
72,620
87,232
26.2
26.3
26
25.9
25.2
26.6
193,251
193,095
193,894
202,217
215,687
240,166
73.8
73.7
74
74.1
74.8
73.4
361,856
261,905
262,364
272,830
288,307
327,398
100
100
100
100
100
100
2007/2008
107,763
27.6
283,129
72.4
390,892
100
Source: General Authority of Civil Aviation, the Statistical Book from 2001 - 2008.
Domestic Airports
International Airports
283,129
300,000
240,166
107,763
215,687
202,217193,894193,095193,251195,234
250,000
200,000
150,000
87,232
72,620 70,613 68,470 68,810 68,605 68,834
100,000
50,000
0
4-3-5 Total Flight Operations in King Abdul Aziz International Airport in Jeddah,
2000/2001 – 2007/2008:
King Abdul-Aziz International Airport in Jeddah witnessed steady increase in
Commercial Aviation, where as the total number of operations rose from 88,531
operations in 2000/2001 to 122,266 operations in 2007/2008, i.e. increased by 33,735
operations (38.1%), at the same time the Domestic operations increased from 37,352
operations in 2000/2001 to 52,094 operations in 2007/2008, i.e. by 14,744 operations
(39.5%) while International operations rose from 35,350 operations in 2000/2001 to
49,188 operations in 2007/2008 i.e. increased by 13,838 operations (39.1%) as well as
the increase of Hajj operation which rose from 5,978 operations in 2000/2001 to 6,447
operations in 2007/2008 i.e. increased by 469 (7.8%) while General Aviation
operations increased from 9,851 operations in 2000/2001 to 14,282 operations in
2007/2008 i.e. increased by 4,431 operations (45%). This explanation indicated that all
commercial aviation witnessed an increase during this period, and also noted that there
is a convergence in the proportions of Domestic and International Operations which
ranged between 42% and 40% respectively in all the years, Table No. (4-18) below
shows that:
- 78 -
Table (4 – 18)
Commercial Aviation Operations in King Abdul Aziz International Airport from 2000/2001 – 2007/2008.
Years
Domestic
Operations
International
Operations
General
Aviation
Hajj
Total
2000/2001
37,352
35,350
9,851
5,978
88,531
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
37,122
37,384
37,136
37,814
39,510
43,161
33,110
33,548
35,248
39,222
41,434
45,246
10,149
9,840
9,796
10,667
11,816
13,438
6,057
5,681
6,253
5,982
6,226
5,895
86,438
86,453
88,433
93,685
98,986
107,740
2007/2008
52,094
49,188
14,282
6,447
122,266
60,000
50,000
40,000
30,000
20,000
10,000
0
2008 /2007 2007 /2006 2006 /2005 2005 /2004 2004 /2003 2003 /2002 2002 /2001 2001 /2000
Domestic Operations
International Operations
General Aviation
Hajj
4-3-6 Comparison between total Commercial Aviation Operations at all airports in the
Kingdom with those of King Abdul Aziz International Airport in Jeddah, 2000/2001–
2007/2008:
Table Number (4-19) below shows that the average ratio of total operations of
Commercial Aviation in King Abdul Aziz International Airport in Jeddah is about one
third of all operations at all airports in the Kingdom in all years. Whereas the
percentage varies between 31.3% in 2007/2008 and 34% in 2005/2006, such a big
percentage which corresponds to one third of the total operations showed the important
role played by Jeddah airport in receiving the Domestic and International Aviation.
This qualifies the airport to become a major airport in the region.
- 79 -
Table (4 – 19)
Comparison between overall Commercial Aviation Operations at all Airports in the Kingdom with those
of King Abdul Aziz Airport in Jeddah during 2000/2001–2007/2008.
Years
King Abdul Aziz International
Airport Aviation Flight Operations
Flight Operations in All
Airports in the Kingdom
Percentage to the
Kingdom
2000/2001
88,531
264,068
33.5
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
86,438
86,453
88,433
93,685
98,986
107,740
261,856
261,905
262,364
272,830
288,307
327,398
33
33
33.7
34.3
34.3
33
2007/2008
122,266
390,890
31.3
400000
350000
300000
250000
200000
150000
100000
50000
0
2008 /2007 2007 /2006 2006 /2005 2005 /2004 2004 /2003 2003 /2002 2002 /2001 2001 /2000
King Abdul Aziz International Airport Aviation Flight Operations
Flight Operations in All Airports in the Kingdom
4-3-7 Hajj and Umrah Total Flights Operations for the years from 2000/2001 –
2007/2008:
The City of Jeddah represents the main gate of the Two Holy Mosques. King Abdul
Aziz Airport in Jeddah received all international flights for pilgrims and Umrah
performers, and these operations represented big proportion of air traffic in the airport,
where Hajj and Umrah flight operations were doubled from 9,084 in 2000/2001 to
22,168 in 2007/2008 i.e. increased by 13,084 (144%), Hajj operations rose from 5,978
in 2000/2001 to 6,447 operations in 2007/2008 i.e. increased by (7.8%) while Umrah
performers operations rose from 3,106 operations in 2000/2001 to 15,721 operations in
2007/2008 i.e. increased by 12,615; or doubled more than four times (406%).
It is noted that the average percentage of the total operations of Hajj and Umrah
ranging from 10.3% in 2000/2001 and 20.6% in 2002/2003 with an average of 15% of
the total operations at King Abdul Aziz Airport and an average of 6% of the total
operations of all airports in the Kingdom. These percentages showed the importance of
- 80 -
King Abdul Aziz Airport in Jeddah in general and for air traffic for pilgrims and
Umrah performers in particular. Table (4-20) below shows what has been explained:
Table (4 – 20)
The total flight operations for Hajj and Umrah, and their percentages of total airport operations and the
operations of all airports in the Kingdom from 2000 - 2008.
Years
Hajj Flight
Operations
Umrah Flight
Operations
Total
Overall
Operations at
the Airport
%
Total Operations
in all Airports
%
2000/2001
5,978
3,106
9,084
88,531
10.3
264,068
3.4
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
6,057
5,681
6,253
5,982
6,226
5,895
7,173
8,910
11,938
12,412
13,494
14,986
1,323
14,591
18,191
18,394
1,972
20,881
86,438
86,453
88,433
93,685
98,986
107,740
15.3
16.8
20.6
19.6
20
19.3
261,856
261,905
262,364
272,830
288,307
327,398
5.1
5.6
7
6.7
6.8
6.4
2007/2008
6,447
15,721
22,168
122,266
18.1
390,892
5.7
Hajj Flight Operations
Umrah Flight Operations
Overall Operations at the Airport
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
4-3-8 Overall Passenger Traffic at King Abdul Aziz International Airport, Jeddah
(Arrival and Departure) from 2001 – 2008:
The total number of passengers at King Abdul Aziz Airport in Jeddah, in 2000/2001
approximately 12,264 thousand passengers, the total rose to 16,309 passengers in
2007/2008 i.e. increased by 4,045 about (33%) and this was reflected in the growth of
all segments of travelers. The number of passengers of Domestic Flights increased
from 4,717 passengers in 2000/2001 to 6,192 passengers in 2007/2008 i.e. increased
by 1,475 passengers (31.3%) and the number of passengers on International Flights
increased from 5,748 thousand passengers in 2000/2001 to 8,164 thousand passengers
in 2007/2008 i.e. increased by 2,416 thousand passengers (42%) and also the number
of Pilgrims rose from 1,734 pilgrims in 2000/2001 i.e. increased by 91 thousand
pilgrims (5.2%) which was the lowest percentage of increase. The number of General
Aviation passengers rose from 65 thousand passengers in 2000/2001 to 128 thousand
passengers in 2007/2008 i.e. increased by 63 thousand passengers, or almost doubled,
(97%).
- 81 -
It is also noted that the percentage of Domestic passengers varied from 36-38% of the
total and the percentage of international passengers varied between 45-48% of the
total. Table (4-21) below shows that:
Table (4 – 21)
Total passenger traffic at King Abdul Aziz International Airport (Arrival and Departure) for the years
from 2000/2001 – 2007/2008.
Years
Scheduled and Unscheduled Flights
Domestic Passengers
International Passengers
General
Aviation
Pilgrims
Total
2000/2001
4,717
5,748
65
1,734
12,264
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
4,823
5,050
5,102
5,504
5,903
5,835
5,414
5,799
6,146
6,753
7,336
7,430
72
76
77
83
88
1,718
1,781
1,713
1,818
1,762
1,857
109
12,090
12,638
13,143
14,102
15,184
15,092
2007/2008
6,192
8,164
128
1,825
16,309
4-3-9 Comparison between Passenger Traffic in all Kingdom Airports with those of
King Abdul Aziz International Airport from 2000/2001 – 2007/2008:
As shown in Table (4-22) below the total movement of arrivals and departures at King
Abdul Aziz International Airport represented more than 40% of all passenger traffic at
Kingdom Airports in all the years. It is very high percentage that indicated the
importance of the airport and therefore the importance of Jeddah as an important
Economic, Commercial Center in the Kingdom and as a gate to the world as already
shown in the previous tables. These comparisons and the percentages of Commercial
Aviation in all airports of the Kingdom and King Abdul Aziz Airport confirmed what
was said above and Table (4-22) below shows that:
Table (4 – 22)
Comparison between total passenger traffic in all Kingdom Airports with those of King Abdul Aziz
International Airport in Jeddah from 2000/2001 – 2007/2008.
Years
Total Passengers of the Kingdom
Airports
Total Passengers of King Abdul
Aziz International Airport
Percentage to the
Kingdom
2000/2001
29,523
12,264
41.5
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
29,821
31,070
31,845
34,261
36,610
37,643
12,090
12,638
13,143
14,102
15,184
15,092
40.5
40.7
41.3
41.2
41.5
40.1
2007/2008
40,547
16,309
40.2
- 82 -
Total Passengers of the Kingdom Airports
40,547
37,643 36,610
34,261
Total Passengers of King Abdul Aziz International Airport
31,845 31,070 29,821
29,523
16,309 15,092 15,184 14,102
13,143 12,638 12,090 12,264
/2007
2008
/2006
2007
/2005
2006
/2004
2005
/2003
2004
/2002
2003
/2001
2002
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
/2000
2001
4-3-10 The total number of Pilgrims and Umrah performers through King Abdul Aziz
Airport in Jeddah and their percentage to the total passengers through airports of the
Kingdom from 2000/2001–2007/2008:
The total number of Pilgrims and Umrah performers in 2000/2001 was nearly 2,425
Thousands. (Hajj) Pilgrims represented 19.7% of the total passengers of the airport in
Jeddah, about fifth of passengers and about 10.4% of total passengers in all airports.
The number of pilgrims and Umrah performers were rapidly increased almost threequarters in the year 2007/2008. The number reached 4,207 Thousand pilgrims and
Umrah performers i.e. increased by 1,782 Thousand pilgrims and Umrah performers
(73.5%).
As shown in Table (4-23) below, the percentage of pilgrims and Umrah performers at
Jeddah Airport were nearly a quarter of all passengers at International Airports in the
Kingdom where the percentage varied between 19.7% and 26.3% in most years, it
was more than 12% of the total number of all passengers in all Kingdom airports.
Once again it confirmed the importance of King Abdul Aziz Airport as gateway for the
reception of Pilgrims and Umrah performers and gateway for the Two Holy Mosques
where pilgrims and Umrah performers were about a quarter of the all airport's passenger
all over the years.
Table (4 – 23)
The total number of pilgrims and Umrah performers through King Abdul Aziz Airport in Jeddah and
their percentage to the total passenger through all airports of the Kingdom during 2000/2001–2007/2008.
Umrah
Total Airport
Total Passengers through
Years
Pilgrims
Total
%
%
Performers
Passengers
International Airports
2000/2001
1,734
691
2,425
12,264
19.7
23,382
10.4
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
1,734
1,713
1,818
1,762
1,857
1,718
1,162
1,167
1,490
1,932
2,060
2,256
2,943
2,880
3,308
3,694
3,917
3,974
12,090
12,638
13,143
14,102
15,184
15,092
24.3
22.8
25
26.2
25
26.3
23,531
24,439
25,097
27,015
28,982
29,679
12.5
11.8
13.2
13.7
13.5
13.4
2007/2008
1,825
2,382
4,207
16,309
25.8
32,184
13.1
- 83 -
Pilgrims
Umrah Performers
Total Airport Passengers
20,000
15,000
10,000
5,000
0
4-3-11 Turnover of Air Cargo and Mail in King Abdul Aziz Airport in Jeddah during
the years 2000/2001– 2007/2008:
The total movement of Air Cargo and Mail was approximately 211,731 tons in
2000/2001, out of which 50,728 tons (24%) were of Domestic movement of cargo and
158,275 tons (75%) of the International cargo movement and 2,629 tons of the
movement was of General Aviation (1%).
The movement of Air Cargo and Mail was fluctuated between increases and decreases,
it reached the maximum and minimum sizes in 2004/2005 and 2005/2006 i.e. 224,000
tons and 224,913 tons respectively. The lowest level was in 2000/2001 which was
about 194,744 tons.
It was noted that the Domestic movement of cargo represented approximately one
quarter of the total air cargo with an average of 25%, the movement of International
Cargo represented about three-quarters of the total traffic (74%), while Air Cargo of
General Aviation was only (1%). These statistics showed the importance of King
Abdul Aziz Airport in Jeddah, particularly in the area International Air Cargo as
Table (4 – 24)
The total movement of Air Cargo and Mail in King Abdul Aziz Airport in Jeddah for the years
2000/2001– 2007/2008 (In Tons).
Years
Domestic
Cargo
%
International
Cargo
%
General
Aviation
%
Total
%
2000/ 2001
50,728
24
158,275
75
2,629
1
211,731
2001/ 2002
2002/ 2003
2003/ 2004
2004/ 2005
2005/ 2006
2006/ 2007
49,229
53,224
54,476
55,221
54,483
49,622
25.3
24.5
26.5
24.5
24.3
24.9
143,473
161,363
149,004
167,197
166,861
148,441
73.7
74.4
72.4
74.3
74.5
74.4
2,042
2,179
2,327
2,495
2,656
1,417
1
1.1
1.1
1.2
1.2
0.7
194,744
216,762
205,807
224,913
224,000
199,480
100
100
100
100
100
100
100
2007/2008
46,240
22
162,879
77.7
633
0.3
209,752
100
Source: General Authority of Civil Aviation, the Statistical Book 2000/2001 - 2007/2008.
- 84 -
Domestic Cargo
166,861
162,879
International Cargo
167,197
46,240
633
/2007
2008
55,221
54,483
49,622
1,417
161,363
149,004
148,441
2,656
/2006
2007
2,495
/2005
2006
/2004
2005
158,275
143,473
54,476
2,327
General Aviation
53,224
2,179
/2003
2004
2,042
/2002
2003
50,728
49,229
2,629
/2001
2002
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
/2000
2001
4-3-12 Comparison of overall movement of Air Cargo and Mail in the Kingdom
Airports with the movement in King Abdul Aziz International Airport in Jeddah:
Table number (4-25) below showed the average percentage of Air Cargo in King Abdul
Aziz International Airport in Jeddah was more than 43% of the total Air Cargo in all the
years, and reached its highest level in 2002/2003 (46%) of the total Air Cargo in all
Airports and the lowest level in 2007/2008, where the percentage was (40.3%) as shown
in Table (4-25). Once again the percentages showed the importance of King Abdul Aziz
Airport in Jeddah, in the movement of Air Transport, and consequently the importance of
the city of Jeddah as an Economic Center and important Gateway for the movement of
passengers and Air Cargo and Mail.
Table (4 – 25)
Comparison between the total movement of Air Cargo and Mail in all the Kingdom Airports with that of
King Abdul Aziz Airport in Jeddah during 2000/2001 – 2007/2008.
Years
Total Cargo of all the Kingdom
Airports
Total Cargo of King Abdul Aziz
International Airport, Jeddah
Percentage
2000/2001
473,519
211,731
44.7
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
446,509
472,619
461,514
498,487
501,324
481,255
194,744
216,762
205,807
224,913
224,000
199,480
43.6
45.9
44.6
45.1
44.7
41.4
2007/2008
520,386
209,752
40.3
Source: General Authority of Civil Aviation, the Annual Reports of the years 2000 - 2008.
2008 /2007
2007 /2006
2006 /2005
2005 /2004
2004 /2003
2003 /2002
2002 /2001
2001 /2000
600000
500000
400000
300000
200000
Total Cargo of King Abdul Aziz International Airport, Jeddah
- 85 -
100000
0
Total Cargo of all the Kingdom Airports
4-4 Telecommunications:
4-4-1 Introduction:
Telecommunications Sector is one of the most important service sectors that affect the
process of Economic and Social Development through providing means of quick
communication between different departments. This sector rapidly developed in both
organizational and technical fields. It was under the former Ministry of Post,
Telegraph and Telephone, and then named Saudi Telephone after reorganization of
Ministries. It is under the Ministry of Communications and Information Technology.
Privatization of the sector and transformation of the Saudi Telephone started under the
name of "Saudi Telecom Company" at the beginning of (1998) to operate on
commercial basis, and then followed the publication of Telecommunications Law and
the establishment of Telecommunications and Information Technology Authority in
(2001) as a Legal Entity enjoying administrative and financial independence, and
responsible for organization and development of the telecommunication and
Information Technology Sector.
4-4-2 Communications and Information Technology Commission:
The Telecommunications Law issued in 1423 H (2003) and its executive regulations
issued in the same year stated that formal organization of the sector, and identified and
regulated the framework of the areas related to provision of ordinary and mobile
telecommunication services.
4-4-3 Functions and Responsibilities of the Commission:
The Commission is keen to ensure that the Telecommunications Sector is adopting a
clear foundation of justice in their work and fulfilling the principles of justice and
loyalty between all competitive parties, such as service providers, investors, the
government and the beneficiaries if they are individuals or institutions. The
Commission acted according to the general policies adopted by the Ministry of
Telecommunications and Information Technology.
4-4-5 Service Providers:
Based on the functions of the Commission to regulate and supervise the
Telecommunications and Information Technology Sector, it started since inception to
implement full privatization of the telecommunications market and issuing licenses to
service providers of ordinary and mobile telephones, internet services,
telecommunications via satellite and other services. The number of licenses increased
from 22 licenses in 2002/2003 to 296 licenses at the end of 2008 i.e. they were
doubled by more than 1180 times, an increase of 1,187%.
STC is a sole provider of ordinary telephone service and shared provision of mobile
telephone service with Etihad Etisalat (Mobily), which joined this sector in mid 2008,
Saudi Mobile Telecommunications Co. (Zain) which started providing services in the
- 86 -
month of (August 2008). The rest of the companies are providing more than fifteen
services out of which 122 companies are providing Short Message Services and 64 are
providing Internet Services and 33 are Cabin Service Providers and 24 companies are
providing Texts Audio (700) as shown in Table (4-26) below.
Table (4 – 26)
The number of Licensed Corporations to provide Telecommunication Services and Information
Technology from 2002/2003 – 2007/2008.
Services
Landline Services
Mobile Phone Services from Second Generation
Mobile Phone Services from Third Generation
Face-Book Service
Mobile Personal Phones Via Satellite
Internet Services
Data Services
Internet on Aircrafts
Mobile Telephone Services on Aircrafts
Vehicles Follow-up Services
SMS (Short Message Service)
Text Audio (700)
Cabin Center Services
E-Services Portfolio
Prepaid Card Services
Management and Control of Networks
Automated Subscriber Contacts
Host Hardware and Telecommunications Equipment &
Information Technology
Total Licenses
2002
2003
2004
2005
2006
2007
1
1
1
18
1
-
1
1
5
2
18
1
-
1
2
1
5
2
23
3
1
6
6
-
1
2
2
5
2
27
3
1
19
38
21
4
1
2
2
7
3
47
3
1
1
24
92
26
7
1
2
2
13
3
64
3
1
2
33
122
24
11
-
-
-
2
1
2
2
4
2
5
4
4
-
-
-
-
-
1
-
-
-
-
-
1
22
28
50
130
224
296
Source: The Communications & Information Technology Commission, Annual Report 2007/2008.
4-4-6 Number of Landline and Mobile Phones in the Kingdom:
The number of Landline and Mobile Phones increased steadily since the privatization
of the Telecommunications Sector. The competition among Service Providers
companies led to this increase especially in the area of mobile phones after the joining
of Etihad Etisalat (Mobily) and the issuance of the license to the third provider (Zain)
in the middle of the year 2008 and began operating in August 2008. This competition
in the telecommunications market led to expansion of mobile phones services in terms
of large number of mobile phones, they rose from 2.5 million lines in 2001/2002 to
28.4 million phones i.e. they doubled more than one thousand and thirty times
(1036%). It is expected to double in the coming years after the joining of third
provider that already started at the beginning of the second half of this year (August
2008).
The Landlines Telephones significantly increased the number increased from 3.2
million phones in 2001/2002 to about 4 million phones in 2007/2008, increased by
approximately 800 Thousand Phones (25%). It is expected that the performance in
- 87 -
providing this service will improve due to competition especially in the presence of
licensing of three new companies during the year 2008. The Council of Ministers
approved on (25/2/2008) the licenses of International Telecommunications Company,
The Saudi Integrated Telecommunications Company and the establishment of the
Atheeb Union to construct ordinary phones network and to run landlines in accordance
with the regulations enforced in the Kingdom. It is licensed to construct and operate
ordinary phone networks. Table (4-27) below showed the historical development of
the number of landline and mobile phones.
Table (4 – 27)
The historical development of the number of Landline and Mobile Phones in the Kingdom from
2001/2002 to 2007/2008
Years
Landline Phone Numbers
Mobile Phone Numbers
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
3,232,925
3,437,345
3,502,629
3,695,133
3,844,000
3,951,000
2,528,640
5,007,965
7,238,224
9,175,764
14,164,000
19,663,000
2007/2008
3,996,000
28,400,000
Source: The Communications and Information Technology Commission, Department of Public Relations and International Affairs, 2008.
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2008 /2007 2007 /2006 2006 /2005 2005 /2004 2004 /2003 2003 /2002 2002 /2001
Landline Phone Numbers
Mobile Phone Numbers
4-4-7 Saudi Telecom Company (STC):
In line with the rapid development in the Telecom Sector, Royal Decree No. 135 dated
15/8/1418 H was issued to privatize the Saudi Telecommunication Institution and
accordingly the institution was transformed on 16/1/1419 (2008) to a Saudi Joint Stock
Company to be managed according to commercial principles with independent legal
entity and through this independence enable them to respond flexibly to market
demands and keep pace with technical developments in the field of
Telecommunications and contribute to the development of the country. The company
continued its leadership role in the advancement and development of communication
sector to meet the needs and requirements of the clients through ordinary telephones,
- 88 -
mobile and Saudi Data, in order to provide quality and efficient services to the sector,
individuals, residential and business subscribers and the vectors and operators.
It started since then to develop the infrastructure, and provide all the advanced
technology and prepare them for competition. In order to achieve these goals it set that
long-term strategy by giving priorities and identified them in seven main dimensions.
A
B
Continuation of our leading position in the continued
expanded Personnel Communication market.
To play main role in the Vector and Operator
Services.
C
Methods of advanced services and to communicate
visual information for the residential sector.
D
Excellent services to business sector.
E
Assurance to achieve the external expansion.
F
Determination to provide excellent services to
customers.
To achieve operational efficiency.
G
Through the deployment of individual technology
developer of Third-generation (G3.5)
To take advantage of using available opportunities to
expand services the Vectors and Operator Services in
domestic and international markets.
Quick application of Broadband Service for the
residential sector through the implementation of the
multiple applications of the Internet and Media
content.
To broaden the base of business sector customers
through designing of services and integrated solutions
that meet their needs.
To take advantage in expanding available business
opportunities related to communications sector in
domestic and international markets.
Construct an operational model based on the
customers, linking rules, regulations to be effective.
To reduce cost and raise operational efficiency
through the implementation of the concept of Joint
Services, Web development, Information Systems and
the Upgrading the qualification of staff.
4-4-7-1 Mobile Telephone Services from 2001/2002 – 2007/2008:
Coinciding with the huge investments which STC pumps to develop High-Speed
Third-Generation, as a first provider of this modern service to the indvidual in Saudi
Arabia. The number of mobile phone customers "ALJAWAL" increased to 17.3
million customers at the end of 2006/2007, compared to about 2.5 million customers at
the beginning of operation in 2001 i.e. an increase by 14.8 million customers or the
number of mobile phones doubled by about six hundred times (592%), Table (4-28)
below shows the large annual increase in the number of mobile phones during the
period, which Presented an average of 35.5%.
Table (4 – 28)
The number of Mobile Phones (AlJAWAL) in the years 2001/2002 – 2007/2008 (number in millions)
Years
Number
Rate of Change
2001/2002
2.5
--2002/2003
5
100%
2003/2004
7.2
50%
2004/2005
9.2
27.8%
2005/2006
11.9
29.3%
2006/2007
13.8
16%
2007/2008
17.3
25.4%
Source: Saudi Telecom Company, the Annual Reports 2001-2008.
- 89 -
20
17.3 ;2008 /2007
13.8 ;2007 /2006
11.9 ;2006 /2005
15
9.2 ;2005 /2004
7.2 ;2004 /2003
10
5 ;2003 /2002
5
2.5 ;2002 /2001
0
2008 /2007 2007 /2006 2006 /2005 2005 /2004 2004 /2003 2003 /2002 2002 /2001
4-4-7-2 Residential Landline Services:
Residential telephone numbers rose from 3.2 million ordinary telephone lines in
2001/2002 to 4 million telephone lines at the end of 2007/2008 i.e. increased by 800
Thousand lines (25%), it is also noted that the annual increase in the number of
ordinary lines varied between 1.3% as lowest level in 2007/2008 and 7.1% as highest
level in 2004/2005 and this low increase in the number of ordinary telephone lines due
to the widespread of mobile phones, which provide an independent service and privacy
for each of all members of the family, while the use of ordinary phone by all family
members. In presence of the preference of mobile phones by customers an increase
demand was observed because of the enjoyment of privacy and on the contrary less
demand of using of ordinary lines was observed as shown in Table (4-29) below:
Table (4 – 29)
The number of Land-Lines through the years 2001/2002 – 2007/2008
Years
Number
Rate of Change
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
3.2
3.3
3.5
3.75
3.84
3.95
--3%
6%
7.1%
2.3%
2.9%
2007/2008
4.0
1.3%
4.0
3.95
3.84
3.75
3.5
3.3
3.2
4
3
2
1
0
2008 /2007 2007 /2006 2006 /2005 2005 /2004 2004 /2003 2003 /2002 2002 /2001
- 90 -
4-4-7-3 Digital Service Lines (DSL):
This service was launched in 2001/2002 with about 83 lines only, and the company
expanded in the implementation of this service through the application of fixed
Broadband Services and Content Services accompanied with a number of services and
reductions, such as the prospects for DSL Service and the prospects of Wireless, and
the prospects for a Comprehensive Service, the service of collection recipients and
reduced prices campaigns and providing free installation and some other incentives.
This policy led to increase the number of clients hundreds of times, they reached
602,704 customers in the year 2007/2008 i.e. increased by 409,093 customers (211%)
and increased by 602,621 customers for the year 2001/2002 when the service started
i.e. doubled by more than 726 Thousand times (726,049%) as shown in Table (4-30).
Years
Table (4 – 30)
The number of Digital Service Lines (DSL) from 2001/2002 – 2007/2008
Number
Rate of Change
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
83
1,232
4,293
14,192
51,543
193,611
--1.384%
248%
248%
263%
276%
2007/2008
602,704
211%
700000
602,704
600000
500000
400000
300000
193,611
200000
51,543
14,192
4,293
1,232
83
100000
0
2008 /2007 2007 /2006 2006 /2005 2005 /2004 2004 /2003 2003 /2002 2002 /2001
4-4-7-4 Excellence in Business Service:
STC contributed to economical growth in the national economy in all sectors and
through the spread of the applications of telecommunications and information
technology, and provision of network services and Internet services as the most
important components of the infrastructure of telecommunications and information
technology to serve the sectors that rely on the electronic services such as banks, big
companies, stock market, and government sectors that used central computer systems
- 91 -
and the national project for the application of electronic government. In order to meet
these needs, the company introduced a number of services to serve the business sector,
such as:
1) ATM Service via Mobile Phones in case of non-availability of ordinary ones.
2) Group Messaging Service the possibility to send a message to all customers.
3) Jawal Net Service.
4) Classified Advertisement Service, so that Jawal subscriber who wants the
announcement to be published in newspaper through SMS can utilize this service.
The network is currently under modernization to support the applications of
transference of picture, sound and image quality to provide high levels of services that
meet the requirements of applications used by customers such as:
1) Wireless Telecommunications Service (WIMA), a service that provides Internet
Broadband.
2) Administration of Customer Equipments, a service that enables customers to ask
the company to manage their communication networks comprehensively and to
ensure high security and reliability.
3) (SKY-IP) service, installation of customer networks and connecting them to each
other.
4) (DIA) service of the Internet to link customers with high capacity.
This service rapidly developed from 30.9 Thousand Circuits in 2003/2004 to 35.9
Thousands in 2008 i.e. increased by 16%. During these years, as shown in Table
(4-31) below:
Table (4 – 31)
The number of Digital Lines of customers from 2003/2004 – 2007/2008 (in Thousands)
Years
Number
Percentage of Change
2003/2004
2004/2005
2005/2006
2006/2007
30.9
31.7
33.1
35
--2.6
4.4
5.7
2007/2008
35.9
2.6
35.9
35
36
35
33.1
34
33
31.7
30.9
32
31
30
29
28
2007/2008
- 92 -
2006/2007
2005/2006
2004/2005
2003/2004
4-4-7-5 Free Toll and Common Number Services:
STC provides additional unique communication services to the business sector to
support the work of these companies such as:
1) Toll Free Service.
2) The Common Number Service.
A big number of financial institutions, commercial firms and others use the facilities
provided by these service to serve their clients and these services were rapidly
developed in the past two years where free telephone service rose from 1,758 lines in
2006/2007 to 2,134 lines in 2007/2008 i.e. increased by 21%, and the number of
common lines service rose from 1,970 lines to 3,908 lines during the same period, i.e.
increased by 98% as shown in Table (4-32) below:
Table (4 – 32)
The number of Free Toll and Common Number
Year
2006/2007
2007/2008
Rate of Change
The number of Toll Free Service Lines (800)
1,758
2,134
21%
The number of Common Number Service Lines (9200)
1,970
3,908
98%
Source: Saudi Telecom Company, the Annual Reports of the years 2006 - 2008.
3,908
4,000
1,758 2,134
3,000
2,000
1,970
1,000
2007 /2006
0
2008 /2007
The number of Toll Free
)800Service Lines (
The number of Common
Number Service Lines
)9200)
4-4-7-6 Operators and Vectors Service:
In view of the opening and privatization of the telecommunications market the Saudi
Telecom Company expanded the scope of work at all levels of services through
increasing the number of Vector Circuits observing International Standards of
technical level related to provided service as the owner of the largest network and
infrastructure of Landline and Mobile Phones in the Middle East. STC ranked as
second at Asian level and ranked as ninth among the leading providers of
telecommunications services worldwide. STC was able to increase the number of
circuits of operating international telephone lines in the international telephone
exchanges from 34,415 circuits in 2003/2004 to 133,000 lines in 2007/2008 i.e.
increased by 98,585 circuits or (286%) or Increased about three times during the past
- 93 -
five years to accommodate the growth in the mobile phone services due to increase in
number of operators as shown in Table (4-33).
STC also worked to raise the capacity of Internet paths and connecting the local
network operators with the large global internet, it increased by 20.8 GB/s in
2007/2008 an increase of (23.5%) compared with the previous year. STC introduced
the uses of the entrances to link the local networks with the global internet at the level
of 2.5 GB/s in order to improve the efficiency of the net and speed up the exchange of
information globally.
Table (4 – 33)
The development of the International Circuits of Telephone Lines from 2003 To 2008
Years
Number Of Circuits
2003/2004
2004/2005
2005/2006
2006/2007
34,415
5,112
63,000
101,617
--48.5
23.2
61.3
2007/2008
133,000
30
133,000
140,000
120,000
101,617
100,000
80,000
63,000
60,000
34,415
5,112
40,000
20,000
0
2008 /2007 2007 /2006 2006 /2005 2005 /2004 2004 /2003
4-4-8 Services offered by Etihad Etisalat (Mobily):
Etihad Etisalat Company (Mobily) was found in Saudi Arabia as Joint Stock Company
under the Royal Decree No. M/10 Dated 2/7/1425 H (18/8/2004). The company started
its activities on 14/12/2004 as the second mobile telephone operator in the Kingdom.
The company started its commercial business in 2006 through 19 company-owned
exhibition distributed in different cities of the Kingdom. (Mobily) signed distribution
agreements with seven distributors, having 1,854 outlet points for distribution
throughout the Kingdom. The company signed agreements with 288 operators in more
than 158 countries for international calls service. The company's main activity at
present is provision of mobile telephone service in which it achieved widespread
during the past three years.
- 94 -
The company achieved in the first year of operation 2005/2006 about 2,314,184
subscribers. The company made big marketing campaigns in the 2006/2007 through
promotional offers and expansion in network coverage and introduction of new
services to attract and retain subscribers. The number of selling points of the seven
distributors rose to 3,610 outlets i.e. by 1,756 outlets (94.7%) also the number of
international agreements increased to 315 operators i.e. by 27 operators, or 9.4%. The
company was able to achieve through all these activities a big increase in the number
of subscribers at the end of the year they reached 6,025,745 subscribers i.e. by
3,711,561 subscribers (174%) as shown in Table (4-34) below:
Table (4 – 34)
The Development of (Mobily) Services during the period from 2005 To 2007
Description
Outlets of Sale
Internationaal Roaming Agreements
Subscribers
2005/2006
2006/2007
% of Change
1,845
288
3,610
315
94.7%
9.4%
2,314,184
6,025,745
174%
Source: Etihad Etisalat (Mobily), the Annual Reports of the 2005-2007.
6,025,745
2,314,184
315
Subscribers
3,610 1,845
288
Internationaal
Roaming Agreements
2006 /2005
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Outlets of Sale
2007 /2006
4-4-9 The Services provided by the Saudi Mobile Telecommunication Company (Zain):
Zain Company is a Saudi Joint Stock Company licensed as a Third Operator to provide
mobile phone services in 1428 H (July 2007).
The company started Commercial Operation in August 2009 on the basis of a Three
Pillars Strategy i.e. The Customer, Staff and Operations. It implemented of a campaign of
"Month of the Month You and Us," targeting half a million by the end of the Holy month
of Ramadan 1429 H (Sept. 2008). The company also created a number of incentives in
order to increase market shares such as the reduction on international calls and Twin
Mobile Phones, and other services such as Voice Services (Roaming, Voice Mail, Voice
Messages etc.) Applications and Mobile Phone Segments, Subscriber Channels,
Downloading of Pictures, Ring tones, Games and other applications etc., ThirdGeneration services and Generation 3.5 (Visual Communication, Visual Mail). As Zain is
the latest operator in the Saudi Telecom market they worked hard in the second half of the
year 2008, which resulted in covering 93% of Saudi Arabia, including 34 cities and 67
- 95 -
Highways. They planned to build their own network cost of US$ 1.3 billion which
expected to be completed by the end of 2009. The company employed more than 2,200
employees.
4-4-10 Revenue of the Telecommunications Sector:
Telecommunications sector is one of the best growing economic sectors in which the
growth rate varies between 16-18% per year and is expected to increase over the next
decade because of the expected rise in demand for IT services and communications.
The sector grew rapidly during the past years, the direct revenues of the companies
that provide telecommunication services rose from SR. 20 billion in 2001/2002 about
SR. 43 billion or increase in by revenue (115%). The revenue of the mobile
communications represents 67.4% of the total income of the sector, the ordinary
telephone services represents 32.6% of the total as shown in Table (4-35).
Table (4 – 35)
Revenue of the Telecommunications Sector for the years 2001 To 2008 (Amounts in billion Riyals)
Telecommunicatoins Revenue
Years
Total
Ordinary Tel.
%
Mobile Tel.
%
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
12
11
10
10
9
10
60
50
35.7
32.3
26.5
25
8
11
18
21
25
30
40
50
64.3
67.7
73.5
75
20
22
28
31
34
40
100
100
100
100
100
100
2007/2008
Grand Total
9
71
21
32.6
34
147
79
67.4
43
218
100
---
Source: Communications and Information Technology Commission. The Annual Reports 2001-2008.
34
35
30
30
25
25
21
9
10
9
18
10
20
10
11 11
12
8
15
10
5
0
2008 /2007
2007 /2006
2006 /2005
2005 /2004
.Telecommunicatoins Revenue Ordinary Tel
- 96 -
2004 /2003
2003 /2002
2002 /2001
.Telecommunicatoins Revenue Mobile Tel
4-4-11 Telecommunications Services in Jeddah:
EMCC tried to get the numbers of ordinary and mobile phones in the city of Jeddah,
but the providers of mobile telephone services are not willing to provide details of the
distribution of the numbers by regions or cities due to The competition between them
so it depended on the figures given by the Central Department of Statistics and
Information, which derived from Information compiled by the Saudi Telecom
Company, which did not include the actual numbers for all operators. Moreover the
distribution based on the division of the Kingdom into four main areas:
Central, West, East and South regions. The Western region includes Makkah
Mukarramah, Madinah Munawwarrah, Jeddah, Taif, Tabuk and Yanbu. One may draw
the attention here to the difference in the number provided by mobile phones company
and the numbers of Statistics Department due to lack of Statistics by the providers of
service. This report will depend on statistics of Statistical Year Book of Central
Department of Statistics and Information for the ordinary and mobile phones.
The ordinary telephone service is provided by STC only till the time of preparation of
this report and the available statistics of the Saudi Telecommunications Company is
same as that contained in the statistics of Central Department of Statistics and
Information.
4-4-12 Ordinary Phones in the city of Jeddah compared to the Kingdom and the
Western Region from 2001/2002 To 2007/2008:
The total ordinary lines in all parts of the Kingdom were 3,232,925 phones in
2001/2002, the total phones in Western Region were 1,212,545 phones represents
37.5% of the total telephones, the number of ordinary phones in the city of Jeddah
were 572,325 phones represents 17.7% of the total ordinary lines in the Kingdom and
represents 47.2% of the total phones in the Western Region, the numbers rose year
after year in the Kingdom till they reached 3,996,493 phones in 2007/2008 i.e.
increased by 763,568 phones or 24%.
The number of ordinary telephones in the Western Region was 1,429,889 phones in
2007/2008 i.e. increased by 217,344 phones or 18%.
The number of ordinary telephones in the city of Jeddah was 719,070 telephones in
2007/2008 i.e. increased by 146,745 telephones or 26%.
Comparing the percentages of ordinary telephones in the city of Jeddah with the total
phones in the Western Region, and the total phones in the Kingdom the percentage
varied between 47.2% and 50% for the Western Region and between 17.7% and
18.3% of the total Kingdom wise and the annual growth rate was about 5%, these
ratios and percentages showed the importance of Jeddah as an important trade center
and a large urban area as shown in Table (4-36).
- 97 -
Table (4 – 36)
The Number of Ordinary Telephones in the city of Jeddah compared to the total Telephones in the
Western Region and the Kingdom from 2001/2002 To 2007/2008
- 98 -
4-4-13 Mobile Telephone Services in the city of Jeddah compared to the Total of the
Western Region and the Kingdom from 2001/2002 To 2007/2008:
Table number (4-38) below showed the number of mobile telephone lines in the city of
Jeddah compared to the number of mobile telephone lines in the Western Region and
the Kingdom, the number of mobile telephone lines in the city of Jeddah were 418,375
in 2001/2002 represents 46.3% of the total lines in the Western Region and 16.5% of
the total lines in the Kingdom. The mobile telephone lines increased substantially
during the past few years rose up to 584,461 in 2007/2008 or increased by 166,086
lines (39.7%). While the number of lines in the Western Region increased and reached
1,400,456 lines i.e. increased by 497,128 lines (55%), while the mobile telephone lines
in the Kingdom reached 4,321.483 in 2007/2008 i.e. increased by 1,792,834 lines
(71%).
When comparing the lines of mobile telephone lines in Jeddah and the Western Region
and the Kingdom the rate of growth was ranging between 41.1% and 46.3% for the
Western Region and ranging between 13.5% and 16.5% for the Kingdom. This means
that the number of users of mobile telephones in Jeddah were of high rates in both the
region and in the Kingdom which again showed the importance of the city of Jeddah
as important urban and commercial center with high population density as shown in
Table (4-37). It should be noted that this table does not contain SAWA Telephones
(Prepaid Cards) due to lack of information from sources as already explained.
- 99 -
Table (4 – 37)
The Number of Mobile Telephone Lines in the city of Jeddah compared to the total Telephones in the
Western Region and the Kingdom from 2001/2002 To 2007/2008
- 100 -
4-5 Postal Service:
The Postal Service is one of the most important services required by any state, and the
citizen's need them for transport of letters and information through safe and quick
channels. This service was known throughout the history, it passed through several
stages in the Kingdom where was practiced by some traders from their shops in AlAdl
Square in Riyadh before the occupation of King Abdul Aziz in Shawal 1319 H. They
used white cloth bags bearing the name of a city or a village, and the sender put the
envelope in the bag, and after collecting a number of letters those bags were carried by
passengers on animals to be handed over to receivers at arrival destinations where
placed in a special box in the shop and receivers come for collection.
In Makkah Mukarramah and Jeddah mail was carried on animals in a journey that took
about two weeks. The Post Office was run by a President and his Deputy and Stamp
Seller, who was called the Superintendent of Registered and Ordinary Mail. The mail
was carried to different cities twice a month, while the outer-mail was carried by Train
from the city of Jeddah to Bilad AlSham, and by Ships to Egypt and Port of Sudan
every week and every twenty days to India.
After the unification of the Kingdom by King Abdul Aziz and the discovery of oil the
commercial traffic was increased and the expansion of government services, the
Directorate of Postal business established in 1964 and then transferred to the
Department of Post and Telegraph as subordinate of the Ministry of Transportation in
1983. The Deputy Ministry of Transport and Telecommunications Postal Affairs was
established, at the beginning of the development plans in 1970 a great development of
postal services took place and expertises were brought from some Arab countries to
provide postal service coping with the requirements of the development boom in the
Kingdom. The first independent budget for the Post was introduced in 1972 at the
establishment of the Directorate General of Post, then the Ministry of Post, Telegraph
and Telephone was established vide Royal Decree No. 236/A, dated 8/10/1404 H.
(1984). Then a resolution of the Council of Ministers was issued on 22/3/1423 H
(2003) transferring the Directorate General of Post to a Public Institution operating in
accordance with the philosophy of the private sector under the name of Saudi Post
Authority. Many management changes took place to cope with the transition to work
as a profitable service provider and introduced new services to suit the developments
in the Kingdom. This phase began in the year 2006 by the project of new addresses
and Home Delivery Service. The Post Authority is now providing the following
services:
1) Wasil Service:
The Post Authority installed the boxes for each unit at residential buildings and
houses, and handing over the keys to the citizen and residents as Life Free Service.
2) GIS Service:
This service based on the use of Geographical Information Systems to identify the
locations of places that provide the post staff and mail carriers and couriers and home
delivery companies to deliver required goods through provision of full information of
mail address using the site number and the name of the District and the Street.
- 101 -
3) Post Letters:
This service is to receive and deliver of all Sent and Received Letters which are cleared
through the clearing machines or using Postage Stamps, this service is provided by all
Post Offices and Post Boxes throughout the Kingdom.
4) The Official Postal Service:
Special service provided to government departments and institutions.
5) Registered Mail Service:
This service provided to the customer against a receipt which assisted him in tracing
letter and enquiring about it.
6) Promotional Mail:
This service is provided to companies and establishments in order to publicize and
promote their products and services.
7) Mailboxes:
Post Boxes available in all Public and Private Post Offices, they are available to
government departments, institutions, corporations and individuals against annual
subscription fee. A total number of Boxes was 513,501 Boxes throughout the Kingdom,
out of which 408,751 Boxes were in Public Post Offices and 104,750 Boxes were in
Private Post Agencies.
8) Deposit Boxes:
These Boxes are distributed in residential, commercial and industrial areas. The letters
were deposited by the individual rather than going to the Post Office, they were opened
twice or thrice a day and the letters were collected and sent to the main Post Office for
distribution, a total of the boxes was 2,563 boxes.
9) Government Services:
Provision of services like renewal of Driver's Licenses, Forms, Traffic Permits and the
Transfer of Property... etc. It is through contacting the nearest Post Office, and fill in the
required forms along with supporting documents, and then the Post Office will follow-up
the procedure, after finishing the job, the documents will be sent to the beneficiary on his
address by Express Mail and now being tested in major cities like Riyadh, Jeddah and the
Eastern Region.
10) Jawal Post:
It is a service to communicate with customers to give them opportunity to know various
Postal Services such as follow-up of letters and Express Mail and information on the
latest position of the Registered Letters and Parcels through SMS, the number 78666 for
JAWAL Customers and 6288 for Mobily Customers.
11) Electronic Payment Service:
This service is for payment of Postal Services Fees and the various subscription fees
through Credit Cards and SPSN Cards, and the actual operation of the service was on
(24/2/2008) as one of the important steps for the completion of the necessary
infrastructure of the Postal Authority to enable it to provide better services and avail
technical solutions for Electronic Commerce and Electronic Government.
- 102 -
12) Al Adahi and Hadie Service:
The service is providing marketing and sale of Bonds of Al Adahi, Hadie and Charity
Donation through the Post Offices or Electronic request. This service provides the service
in cooperation with the Islamic Development Bank, where Saudi Post notifies the bank
that it represents the client, and specifies the required immolation. The Bank will
slaughter and distribute them among beneficiaries in collaboration with the competent
authorities in and outside the Kingdom.
4-5-1 Network of Postal Services in Jeddah compared with Makkah Mukarramah
Region and the Kingdom from 2001 - 2007:
Post Offices remained the same since 2001 up to date. The total number of Post
Offices is 478 offices and the numbers of Main Offices in Makkah Mukarramah
regions are 53 offices, representing 11% of the total offices in the Kingdom, and the
number Jeddah offices are 25 offices representing 47.2% of the total offices of
Makkah Mukarramah and 5.2% of the total Post Offices in the Kingdom.
However, there was substantial development after privatization of the sector,
reasonable numbers of offices were opened in some cities in the Kingdom, due to
which the numbers of major offices owned by the Post Authority were reduced to 470
offices, and 83 Post Offices for the Agencies (Private Sector) were opened. There are
20 offices in Makkah Mukarramah Region representing 24/1% of the total Agency
Offices. They are located in six regions only, Riyadh, Makkah Mukarramah, Madinah
Munawwarrah, Qassim, Eastern and Aseer Regions.
The total Mailboxes in the Kingdom are 578,917 Boxes out of which 458,759 Boxes
are in the offices of the Saudi Post Authority that constituted 79.2% of the total while
the Post Office Agencies (Private Sector) owned 120,158 Boxes representing (20.18%)
which means that one fifth of the network is managed by the Private Sector.
There are 113,530 Boxes in Makkah Mukarramah Region representing 19.6% of the
total Boxes in the Kingdom which means about one fifth of the Boxes are in Makkah
Mukarramah Region where as Jeddah representing approximately 47.2% of the total
Boxes of Makkah Mukarramah Region, therefore the number of Boxes located in
Jeddah are about 54,421 Post Boxes as shown in Table (4-38) below.
- 103 -
Table (4 – 38)
Kingdom Network of Postal Services according to Postal Region 1427 H.
Main
Post
Surface and
Sub Post
Street
Subscribers
Postal Areas
Post
Offices of
the Distribtn
Offices
Boxes
Boxes
Offices
Agencies
Points
Riyadh
Makkah Mukarramah
Madinah Munawwarrah
Qassim
Eastern Province
Aseer
Tabuk
Hail
The Northern Borders
93
53
23
35
60
82
15
12
16
16
24
12
27
27
11
3
5
0
Jazan
Najran
Baha
31
16
18
Al Jouf
Total
16
470
Source: Saudi Post Authority.
Private
Sector
Boxes
1,025
602
298
285
229
873
120
457
50
561
410
139
212
357
172
71
144
14
132,478
89,044
32,638
30,866
82,702
24,750
12,430
13,850
5,750
2
6
8
36
20
5
3
16
3
0
0
0
0
0
0
437
155
46
95
30
132
10,700
7,600
6,600
59,572
24,486
5,500
2,350
23,500
4,750
0
0
0
0
0
0
5
146
0
83
55
4,632
30
2,367
9,351
458,759
0
120,158
* The area of Jeddah was included in Makkah Mukarramah Region since the year 1995.
4-5-2 Shipment of Letters, Printed Material and Parcels from 2001 – 2007:
Saudi Post Authority provides the service of Outgoing and Incoming Letters to the
Public and Private Sectors and Individuals. It provides this service through handling of
Ordinary and Registered Letters, Printed Materials and Parcels.
In the last quarter of the Twentieth Century rapid development of the means of
communication was observed such as Phones, Fax and the Internet, but the posts
preserving its position to some extent as a mean of communication because of its
reliability. But there is a decline in the number of Sent and Received Letters year after
year because of shifting to alternative means of Direct and Quick Contacts such as
Facsimile Messages and E-mail Messages and SMS on Mobile Telephones.
1) Outgoing Letters:
Total numbers of Outgoing letters were 348,153 letters in 2001. The number of
letters was declining year after year until it reached its lowest level in 2006, where
the total number of letter was 171,828 letters i.e. the total decrease of letter was
176,828 or (50.7%) which is more than half, but the number rose up in 2007 and
reached 230,434 letters recording an increase by 58,866 letters that represents
34.3% or more than one third.
The same applies to the Printed Materials where the number fell from 40,587
thousands in 2001 to 26,926 thousand in 2007 or decreased by 13,661 thousands
i.e. (33.6%) or more than one third.
The Parcels Shipment fluctuated during the period of study the number decreased
from 269,580 parcels in 2001 to 235,021 parcels in 2007 i.e. decreased by 34,559
- 104 -
parcels or (12.8%) and noted that the parcels reached their highest level in 2004
with a number of 319,041 parcels or increased by 21,329 parcels that represents
10.9%.
It is clear from this that the Postal Parcel services are still retain some of their
importance because of the reliability and speed of handling, especially Express
Mail Services which is used by Express Transport Companies.
It is observed that no statistics are available about cities or regions from the Saudi
Post Authority.
But one can estimate the volume of Postal Parcels of the city of Jeddah through
comparing with the use of other means of communications in the Kingdom, where
the use of ordinary phone line or mobile phones is about 16% and 14%
respectively. Therefore, the percentage of letters, printed materials and parcels of
the province of Jeddah were estimated to 15% of the total Kingdom in all years as
2) Received Letters, Printed Materials and Postal Parcels:
The total received letters were 426,739 thousand letters and the numbers declining
till they reached their lowest level in 2005, where the number was 103,235
thousand letters, they decreased by 323,504 thousand letters i.e. (57.8%). The total
number of received printed materials was 61,991 in 2001. This service was rapidly
declined, it reached its lowest level in 2007 where the number did not exceed
20,154 printed materials i.e. decreased by 41,837 thousand of printed materials or
67.5% i.e. more than two-thirds.
The Received Postal Parcels were declined at limited level, the total Received
Parcels were 395,474 thousand parcels in 2001 then decreased to 253,935
thousand in 2007 or 35.8% i.e. more than a third as shown in Table (4-40).
One may conclude from the Tables that the Postal Service of delivering Letters,
Printed Materials provided by the Saudi Post is witnessing a continuous declining
year after year at high rates, where as the service of handling of parcels is still used
at good rates although it is average annual reduction was of 10%. This decline in
services is due to the use of individuals and enterprises of some alternative means
of communication such as Telephone, Fax and E-mail Communication.
- 105 -
Table (4 – 39)
Shipment of Letters, Printed Materials and Postal Parcels from the year 2001 – 2007 (Number in
Thousands)
- 106 -
Table (4 – 40)
Received Letters, Printed Materials and Postal Parcels from 2001 – 2007 (Number in Thousands)
Letters
Printed Materials
Parcels
Years
Regular
Registered
Official
Total
Regular
Registered
Total
Total
2001
2002
2003
2004
2005
2006
367,059
311,186
298,927
322,879
83,539
81,776
42,029
16,638
22,609
13,907
9,020
11,539
17,651
34,528
19,324
13,633
10,676
10,374
426,739
362,352
340,860
350,419
103,235
103,689
57,947
65,266
47,473
58,932
27,113
28,294
4,044
1,607
2,617
1,295
490
250
61,991
66,873
50,090
60,227
27,603
28,344
395,474
245,962
322,761
334,325
208,991
246,272
2007
107,168
11,853
9,401
128,422
19,823
331
253,935
20,154
Source: Central Department of Statistics and Information, Annual Statistical Book, Issue No. 41, 42, and 43.
4-5-3 Telegraphs in the Kingdom, Makkah Mukarramah Region and Jeddah:
Available Statistics indicated that the use of Cables and Telex were decreased
significantly and were totally absent as observed in received in Telegraphs as shown in
the Statistics of 2007. The total Outgoing Cables were not exceeding 390,865
including 41,363 Cable of Makkah Mukarramah Region which represents 10.6% of
the total of the Kingdom, and the numbers of Outgoing Cables from the Jeddah were
20,163 Cables i.e. 48.7% of the total cables of Makkah Mukarramah Region and 5.2%
of the total Cables in the Kingdom
This decline in using of the Postal Services of all kinds and especially usage of Cables
was due to the rapid technical development in the field of Telecommunications,
especially after the spread of Mobile Phones and the Multiple Services provided by
them including Short Message Service (SMS) which works as substitute for cables as
well as the spread of Internet Service which is used as a modern technical alternative
to many of the correspondence in the commercial fields and personal affairs and
government departments through the application of E-Government and E-Commerce
which saved the User efforts and money and overcame their trouble of going to the
Post Office to send and receive letters and parcels.
- 107 -
4-6 Utilities:
This part of the report is about the utilities that provide essential vital services such as
Electricity, Water and Gas.
4-6-1 the Electricity Sector Services:
The government interested in Electricity since the reign of King Abdul Aziz in 1327
H. The Prophet's Mosque was lighted from two generators and in 1328 H. The Holy
Mosque in Makkah Mukarramah was lighted in early 1345, the first tender for the
lighting of Holy Mosque was announced which was the beginning of the entry of the
private sector in the field of electricity followed by the advancement of the electricity
in the cities of the Kingdom and then spread from town to town and from village to
village till the present time. These efforts ended with the issuance of Resolution of the
Council of Ministers No. 169 dated, 11/8/1419 H regarding re-arrangement of the
Electricity Companies.
As a result of which the four regional Electricity Companies the Central, West, South
and East were merged in the Saudi Electricity Company in order to consolidate the
efforts and increase the company's ability and capability to meet the growing needs of
electricity as a source of energy used in factories, homes, and other fields. The
branches of the company work to provide electricity in accordance with a uniform
tariff in all parts of the Kingdom with the least possible cost, and with highest safety
and highest reliability, and in this context, the company is working to provide
electricity to all towns and villages in all regions of the Kingdom.
Table (4-41) below showed the development of the Electricity Sector during the years
of the Seven Five Year Plans from the beginning of the First Plan in 1970 until the end
of the Seventh Five year Plan in 2005, according to which the sector witnessed
significant growth and development in generating capacity, and energy consumption
and continuous increase in the number of subscribers, the growth rates were significant
at the end of the Second Plan during which it was not less than 32% in all the
variables. Moreover at the end of Second Plan, it was not less than 20% in any of the
variables. This is due to the huge investments in the Electricity Sector and the
provision of the electricity to keep pace with economic development in the Kingdom
in all sectors where the infrastructure was completed for the sector during the first
three plans, then continued growth at rates not less than 4% as average in nay of the
variables in all years of subsequent plans.
- 108 -
Table (4 – 41)
Development of Electricity Sector during the Five Year Developments Plans in the Kingdom
- 109 -
4-6-1-1 Length of Network Lines (Kilometers):
The growing demand of electricity consumption in homes, factories, farms and other
activities made the Electricity Company to work hard in establishing a strong
infrastructure to meet the needs of consumers. The electricity networks had seen a
remarkable development n the various voltages to transfer (voltages 110 to 380 KV,
and the distribution of the 13.8 KV and low voltage cables 127, 220, 380 V).
The total length of the network in 2001/2002 was about 310,403 Kilometers, and then
grew annually till it reached 354,386 Kilometers in the year 2007/2008 i.e. increased
by 43,983 Kilometers (14.2%), and the total length of the land network in 2007/2008
was about 157,293 Kilometers and the total network length of aerial network was
197,092 Kilometers. This network carries and distributes electricity throughout the
Kingdom as shown in Table (4-42).
- 110 -
Table (4 – 42)
Development of the Length of the Electricity Network Lines (in Kilometers)
- 111 -
4-6-1-2 Growth of Conversion Stations and the capacity of Transformer (Mega Volt
Ampere):
Table Number (4-43) below showed that the total number of transfer and distribution
of electricity increased from 594 in 2004/2005 Station ( out of which 516 Station were
Current Transference Station and 78 Station were distribution Station ) to 646 Station
in 2007/2008 including 570 Transfer Stations and 76 Distribution Stations i.e. 52
Stations increased (8.8%). These Stations transfer and distribute the electricity in all
cities, villages, and the abandonment of the Kingdom.
The total numbers of Transformers were 241,157 in 2004/2005 and rose up to 275,429
transformers in 2007/2008 i.e. increased by 34,272 Transformers 14.2% and the total
capacity was 239,952 Mega Volt Ampere in 2004/2005 and increased to 275,868
Mega Volt Ampere in 2007/2008 or increase by 35,916 Mega Volt Amperes (15%).
- 112 -
Table (4 – 43)
The Growth of the number of Transfer Stations and the capacity of Transformers (Mega Volt Ampere)
- 113 -
4-6-1-3 Current Tariff for the Sale of Electric Power and the categorization of
consumers in the Kingdom:
Electricity sale Tariff was changed many times since the unification of Electricity
Service Providers in one company i.e. Saudi Consolidated Electric Company. The
Consolidated Tariff was issued on 1/8/1394 H (1974). It was at the rate of Seven
Halalas for each KW/H for the normal consumption of any quantity, and Five Halalas
for industrial consumption. This Tariff continued until 30/2/1405 H (1985), where the
electricity consumption was distributed to categories such as ordinary consumption
where KW/H was sold to the First category from 1-1000 KW/H at 7 Halalas, Second
category from 1001-2000 KW/H at 10 Halalas and the Third category from 2001
KW/H and above at 15 Halalas, and industrial consumption was sold at the previous
price i.e. sold at 5 Halalas for KW/H. Then the categories were amended again in 1406
H (1986). Then in 1412 H (1992) and then prices were further amended on 1/8/1415 H
(1995) it was the first time that the amendment includes the industrial consumption, it
was divided into two categories, the first category from 1-2000 KW at 5 Halalas and
the second category from 2001 KW and above at 5+5 Halalas. This Tariff continued
until 30/12/1420 H (2000) when the Tariff was amended and sale of electricity at this
rate continued until 30/7/1420 (2000). The last amendment of pricing was done on
1/8/1421 H (2001) in which the consumption was divided into (residential,
commercial, governmental, industrial and agricultural). It was divided into eleven
categories starting from 1-1000 KW categories to more than 10,000 KW and be billed
monthly, and added to its reading and maintenance fees as meter reading and billing
fees ranging between 10 to 30 Riyals depending on the type of circuit breaker and will
be added to the bill each month. This is addition to a Tariff of electric connection
service, which is between SR. 1,380/- for the normal consumption and SR. 26,600/for the industrial consumption according to the type of circuit breakers, the three tables
below No. (4-44), (4-45) and (4-46) showed what was explained.
Table (4 – 44)
Electricity Consumption Tariff in force from the date of 1/8/1421 H (2001) up to date
Consumer
Segments
(KW/Month)
Tariff (Halala KW/H)
Residential
Commercial
Industrial
Governmental*
Agricultural**
1-1000
1001-2000
2001-3000
3001-4000
4001-5000
5001-6000
6001-7000
7001-8000
8001-9000
9001-10000
5
5
10
10
12
12
15
20
22
24
5
5
10
10
12
12
15
20
22
24
5
5
10
10
12
12
15
20
22
24
12
12
12
12
12
12
12
12
12
12
5
5
10
10
10
12
12
12
12
12
More than 10000
26
26
26
12
12
*Industrial Tariffs applies to Private Hospitals and Clinics as well Licensed Private Institutions, Colleges and Private Schools in the field of
Education and Training.
**Agricultural Tariff applies to Mosques and Charity Associations except Investment Projects which are Non-Agricultural and Industrial.
- 114 -
Table (4 – 45)
Tariff of Maintenance, Meter Reading and Billing
Meter Circuit Breaker (Ampere)
Monthly Tariff (SAR)
60
100
200
300
400
10
15
21
22
25
More than 400
30
Table (4 – 46)
Electricity Connection Service Tariff
Meter Circuit Breaker (Ampere)
Electricity Connection Service Tariff (SAR)
60
100
200
300
400
1,380
3,800
11,400
18,800
26,600
26,600
SR. 250 for each additional KW
More than 400
4-6-1-4 Generated Capacity and the Maximum Load and Produced Electrical Power by
Power Plants:
The actual generated capacity of electric power increased during the past years from
23,230 MW in 2001/2002 to 32,957 MW in 2007/2008 i.e. increased by 9727 MW or
(41.9%) at annual growth rate of 6%. The maximum Load increased from 23,582 MW in
2001/2002 to 31,640 MW in 2007/2008 i.e. increased by 8,058 MW or (34.1%) at an
annual rate of growth 5.5%. The produced electrical power increased from 133.6 million
MW/H to 165.3 Million MW/H i.e. increased by 31.7 Million MW/H or (23.7%) at annual
rate of growth 6.7%. This development showed the expansion in the provision of
electrical services to consumers and to facilitate the ways of life for them as shown in
Table (4-47) below.
Table (4 – 47)
Growth of Generated Capacity, Maximum Load and the Produced Electrical Power
from 2001/2002 To 2007/2008
Years
Generated
Capacity
%
Maximum Load
%
Produced Electrical
Power MW/H
%
2001/2002
23,230
---
23,582
---
133,673,758
5.9
2002/2003
25,457
9.6
23,938
1.5
117,863,782
6
2003/2004
27,018
6.1
26,272
9.8
12,837,926
8.9
2004/2005
27,423
1.5
27,847
5.9
135,812,395
5.8
2005/2006
28,640
4.4
29,913
7.4
150,214,132
10.6
2006/2007
30,310
5.8
31,240
4.4
156,119,000
3.9
2007/2008
Growth Rate
32,957
60%
8.7
---
31,640
5.5%
1.3
---
165,342,000
6.7%
5.9
---
Source: Central Department of Statistics and Information, Annual Statistical Books, Issues No. 41, 42, 43 and the Ministry of Electricity and
Water Annual Report 2007/2008.
- 115 -
180,000,000
160,000,000
140,000,000
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0
/2007
2008
/2006
2007
/2005
2006
Generated Capacity
/2004
2005
/2003
2004
Maximum Load
/2002
2003
/2001
2002
Produced Electrical Power MW/H
4-6-1-5 Size of Electrical Energy Produced from Desalination Plants:
Six Desalination Plants were established in the Kingdom, including four large ones in the
Western Region at the Red Sea Coast, and two in the Eastern Region at the Coast of the
Arabian Gulf. The plants provide the major cities with water. These Stations were
designed to be able to produce Water and Electricity at one time (Dual-purpose Plants)
and these Plants operated in a Multi-Stage Evaporation, using the produced energy in the
operation of the Station's premises and the remaining produced energy will be exported to
Saudi Electricity Company, to become supporting energy to the Saudi Electricity
Company and used to cover part of the public consumption of electricity. The electricity
produced from desalination plants will continuously grew. The total produced energy
varies between 28.2 Million MW and 32.3 Million MW per annum.
The size of exported electrical energy from the desalination plants to the electricity
company varied from 21 Million MW/H and 24.7 Million MW/H i.e. desalination
plants exporting nearly three quarters of their electricity production (74%) to the Saudi
Electricity Company, as shown in Tables (4-48) and (4-49) below:
Table (4 – 48)
Size of produced Electricity from Desalination Plants (MW/Hour) according to the Stations
from 2001 To 2007.
Station/
Year
Jubail
Jeddah
AlKhobar
Yanbu
Shuaiba
2001
11,977,704
5,073,131
3,213,193
5,224,385
1,940,554
831,274
28,260,241
2002
2003
2004
2005
2006
2007
12,125,461
11,260,660
11,666,417
9,812,599
8,795,631
9,956,952
7,104,113
6,782,478
7,027,287
7,180,182
7,026,014
7,143,834
3,130,929
3,316,628
3,030,708
2,856,213
2,594,659
2,361,170
4,642,763
4,475,170
4,173,633
3,779,507
3,907,609
4,728,754
3,087,605
5,272,486
5,702,772
5,648,837
5,875,622
5,474,092
684,540
822,673
790,275
784,886
696,021
75,323
30,955,412
31,930,095
32,391,092
30,062,224
28,895,556
30,440,125
2008
12,160,000
7,880,000
2,670,000
4,540,000
504,267
820,000
33,110,000
AlShaqeeq
Total
Source: General Organization of Desalination Water.
- 116 -
14,000,000
12,000,000
10,000,000
Jubail
Jeddah
8,000,000
AlKhobar
6,000,000
Yanbu
Shuaiba
4,000,000
AlShaqeeq
2,000,000
0
2008 2007 2006 2005 2004 2003 2002 2001
Table (4 – 49)
Size of exported Electricity from Desalination Plants (MW/Hour) to the Saudi Electricity Company
during the years from 2003/2004 To 2007/2008.
Station/ Year
Jubail
Jeddah
AlKhobar
Yanbu
Shuaiba
2003/2004
5,399,693
7,836,196
3,603,650
2,386,777
1,341,805
455,573
AlShaqeeq
21,003,694
Total
2004/2005
2005/2006
2006/2007
6,165,471
5,877,217
5,910,534
7,440,992
6,452,068
7,257,205
3,662,915
3,975,434
3,836,473
3,728,789
2,898,613
2,604,053
1,460,198
1,519,124
1,741,556
432,213
344,079
482,173
22,890,578
21,066,534
21,831,994
2007/2008
5,998,744
9,220,870
3,804,000
3,247,354
2,010,709
448,717
24,730,394
Source: Ministry of Water and Electricity, th Annual Reports 2004 To 2008.
10,000,000
9,000,000
8,000,000
Jubail
7,000,000
Jeddah
6,000,000
AlKhobar
5,000,000
Yanbu
4,000,000
Shuaiba
3,000,000
AlShaqeeq
2,000,000
1,000,000
0
2008 /2007
2007 /2006
2006 /2005
2005 /2004
2004 /2003
4-6-1-6 Actual generated capacity and the maximum load and produced electric power
in the Western Region from the Power Stations:
The actual generated capacity in the Western Region was between 6099 MW/H and
9682 MW/H which was equivalent to about 29% of the total generated capacity of all
Stations in the Kingdom. It is known that the largest power plants in the Western
Region is in Jeddah City, which produced an average of 15% of the total production in
- 117 -
addition to that produced by the Stations of Jeddah, Yanbu, Shuaiba and AlShaqeeq.
Produced electricity ranged between 13.1 Million MG/H and 15.2 Million MW/H per
year or at an average of 13 MW/H.
The maximum Load of Electricity in the Western Region is equivalent to about 30% of
the total maximum load of the Kingdom , at the same time the consumed electrical
power in the Western Region is about (29%) of the total consumption in all parts of the
Kingdom. These figures and ratios are indications of the services enjoyed by the
Western Region in general and the city of Jeddah in particular being one of the most
populated cities in the Kingdom, beside this as the home of large number of factories
which consume big quantity of electric power as shown in Table No. (4-50) below:
Table (4 – 50)
Comparison of actual generated capacity and maximum load and consumed electricity energy in the
Western Region with that of the Kingdom from 2001 To 2007.
Years
2000/2001
The actual
generated
capacity
% To
Kingdom
Maximum
Load MW
% To
Kingdom
Electricity
consumption
MW/H
% To
Kingdom
2001/2002
2002/2003
2003/2004
2004/2005
6,099
6,466
7,072
7,831
8,039
27.6
27.8
30.8
29.8
29.3
6,229
6,844
7,236
8,002
8,505
28.7
29
30.2
30.5
30.5
32,152,632
34,581,913
37,310,300
41,646,098
42,758,058
28.8
28.1
29
29.2
29.4
2005/2006
8,322
29.1
9,185
30.7
44,823,960
29.2
2006/2007
9,682
32
9,776
31.3
47,619,855
29.2
Source: Central Department of Statistics and Information Issues No.s' 41, 42, 43 and Data Base of Saudi Electricity Company.
50,000,000
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2006/2007 2005/2006 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
The actual generated capacity
Maximum Load MW
Electricity consumption MW/H
4-6-1-7 Growth of numbers of subscribers and the consumed electric power in the
Kingdom:
Saudi Electricity Company targeted consumers from all sectors - industrial,
commercial, agricultural and residential. The Statistics showed that consumption
increased over the past years, due to a steady increase in the number of subscribers.
The number of subscribers increased from 3,792,210 subscribers in the 2001/2002 to
- 118 -
5,182,000 subscribers in 2006/2007 i.e. increased by 3,389,790 subscribers or 36% at
annual rate of growth 5.4%.
At the same time, the volume of electric power increased from 122.9 Million MW/H to
169.8 Million MW/H i.e. increased by approximately 46.9 Million MW/H which
means more than one third (38.1%) at annual average rate of growth 6.6%.
The percentage of industrial consumption varies between 18% and 23.5% of the total
consumption in the Kingdom, which means more than one fifth of the consumption of
electricity consumed by the industrial sector, at an annual rate of growth 2.1%. While
the estimated average share of the ordinary consumer from the total energy is about
32,612 KV/H as shown in Table (4-51) below.
- 119 -
Table (4 – 51)
The development of subscriber numbers and the consumed electric power and the percentage of industrial
consumption and the average share of the subscriber of the total consumed energy in the Kingdom during
the period from 2001/2002 To 2007/2008.
- 120 -
4-6-1-8 The Development of the Subscriber Numbers and the Consumed Electric Power
in the Western Region:
The number of subscribers in various segments was remarkably increased over the past
years where the number increased from 1,436,454 subscribers in 2001/2002 to
1,919,760 subscribers in 2006/2007 i.e. increased by 483,306 subscribers or 33.6% or
increased by about one-third over the past six years.
The percentage of subscribers in the Western Region is more than (38%) of the total
subscribers in the Kingdom in all years and this number is significant and resulted
from the natural growth of population and expansion of urbanization. The electricity
energy consumption in the Western Region was increased from 34,581,913 MW/H in
2001/2002 to 47,619,855 MW/H in 2006/2007 i.e. increased by 13,037,942 MW/H or
(37.7%) which was commensurate with the increase in the number of subscribers and
all was because of the growing commercial activities to meet the needs of the Pilgrims,
Umrah performers and visitors in the religious seasons and holidays.
The percentage of electricity consumption in the Western Region was about 29% of
the total consumption in the Kingdom. Industrial consumption in the Western Region
was increased significantly, rising from 1,993,142 MW/H in 2001/2002 to 2,603,527
MW/H in 2006/2007 i.e. increased by 610,385 MW/H or about 30.6% approximately
one-third of the consumption, comparing the percentage of the industrial consumption
to the total consumption of the Western Region was 5.5%, of the total consumption
and 1.6 of the total consumption in the Kingdom, and about 8% of the total industrial
consumption in the Kingdom. This resulted from the big number of factories which
were estimated to about one-third of the factories in the Kingdom.
The average share of subscribers in the Western Region ranged between 24,075 KW/H
and 25,586 KW/H. It was less than the average share of the subscriber of the total
consumption in the Kingdom by about 7,000 KW/H. This less consumption may be
resulted from the decrease in the share of subscriber in the Western Region because of
the nature of the weather in the Western Region and the seasonal use of electricity in
Hotels and Furnished Apartments and Accommodation to meet the needs of visitors,
Pilgrims and Umrah performers, which represent a large portion of the subscribers in
the Western Region, especially in the cities of Makkah Mukarramah and Madinah
Munawwarrah as shown in Table (4-52) below.
- 121 -
Table (4 – 52)
The development of subscriber numbers and the consumed electric energy and the percentage of industrial
consumption and the average subscriber share of the total consumption in the Western Region from 2001/2002 To
2006/2007.
- 122 -
4-6-1-9 The Development of the Subscriber Numbers and the Volume of Consumed
Electricity Energy in the Province of Jeddah, According to the Categories of
Consumption:
Total subscribers in the province of Jeddah were 702,419 subscribers in 2004/2005,
the number increased to 775,319 in 2006/2007 i.e. increased by 72,900 or about
10.4%. Average residential consumption of categories was about 63% of the total and
commercial consumption was 11% and the industrial consumption was about 10%,
agricultural consumption was 0.2%, government consumption was 13%. Total
consumption for all the categories was about 23,025 Million KW/H in 2004/2005 and
rose up to 25,060 Million KW/H in 2006/2007 i.e. increased by 2,035 Million KW/H
or 8.8%.
Average consumption of residential categories was about 64% or almost two-thirds of
total consumption, commercial consumption was about 12% of the total, industrial
consumption was about 10% of the total and government consumption was about 14%
of the total as shown in Table (4-53) below:
- 123 -
Table (4 – 53)
The development of subscriber numbers and the volume of electric energy in the province of Jeddah
according to the categories of consumption from 2004 To 2007. (Consumption KW/H)
- 124 -
4-6-1-10 Comparison of the Number of Subscribers and The Volume of Consumed
Electricity the Province of Jeddah with that of Western Region and the Kingdom:
The average percentage of subscribers in the province of Jeddah was about 41% of the
total subscribers in the Western Region and the average percentage of consumption of
electric energy was about 53% of the total consumed electrical energy in the Western
Region.
The average percentage of subscribers in the province of Jeddah was about 16% of the
total subscribers in the Kingdom, and the average percentage of consumption of
electric energy was about 15.5% of the total electric energy consumption in all parts of
the Kingdom.
These percentages and figures showed the importance of the city of Jeddah, where
more than 40% of the subscribers in all cities and villages of the Western Region, who
consumed more than half of the region's electrical energy consumption (53) as shown
in Table (4-54) below:
- 125 -
Table (4 – 54)
The development of subscriber numbers and the volume of consumed electric energy in the province of
Jeddah according to the categories of consumption (Consumption KW/H)
- 126 -
4-6-2 Water Sector:
The Kingdom occupies the largest area of the Arabian Peninsula, an area with no
rivers and low rainfall; therefore it heavily depends on rain, underground water and
well spring for provision of drinking and agricultural water. The government of the
Kingdom gives importance to provide water from the very beginning where His
Majesty King Abdul-Aziz - May Allah have mercy on him – issued orders in 1344 H
for construction and rehabilitation of Ayn Zubaydah, and Al Zarqaa well springs in
Madinah Munawwarrah, he worked to provide drinking water to the Pilgrims and
Umrah performers and the people of the desert through digging wells and the
establishment of reservoirs and the construction of water catchments on the roads used
by Pilgrims and Umrah performers and the people of the desert, and in 1348 H he
ordered to import two equipments for the distillation and salination of salt water,
which formed the first nuclear for the first plant of desalination of sea water.
Since then the government was making efforts in the area of water projects,
construction, operation and maintenance aiming to diversify the sources, these efforts
resulted in projects of desalination of sea water till it became the largest producer of
desalinated water in the world (20%) of world production) and 42% of Gulf
production. This desalinated water provides about 60% of the country's need of water.
The government intended to have self-sufficient in food stuff so it encourage
agriculture through granting of loans to farmers from the Agricultural Bank, and
granting large area of agricultural lands, so the demand for water for agricultural
purposes increased till it reached 85% of the total consumption in the Kingdom,
followed by residential consumption in second place and the third place the industrial
consumption. The total water demand in 2005/2006 was 19,868 Million Cubic Meters
out of which 17,040 Million Cubic Meters (85.7%) of the total was for agricultural
purposes, 2,160 Cubic Meters (10.9%) for the purposes of the Municipality, and 666
Cubic Meters (3.4%) for Industrial purposes. The demand for water was increased
during the last two years which reached 23,905 Million Cubic Meters by the end of
2007/2008 i.e. increased by 4,034 Million Cubic Meters or (20%) as shown in Table
(4-55) below.
Table (4 – 55)
Water demand according to purpose From 2005 to 2008 (Million Cubic Meters)
% of
Years
2005/2006
2006/2007
2007/2008
Change
Agricultural purposes
17,042
16474
3.3
20919
Municipal purposes
2,160
2210
2.3
2270
Industrial purposes
Total
666
19,868
690
19,374
3.6
2.5
% of
Change
24.9
2.7
716
23,905
Source: Ministry of Water and Electricity, Annual Report 2008.
- 127 -
3.8
23.4
25,000
20919
16474
17,042
20,000
15,000
10,000
Agricultural purposes
Municipal purposes
Industrial purposes
716
2270
690
2210
2,160
666
5,000
0
2008 /2007
2007 /2006
2006 /2005
To meet this growing demand for water the government has planned to diversify the
sources of water and increase the productive capacity through establishment of New
Plants and re-organization, management, monitoring and maintenance.
4-6-2-1 Water Resources:
In view of the geographical nature of the Kingdom it has limited water sources, the
important of which is the rain water, for which a number of dams of various sizes and
types were constructed (such as powdery, the concrete and underground) and
underground, and desalination of sea water.
1) Rain Water:
The competent authorities used to provide clean drinking water to citizens in cities
and provincial centers from rain water through construction of dams, which were
increased in number and in the storage capacity as well as the purposes such as
control, irrigation, drinking and compensation, total number was 209 dams, and
the storage capacity 863,458 Thousand Cubic Meters in 2007/2008 i.e. increased
by 28 dams (13.4%) and the storage capacity increased by 34,483 Thousand Cubic
Meters (4.2%).
The numbers of controlling dams were 57 representing 27.3% of the total dams and
storage capacity was of approximately 25% of the total storage capacity of all dams.
The numbers of compensation dams was 134 dams in 2002/2003 representing
(64.1%) of the total dams, and the percentage of the storage capacity of 60% of the
total and their number was increased to 155 dams in 2007/2008 i.e. increased by 21
Dams (15.7%) and the storage capacity rose up to 522,961 Thousand Cubic Meters or
(60.6%) of the total storage capacity of all dams. The dams of irrigation were two
with storage capacity of 51,100 Thousand Cubic Meters, representing about 5% as an
average of the total storage capacity, no change was observed over the past five years.
The drinking water dams reached 16 dams in 2002/2003 with storage capacity of
73,169 Thousand Cubic Meters or (8%) in average of the total storage capacity.
More two dams were constructed in 2004/2005 and one dam in 2007/2008 making
a total of 19 dams with storage capacity of 82,398 Thousand Cubic Meters i.e.
increased by 9,229 Thousand Cubic Meters or 12.6% as shown in Table (4-56)
below:
- 128 -
Table (4 – 56)
Cumulative development of Dams and Storage Capacity from 2002/2003 To 2007/2008
- 129 -
2) Ground Water:
The Kingdom is one of the leading countries in the technology of drilling drinking
water wells in the world, the volume of non-renewable groundwater is 12 Billion
Cubic Meters, and the renewable groundwater and surface water is 8 Billion Cubic
Meters, covering more than 90% of the Kingdom consumption, so the government
dug wells for drinking water and other purposes, the number was increasing
significantly over the past years.
The total number of wells was 4,801 wells in 2002/2003 and increased till it
reached 5,825 well in 2007/2008 i.e. increased by 1,024 wells (21.3%) of the total
wells. The total wells of drinking water were 4,056 wells representing 84.5% of
the total wells in 2002/2003, the number was increased till it reached 5,179 in
2007/2008 representing (89%) of the total wells in the Kingdom, i.e. increased by
1,123 wells or (27.7%) of the total drinking water wells. The Control wells as well
as Agricultural wells remained the same and no increase was observed during the
past five years, the total number was 646 wells representing 11% of the total wells
in the Kingdom as shown in Table (4-57) below:
Table (4 – 57)
Cumulative development of the Governmental Wells (for various purposes) from 2002/2003 To 2007/2008
Types of Wells
2002/2003
2004/2005
2005/2006
2006/2007
2007/2008
Tube Drinking Water Wells
2,355
2,479
2,549
2,675
2,879
Manual Drinking Water Wells
1,701
1,882
1,993
2,055
2,300
Control Wells
356
356
356
356
356
Wells for Agricultural Purposes
290
290
290
290
290
Total
4,702
5,007
5,188
5,376
5,825
3,000
2,500
2,000
1,500
1,000
500
0
2007/2008
2006/2007
2005/2006
2004/2005
2002/2003
Tube Drinking Water Wells
Manual Drinking Water Wells
Control Wells
Wells for Agricultural Purposes
Beside the governmental well, the citizens in different parts of the Kingdom used to
dig wells for various purposes, the total number of private wells reached 114,752 wells
in 2004/2005 and the number increased to 127,007 wells in 2007/2008 i.e. increased
by 12,255 wells (10.7%).
- 130 -
The number of wells in Makkah Mukarramah region, Madinah Munawwarrah and
Jeddah was 6,986 wells in 2004/2005 representing more than 6% of the total wells in
the Kingdom in all the years. The decrease in the number of wells in Makkah
Mukarramah region is due to the geographical nature of the region and the small
number of farms and the availability of water from other sources such as desalination
plants, which provide the vast volume of drinking water to these areas, the number of
which in the Red Sea Coast is 24 Stations.
Riyadh region is ranked first containing about 43% of the total wells, followed by the
Northern areas that includes Qassim, Hail, Tabuk, AlJouf, Northern Frontier about
35% in all years, the increase in Private wells in these areas is due to spread of farms,
poultry farms and animal farms for dairy and meat as shown in Table (4-58) below:
- 131 -
Table (4 – 58)
The Cumulative Development of Private Wells (for different purposes) in all areas until the end of the
fiscal year 2007/2008
- 132 -
3) Water Desalination:
The General Organization for Desalination is an institution with legal independent
entity financially and administratively provides water from the desalination of sea
water on both West and East Coasts. 30 Stations were established for this purpose,
including 24 Stations on the West Coast (Red Sea) and 6 Stations on the East
Coast (Arabian Gulf). These Stations provide drinking water to large cities,
Shuaiba Station provided desalinated water to Makkah Mukarramah, Holy Places,
Jeddah and Taif. Jeddah plants provided water to the city of Jeddah. Yanbu plant
provided water to the Madinah Munawwarrah, Yanbu and the provinces along the
pipeline route. Shaqeeq plant provided water to Aseer region. Other Stations at the
Eastern Coast provided water to Riyadh region and Jubail. AlKhobar plants
provided water to Eastern region and Ahsa. Table (4-59) below shows the
distribution of water desalination plants.
Table (4 – 59)
Distribution of water desalination plants on the East and West Coasts
Names of Plants
Number
West Coast Stations:
Haql
Dhiba
Al Wajh
Amlaj
Rabigh
Aziziyah
AlBirk
Farsan
Jeddah
AlShaqeeq
Shuaiba
Yanbu
1
1
4
1
2
1
1
2
5
1
2
3
East Coast Stations:
AlKhafji
AlKhobar
1
2
Jubail
3
30
Total
4-6-2-2 Quantities of Produced Ground Water:
The ground water produced represents more than 45% of the water produced in the
Kingdom. The number of producing governmental and private wells was 132,832
ground water wells till the end of 2007/2008; these wells jointly produced 919.4
Million Cubic Meters of water. The wells of the Eastern region were in first place
produced 376.1 Million Cubic Meters of water, representing (41%) of the total
production followed by the wells of Riyadh region in second place which produced
233.3 Million Cubic Meters of water, representing 25.4% of the total production, then
- 133 -
in third place came Qassim wells that produced 112.8 Million Cubic Meters of water
representing 12.3% of the total production, and in the fourth place Tabuk wells which
produced 43.3 Million Cubic Meters of water representing 4.7%. The total production
of these four areas 83.4% of the total production of the Kingdom. It is observed that
the number of wells in Makkah Mukarramah region was low; the total production of
them was 16.8 Million Cubic Meters, representing 1.8% of the total production. The
low production of ground water in Makkah Mukarramah region might be explained by
the availability of water from desalination plants, and because of the lack of aquifers
carrier of water, Table (4-60) shows what was already explained.
Table (4 – 60)
Quantities of Produced Ground Water from Wells according to regions 2007/2008
Region
Quantity in Cubic Meters
Riyadh
Makkah Mukarramah
Madinah Munawwarrah
%
233,334,802
25.4
16,792,103
1.8
20,397,980
2.2
Qassim
112,784,290
12.3
The Eastern Region
376,150,456
41
Aseer
10,905,057
1.2
Hail
26,070,333
2.8
Tabuk
43,346,534
4.7
Baha
7,752,659
0.8
The Northern Frontier
12,312,552
1.3
AlJouf
35,195,634
3.8
Jazan
13,745,843
1.5
10,658,006
919,446,249
1.2
100
Najran
Total
Quantity in Cubic Meters
%1
%2
%1
%1
Riyadh
%4
%3
%5
%1
Makkah Mukarrammah
Madinah Munawwarrah
%25
Qassim
The Eastern Region
Aseer
Hail
%2
%2
%41
%12
Tabuk
Baha
AlJouf
Jazan
Najran
- 134 -
4-6-2-3 Quantities of Desalinated Water Produced from Desalination Plants:
Desalination plants supplied the major cities and towns by which the pipeline of
desalinated water passed. The production of desalination water rapidly increased
during the past seven years, where production increased in all plants from 885,731
Thousand Cubic Meters in 2002 to 1,092,943 Thousand Cubic Meters in 2008, i.e.
increased by 207,212 Thousand Cubic Meters or 23.4% nearly a quarter. In order to
meet the growing needs of the growing population during this period the production
fluctuated between increase and decrease. The production declined in the years 2002
(885,731 Thousand Cubic Meters) and in 2006 (1,036,929) i.e. decline of 12,844
Cubic Meters from the previous year, and it was also declined in 2007 to the 1,031,693
Thousand Cubic Meters approximately by 5,236 Thousand Cubic Meters from the
previous year. This decrease of production was because of the application of
rationalization programs of use of water. These programs saved about 20% of water
used in the homes during the years from 2005 to 2007. Jeddah plant used to provide
the city with desalinated water, and one may note the absence of uses of other sources
of water in this city. The production of the plant ranged between 132,979 Thousand
cubic Meters in 2006 and 148,896 Thousand Meters AM in 2008.
The average production of Jeddah plants during the previous years was 141,246 Cubic
Meters and desalinated water represents about 14% of the total production. This
quantity of water was used to provide the city of Jeddah and its suburbs and the water
desalination plant of Jeddah is the third after two plants one in Shuaiba and the other in
Jubail. The average production in Jubail plant was 35% of the total production, and the
plant provided the city of Riyadh and Jubail, then followed by Shuaiba plant in second
place which produced about 21% of the total production. This plant provided the
sacred capital with water in addition to fill in gap and shortage of water in Jeddah,
which is usually suffering from a lack of drinking water due to high and increasing
consumption year after year. Therefore the total production of these three plants is
more than 70% of the total production, as shown in Table (4-61) below:
- 135 -
Table (4 – 61)
Quantities of Produced Desalinated Water from Desalination Plants from 2002 To 2008 (Quantity in
Thousands Meters)
- 136 -
4-6-2-4 Quantity of consumed water and the number of subscribers from 2001 to 2008:
The major cities in the Kingdom reflect the continuing rise in consumption of water.
These cities are Riyadh, Jeddah, Madinah Munawwarrah, Yanbu, Makkah
Mukarramah, Taif, Dammam, Khobar, Aseer and Al Qassim. The total consumption
reached 956,559 Thousand Cubic Meters in 2001. It is increasing annually till it
reached the highest level in 2006, when it was 3,873,680 Thousand Cubic Meters i.e.
increased by approximately 2,917,121 Thousand Cubic Meters (305%) which means
that consumption was doubled during this period more than three times. In 2007 water
consumption decreased by about 238,723 Cubic Meters or 6%, the reduction was due
to the application of rationalization programs in the majority of large cities where the
Ministry of Water distributed free of charge tools and equipment for rationalization of
water consumption among citizens and government departments and some of the
private sector enterprises in order to reduce usage of consumed water for various
purposes.
The city of Riyadh, the largest city in the Kingdom was at the top place of water
consumption and ranked the first place with average consumption of 42% of the total
consumption in the Kingdom, followed by Jeddah in the second place with average
consumption of 17% of the total consumption in the Kingdom, and in the third place
the Two Holy Cities with an average consumption in each of about 8% of the total
consumption in the Kingdom, and the fourth place Dammam city with average
consumption of approximately 7.5% of the total consumption in the Kingdom. Thus
the total water consumption in these five cities was about 82.5% of the total
consumption in the Kingdom. The remaining percentage of 17.5% was distributed
among the rest of the cities at different percentages. The number of subscribers rapidly
increased from 706,069 subscribers in 2001 till it reached its highest level in 2006
when it was 849,177 i.e. increased by 143,100 subscribers or 20.3%. The city of
Riyadh ranked first with an average percentage of subscribers of 39% of the total
subscribers in the Kingdom, followed by Jeddah in second place, where the average
percentage of subscribers was 20% of the total subscribers in the Kingdom, followed
by Makkah Mukarramah in the third place, where the average percentage of
subscribers was 8% of the total subscribers in the Kingdom, then in fourth place
Madinah Munawwarrah with average percentage of 7% of the total, and in fifth place
the city of Dammam with an average percentage of subscribers of 6% of the total. The
average percentages of subscribers in these five cities was 80% of the total and the
remaining 20% of subscribers was distributed among the rest of the cities at different
percentages as shown in Table (4-62) below:
- 137 -
Table (4 – 62)
The Quantity of Consumed Water and the Number of Subscribers in the Main Cities for the period from
2001 To 2007 (Quantity in Thousands of Cubic Meters)
- 138 -
Qassim Qnty. of Water
%6
Aseer Qnty. of Water
%3
Khobar Qnty. of Water
%5
Dammam Qnty. of Water
%8
Riyadh Qnty. of Water
%42
Taif Qnty. of Water
%3
Makkah M Qnty.
of Water
%6
Yanbu Qnty. of Water
%1
Madinah M
Qnty. of
Water
%9
Jeddah Qnty. of Water
%17
4-6-2-5 Comparison of consumed water and the number of subscribers in Jeddah with
that of Makkah Mukarramah region and the Kingdom:
Jeddah is the first city in the Western Region in terms of population and the second
Kingdom -wise, so it is one of the major cities in the Kingdom that consumed more
water. The total water consumption in 2001 was about 163,254 Thousand Cubic
Meters, representing 66.5% of the total consumption in Makkah Mukarramah region
and 17% of the total consumption in the Kingdom. The water consumption was
doubled nearly three times and reached 650,000 Cubic Meters (298%) in 2005
representing 65% of the total consumption in Makkah Mukarramah region and 18.1%
of the total consumption in the Kingdom.
Statistics showed that the average water consumption over the last seven years was
about 64% of the total consumption in Makkah Mukarramah region which was
approximately two-thirds and it was representing approximately 17% of the total
consumption in the Kingdom.
Consumption of water was significantly grew during the same period; the annual rate
of growth of water consumption was 32.6%. The number of subscribers increased
steadily during the same period where the number rose from 139,347 subscribers in
2001 to 159,730 subscribers in 2008 i.e. increased by 20,383 subscribers or 14.6%,
compared to the numbers of subscriber in Jeddah with the number of in the Western
region and the Kingdom, it represents about 58% of the total number in the Western
region, and about 19% of the total number in the Kingdom. The annual rate of growth
was 2% of the total subscribers as shown in Table (4-63) below:
- 139 -
Table (4 – 63)
Comparison of Water Consumption and the number of subscribers in the city of Jeddah with total in
Makkah Mukarramah region and the Kingdom from 2001 To 2007 (Quantity in Thousands of Cubic
Meters)
- 140 -
4-6-3 Gas Sector:
Oil and Natural Gas Sector is one of the fossil energy sources that have been formed
over thousands of years under the ground and in the depths of the oceans. Saudi Arabia
is one of the biggest countries in the world for Oil and Gas production. It supplies oil
to many countries in the world. It is the biggest oil exporter in OPEC countries. It also
produces natural gas as by-product of oil production. Large quantities of gas were
burned in the air in the sixties and Seventies of last century. However, a gas industry
was established to meet the domestic consumption in the Kingdom and nothing was
exported.
The Kingdom established a number of refineries in the Eastern and Central Regions,
Jeddah, Jubail and Yanbu to meet the domestic needs of petroleum products and
export the surplus with a view to add value of petroleum products and thereby increase
the income from the oil sector.
4-6-3-1 Gas:
Available information indicated that more than 70% of Natural Gas is by-product of
oil production and it is linked directly to oil fields, 90% of the gas is produced in the
fields of the Eastern Region where the production of Ghawar field only represents
30% of the total production. The remainder quantity produced from thirteen fields
distributed in the areas of oil production.
The availability of gas production from the Ghawar field is about 530 Cubic Feet per
barrel of crude extracted while the quantity of gas extracted from the field of Safaniyah is
920 Cubic Feet per barrel of crude extracted oil. Gas industry started through private
companies working in the field of distribution of gas and the unfair competition was
observed, so the government interfered and merged them in one company licensed to
manufacture and distribute the gas in 1979 and was given privilege and the right of
producing oil, marketing petroleum liquid gas in all regions of the Kingdom. the uses of
natural gas in the Kingdom varies between Electric Power Generation, Petrochemical
Industries, Oil Industry, Cement Industry, Aluminum Industry and other industries in
addition to domestic uses such as cooking gas.
It should be noted that the Kingdom does not export or import natural gas which
means that it consume all the production here, so gas prices remained stable for long
periods of time and it doesn’t affected by global changes in the prices, depending on
the change in oil prices because of their link together as major source of energy and
similar uses.
The gas is used for cooking, so the company provided more than Seven Million Cylinders
of two sizes one of them is 26.5 Liter 11 Kg and the other size of 52.5 Liter 22 Kg of gas.
The company is responsible for manufacturing, maintenance and replacement of damaged
cylinders free of charge, and ensures that all cylinders under exchange are safe for use and
conform to the specifications of the Saudi and Global Standards. The company distributes
the gas through Seven Major Stations in the main cities such as Riyadh, Jeddah, Taif,
Dammam, Madinah Munawwarrah, Qassim and Abha.
- 141 -
1) The daily average production of oil refineries in the Kingdom:
Saudi Aramco is the main production source of refined products to meet the domestic
needs of the Kingdom from all products. It established Seven refineries distributed in
the different areas of the Kingdom, the daily average production was 1795 Million
barrels of refined products in 2002, and the production was increased steadily till
reached 2,100 Million barrels per day in 2008, i.e. increased by 305 Million barrels or
17%. Ras Tanura refinery is the largest one, its production is nearly a quarter of the
total production (24%), followed by Rabigh refinery in the Second place which
produces nearly one fifth of production 19%, the Third largest refinery is Samerf
which produces about 18.5% of the total production, and the Fourth largest refinery
SASREF refinery that produces an average daily production of 16% of the total
production, then the Fifth largest refinery is in Yanbu, the average production is 13%
of the total production and the Sixth largest refinery in Saudia is Riyadh refinery with
daily average production of 6% of the total, then ranked the Seventh and last one is
Jeddah refinery with average daily production of 4% of the total daily production of
all the refineries in the Kingdom. These refineries provide self-sufficiency of various
refined products, and the remainder is exported except the gas which is consumed
locally as mentioned above. Table No. (4-64) below illustrates the above information.
Table (4 – 64)
Daily production capacity of the refineries of oil products from 2002 To 2008
(Production in Million Barrels)
Year / Refinery
2002
2003
2004
2005
2006
2007
Ras Tanura
Riyadh
Jeddah
Yanbu
Rabigh
Samerf
SASREF
Total
2008
325
115
60
225
400
365
325
115
60
225
400
365
525
122
77
235
370
400
525
120
84
325
370
400
535
121
78
215
375
403
549
125
79
232
374
354
550
120
85
235
400
305
1,795
305
1,795
305
2,034
313
2,137
308
2,035
304
2,017
310
2,100
Source: Ministry of Petroleum and Minerals, Annual Report 2008.
SASREF
%8
Samerf
%10
Rabigh
%10
Year / Refinery
%53
Yanbu
%6
Jeddah
%2
Riyadh
%3
- 142 -
Ras
Tanura
%8
400
2) Annual Production of Refined Products:
During the last seven years there was a fluctuation in the production of refined
products and natural gas, the production of Diesel was ranked first in all the years.
The production varied between 192.72 Million barrels in 2003 and 238.50 Million
barrels in 2008 and the average percentage was 33% of the total refined products
followed by Fuel Oil with average percentage of 28% of the total products, then
Gasoline with average percentage of 15% of the total production, then Kerosene
and Aircrafts Fuel with average percentage of 11% of the total production. The
total proportion percentage of these 5 products was 87% of the total production
and the remaining percentage was distributed among Jets Fuel, Asphalt and other
products.
The daily total production ranged between 597.46 Million barrels per day as
minimum in 2002 and reached its highest level in 2006 when the production was
720.64 Million barrels. The average annual production was 664.63 Million barrels
at annual rate of growth 1.8% as shown in Table (4-65) below:
Table (4 – 65)
Daily production capacity of the Oil refineries from 2002 To 2008 (Production in Million Barrels)
Year / Oil Products
2002
2003
2004
2005
2006
2007
2008
LPG
Gasoline
Jet Oil
Kerosene, Jet Fuel
Diesel
Fuel Oil
Asphalt
1,323
9,889
5,334
6,005
19,377
16,953
865
1,034
9,545
5,779
5,970
19,272
15,768
918
1,015
10,748
6,424
6,555
21,559
16,938
1,024
1,340
11,605
8,252
6,698
23,489
17,279
1,149
1,274
11,430
8,457
8,091
23,637
17,797
1,378
1,473
10,257
8,385
7,733
24,179
18,100
1,416
1,152
12,838
6,026
6,728
23,850
Other Products
Total
0.06
59,746
0.02
58,286
--64,263
--69,812
--72,064
--71,543
--53,602
1,504
1,504
25,000
LPG
20,000
Gasoline
Jet Oil
15,000
Kerosene, Jet Fuel
10,000
Diesel
Fuel Oil
5,000
Asphalt
Other Products
0
2008
- 143 -
2007
2006
2005
2004
2003
2002
3) The Production of Gas from 2002 to 2008:
The discovered gas fields till 2000 were fourteen fields, total production of which
was 57 Billion Cubic Meters of Natural Gas in 2002. The production increased till
it reached its highest level in 2007 when it was 85 Billion Cubic Meters i.e.
increased by 28 Billion Cubic Meters or 49.1%, the average annual production
over the past years was 73.1 Billion Cubic Meters at an annual rate of growth
5.5% as shown in Table (4-66) below:
Table (4 – 66)
Gas production from 2002 To 2008 (Quantity in Billions of Cubic Barrels)
Years
Quantity
2002
2003
2004
2005
2006
2007
2008
57
61.06
67.92
76.46
81.35
85
83
--7.1%
11.2%
12.5%
5.7%
4.5%
2.4%
Annual Growth Rate
---
5.5%
83
85
81.35
100
76.46
67.92
61.06
80
57
60
40
20
0
2008
2007
2006
2005
2004
2003
2002
4) The Domestic Consumption of Refined Products and Natural Gas:
The domestic consumption of refined products is distributed between the industrial
uses of the oil industry and other industries and public consumption. The total
consumption of refined products grew rapidly over the past years except 2006
when it decreased by 294.05 Million barrels or 25.3% which more than a quarter
of consumption. Then it increased till it reached 1,348.36 Million barrels in 2008
i.e. increased by 610.73 Million barrels or 82.8%.
Total public consumption was remarkably increased during the same period, it
increased from 640.24 Million barrels in 2002 to 891.82 Million barrels in 2008
i.e. increased by 251.58 Million barrels or 39.3%.
- 144 -
The industrial consumption was more than triple, increased from 97.39 Million
barrels in 2002 to 456.54 Million barrels in 2008 i.e. increased by 359.15 Million
barrels or (369%). This was due to the increase in the number of industrial firms
and multiple uses of these products. The public consumption of Diesel ranked in
the first place with an average consumption of 21% of the total public
consumption and about 18% of the total consumption with no industrial
consumption of this product. The industrial sector by itself of all the production of
Fuel Gas, which rapidly increased from 13.22 Million barrels to 18,893 i.e.
increased by 5.67 Million barrels or 43%, while the public consumed all the
production of Asphalt and Lubricants, Kerosene and Jet Fuel. The natural gas was
consumed by the public; the proportion of public consumption was approximately
four-fifths of total consumption i.e. average consumption percentage was 79% of
the total consumption. The industrial sector consumed about 21% of the total
production of natural gas, but the average public consumption of gas reached 92%
and the average of industrial consumption was 8% of the total consumption.
The consumption of Gasoline was ranked in the second place; the average
consumption percentage was 14% of public consumption and 12% of the total
consumption as shown in Table (4-67) below:
- 145 -
Table (4 – 67)
Domestic consumption of Refined Products and Gas from the years 2002 To 2008 (Quantity in Million Barrels)
- 146 -
5) Comparison of Gas sales according to Stations:
The National Gas Manufacturing Company used to sell gas for industrial uses and
to the public through the seven major gas Stations. The sales were rapidly
increased over the past five years, total sales rose from 951,873 Tons in 2004 to
106,150 Tons in 2008 i.e. increased by 117,277 Tons or 12.3% at an annual rate of
growth 2.4%.
Riyadh Station was in the First place with average sales percentage approximately
24.5%, came in the Second place Jeddah Station with average sales of 23.5%, and
in the Third place Dammam Station with average sales of 17%, in Fourth place
Abha Station with average sales of about 11%. Therefore the total average sales of
the four Stations was 76% i.e. more than three-quarters of total sales. The
remaining percentage was distributed between the three Stations at different
percentages. The increase in sales in these Stations was due to the high population
density in those cities where Riyadh city was ranked first place in the Kingdom
and the Jeddah city was in the second place in terms of population within the
Kingdom. The increase of sales working together with the increase of
consumption as shown in the above table showed the importance of Jeddah as a
source of production of oil products and as big consumers of those products as
shown in the Table (4-68) below:
Table (4 – 68)
Comparison of Gas Sales according to Stations from 2004 To 2008 (In Thousands of Tons)
Station
Year
2004
2005
2006
2007
Riyadh
Jeddah
Taif
Dammam
Madinah M
Qassim
Abha
Total
233,592
240,957
248,887
248,337
224,611
233,999
238,975
249,088
54,992
55,217
54,387
55,100
162,621
165,753
170,404
181,951
96,294
95,203
97,181
100,908
71,734
73,520
72,913
75,592
108,026
11,109
116,130
121,860
951,870
875,758
998,877
1,032,836
% of
Change
--2.5
2.4
3.4
2008
256,231
261,462
53,978
184,766
102,940
85,932
123,839
1,069,148
3.5
Source: Central Department of Statistics and Information, Statistical Year Book - Issue No's. 40, 41, 42 and 43.
1,400,000
1,200,000
261,462
256,231
1,000,000
184,766
181,951
102,940
123,839
121,860
85,932
100,908
75,592
97,181
116,130
11,109
108,026
72,913
71,734
96,294
Abha
Qassim
Madinah M
73,520
- 147 -
248,337
800,000
238,975
248,887600,000
233,999
400,000
240,957
224,611
233,592
170,404
53,978
55,100
54,387
55,217
54,992
165,753
95,203
2004
249,088
162,621
Dammam
2005
2006
200,000
0
Taif
2007
Jeddah
Riyadh
2008
Chapter Five
The Economic Sectors in Jeddah
5 – 1 The Industrial Sector
5 – 2 The Commercial Sector
5 – 3 The Agricultural Sector
5 – 4 Building and Construction Sector
5 – 5 Health Sector
5 – 6 The Banking Sector and Specialized Lending Institutions
5 – 7 The Tourism Sector
- 148 -
5- The Economic Sectors in Jeddah:
This chapter deals with the important productive and services of economic sectors in
Jeddah city and comparing them with the whole Kingdom and Makkah Mukarramah
region as well as their impact on the economic and social development and their
contribution to the national economy. These sectors are Industrial, Commercial,
Agricultural, Building and Construction, Health, Banking and Finance, Tourism and
Health, details of which will be shown as follows:
5-1 The Industrial Sector:
The government was especially interested in the Industrial Sector and gave it special
priority in all development plans considering it as the basic for providing the needs of
the country from all manufactured materials and a real addition to gross national
product after the main source (oil), in the present time and in the near future. In order
to perform its assigned role the government prepared the industrial development
strategy and granted the sector many incentives, exemptions such as Tariff Protection,
in the following pages there is the summary of the main features of these policies.
5-1-1 The Industrial Development Strategy:
The Kingdom worked through the Industrial Development Strategy to expand the base
of national industries through creation of secured and safe investment environment and
development and amendment of systems and frameworks that ensure the safety of the
investments in the industrial sector so as to encourage local and foreign investors to
invest in this sector in order to diversify the sources of the national economy and
enhance the private sector partnership in the development process. The important
factors made by the government in this regard are the establishment of infrastructure
and public utilities in the industrial cities, which include the construction of an
extensive network of Roads, Bridges, Dams, Ports, Airports, Electricity, Water and
Sanitation Systems to facilitate the provision and transportation of raw materials and
export of finished products. It also established Schools, Universities, Technical
Colleges, Technical and Vocational Institutes for Educating and Training Saudi Cadres
to carry out the Management and Operation of the Industrial Sector. In order to
increase the effectiveness of the industrial sector and raised its contribution to the
national economy the Ministry of Trade and Industry prepared comprehensive
strategy, which includes three major parts:
1) The First Part:
Provision of industrial competitive capabilities.
2) The Second Part:
Provision of infrastructure and services to serve the industrial sector.
3) The Third Part:
Modernization and amendment of appropriate laws and regulations.
The strategy addresses the development and implementation of the following policies:
- 149 -
1)
2)
3)
4)
5)
6)
7)
8)
9)
Development of production techniques and diversification of industrial products.
Transfer and nationalization of appropriate technologies.
Development of necessary skills for the advancement of the industrial sector.
Attraction of domestic and foreign investment in order to increase the added value
of the targeted industries.
Creation of industrial data base of information to achieve industrial integration.
Development of practical software programs to activate the standardization and
specifications to improve the quality with a view to facilitate entering the foreign
markets.
Stimulate the diversity of industries with added value advantages and
complementary industries.
Encourage investment in the infrastructure for development of industrial cities and
areas of technology.
Development and updating of the electronic tools to enhance the performance of
business as well as amendment of industrial regulations and procedures
electronically.
5-1-2 Incentives provided by the government to the Industrial Sector:
The government developed many policies to grant the following incentives to attract
investors to invest in the industrial sector namely are:
1) Giving land in industrial zones for construction of plants at nominal prices "8
Halalas per Square Meter".
2) Subsidizing the prices of Electricity, 12 Halalas KW/H.
3) Subsidizing the prices of Water and divided into five segments.
a. The First Segment: from (1 Cubic Meter to 50 Cubic Meters) two piasters per
Cubic Meter.
b. The Second Segment: from (51 Cubic Meters to 100 Cubic Meters) Three
Piaster per Cubic Meter.
c. The Third Segment: from (101 Cubic Meters to 200 Cubic Meters) Two Riyals
per Cubic Meter.
d. The Fourth Segment: from (201 Cubic Meters to 300 Cubic Meters) Four
Riyals per Cubic Meter.
e. The Fifth Segment: from (301 Cubic Meters and above) Six Riyals per Cubic
Meter.
Note that the consumption of the majority of the factories is among the first
three segments.
4) The prices of Diesel, 36 Halalas per Liter.
5) The prices of Fuel Oil for industry 12.5 Halalas per Liter.
6) Gas prices 75 Cents per Billion British Unit (BTU).
7) Special Commission and Services rates for loans provided by the Saudi Industrial
Development Fund.
a. Special Commission rate (2.5%) administrative fee.
b. A period of maturity varies from (5-10 years).
c. Grace Period: Two Years after the commencement of production.
- 150 -
5-1-3 Customs Tariff Protection:
The Ministry of Industry and Commerce laid the foundation for the protection of
national industries to compete with similar goods in local markets and the protection
measures are as follows:
1) The production of industries to be protected should be sufficient to cover the major
part of the needs of the local market.
2) The domestic production should be competitive in terms of quality so as not to
harm the consumer.
3) The prices of domestic products should relatively be higher than the prices of
imported products as a result of the high costs of production of the national
industry.
4) The industries to be protected should be important to the national economy and
this importance is measured through the following criteria:
a. The added value of the product.
b. Provision of employment opportunities by the industry, particularly in terms
of training and recruitment of Saudi manpower.
c. The volume of capital invested in the industry.
d. The duration of the proposed tariff continues for five years after which the
tariff should be as it was.
5-1-4 Financial Support to the Industrial Sector:
Besides the incentives provided by the government to the industrial sector, it had made
great efforts to encourage investors to enter the field through participating in many
industrial projects through the Saudi Industrial Development Fund, which played an
active role in supporting the national industry. S.I.D.F provided medium and long term
loans for new projects and expansion of old ones. The financing of the fund is up to
(50%) of the total cost of the project.
It also provided financial consulting marketing and technical support to these projects
beside continuous follow-up of the performance of the plants. SIDF loans include all
industrial investment opportunities for Saudis and foreigners. The number of loans
granted by SIDF to the industrial sector since its inception in 1394 (1974) until the end
of 2006/2007 were about 2,817 loans of total value of about 58,262 Million Saudi
Riyals were contributed to the establishment of 1999 industrial projects in various
parts of the Kingdom. The total disbursed amount of loans was approximately 38,157
Million Riyals and the recovered amount till the end of year 2007 was 27,019 Million
Riyals, which confirmed the success of benefited projects and the seriousness of the
private sector in the industrial investment.
5-1-5 The Industrial Cities:
The government established, "The Organization of Saudi Industrial Cities and
Technology Areas" to look after the industrial cities in the various regions of the
Kingdom. the total of which is 12 industrial cities Table (5-1), the total developed area
- 151 -
up to the year 2007 was approximately 1593.8 Million Square Meters and the number
of built factories in these developed cities was about 1,945 plants representing 48% of
the total factories in the Kingdom, the total of which was 4.048 plants which means
that the industrial zones have not so far able to take half of the existing plants,
therefore the organization is currently processed the development of a number of new
industrial cities in various regions such as the industrial area in Sudair 10 Million
Square Meters North of Riyadh, the city will be built through building, operation and
transfer of property to the government sector (BOT) System, and also the development
of the Second Industrial Cities in Jeddah and Dammam, the total net area which is 3.5
Million Square Meters and 4 Million Squares Meters respectively. They will be built
by (BOT) System in addition to that the development of the industrial city in Jazan are
of 2 Million Square Meters at a total cost of 17.5 Million Riyals paid as subsidy by the
government to the organization. At the same time the organization processed
rehabilitation of the number of old industrial cities by (ROT) System. The work by this
system started in February 2005 as well as licensing of the private sector to build five
private industrial cities, total area of approximately 4.3 Million Square Meters, in
addition to the two industrial cities of the Royal Commission of Jubail and Yanbu,
which are Jubail Industrial City and Yanbu Industrial City, with total area of One
Thousand Square Kilometer and 158 Square Kilometers, respectively as shown in
Table (5-1) below.
Table (5 – 1)
Existing Industrial Cities until 2004/2005 Total Developed Area and Number of Factories
Number of Existing
Industrial Cities
Developed Area (in Thousand Sq. Meters)
Plants
Riyadh
1,541,360
795
Jeddah
9,474
566
Dammam
17,591.2
425
Ahsa
1,500
44
Qassim
1,232.4
48
Makkah Mukarramah
731.1
49
Madinah Munawwarrah
17,500
1
Aseer
904
13
AlJouf
629
--Tabuk
1,350
1
Hail
770
3
Najran
Total
750
1,593,791.7
0
1,945
Source: Saudi Arabian Monetary Agency, Annual Report - Forty Third, 2008.
5-1-6 Contribution of the Industrial Sector to GDP:
The rate of growth of industrial activity was about 11.9 during the year 2006/2007
compared to the rate of growth of 15.5% in the previous year. The sectors contribution
to GDP varied from 9.4% in 2005/2006 and 10.8% in 2003/2004 as shown in Table
(5-2) below:
- 152 -
Years
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
Table (5 – 2)
The Contribution of the Industrial Sector to GDP
The Gross Domestic
Industrial Activity
% of Share
Product
679,163
69,206
10.2
699,680
72,975
10.4
796,561
86,267
10.8
929,946
95,827
10.3
1,172,399
110,706
9.4
2006/2007
1,296,457
123,912
% of Change
1.3
5.4
18.2
11.1
15.5
9.6
11.9
Source: Saudi Arabian Monetary Agency, Annual Report Issue No. Forty Third, 2008.
1,296,457
1,172,399
929,946
123,912
110,706
95,827
796,561
86,267
699,680
72,975
679,163
69,206
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2007 /2006 2006 /2005 2005 /2004 2004 /2003 2003 /2002 2002 /2001
The Gross Domestic Product
Industrial Activity
5-1-7 Size, Structure and Orientation of the Industrial Sector:
The objectives of the Eighth Development Plan designed the role to be played by the
private sector in general and the industrial sector in particular in the Economic and
Social Development as follows:
The Fifth Objective:
Diversification of the economic base depending on the promising fields such as
manufacturing industries, especially intensive energy industries and their related
products and the mining industry, tourism and information technology.
The Seventh Objective:
Increasing the contribution of the private sector in economic and social development.
The strategic plan of the Eighth Development Plan specified the basis of development
of the industrial sector as follows:
The Ninth Strategic Base: "Continuation of focusing on creation of appropriate
environment to increase the contribution of the private sector in economic and social
development and the intensification of government initiatives to encourage national
and foreign private investments and strengthening the overall competition capabilities
of national products."
- 153 -
It is clear from the general objectives and strategic bases of the Eighth Development
Plan the intension of the government towards diversification of the Saudi Economy,
and creation of positive role and actual contribution of the industrial sector to increase
the gross national product and enhancement of the competitiveness of the sector,
particularly in the light of the Kingdom 's association to the WTO, which created a
new situation for the competitiveness of the sector, this required urgent and effective
measures to increase the managerial and technical capabilities of the sector to be able
to compete for a better future. Therefore it is important to shed light on the present
situation of the industrial sector and the sources of its strength in preparation to
explore the future of the industry and prepare it to go on the right tract to achieve the
objectives of development plans.
5-1-8 Numerical Distribution of Productive Factories Classified by Industrial activity
and regions till the end of 2008:
The total productive factories until the end of 2008 were about 4,048 factories, the
Riyadh region ranked in the First place with a total number of 1,515 factories
representing 37.4% of the total, in the Second place Makkah Mukarramah region with
a number of 1,063 factories representing 26.3% of the total, ranked in the Third place
the Eastern region with a number of 904 factories representing 22.3%.
The total factories in the three regions are 3,482 factories representing 86% of the total
factories in the Kingdom and the remaining 14% of the factories was distributed
among the other ten regions at varying percentages. The non-metallic mineral products
industry ranked in first place in Riyadh and the Eastern region at percentage of 14.6%,
16.2% of the total factories in each respectively, while the first place was achieved by
food and beverage products in Makkah Mukarramah region at about 17% of the total
factories in the region.
The food and beverage products ranked in second place in Riyadh and the Eastern
regions at 12.8% and 13.3% of the total factories in the regions respectively, while the
factories of non-metallic mineral products ranked second in Makkah Mukarramah
region at 12.5%.
The factories of rubber and plastics products were ranked in third place in Riyadh and
the Eastern region at 10.5% and 11% in the two regions respectively. And similarly the
factories of rubber and plastics products ranked in the third place in Makkah
Mukarramah region at 11.3% of the total factories in the region.
The factories ranked in the fourth place were the materials and chemical products
factories in the three regions at the following percentages:
Riyadh region 9.7%, Makkah Mukarramah region 11%, and the Eastern region 9.7%
of the total plants in each region. Total factories in these four activities in each region
as follows:
1) Riyadh region 721 factories representing 47.6% of the total factories in the region
and 17.8% of the total factories in the Kingdom.
- 154 -
2) Makkah Mukarramah region 549 factories representing 51.6% of the total factories
in the region and 13.6% of the total factories in the Kingdom.
3) Eastern region 460 factories representing 50.9% of the total factories in the region,
and 11.4% of the total factories in the Kingdom.
This means that the total factories in the four activities in the three regions were about
1,370 factories representing 42.7% of the total factories in the Kingdom and these
percentages confirmed the domination of the four activities of the investment in the
region as well as in the Kingdom in general as shown in Table (5-3) below. Moreover
these percentages showed that these regions were more advanced than the others
because they contained more than 40% of factories in these activities.
- 155 -
Table (5 – 3)
Distribution of Productive Factories Licensed under the Protection and Encouragement of National
Industries and Foreign Capital Investment Law as Classified by Industrial Activity and Region up to the
end of 2008.
- 156 -
5-1-9 Comparison between the number of Productive Factories in Jeddah with the
factories in Makkah Mukarramah and the Kingdom until the end of 2008:
The total number of factories in the Kingdom at the end of 2008 was 4,048 factories
out of which 1,063 factories were in Makkah Mukarramah region, more than a quarter
of the total factories or 26.3%.
The total number of factories in Jeddah was 891 factories representing 83.3% of the
total number of factories in Makkah Mukarramah region and more than one fifth of the
total factories in the Kingdom representing 22% of the total.
The factories for food stuff and beverages are the largest portion of the factories in
Jeddah with a total of 144 factories representing 16.2% of the total factories in Jeddah,
and 80% of the food stuff factories in Makkah Mukarramah region and 22.3% of the
total factories in this activity in the Kingdom, followed by in second place Chemical
and material products industry, the number of which 103 factories representing 11.6%
of the total factories in Jeddah, 88.8% of the total factories of the activity in the region
and 29.9 % of the activity in the Kingdom.
Then in the third place non-metallic mineral products industry with a number of 102
factories representing 11.5% of the total in Jeddah, and ranked in fourth place rubber
and plastics products industry with a number of 99 plants representing 11.1%, and
ranked in the fifth place the basic metal industries with a number of 72 factories
representing 8% of the total factories in Jeddah, the total number of factories of these
five activities was 520 plants 58.4% of the total factories in Jeddah.
The textile industry factory was the largest portion of the factories representing 37.8%
of the total factories in the Kingdom and 94% of the total factories in Makkah
Mukarramah region. While manufacturing of refined petroleum products and nuclear
fuel placed at the lowest percentage in the Kingdom representing 14.9% of the total
factories in the Kingdom. The percentage of factories in Jeddah compared to Makkah
region varied between 73.7% as the lowest percentage of readymade clothes industry
and 100% as highest for three industries in Jeddah which are office machinery and
equipment industry, accounting and computers equipment and television industry and
the recycling industry, then came the textile industry at 94% as the highest percentage
after these industries.
The highest percentage of Jeddah factories compared to the total factories in the
Kingdom was achieved by accounting, computer and office equipment industry that
constituted 40% of the total factories in the Kingdom. And the lowest was achieved by
petroleum products and nuclear fuel industry that represented 14.9%.
It is noted that the manufacturing of food stuff products and mineral products and
chemical and plastics products are dominating the industrial activities in Jeddah
because they are depending on local raw materials of petroleum products as well as
local minerals.
- 157 -
These numbers and percentages of the various industries indicate the importance of
Jeddah as progressive industrial city, where most of the industries are concentrated in
Makkah Mukarramah region, more than four-fifths of the number of factories in the
region (83.8%) and more than fifth of the Kingdom factories are located in Jeddah as
shown in Table (5-4) below:
Table (5 – 4)
Comparison between the number of Productive Factories in Jeddah with the Factories in Makkah
Mukarramah Region and the Kingdom up to the end of 2008.
Number
in
Jeddah
Activity
Mfg. of Foodstuff and Beverages
Manufacture of Textile Industry
Manufacture of Readymade Clothes
Manufacture of Leather Products
Mfg. of Wood and Wood Products
Mfg. of Paper Industry and its Products
Mfg. of Printing, Publishing and Reproduction of Recorded Media
Mfg. of Refined Petroleum Products and Nuclear Fuel
Mfg. of Materials Industry and Chemical Products
Mfg. of Rubber and Plastic Products
Mfg. of Non-Metallic Products (Other Products)
Mfg. of Basic Metal Industry
Mfg. of Construction and Metal Product
Mfg. of Machinery and Equipment
Mfg. of Office, Accounting and Computer Equipment
Mfg. of Electrical Machinery and Equipment Unclassified elsewhere
Mfg. of Radios, Television and Telecommunication Equipment
Mfg. of Medical Devices, Measuring and Optical Instruments and Watches
Mfg. of Motor Vehicles and Trailers
Mfg. of other Transport Equipment
Mfg. of Furniture Industry, Unclassified Industries elsewhere
Mfg. Recycling (Metal / Non-Metal)
Total
Source: Ministry of Commerce and Industry, the Industrial Information Base.
144
31
14
12
15
42
24
11
103
99
102
72
55
45
2
26
6
3
23
4
57
1
891
Makkah
Mukarramah
Region
%
Number
Jeddah
180
80
33
94
19
73.7
15
80
16
93.8
47
89.4
29
82.8
14
78.6
116
88.8
120
82.5
133
76.7
84
85.7
64
86
51
88.2
2
100
27
96.3
6
100
4
75
28
82.1
5
80
69
82.6
1
3
1,063
83.8
Total Number of
Factories in the
Kingdom
%
Number
Jeddah
647
22.3
82
37.8
72
19.4
45
26.7
53
28.3
139
33.8
115
20.9
74
14.9
394
29.4
435
22.8
658
15.5
287
25
280
19.6
212
21.2
5
40
95
27.4
20
30
12
25
117
19.7
13
30.8
290
19.7
100
33.3
4048
22
5-1-10 Comparison between the size of financing of Factories in Jeddah with that of
Makkah Mukarramah Region and the Kingdom until the end of 2008:
The total funding of productive factories in the Kingdom was 334.7 Billion Saudi
Riyals, and the size of investment in Makkah Mukarramah region was SR. 53.3 Billion
representing 16% of the total industrial investment in the Kingdom. The size of
industrial investment in the city of Jeddah was SR. 37.6 Billion representing 70.7% of
the total investment in Makkah Mukarramah region and 11.2% of the total investment
in the Kingdom.
The volume of investment in most industries is more than 92% of the volume of
investment in Makkah Mukarramah region and 25% of the volume of invest in the
Kingdom. Foodstuff and beverage was ranked in First place in terms of investment
volume amounted to SR. 9.4 Billion representing quarter of the total investment in the
city of Jeddah (25%), followed by Non-metallic mineral products industry in the
Second place, volume of investment amounted to about SR. 4 Billion representing
10.6% of the volume of investment in Jeddah, then ranked the in Third place the
industry of chemical materials products with the volume of investment amounted to
- 158 -
about SR. 3.9 Billion representing 10.4% of the volume of investment in Jeddah, then
ranked in fourth place the manufacturing of minerals amounted to about SR 3.7 Billion
representing 9.8% of the total investment in Jeddah, then ranked in the Fifth place the
manufacturing of rubber and plastics products amounted to about SR. 3.1 Billion
representing 8.2% of the total investment. The total investment of these five activities
amounted to SR. 24.1 Billion representing about two-thirds of the total investment in
the industrial sector in the city of Jeddah (64.1%).
These huge investments in the industrial sector in Jeddah showed the importance of
Jeddah as an Industrial Center which ranked second in the Kingdom after the city of
Riyadh, Table (5-5) below shows that:
Table (5 – 5)
Comparison between Financing of Productive Factories in Jeddah with those of Makkah Mukarramah
Region and the Kingdom up to the end of 2008. (Amount in Million Saudi Riyals)
Financing
in
Jeddah
Activity
Total
9,234.23
1,521.72
118.24
116.80
224.48
2,214.77
1,374.91
323.34
3,892.55
3,132.70
4,037.48
3,711.08
1,786.70
1,035.28
34.20
2,499.28
85.63
22.62
731.79
72.12
1,294.69
1.00
37,644.60
Financing in
Makkah Mukarramah
Region
Number
%
Jeddah
10,396.74
1,558.37
184.68
140.31
227.68
2,257.47
1,406.53
8,631.94
4,038.45
3,313.17
9,341.41
3,964.22
1,824.05
1,066.01
34.20
2,502.26
85.63
23.14
787.82
73.25
1,396.38
1.00
53,254.7
90.6
97.6
64
83.2
863.97
98.1
97.7
3.7
96.3
94.5
43.2
93.6
98
96.2
100
99.8
100
97.8
92.9
98.5
92.7
100
70.7
Financing in the
Kingdom
%
Jeddah
Number
31,523.52
3,469.83
654.29
620.61
863.97
5,697.81
3,666.32
136,890.54
30,730.52
10,972.49
4,630.74
34,364.64
6,507.72
4,906.36
660.20
8,045.10
942.47
54.05
2,019.09
252.48
5,070.57
40.00
334,762.32
29.9
43.9
28.2
18.8
26
38.9
37.5
0.2
12.7
28.5
8.7
10.6
27.5
20.9
5.2
31.1
9
41.9
36.2
28.6
25.5
2.5
11.2
5-1-11 Comparison between Manpower in the Productive Factories in Jeddah with the
size of Manpower in Makkah Mukarramah Region and the Kingdom:
The total Manpower employed in the industrial sector was 436,679 workers up to the
end of 2008 out of which 118,869 were working in Makkah Mukarramah region
constituted 27.2% of total manpower in the Kingdom i.e. more than a quarter of the
workers. The people working in Jeddah factories were 107,673 workers representing
90.6% of the total workers in Makkah Mukarramah region and 24.7% of the total
workers in factories around the Kingdom i.e. about one quarter.
25,814 workers were working in the activity of foodstuff and beverages representing
24% of the total workers in the factories in Jeddah followed by workers in the activity
of non-metallic and mineral products industry which ranked as Second, numbering
- 159 -
11,007 workers representing 10.2% of the total workers in Jeddah factories. In the
Third place came the activity of rubber and plastics products with about 10,572
workers representing 9.8%, in Fourth place the workers in basic metal industries,
where the number was 10,551 workers representing 9.8% and in Fifth place the
activity of chemical products and materials industry in which the number of workers
was 8,393 representing 7.8% of the total workers in Jeddah factories. The total
workers in these five activities were 66,337 workers representing 61.6% of the total
workers in Jeddah factories and 55.8% of the total workers in Makkah Mukarramah
region and 15.2% of the total workers in the Kingdom.
The percentage of workers in each of the previous activities in the city of Jeddah,
compared to the percentage of workers in the same activity in Makkah Mukarramah
region varied between 78.4% and 94.5% and between 26.4% and 33.5% if compared
to workers in the Kingdom.
These figures and percentages illustrate the importance of job opportunities in the
industrial sector, which employed more than 90% of workers in the sector in Makkah
Mukarramah region and about a quarter of workers in the sector (24.7) throughout the
Kingdom as shown in Table (5-6) below:
Table (5 – 6)
Comparison between Manpower in the Productive Factories in Jeddah with the size of Manpower in
Makkah Mukarramah Region and the Kingdom up to the end of 2008.
Activity
Total
Manpowe
r in
Jeddah
Manpower in Makkah
Mukarramah Region
%
Number
Jeddah
Manpower in the
Kingdom
%
Number
Jeddah
25,814
3,801
1,008
908
1,207
5,910
2,817
2643
8,393
10,572
11,007
10,551
6,000
3,668
65
4,404
341
178
3,245
241
4,881
19
107,673
28,343
3,969
1,646
1,036
1,220
6,035
2,990
3320
8,968
11,368
14,032
11,208
6,316
4,092
65
4,414
341
202
3,507
259
5,520
19
118,869
76,999
12,716
7,491
3,840
4,298
14,748
10,143
22,841
33,611
38,182
65,942
40,019
24,545
21,863
2,046
17,114
1,851
332
10,905
1,166
26,264
123
437,679
91.0
95.8
61
87.6
99.00
98.0
94.2
79.6
93.6
93.0
78.4
94.1
95
89.6
100
99.7
100
88.1
92.5
93.0
88.4
100
90.6
33.5
31.2
13.4
23.6
28
40.0
24.8
11.6
25.0
27.7
16.7
26.4
24.4
16.8
3.2
25.7
18
53.6
29.8
20.7
18.6
15.4
24.7
5-2 The Commercial Sector:
The main economic activities of the majority of the population in Saudi Arabia before
the oil extraction were concentrated in agriculture, grazing and livestock products,
fishing and extraction of pearls as well as trade which was practiced by the inhabitants
of the Arab Island since ancient times in the famous commercial centers such as
- 160 -
Makkah Mukarramah, Jeddah, Madinah Munawwarrah and Al-Alsa, the Holy Quran
recorded the commercial activity in Surah Quraish in the winter and summer trips.
5-2-1 The Importance of Commercial Sector to the National Economy:
The government of the Kingdom adopted principles of free economy based on the
Islamic Sharia Law, which allowed the freedom of property ownership dispose of the
capital wealth in accordance with Sharia Law. The Sharia Jurisdiction worked to
protect the individual property and freedom of the individual to work in all activities in
the context of achieving all public interests and ensure the integrity of financial
transactions and they are free of impurities.
In this Legal Context, the private sector was in general and the commercial sectors in
particular were developed, the sector is working to meet the needs of the citizens as
well as the development needs. The sector was grown and developed with the growth
and development of the state. The development of the sector started in two regions the
Western and Eastern regions of the country where there are appropriate economic
conditions. The existence of the Two Holy Mosques in the Western Region worked as
an active role in the prosperity of trade, and the extraction of oil in the Eastern Region
worked as a factor leading to new activities of business and industry associated with
oil industry. These activities were to meet their needs and to meet the manpower needs
such as food commodities, housing and others. Subsequently the services and means of
transport and communication were developed so the dealers in the areas of the
Kingdom entered into new investments. Moreover regional and international trade
grew to provide the requirements that cannot be provided by the local market. These
activities expanded day by day till the emergence of international trade to import
various goods. Then followed by representation of commercial companies and
commercial agencies and thus the traditional trade changed from local distributor to
the representative or agent of the world's major companies, and in this context, the
Kingdom signed the First Commercial Agreement in the history of the Kingdom in
1933 with the United States of America, and International Trade Agreements with
many countries in the world were followed till they exceed One Hundred.
Extraction of Oil led to the emergence of the need to secure the growing needs and
services of ARAMCO especially after the expansion in the production and export. The
company was fully dependent on the private sector in construction, maintenance,
insurance, transportation, paving roads and catering. These activities led to the
emergence of new contractors and traders, at the same time the trade developed in the
Western region after the preparation of Jeddah as a place of the Diplomatic Missions
and the establishment and expansion of the Airport and the Seaport for reception and
processing of passengers and goods.
At the beginning of the Seventies of the Twentieth Century the government began the
planning to benefit from the proceeds of the oil during boom times, then construction
of infrastructure and prepared the First Development Plan in 1390-1395 (1970-1975)
and was followed up by Seven Plans till the Eighth Development Plan 1426-1430
(2006-2010). The private sector in general and the commercial sector in particular
- 161 -
played distinctive roles in contributing constructively in the economic activities and
the success of the programs of successive plans.
Based on the expectations of the Eighth Development Plan 1426-1430 (2006-2010) to
increase the added value of the commercial sector, the annual rate of growth of
restaurants and hotels estimated to about 5.2% and this growth will lead to an increase
in the contribution of the sector to the gross domestic product. The results of the two
year 2005/2006 and 2006/2007 indicated that the rate of growth in this sector exceeded
the estimates of the plan. They were more than 6% and the percentage contribution of
this sector in GDP varied between 32.7% in 2006/2007 and 45% in 2001/2002 as
It is expected that the increase in commercial activities will pace with the growing number
of population, so the purchasing power will increase especially in the light of the
implementation of the new projects included in the plan and the four economic cities to be
established in Rabigh, Hail, Madinah Munawwarrah and Jazan. Moreover the joining of
the Kingdom 's to the WTO in 1426 (2005) and the open economy policy will result in
releasing the restrictions on trade, as well as the implementation of the regional economic
agreements as well as trade agreements such as the GCC Agreement and the agreements
of the ESCWA, and the Great Arab Free Zone Agreement. It is expected that commercial
sector will benefit from them in the free movements of import and export trade and
therefore the prosperity of the growing inter trade and thus the expansion of its role in the
development of the national economy.
Table (5 – 7)
Contribution of the Commercial Sector in the Gross Domestic Product from 2001 To 2007.
Commercial
Years
GDP
% of Share
% of Change
Sector
2001/2002
679,163
45.0
45.0
3.9
2002/2003
699,680
314,351
44.9
2.8
2003/2004
796,561
337,966
42.4
7.5
2004/2005
929,946
366,866
39.5
8.6
2005/2006
1,172,399
403,177
34.4
9.9
2006/2007
1,296,457
424,440
32.7
5.3
Source: Saudi Arabian Monetary Agency, Annual Report Issue No. Forty Third, 2008.
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2007 /2006 2006 /2005 2005 /2004 2004 /2003 2003 /2002 2002 /2001
GDP
- 162 -
Commercial Sector
5-2-2 Size, Structure and Orientation of the Commercial Sector:
The government plans since the beginning specified the role to be played by private
sector in general and the commercial sector in particular in the economic and social
development, the Fifth Objective of the Eighth Development Plan stated that:
The Fifth Objective: "Diversification of the economic base, depending on the
promising areas such as manufacturing industries, especially intensive energy
industries and the mining industry, tourism and information technology." The
commercial sector is playing supportive role to the industrial sector in provision of
inputs of the industry and purchase of products, export and marketing of products
locally and abroad.
It is also created the appropriate atmosphere of freedom to own property and freedom
of trade and free taxation of some goods, and to improvement of the legislative
environment through issuance of the regulations governing domestic and foreign
investment in order to encourage the commercial sector to play a positive role in the
social and economic development through active contribution in investment and
engagement in big projects which contribute to the growth and development of the
nation and provide job opportunities for Saudi youth of both sexes. Consequently
increasing the gross national product, and enhance the competitive capabilities of the
commercial sector in the light of the Kingdom's joining to the World Trade
Organization (WTO), which created a new situation that must be confronted with
urgent and effective measures, such as improving administrative and technical
capabilities and flexibility in shifting from product to another and improvement of the
means of production along with its development and upgrading the technology and
raising the efficiency of Manpower after provision of good quality of the products, and
raising the efficiency of the sales capabilities of the commercial sector in order to be
able to compete in local, regional and international markets and then starting to look
for a better future.
This vital sector can move towards the achievement of these objectives by using its
historical heritage, which was built by the first generation of traders, and using of
developed techniques created by the second generation that have accumulated
experience and knowledge that help them to play the growing role. This part of the
study will discuss the present situation of the commercial sector and the points of the
strengths so as to activate them and strengthening the weak points wherever found, and
to seek ways to solve the problems that face the sector so as to put the commercial
sector on the right track to achieve its objectives through the achievement of the
overall objectives of the economic and social development plans of the country.
5-2-3 Numerical and Percentage Distribution of the Commercial Registration in Jeddah
from 2002 to 2008:
All types of Commercial Registration in the city of Jeddah were increased, the total
commercial registration increased from 3,688 in 2002 to 8,894 in 2008, i.e. increased
by 5,206 or 141% or approximately one and a half times. The number of establishment
- 163 -
registration increased from 3,331 in 2002 to 7,865 registration in 2008, i.e. increased
by 4,534 or 136%. The number of company registration increased from 357
registrations in 2002 to 1,029 registrations in 2008, i.e. increased by 672 registrations
or 188% or approximately doubled as shown in Table (5-8).
Table (5 – 8)
Numerical and Percentages Distribution of existing Commercial Registrations in Jeddah
from 2002 to 2008
Years
Establishments
Percentage
Companies
Percentage
Total
Percentage
2002
2003
2004
2005
2006
2007
3,331
3,377
4,299
5,159
4,905
5,391
90
89
88
89
87
85
10
333
560
663
707
920
357
11
12
11
13
15
3,688
3,810
4,859
5,822
5,612
6,311
100
100
100
100
100
100
2008
7,865
88
1,029
12
8,894
100
Source: Ministry of Trade and Industry - Information Center 2008.
8,000
7,000
6,000
5,000
Establishments
4,000
Companies
3,000
2,000
1,000
0
2008
2007
2006
2005
2004
2003
2002
5-2-4 Comparison between existing Commercial Registrations in the city of Jeddah with
those of Makkah Mukarramah Region and the Kingdom:
The total existing Commercial Registrations in Jeddah were 3,688 registrations in
2002 representing 56.5% of the total registrations in Makkah Mukarramah region and
12.6% of the total of the Kingdom. The number continued to increase till it reached
62,782 registrations in 2008 where it reached its highest level in number of
registrations 72% of the total of Makkah Mukarramah region and 14.2% of the total of
the Kingdom. The highest percentage of increase in comparison in Makkah
Mukarramah region was in 2007 when it reached 74.5% or about three-quarters of the
registrations in the region and the highest rate of increase in comparison with the
Kingdom was in the 2006 when it reached 18.2% of the total commercial registrations.
The percentages of total commercial registrations in Jeddah compared to Makkah
Mukarramah region was between 56.5% and 74.5%, and percentages of commercial
registration in Jeddah compared to the total of the Kingdom was between 12.6% and
18.2%.
- 164 -
Total commercial registrations of establishments in Jeddah were 3,331 registrations in
2002 representing 54.9% of the total registration in Makkah Mukarramah region and
12% of the Kingdom.
The commercial registration of the establishments in Jeddah reached their highest level
in numbers in 2008 when they were 11,115 registrations representing 70.8% of the
total registrations in Makkah Mukarramah region and 12.9% of the total registrations
in the Kingdom. They reached their lowest level in 2003 when they were5,907
registrations representing 57.2% of the total in the region and 10.8% of the total of the
Kingdom. The percentages of the total registrations of establishments varied between
54.9% and 73%, the percentage of the registration in Jeddah compared to the total
registration in the Kingdom varied between 10.8% and 17.5%.
The total registrations of the companies in Jeddah reached their lowest level in 2002
when they were 460 registrations representing 77.6% of the total registrations in the
region and 12% of the total registration in the Kingdom.
The company registration reached their highest level in 2007 when they were 1,029
registrations representing 84% of the total registrations in the region and 12.9% of the
total registrations in the Kingdom.
The percentages of the total registrations in Jeddah compared to the registrations in
Makkah Mukarramah region varied between 57% and 86.8%, noted that the
percentage was more than 75% in all yeas except 2003 when it was 57% which means
that more than three-quarters of the registrations in Makkah Mukarramah region were
in Jeddah.
The percentage of registrations in Jeddah compared to the registrations in Makkah
Mukarramah region varied between 16.5% and 26.4%, noted that the percentage was
more than 21% in all years except 2003 when it was 16.5%, i.e. more than fifth of the
companies registrations of the Kingdom were in Jeddah.
It is clear from this explanation that the city of Jeddah, ranked First in Makkah
Mukarramah region in terms of total number of registrations of all kinds and ranked in
Second place after Riyadh. This showed the importance of Jeddah as an important
commercial center with high number of establishments and companies of various
economic activities and contributed to the development and promoted the role of the
commercial sector in the national economy and provided of the needs of the citizens
and input for development as illustrated in Table (5-9).
- 165 -
Table (5 – 9)
Comparison between existing Commercial Registration in Jeddah with those of Makkah Mukarramah
Region and the Kingdom from 2002 To 2008
- 166 -
5-2-5 Numerical and Percentage Distribution of the licenses of free professions in
Jeddah since inception up to 2008:
The Ministry of Commerce granted licenses of free professions according to academic
disciplines, the total professions were about 80 professions, because of the big number
of free professions they have been grouped according to the similar nature of scientific
and academic disciplines; the number was reduced to 11 major consulting professions:
1) Engineering consultancy of all kinds and specializations
2) Economic, Management and Finance consulting
3) Legal consulting
4) Translation
5) Agricultural, Water and Environment consulting
6) Technical, Chemical and Laboratories consulting
7) Education and Social consulting
8) Security and Safety consulting
9) Computer consulting
10) Pharmaceutical and Health consulting
11) Information Technology and Telecommunications consulting
12) Others consulting
The total licenses of free professions in Jeddah were 1,866 licenses. The Economic,
Management and Financial consulting ranked First with 35% of the total, followed by
consulting of Engineering professionals in Second place they are more than 23%
followed by the Legal consulting in Third place 18%, in Fourth place ranked
Translation at 8% and the overall percentage of these four professions 84% of the
total. Remaining 16% was distributed among the rest of the Seven professions at
different percentages, ranging from 0.2% of the Technical and Chemical Laboratories
consulting and 5% of the Education and Social consulting as shown in Table (5-10)
below:
Table (5 – 10)
Numerical and Percentages Distribution of the Licenses of Free Professions in Jeddah
since inception and up to 2008
Type of Occupation
Number
Percentage
Engineering Consulting
Economic, Financial & Management Consulting
Legal Consulting
Translation
Technical & Chemical Laboratories Consulting
Educational & Social Consulting
Agricultural, Water & Environmental Consulting
Security & Safety Consulting
Computer, Information Technology & Telecommunications Consulting
Health & Pharmaceutical Consulting
Other Consulting
Total
437
657
338
155
3
92
22
29
28
47
58
1,866
23
35
18
8
0.2
5
1
2
1.8
3
3
100
Source: Ministry of Trade and Industry - Information Center 2008, Commerce Data Base.
- 167 -
5-2-6 Comparison between the Licenses of Free Profession in Jeddah and those in
Makkah Mukarramah Region and the Kingdom:
Total licenses of free professions in Jeddah were about 1,866 representing 75% of the
total licenses in Makkah Mukarramah region and 23% of the total licenses in the
Kingdom.
Five of free professions were more than 94% of the total professions in Makkah
Mukarramah region namely:
1) Economic Management Consulting 95%.
2) Legal Consulting 95%.
3) Translation 94%.
4) Health and Pharmaceutical Consulting 96%.
5) Miscellaneous Consulting 98%.
Whereas three major professions were at 100% in Jeddah which means that all these
licenses were in Jeddah and no offices or branches of these professions were in any
other city in Makkah Mukarramah region, namely:
1) Technical and Chemical Laboratories Consulting.
2) Agricultural, Water and Environment Consulting.
3) Computer, Information Technology and Telecommunications Consulting.
While the Engineering professions in Jeddah were the lowest compared to Makkah
Mukarramah region and the Kingdom where percentages were 46% and 12%
respectively. The licenses of economic, financial and management consulting in
Jeddah were the highest compared to the Kingdom representing 72% of the total
professions in the Kingdom, ranked in Second place the licenses of health professions
and pharmaceutical consulting compared to the Kingdom, they were nearly two-thirds
or 66% of the total licenses in the Kingdom, ranked in the Third place, other
consulting professions they were about one-third 34% of the total licenses in the
Kingdom.
The licenses of professions that more than fifth (20%) compared to the Kingdom were
five professions: Licenses of Translation, 27%, Education and Social Consulting 28%,
licenses of Agricultural, Environmental and Water Consulting 21%, licenses of
Security and Safely Consulting 22%, licenses of Computer, Information Technology
and Telecommunications Consulting 24% of the total of licenses in the Kingdom.
It is clear from this explanation that the licenses of free professions in Jeddah were
more than three-quarters (75%) of the total licenses of free professions in Makkah
Mukarramah region, and almost a quarter in the Kingdom (23%) as shown in Table
(5-11) below:
This shows the importance of Jeddah as a center of various kinds of consultancies
providing a good base for the businessmen and corporate to make them invest money
and how to enter new fields of business. Some offices look after the implementation of
- 168 -
commercial, industrial and real estate projects so as to ensure the quality of
implementation and the preservation of funds as well as the infrastructure in Jeddah in
particular and Makkah Mukarramah region.
Table (5 – 11)
Comparison between the Licenses of Free Professions in Jeddah and those of Makkah Mukarramah
Region and the Kingdom from the beginning up to the end of 2008
Type of Profession
Engineering Consulting
Economic, Financial & Management
Consulting
Legal Consulting
Translation
Technical & Chemical Laboratories
Consulting
Educational & Social Consulting
Agricultural, Water & Environmental
Consulting
Security & Safety Consulting
Computer, Information Technology &
Telecommunications Consulting
Health & Pharmaceutical Consulting
Other Consultings
Total
Number
in Jeddah
Number in
Makkah M
% of
Jeddah to
The
Region
Number in
The
Kingdom
% of Jeddah
to the
Kingdom
437
953
46
3,571
12
657
338
155
690
357
165
95
95
94
918
2,133
580
72
16
27
3
92
3
113
100
81
17
329
18
28
22
29
22
35
100
83
106
134
21
22
28
47
28
49
100
96
119
71
24
66
58
1,866
59
2,474
98
75
171
8,149
34
23
Source: Ministry of Commerce and Industry - Information Center Commerce Data Base 2008.
5-2-7 Foreign Trade Volume in the Kingdom from 2002 to 2008:
The Commercial Sector plays an important role in the movement of internal and
external trade, and contributes significantly in the movement of exports and imports. It
faced fluctuation of growth in the previous period. It reached its lowest level in 2003,
where it was 333,074 Thousand Tons valued at 271,741 Million Saudi Riyals and
reached its highest level in 2006, where it was 470,093 Thousand Tons valued 677,144
Million Saudi Riyals. Also the exports faced decrease in volume in 2003 and 2007 at
negative rates (14.7) and (7.8) respectively, but exports as a whole achieved a positive
average annual growth of 1.6%. But in terms of value has achieved its lowest level in
2002 where it was 254,898 Million Saudi Riyals and reached the highest level in 2007
where it was 874,403 Million Saudi Riyals i.e. increased by 619,505 Million Saudi
Riyals or 243% doubled twice and a half at an average annual growth of 15.1% as
- 169 -
Table (5 – 12)
Total Exports of the Kingdom from 2002 To 2008
Weight (Thousand
Value (Million
% of Change
Tons)
Saudi Riyals)
390,308
2
254,898
333,074
14.7
271,741
411,150
23.4
349,664
463,364
12.7
472,491
470,093
1.4
677,144
429,282
8.7
791,339
Years
2002
2003
2004
2005
2006
2007
2008
Average Growth
408,650
4.8
1.6
% of Change
12.3
6.6
28.7
22.3
43.3
16.9
874,403
10.5
15.1
Source: Central Department of Statistics and Statistical Information, Issue No. (43) 2008.
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
)Weight (Thousand Tons
)Value (Million Saudi Riyals
2008
2007
2006
2005
2004
2003
2002
The imports were faced positive growth in all years as they increased in weight from
24,773 Tons to 50,181 Thousand Tons in 2008, i.e. increased by 25,408 Thousand
Tons, representing 1.3% or the volume of imports doubled more than once during this
period. They increased in value from 116,931 Million Riyals in 2002 to 338,088
Million Riyals in 2008, i.e. increased by 221,157 Million Riyals or 189% they almost
doubled.
The volume of imports witnessed positive growth during this period, except in 2002
when negative growth was observed (1.3%). The imports achieved an average annual
growth rate of 11%.
The imports in terms of value they increased from 116,930 Million Riyals in 2002 to
338,088 Million Riyals in 2008 i.e. increased by 221,157 Saudi Riyals or 189% or
nearly doubled. Thus imports achieved a positive growth throughout the period at an
average annual growth rate of 17% as shown Table (5-13).
- 170 -
Table (5 – 13)
Total Imports of the Kingdom from 2002 To 2008
Weight
%
Value
(Thousand Tons)
of Change
(Million Saudi Riyals)
24,773
1.3
116,931
24,615
0.6
121,089
28,157
14.4
138,435
31,180
10.7
167,793
42,124
35
222,985
46,736
11.0
261,402
Years
2002
2003
2004
2005
2006
2007
2008
Average Growth
50,181
7.4
11
338,088
%
of Change
3.3
3.6
14.3
21.2
32.9
17.2
29.3
17.4
Source: Central Department of Statistics and Statistical Information, Issue No. (43) 2008.
350,000
300,000
250,000
200,000
)Weight (Thousand Tons
150,000
)Value (Million Saudi Riyals
100,000
50,000
0
2008 2007 2006 2005 2004 2003 2002
5-2-8 Comparison of Exports and Imports of Jeddah Outlets with Total Exports and
Imports of the Kingdom from 2002 to 2008:
The movement of Cargo through Jeddah Islamic Port and King Abdul Aziz Airport
was fluctuated during the past years, and it reached its lowest level in 2003 where it
was 22,817 Thousand Tons, at the same time the movement of Cargo through all ports
of the Kingdom was dropped by 357,689 Thousand Tons, and the percentage of
Jeddah outlets was 6.4% of the total of the Kingdom.
The movement of Imports and Exports at Jeddah outlets reached the highest level in
2008 where reached 42,410 Thousand Tons, representing 9.2% of the total exports and
imports of all Kingdom 's ports, the average range of imports and exports of Cargo
through Jeddah compared to Kingdom Ports was between 5.8% and 9.2%.
The average exports and imports through the outlets of Jeddah was 33,111 Thousand
Tons against an average handled cargo in all Saudi Ports 451,565 Thousand Tons, thus
the average percentage of exports and imports was estimated to 7.3% of the total as
- 171 -
Table (5 – 14)
Comparison of the volume of Foreign Trade at Jeddah Outlet with the total volume of Foreign Trade in
the Kingdom from 2002 To 2008 (Weight in Tons)
Exports & Imports at Jeddah
Outlets
Total Exports & Imports
Years
%
Jeddah
To The Kingdom
Port of Jeddah
King Abdul
Aziz Airport
Jeddah
Outlets
Kingdom 's
Ports
2002
2003
2004
2005
2006
2007
24,100
22,600
28,100
33,500
39,500
40,300
195
217
206
225
224
199
24,295
22,817
28,306
33,725
39,724
40,499
415,081
357,689
443,759
497,363
512,217
476,018
5.8
6.4
6.4
6.8
7.8
8.5
2008
42,200
210
42,410
458,831
9.2
Source: Compiled Data from the preceding Tables.
600,000
500,000
400,000
Exports & Imports at Jeddah Outlets
Port of Jeddah
300,000
Exports & Imports at Jeddah Outlets
King Abdul Aziz Airport
200,000
Total Exports & Imports Jeddah Outlets
100,000
0
Total Exports & Imports Kingdom's
Ports
2008 2007 2006 2005 2004 2003 2002
5-3 The Agricultural Sector:
The Kingdom known of its wide area and scarcity of water resources, as there are no
rivers or streams and with small amounts of rain, despite that the Kingdom's
population knew free grazing and agriculture as important economic activities. The
agriculture is concentrated in Oasis and Valleys, and surrounding areas. They used old
techniques and means in agriculture, such as Wells and Pumping Water through Water
Wheel till the unification of the Kingdom. Since then began the renaissance of
agriculture and the authorities paid great attention to agriculture and established Saudi
Arabian Agricultural Bank to meet the needs of farmers and provide agricultural inputs
to them. The Ministry of Agriculture issued Annual Agricultural Statistical Book,
which contains Data on all agricultural activities in the Kingdom at region level. The
Public Administration of Agricultural Affairs in Makkah Mukarramah issued annual
similar report. In view of absence of information in both reports about the province of
Jeddah like the numbers of farms and their areas, agricultural production and the
produced quantities, as well livestock production. This report was highlighted the
importance of the agricultural sector in the national economy in general and its
contribution to GDP and the size and orientation of the sector and highlighted the Data
of the sector during the previous development plan and the government support and
subsidized for the sector during the Eighth Development Plan.
- 172 -
5-3-1 The Importance of the Agricultural Sector in the National Economy:
Kingdom government recognized the importance of agriculture since the beginning of
Planning of Renaissance Development. The government knew that this country
depends on Ports in the provision of foodstuff, so the government worked hard to
provide the necessary sources to achieve the Agricultural Renaissance that aims to:
1) Provision of food security to all citizens by depending on its own available
resources.
2) Improve meant of the nutritional level of all citizens.
3) Reduction the cost of living.
4) Contribution to population stabilization and reduction of migration to the cities.
5) Conservation of natural resources and its development and rationalization of uses
in order to ensure the achievement of sustainable agricultural development.
6) Continuation of the contribution of the agricultural sector in the economic and
social development of society.
7) Conservation of consumption of potential water resources through adoption of
advanced methods of irrigation and the using of modern technologies.
The efforts of the departments looking after the agricultural sector were materialized in
achievement of many goals, the most important of them is provision of big part of the
Kingdom from many necessary items of food and reach self-sufficiency in Wheat,
Dates, Fresh Milk and Table Eggs covering 84% of the needs of the Kingdom from
vegetables and 61% of the fruit and 50% of the meat.
The importance of the agricultural sector is clearly observed in its contribution to the
GDP which continued to achieve positive growth rates over the past Seven years as it
is evident in Table (5-15) below, which indicates the rate of growth in the agricultural
sector was risen from 2.1% in 2002 to 2.9% in 2008 at an annual rate of growth 2%
and the average contribution to GDP was about 4.2% annually.
Table (5 – 15)
The Contribution of the Agricultural Sector in Gross Domestic Product (Amounts in Millions of Riyals)
The Gross Domestic
Agricultural
% Relative
Years
% of Change
Product
Activity
Classification
2002
679,163
35,708
5.3
2.1
2003
699,680
36,101
5.2
1.1
2004
796,561
36,454
4.6
1.0
2005
929,946
37,187
4.0
2.0
2006
1,172,399
38,280
3.3
2.9
2007
1,296,457
39,373
3.0
2.9
Source: Saudi Arabian Monetary Agency, Statistical Year Book 2008, Issue No. 43.
- 173 -
1,296,457
1,172,399
1,400,000
1,200,000
929,946
796,561
1,000,000
699,680 679,163
The Gross Domestic Product
800,000
600,000
Agricultural Activity
400,000
39,373 38,280 37,187 36,454 36,101 35,708
200,000
0
2007 2006 2005 2004 2003 2002
5-3-2 Size, Structure and Orientation of the Agricultural Sector:
The Agricultural Sector played a basic role in the march of Economic Development
through its contribution to achieve food security and diversify the economic base and
provide job opportunities and promote the balanced development among the different
regions of the Kingdom. The sector witnessed a remarkable development during the
successive development plans since the First Plan 1390/1395 (1970-1975) and up to
the current plan (Eighth) 1425/1430 (2005-2010).
These Plans identified the overall objectives for the development of the agricultural
sector which might be summarized as indicated in the Eighth Development Plan
1425/1430 (2005-2010):
1) Enhancement of the contribution of the agricultural sector in economic
diversification of the Kingdom economy.
2) Improvement of the economic performance of the agricultural sector to cope with
rapid local, regional and global changes.
3) Strengthening the capabilities of the investment in the agricultural sector for
provision of more job opportunities and improvement of the standard of living.
4) Preservation of the environment and the development of pastures and forests.
The agricultural is the sector achieved positive growth rates during the previous plans,
the latest of them Seventh Plan during which it achieved an average annual rate of
growth 2%. The added value of the sector increased from SR. 34.44 Billion in
2000/2001 to SR. 38.01 Billion in 2004/2005, with an average contribution of the
agricultural sector in GDP during the years of the Seventh Plan 5.5% and 4.4% in the
past three years.
The volume of investments during the Seventh Plan amounted to 18.8 Billion Riyals
which clearly indicated the importance of the sector and its continuity in attraction of
capital to be invested in it.
The share of the agricultural sector and the fisheries from granted banking loans to all
economic activities in 2000/2001 was about 1.5 Billion Riyals representing 0.9% of
total loans. This share has continued to rise until it reached 6.7 Billion Riyals
- 174 -
representing 1.5% of the total loans i.e. increased by 5.2 Billion Riyals which means
that the loans were doubled of about three and a half times (347%).
During recent years the agricultural policies were reviewed in a shape of taking the
necessary steps to reduce the consumption of water through rational use in the
agricultural sector. The ministry introduced advanced irrigation techniques to reduce
the cultivation of crops that need big quantity of water such as grain and fodders and in
this context, the cultivated grain area declined during the past years from 1.1 Million
hectares to 6.3 hectares or area reduced by 470 Thousand hectares, representing 43%
of the cultivated area, while the cultivated area of fodder decreased from 313
Thousand hectares to 137 Thousand hectares or reduced by 176 Thousand hectares,
representing 56% of the area, at the same time the farmers changed to cultivation of
crops with high efficiency in the use of water such as fruits and vegetables, the area of
vegetables increased by 26.1% and the area of fruits increased by 6.3%. Regarding the
field of agricultural production, the main agricultural products achieved positive
growth rates during the Seventh Development Plan, they achieved growth rates
ranging between (0.6%) to (5.5%) as shown in Tables No. (5-16) and (5-17).
Table (5 – 16)
The Development of Crop Areas during the Seventh Development Plan from 2000-2005
1419/1420 (2000)
1424/1425 (2005)
% of change during the
Description
Area
%
Area
%
Plan period
(1,000 Hectares)
Relative Share
(1,000 Hectares)
Relative Share
Grains
Fodder
Vegetables
Fruits
Total
693
251
92
190
1,226
56.5
20.5
7.5
15.5
100.0
634
195
116
205
1,150
55.3
17.0
10.1
17.6
100.0
-8.5
-22.3
26.1
6.3
-6.4
700
600
500
400
Fruits
- 175 -
300
200
Vegetables
100
Fodder
)Hectares1,000 Area (
)2004( 1424/1425
)Hectares1,000 Area (
)1999( 1419/1420
Source: Ministry of Economy and Planning, Eighth Development Plan 2006-2010.
0
Grains
Table (5 – 17)
The Development of main agricultural products during the Seventh Development Plan 2000-2005
(%) The Average
Product
1419/1420 (2000)
1424/1425 (2005)
Annual Growth Rate
Wheat
2,057
2,249
1.8
Red Meat
159
167
1.0
Poultry Meat
418
5.3
3.8
Eggs
136
140
0.6
Fresh Milk
1,224
937
5.5
Vegetables
1,896
2,281
3.8
Fruit
1,153
1,358
3.3
Fish
55
69
4.6
2,281
2,249
2,057
1,896
1,358
1,153
2,500
2,000
1,500
1,224
937
1,000
418
140 136
69 55
5.3
500
167 159
0
Fish
Fruit
Vegetables Fresh Milk
)1999( 1419/1420
Eggs
Poultry
Meat
Red Meat
Wheat
)2004( 1424/1425
For Livestock the numbers of Cows increased by 18.2%, while the numbers of Sheep
and Goats decreased by 1.4% and 5.4% respectively. The numbers of Camels
increased by about 1.6%, and the number of Poultry achieved significant increase
approximately by one-third (32.3%) as shown in Table (5-18) below:
Table (5 – 18)
The Development of the number of Animals and Poultry during the Seventh Development Plan 2000-2005
1419/1420 (2000)
1424/1425 (2005)
% of change
Type
during the
Traditional Specialist
Traditional Specialist
Total
Total
Plan period
Sector
Sector
Sector
Sector
Camels
255
-255
259
-259
1.6
Cows
131
149
280
139
192
331
18.2
Sheep
6,760
794
7,554
6,495
955
7,450
-1.4
Goats
2,368
-2,368
2,241
-2,241
-5.4
Poultry
485
342,700
343,185
511
453,580
454,091
32.3
Fisheries:
Regarding the Fisheries, the government took interest in helping the Fishermen in
Makkah Mukarramah region through subsidizing them in form of provision of
traditional and modern hunting means. The total number of Fishermen in Makkah
Mukarramah region in 2007 was 1,733 Fishermen, 1,038 out of them are professionals
- 176 -
representing 88.7% of the total of the region. Four out of them were investors
representing 0.2% and 191 were Patrols representing 11% of the total.
Regarding the hunting, means and instruments, the total hunting means in the region
were 2,167 in 2007. The Traditional means were 2,159 representing 99.6% and the
Modern ones were 8 representing 0.4% of the total.
The total workers in this activity were 2,831 workers. The number of foreigners was
2,603 workers representing 92% and the number of Saudi Workers was 228
representing 8% of the total workers as shown in Table (5-19) below:
Table (5 – 19)
The number of Fishermen, Hunting Tools and the Workers in Makkah Mukarramah Region in 2007
Description
Number
Percentage
A - Fishermen:
Investors
4
0.2
Professional Fishermen
1,538
88.8
Patrolling Fishermen
199
11
Total
1,741
100
B - Tools:
Modern Tools
8
0.4
Traditional Tools
2,167
99.6
Total
2,175
100
C - Workers:
Saudis
228
8
Non-Saudis
2,603
92
Total
2,831
100
Source: The General Directorate of Agricultural Affair, Makkah Mukarramah Region, Annual Report - 2007.
The total weight of the hunted Fish in the region was 4,303 Metric Tons, 949 Tons
were in Jeddah Province, representing 22% of the total, 1,113 Tons in Laith Province
representing 26% of the total and 1,407 Tons in Qunfudhah Province representing
34% of the total and 771 Tons representing 18% of the total hunted Fish in the region.
Table (5-20) below showed the details:
Table (5 – 20)
Hunted Fish in Makkah Mukarramah Provinces according to Provinces and Hunting Tools in 2006
(In Metric Tons)
Hunting Tool /
Province
Rabigh Province
Jeddah Province
Laith Province
Qunfudhah
Total
Entailed
Net
Sakhwah
Others
Total
627.7
376.2
1,018.3
1,316.1
3,338.3
142.5
363.5
94.7
153.9
754.6
-126
--126
1.0
83.3
--84.3
771
949
1,113
1,470
4,303
Source: General Directorate of Agricultural Affairs, Makkah Mukarramah Region, Annual Report - 2007.
- 177 -
For the development of the agriculturd sector the government continued to supports
the farmers in form of loans and subsidies provided through the Saudi Arabian
Agricultural Bank. The total amount of loans approved by the Agricultural Bank since
its inception in 1384 H (1974) until the end of 2007 were about 3,834 Million Saudi
Riyals and the total loan were about 424,580.
The subsidies paid to the farmers, a non-refundable amounts paid by the government
in order to develop the agricultural sector and promote and reduce the burden on
farmers and investors. The total spent amount since 1394 H (1974) till the end of 2007
was about 12,993 Million Saudi Riyals.
It is clear from what was discussed that the government understood the relative
importance of the agricultural sector in the national economy and its vital role in the
economic and social development and then population stability. Therefore placing it in
its proper place so that the sector will be attractive for investment.
Under the current circumstances it is expected that the sector will grow in the coming
years at an annual average growth of 3.2%. The Eighth Plan allotted 7,456.4 Million
Riyals to finance the development of the sector compared to 6,828 Million Riyals in
the Seventh Plan, i.e. the amount was increased by 628.4 Million Saudi Riyals, or
9.2%.
The government in collaboration with the private sector many plans were made to
develop the fisheries through forming companies and associations that will help in
making the activity more attractive to Saudis
5-4 Building and Construction Sector:
The Building and Construction Sector consists of a number of interacted activities
associated with the work of the buildings and construction of various types of
engineering, maintenance, and land use.
5-4-1 The Importance of Building and Construction Sector and its Contribution to GDP:
In the light of the Free Market Policy, the Kingdom's accession to the WTO and the
completion of infrastructure and planning for urban and industrial expansion through
the construction of industrial and economic cities, and the entry of companies in the
fields of construction and contracting and in the frame work of the government's plan
to diversify the economic base. It is expected that the building and construction sector
will play major role in urban development and expansion of the construction and
contracting works of infrastructure and basic equipment. The sector used to provide
many job opportunities for citizens in all professions and disciplines. The sector used
to apply environmental and safety standards in construction and building construction
to provide useful building coping with urban development, and attractive for
investment and investors.
- 178 -
The sector contributed with reasonable share to GDP, it was not less than 4.6% in any
year during the past seven years and it was growing steadily at the rate of growth of
6% as shown in Table (5-21) below:
Years
2002
2003
2004
2005
2006
2007
Table (5 – 21)
Contribution of the Building and Construction Sector in GDP from 2002 To 2007
Gross Domestic
Construction Sector
Percentage of
% of Change
Product
Contribution
Share
679,163
43,185
6.5
3.5
699,680
44,739
6.4
3.6
796,561
47,137
5.9
5.4
929,946
51,141
5.5
8.5
1,172,399
54,946
4.7
7.4
1,296,457
59,139
4.6
7.6
Source: Saudi Arabian Monetary Agency, Annual Report Forty Third Issue – 2008
1,400,000
1,200,000
1,000,000
800,000
Gross Domestic Product
600,000
Construction Sector Contribution
400,000
200,000
0
2007 2006 2005 2004 2003 2002
5-4-2 Size, Structure and Orientation of Building and Construction Sector:
The Building and Construction Sector was remarkably grew during the Seventh
Development Plan, from 39.44 Billion Riyals at the beginning of the plan in
1999/2000 to 46.96 Billion Riyals at the end of the plan in 2004/2005 at annual rate of
growth 3.6% during the years of the plan compared with an annual rate of growth
2.16% during the Sixth Development Plan 1995-2000. The volume of investments of
the sector during the Seventh Plan was about 8.53 Billion Saudi Riyals.
The Municipalities provinces and the Rural Councils under the Ministry of
Municipality and Rural Affairs were looking after the management of land and their
uses within the scope of the urban cities as well as providing the necessary services to
them. The land was divided in terms of land uses to the following:
1) Used Land
2) Planned Vacant Land
3) Unplanned Vacant Land
- 179 -
5-4-3 Comparison of Used Land in the Province of Jeddah according to uses with those
of Makkah Mukarramah Region and the Kingdom:
The land within the urban areas of cities according to the type of uses will be classified
as follows:
1) Residential and Commercial Uses
2) Industrial Uses
3) Agricultural Uses
4) Parks and Green Areas Uses
5) Other Uses
The total used land in Jeddah varies in areas they reached 87,060 hectares in 2003 and
2004, then increased to reach 90,985 hectares n 2006, then declined in the next two
years to reach 73,280 hectares.
The percentage of the total used land in Jeddah Province fluctuated between 10-12%
of the total used land in Makkah Mukarramah region and 4% of the total used land in
all regions of the Kingdom.
The percentage of the industrial uses was the largest percentage compared to the uses
in Makkah Mukarramah region during the years from 2003 to the year 2006, varied
between 77-81%, and 8% of the Kingdom. Then declined to 40% in 2004 and then to
36% in 2008. The average use was 55% of the total industrial used in Makkah
Mukarramah region. In terms of area the other uses were the largest they varied from
20,600 hectares in 2007 and 2008 to 22,850 hectares in the rest of the years and the
percentage ranged between 40% in 2008 as the lowest percentage and 95% as the
highest in 2007 compared to Makkah Mukarramah region which means that the
average percentage was 62% or about two-thirds of the used land in Makkah
Mukarramah region and 7% of the total areas of the Kingdom. Ranked in Second place
in terms of area is residential and commercial uses where the area ranged from 34,080
hectares in 2007 and 2008 and 56,740 hectares in 2003 or ranged between 34% as
lowest percentage and 51% as the highest percentage of the total used land in Makkah
Mukarramah region and between 8% and 14% of the total used land for residential and
commercial uses in the Kingdom. The average was 42% and 11% of the total used
land for residential and commercial uses in Makkah Mukarramah region and all
regions of the Kingdom respectively.
The Green Areas and Parks uses share in Jeddah Province was very little in 2003 and
2004, where the percentage was only about 15% of the total green areas and parks in
Makkah Mukarramah region and 0.7% of the total green areas in the Kingdom.
In the last three years the green areas and parks were increased. They are increased
from 800 hectares in 2003 to 3,940 hectares in 2006. The percentage was about 40%
of the green area in Makkah Mukarramah region and 5% of the area in the Kingdom,
this increase is because of the establishment of new gardens and parks in Jeddah in
- 180 -
accordance with the policy of the city beauty and the building of some tourism
facilities.
For the land used for agricultural purposes in the province of Jeddah, there was land
used in 2003 and 2004, and began to emerge in 2005, where the area of agricultural
investments was 1,596 hectares representing 0.3% and 0.1% of the total used area in
Makkah Mukarramah region and the Kingdom respectively, then went up to 9,950
hectares in 2007/2008 representing 2% and 0.8% of the total area in the Makkah
Mukarramah region and the Kingdom respectively. The land used for agricultural
purposes were small because of the lack of flat areas that are suitable for agricultural
investment and because of the topography of the city bounded by the Sea from the
West and the Mountains to the East, Table (5-22) below shows that:
- 181 -
Table (5 – 22)
Comparison of Used Land in Jeddah Province with those of Makkah Mukarramah Region and the
Kingdom from 2003 To 2008 (Area in Hectares)
- 182 -
5-4-4 Comparison of the Planned Land in Jeddah with those of Makkah Mukarramah
Region and the Kingdom:
The Provinces and the Municipalities are planning land for housing schemes to
accommodate natural increase of population and to meet the commercial and
residential needs of new land to accommodate the new increase in different economic
activities.
The average Planned Area in the city of Jeddah for the period from 2003 to 2008 was
about 79,632 hectares representing 39% of the total planned area in Makkah
Mukarramah region and 11% of the total planned land in the Kingdom. Residential
and Commercial uses of land ranked in First place with an average area of 63,558
hectares, representing 60% of the total planned land area in Makkah Mukarramah
region and 14% of the total planned land in the Kingdom, ranked in the Second place
the other uses of land as the average area of planned land for such uses was 6,093
hectares representing 44% of the total planned land area in Makkah Mukarramah and
10% of the total land planned for this purpose in the Kingdom, in the last two year no
land was allocated for this purpose in Province of Jeddah. The Industrial uses in
Jeddah were ranked in Third place with an average area of planned land for this
purpose 5,695 hectares representing 55% of the total planned area in Makkah
Mukarramah region and 7% of the total planned area in the Kingdom.
It has been observed that the percentage compared to Makkah Mukarramah region
was high in the early years, where they were more than 85% of the planned land, due
to the focusing in Jeddah for completion of the industrial cities and it declined in
recent years to reach 16% in 2005 and 11% in 2006, because of planning in some other
cities in some parts of Makkah Mukarramah region and stopping of planning in the
province of Jeddah, where the area remained constant at 4,500 hectares to meet the
future needs.
Jeddah witnessed an increase in Green Areas and Parks an area of 5,070 hectares was
planned in 2003 and increased to 6,880 hectares in 2004, and continuously increased
till it reached 9,495 hectares in 2006, representing 75% of the total planned land in the
Kingdom. This attention given by the province of Jeddah for the development of Parks
and Public Gardens to work as attractive factors of Tourism and places of
entertainment and recreation for the citizens of Jeddah and its visitors.
But the planned land for agriculture was not visible completely in Jeddah Province,
because of the scarcity of plain land around Jeddah and the need for land to meet the
most urgent needs, and good economic and social benefits such as residential,
commercial, industrial uses, Table (5-23) below shows that:
- 183 -
Table (5 – 23)
Comparison of Planned Land in Jeddah Province with those of Makkah Mukarramah Region and the
Kingdom from 2003 To 2008
(Area in Hectares)
- 184 -
5-4-5 Comparison of the Unplanned Land in the Province of Jeddah with those of
The Ministry of Municipalities and Rural Affairs in collaboration with the competent
authorities in the regions and provinces planned the boundaries of the various cities for
the coming years, and allocated areas for horizontal expansion of those cities, but it
was not yet planned and supplied with the necessary services but the areas remain
within the areas of expansion. They are included in the lands owned by the
municipalities and the provinces and reserved for use in urban expansion.
The average unplanned area of Jeddah Province is about 318,105 hectares representing
28% of the average total area of Makkah Mukarramah region and 8% of the average
total area of the Kingdom. The unplanned area for residential and commercial uses in
Jeddah ranked in First Place with an average area of 230,895 hectares representing
79% of the total land allocated for residential and commercial uses in Makkah
Mukarramah region and about 23% of the total unplanned land in the Kingdom. This
means that more than three-quarters of the unplanned land for residential and
commercial uses in Makkah Mukarramah region is in Jeddah and more than one fifth
of the total unplanned land in the Kingdom.
Ranked in the Second place unplanned land of industrial uses with an average of
48,100 hectares, representing 73% of the total unplanned area in Makkah Mukarramah
region and 61% of the total allocated area for industrial uses in the Kingdom, these
percentages explains the importance of Jeddah as a center of national industries.
The average unplanned area allocated for Green Areas and Parks is about 26,150
hectares, representing about 90% of the total unplanned area in Makkah Mukarramah
and about 28% of the total unplanned area in the Kingdom. Once again this
percentages show the importance of Jeddah as tourism destination that needs more
Parks and Green Areas and entertainment and recreation places.
The unplanned land for other uses average is about 37,710 hectares, representing 2%
of the land for other uses in Makkah Mukarramah region and 1% of the total land
allocated in the Kingdom.
It has been observed once again that Jeddah Province is lacking the land for
agricultural purposes, because of the need of land for most useful and beneficial uses
such as residential, commercial and industrial uses because they are economically
beneficial as shown in Table (5-24) below:
It is clear from the foregoing explanation that the land uses of Jeddah Province for
various purposes were gained more attention when compared to those in Makkah
Mukarramah region where not less than three-quarters of the allocated area to any
purpose and enjoyed a reasonable areas of allocated lands for these purposes in the
Kingdom, the percentages ranging between 5% and 27% of the total allocated areas for
all purposes.
- 185 -
Table (5 – 24)
Comparison of Unplanned Land in Jeddah Province with those of Makkah Mukarramah Region and the
(Area in Hectares)
- 186 -
5-4-6 Comparison of the Number of Construction Licenses in Jeddah Province with
those of Makkah Mukarramah Region and the Kingdom:
Besides looking after the planning, allocation and distribution of land among citizens
and supervision of urban planning and provision of the necessary services to people,
the municipalities are responsible for granting licenses to citizens to make use of these
holdings to be used in proposed purposes according to the nature of uses.
Within this task Jeddah Province granted construction licenses to citizens for various
construction purposes such as residential, industrial and commercial buildings and
buildings for public utilities and government and social services. The average numbers
of licenses granted during the last six years were 3,165 licenses representing 43% of
the total construction licenses in Makkah Mukarramah region and 6% of the total
licenses in the Kingdom.
The construction licenses for residential and commercial purposes ranked in First
place with an average of 2,624 licenses representing 40% of the total construction
licenses in Makkah Mukarramah region and 5% of the total construction licenses of
residential and commercial buildings in the Kingdom.
The average number of construction licenses for industrial buildings were 181 licenses
representing 61% of the total industrial licenses in Makkah Mukarramah region and
6% of the total industrial licenses in the Kingdom.
The average licenses of buildings for public utilities in Jeddah (schools, clinic,
hospitals and mosques... etc.) were 64 licenses representing 22% of the total licenses
in Makkah Mukarramah region and 3% of the total licenses in the Kingdom.
The average licenses of government and social services buildings in Jeddah were 316
licenses representing 91% of the total licenses of the government buildings in Makkah
Mukarramah region and 50% of the total licenses in the Kingdom.
It has been observed that percentage of licenses for all purposes was not less than 30%
of the total of licenses in Makkah Mukarramah region and 3% of the total licenses in
the Kingdom in any year which shows the great construction boom in Jeddah in the
various areas of construction such as residential, commercial, industrial and services.
Table (5-25) below showed what was explained:
- 187 -
Table (5 – 25)
Comparison of Number of Construction Licenses in Jeddah Province with those of Makkah Mukarramah
- 188 -
5-4-7 Comparison of the Number of Commercial Stores Licenses in Jeddah Province
with those of Makkah Mukarramah Region and the Kingdom:
The Municipalities and the provinces are responsible for issuance of Commercial
Stores Licenses to make use of the premises; the licenses are divided into eleven types
of shop licenses:
1) Foodstuff
2) Super Markets
3) Commercial Establishments
4) Industrial Workshops
5) Furniture and Decoration
6) Maintenance of Electrical Appliances
7) Maintenance of Vehicles and Machinery
8) Plumbing and Sanitary Materials
9) Fuel and Vehicle Services
10) Personal Services
11) Others
The Province of Jeddah issued licenses to various types of commercial stores during
the last six years with an average of 22,549 licenses representing 43% of the total
licenses issued to shops in Makkah Mukarramah region and 13% of the total licenses
in the Kingdom.
The average license of Foodstuff stores were 5,997 licenses and 39% of the total
licensed stores in Makkah Mukarramah region and 11% of the total licenses in the
Kingdom.
The average licenses of Super Markets were 41 licenses representing 24% of the total
licenses in Makkah Mukarramah region and 2% of the total of licenses in the
Kingdom.
The average licenses of Commercial Establishment in Jeddah Province were 1,568
licenses representing 26% of the total Commercial Establishment licenses in Makkah
Mukarramah region and 6% of the total licenses in the Kingdom.
The average Industrial Workshop licenses in Jeddah Province were 278 licenses
representing 24% of the total licenses of Workshops in Makkah Mukarramah region
and 5% of the total licenses in the Kingdom.
The average Furniture and Decoration Stores licenses in Jeddah Province were 953
licenses representing 44% of the total licenses of Furniture and Decoration Stores in
Makkah Mukarramah region and 13% of the total licenses in the Kingdom.
The average licenses of the Electrical Appliances Maintenance Shops were 803
licenses representing 33% of the total licenses in Makkah Mukarramah region and 8%
of the total licenses in the Kingdom.
- 189 -
The average licenses of Motor Vehicles and Machinery Maintenance Workshops were
1,065 representing 27% of the total licenses in Makkah Mukarramah region and 8% of
the total of licenses in the Kingdom.
The total licenses of Plumbing Stores were 632 shops representing 46% of the total of
licenses in Makkah Mukarramah region and 12% of the total licenses in the Kingdom.
The total licenses of Fuel and Car Services Shops were 1,040 licenses representing
33% of the total of licenses in the Kingdom.
The total licenses of Personal Services Shops were 5,154 licenses representing 56% of
the total licenses in Makkah Mukarramah region and 18% of the total licenses in the
Kingdom.
The numbers of other licenses were 5,564 licenses representing 63% of the total
licenses in Makkah Mukarramah region and 11% of the total licenses in the Kingdom.
It has been observed that there was a decline in all types of licenses in Jeddah Province
in 2004, where it reached its lowest level and the total licenses in Jeddah were
5,901licenses representing 22% of the total of licenses in Makkah Mukarramah region
and only 3% of the total licenses in the Kingdom.
All licenses achieved the highest level in 2008 when they reached a total of 63,990
licenses representing 48% of the total licenses in Makkah Mukarramah region and
14% of the total licenses in the Kingdom.
In terms of percentage compared to the region Jeddah reached its highest percentage in
2003 and achieved 55% of the total licenses in Makkah Mukarramah region and 12%
of the total in the Kingdom. It has been observed the issued licenses in Jeddah
Province reached an average of more than 30% of the total licenses in Makkah
Mukarramah region as shown in Table (5-26) below:
- 190 -
Table (5 – 26)
Comparison of the Number of Licenses of Commercial Stores in Jeddah Province with those of Makkah
Mukarramah Region and the Kingdom from 2003 To 2008
- 191 -
Graphc Table (5 – 26)
- 192 -
5-5 The Health Sector:
Health services were remarkably improved in all aspects of Preventive and Curative Care,
Maternity and Pediatrics throughout the successive development plans. The development is
reflected in the decline in the morality rate of children under five years of age from 85 to 25
deaths per thousand live births during the past two decades, falling of infant mortality rate
from 65 to 18 deaths per thousand during the same period. The average life expectancy at
birth is increased from 61 years to 71.9 years; these indicators show that the Kingdom is the
best among the middle-income countries and the Arab States.
The total funds for development programs in the health sector during the Seventh
Development Plan were approximately 80.1 Billion Saudi Riyals, and the Percentage of
allotted funds to the Ministry of Health out of the total general budget of the country was
about 6%.
The improvement in health services continued during the Eighth Development Plan as shown
in the indicators of Health Resources in 2007, for each 10,000 citizens there were 20.4
Doctors, 2.33 Dentists, 3.61 Pharmacists, 35.4 Nursing Personnel, 19 Medical Assistance
Groups, 23 Beds in Hospitals and 0.81 Primary Health Care Centers and 17.8 Beds in
Government Hospitals and 5.3 in Private Hospitals.
The Kingdom annually received more than 6 Million arrivals from all over the world because
of the Hajj and Umrah, the majority of them through Jeddah beside the permanent residents
who are more than 6 Millions, because of this it becomes vulnerable to the transmission of
certain infectious and endemic diseases in the origin countries of these visitors. Therefore the
Ministry of Health achieved great success in this field, for instance during the year 2007, 22
cases of Meningitis infection were discovered at the rate of 0.09% per 100,000 people, all the
cases were recorded in the Hajj and Umrah places (Makkah Mukarramah, Madinah
Munawwarrah and Jeddah) and Nine cases were in Jeddah, which represents about 41% of the
total cases.
The Ministry is implementing the expanded program on Immunization for all children in the
Kingdom, which is reflected in the significant reduction in the incidence of certain targeted
diseases, as a result of high Immunization coverage more than 90% of all diseases in the past
Ten years. This success was due to the blessing of God and the great support provided by the
government to the health sector, which is reflected in the budget allocated to the Ministry of
Health that amounted to about 6% of the total general budget of the country. In spite of the
stability of the ratio, the approved amounts in the budget were in continuous increase from
SR. 13,708 Million in 2002 to SR. 22,808 Million in 2008 i.e. increased by 9,028 Million
Riyals or 65.9% and Table (5-27) below shows that:
Table (5 – 27)
Budget of the Ministry of Health during the years from 2002/2003 To 2007/2008
(Amounts in Thousands of Riyals)
Budget of the Ministry
Years
Total Budget
Percentage
of Health
2002/2003
202,072,000
13,780,910
6.8
2003/2004
209,000,000
13,857,430
6.6
2004/2005
230,000,000
14,756,350
6.4
2005/2006
280,000,000
16,683,700
6
2006/2007
335,000,000
19,683,700
5.9
2007/2008
380,000,000
22,808,200
6
Source: Ministry of Health, Statistical Year Book from 2002 To 2008.
- 193 -
400,000,000
300,000,000
200,000,000
100,000,000
0
2008 /2007
2007 /2006
2006 /2005
Total Budget
2005 /2004
2004 /2003
2003 /2002
Budget of the Ministry of Health
5-5-1 Health Utilities:
Firstly: The Government Hospitals and Beds in Jeddah compared to these in the
Makkah Mukarramah region and the Kingdom:
The numbers of Government Hospitals monitored by the Ministry of Health in Jeddah
were 12 hospitals representing 37.5% of the total hospitals in Makkah Mukarramah
region and 6% of the total hospitals in the Kingdom.
The average numbers of beds in Government Hospitals in Jeddah were 3,120 beds,
representing 42% of the average beds in Makkah Mukarramah region and 6.2% of the
average beds in the Kingdom. These percentages showed that Jeddah was getting good
care in provision of health services provided by the government hospitals as shown in
Table (5-28) below:
Table (5 – 28)
The Number of Hospitals and Beds owned by the Ministry of Health in Jeddah from 2002 To 2007
The Number in Makkah
The Number in the
The Number in Jeddah
Mukarramah
Kingdom
Years
Hospitals
Beds
Hospitals
Beds
Hospitals
Beds
2002
2003
2004
2005
2006
2007
12
12
12
12
12
12
3,077
3,077
3,185
3,185
3,185
3,003
32
32
32
32
32
32
7,270
7,270
7,605
7,423
7,423
7,149
193
195
200
231
218
220
28,268
28,522
28,751
30,020
30,489
31,877
40,000
30,000
20,000
10,000
0
2007
- 194 -
2006
2005
2004
2003
2002
The Number in Jeddah Hospitals
The Number in Jeddah Beds
The Number in Makkah Mukarrammah Hospitals
The Number in Makkah Mukarrammah Beds
The Number in the Kingdom Hospitals
The Number in the Kingdom Beds
Secondly: Primary Health-Care Centers in Jeddah compared to those in Makkah
Mukarramah region and the Kingdom:
The average number of Primary Health-Care Centers in Jeddah were 75 Centers
representing 27% of the total primary Health-Care Centers in Makkah Mukarramah
region or more than one quarter, and representing about 4.1% of the total Primary
Health-Care Centers in the Kingdom as shown in Table (5-29) below:
Table (5 – 29)
The Number of Primary Health-Care Centers owned by the Ministry of Health in Jeddah compared to
those in Makkah Mukarramah Region and the Kingdom from 2002 To 2007
% of Jeddah
Health Centers Health Centers Health Centers
% of Jeddah
Years
To The
in Jeddah
in Makkah M. in the Kingdom To The Region
Kingdom
2002
75
278
1,792
27
4.2
2003
75
278
1,804
27
4.2
2004
75
278
1,824
27
4.1
2005
74
278
1,848
26.6
4
2006
74
278
1,905
26.6
3.9
2007
75
283
1,925
26.5
3.9
1,925
1,905
1,848
1,824
1,804
1,792
2,000
1,500
1,000
283
75
278
74
278
74
278
75
278
75
278
75
2007
2006
2005
2004
2003
2002
500
0
Health Centers in Jeddah
.Health Centers in Makkah M
Health Centers in the Kingdom
Thirdly: The Private Hospitals and Beds in Jeddah compared to those of Makkah
Mukarramah Region and the Kingdom:
The numbers of Private Sector Hospitals in Jeddah were 33 Hospitals representing
73.3% of Private Hospitals in Makkah Mukarramah region and 28.5 of the total
Private hospitals in the Kingdom and 11% of the total hospitals in the Kingdom.
The average Beds in Private Hospitals in Jeddah were 3,797 Beds, representing 34.3%
of the average Beds in the Private Hospitals in Makkah Mukarramah region and 27.5%
of the total beds in the Private Sector Hospitals in the Kingdom and 7.5% of the total
Beds in all hospitals in the Kingdom as shown in Table (5-30) below:
- 195 -
Table (5 – 30)
The Number of Private Sector Hospitals and Beds in Jeddah compared to those in Makkah Mukarramah
Jeddah
Makkah Mukarramah
The Kingdom
Year
Number
of
Hospitals
Number
of Beds
Number
of
Hospitals
Number
of Beds
% of
Jeddah
Hospitals
% of
Jeddah
Beds
Number
of
Hospitals
Number
of Beds
% of
Jeddah
Hospitals
% of
Jeddah
Beds
2003
2004
2005
2006
2007
31
33
33
33
33
2,820
2,836
3,336
3,001
3,101
43
45
45
45
45
3,601
3,617
4,123
3,788
3,856
72
73
73
73
73
78
78
81
79
80
105
110
113
123
124
8,954
10,133
11,135
12,547
12,590
30
30
29
27
26
31
28
30
24
25
3,101
3,336
3,001
2,836
2,820
3,500
3,000
2,500
2,000
Jeddah Number of Hospitals
1,500
Jeddah Number of Beds
1,000
33
33
33
33
31
500
0
2007
2006
2005
2004
2003
Fourthly: Dispensaries and Private Clinics in the Jeddah Province compared to those of
The numbers of Private Dispensaries in Jeddah were 119 dispensaries in 2003 increased to
189 dispensaries in 2007 i.e. increased by 70 dispensaries representing about 65% of the
dispensaries in Makkah Mukarramah region and about 15% of Private Dispensaries in the
Kingdom.
The average numbers of Private Clinics in Jeddah were about 350 clinics representing 77% of
the Private Clinics in Makkah Mukarramah region and about 28% of Private Clinics in the
Kingdom as shown in Table (5-31) below:
Table (5 – 31)
The Number of Dispensaries and Private Clinics in Jeddah Province compared to those in Makkah
Mukarramah Region and the Kingdom from 2003 to 2007
Number in Jeddah
Year
2003
2004
2005
2006
2007
Number in Makkah Mukarramah Region
Dispensaries
Private
Clinics
Dispensaries
Private
Clinics
% of
Jeddah
Dispensaries
119
147
147
151
189
388
328
353
353
352
202
225
229
323
280
485
424
450
471
467
59
65
64
95
68
Number in the Kingdom
% of
Jeddah
Private
Clinics
Dispensaries
Private
Clinics
% of
Jeddah
Dispensaries
% of
Jeddah
Private
Clinics
80
77
78
75
75
973
1,041
1,043
1,055
1,057
1,169
1,172
1,285
1,321
1,326
12
14
14
14
18
33
28
27
27
27
- 196 -
352
353
353
Number in Jeddah Private Clinics
Number in Jeddah Dispensaries
2007
189
328
151
2006
147
2005
147
2004
388
2003
119
400
300
200
100
0
Fifthly: Laboratories and Physical Therapy Centers in Jeddah compared to those in
The numbers of Laboratories in Jeddah were 33 laboratories representing about 70%
of the laboratories in Makkah Mukarramah region and about 37% of laboratories in the
Kingdom.
The numbers of Physical Therapy Centers in Jeddah were 15 Centers representing
about 94% of the Centers in Makkah Mukarramah region and about 46% of the total
Physical Therapy Centers in the Kingdom as shown in Table (5-32) below:
Table (5 – 32)
The Number of Laboratories and Physical Therapy Centers in Jeddah Province compared to those in
Makkah Mukarramah Region and the Kingdom from 2003 To 2007
Jeddah
Makkah Mukarramah
Year
Number of
Laborator
ies
Number of
Physical
Therapy
Centers
Number of
Laboratorie
s
Number of
Physical
Therapy
Centers
% of
Jeddah
Laboratorie
s
% of
Jeddah
Physical
Therapy
Centers
2003
2004
2005
2006
2007
27
27
29
29
29
16
14
15
15
15
37
36
43
43
43
17
15
16
16
16
74
75
67
67
67
94
93
94
94
94
Number of
Laboratories
Number of
Physical
Therapy
Centers
% of
Jeddah
Laborato
ries
% of Jeddah
Physical
Therapy
Centers
67
70
81
81
84
27
28
38
38
44
40
39
36
36
35
59
50
39
39
43
29
29
29
27
27
30
25
15
15
15
Jeddah Number of Laboratories
14
16
20
15
Jeddah Number of Physical Therapy Centers
10
5
0
2007
- 197 -
2006
2005
2004
2003
Sixthly: Optical and Dental Clinics in Jeddah Province compared to those in Makkah
The average numbers of Optical Shops in Jeddah were 320 Shops, representing about 77% of
the total Shops in Makkah Mukarramah region and about 24% of the total Shops in the
Kingdom.
The numbers of Dental Clinics were about 25 in Jeddah, representing approximately 54% of
Dentists in Makkah Mukarramah region and about 23% of the total Dentists in the Kingdom
as shown in Table (5-33) below:
Table (5 – 33)
The Number of Optical Shops and Dental Clinics in Jeddah Province compared to those in Makkah
Mukarramah Region and the Kingdom from 2003 To 2007
Jeddah
Year
2003
2004
2005
2006
2007
Makkah Mukarramah
Number of
Optical Shops
Number
of
Dental
Clinics
332
289
324
324
324
19
17
25
25
25
Number of
Optical Shops
Number
of
Dental
Clinics
% of
Jeddah
Optical
Shops
% of
Jeddah
Dental
Clinics
Number of
Optical Shops
Number
of
Dental
Clinics
% of
Jeddah
Optical
Shops
% of
Jeddah
Dental
Clinics
406
369
425
433
445
38
34
45
47
47
79
78
76
75
73
50
56
56
53
53
1,108
1,189
1,359
1,477
1,534
81
99
114
97
97
29
24
23
22
21
23
17
22
26
26
324
324
Source: Ministry of Health, Statistical Year Book from 2003 to 2008.
324
332
289
350
300
250
200
Jeddah Number of Optical Shops
150
Jeddah Number of Dental Clinics
100
25
25
25
17
19
50
0
2007
2006
2005
2004
2003
Seventhly: Pharmacies, Medicines Warehouses and Scientific Offices in Jeddah
compared to those in Makkah Mukarramah Region and the Kingdom:
The numbers of Pharmacies in Jeddah were about 871 Pharmacies, representing 65% of the
Pharmacies in Makkah Mukarramah region and about 22% of the total Pharmacies in the
Kingdom.
The number of Pharmaceutical Warehouses in Jeddah was approximately 78% Warehouses,
representing 92 Warehouses in Makkah Mukarramah region and about 22% of the total
Pharmaceutical Warehouses in the Kingdom.
The numbers of Scientific Offices were 13 Offices in Jeddah, they are located in Jeddah City
and representing about 24% of the total Scientific Offices in the Kingdom as shown in Table
(5-34) below:
- 198 -
Table (5 – 34)
Number and Percentages of Pharmacies, Medicine Warehouses and Scientific Offices in Jeddah compared to those in
- 199 -
It is clear from the Numbers and Percentages of Government and Private Health Utilities
in Jeddah that it has more than 37% of government hospitals and more than 40% of the
Beds and more than a quarter of government Primary Health-Care Centers in Makkah
Mukarramah region and more than 6% of the total government Health Utilities in the
Kingdom. This indicated the attention paid of the Government of the Kingdom to Jeddah
as a Gate of the Two Holy Mosques and commercial center inhabited by more than 12%
of the total population of the Kingdom. These Health facilities provided Free Medical
Services to the citizens, the Pilgrims, Umrah Performers and visitors.
In view of high density of population and coming of Pilgrims and Umrah Performers to
the Holy places and the foreign labor force and the shortage of government facilities to
meet the growing needs of health services, Jeddah became attractive center for investors
to invest in the health services sector. The percentages of Private Health facilities in
Health Services Sector proved this statement where the percentages varied between
73-93% of the total Health facilities in Makkah Mukarramah region and ranging between
11% and more than 40% of the total health facilities in the Kingdom and this proved the
importance of Jeddah as an attractive investment center in the area of health services.
5-5-2 Manpower in Health Facilities in Jeddah Compared to those in Makkah
The total number of Doctors working in the Health Sector, both Public and Private were
29,304 Doctors until the end of 2007. The numbers of the Nursing Personnel until the end
of 2007 were 50,897 Nurses.
The total number of the Groups of Medical Assistant Personnel, who provided Medical
Services in Hospitals and Primary Health-Care Centers and Hospitals, and Clinics of the
Private Sector, were about 24,805 workers. Below was share of Jeddah from the Labor
Force in the fields of Government and Private Health Facilities.
Firstly: Indicators of Health Potential Resources in the Government Hospitals in Jeddah
compared to those in Makkah Mukarramah region and the Kingdom:
The average numbers of Beds in the Government Hospitals in Jeddah were 3,127 Beds,
representing 42.4% of the total Beds in Makkah Mukarramah Region and 10.4% of the
total Beds in Government hospitals in the Kingdom.
The average numbers of Doctors in government hospitals in Jeddah were about 1,302
Doctors representing approximately 38% of the total Doctors in Makkah Mukarramah
region and representing 9.6% of the total Doctors working in government hospitals in the
Kingdom.
The ratio of Nurses was 192.5 Nurses per hundred Doctors. This ratio was very close to
the level of distribution ratios in Makkah Mukarramah region and the Kingdom which
were 46.5, 46.3 for Physicians per hundred Beds respectively, and 213.6 and 217 for
Nursing Staff for one hundred Doctors respectively. These ratios indicated the attention of
Health Authorities in Jeddah to provide Government Health Services that suited Jeddah as
a Gateway of the Two Holy Mosques and a center of a large population and important
trade center. Table (5-35) below showed that:
- 200 -
Table (5 – 35)
Indicators of Potential Health Resources in Government Hospitals in Jeddah compared to those in
- 201 -
Secondly: Manpower, The Primary Health Care Centers n Jeddah compared to those in
The average numbers of Physicians working in the Government Primary Health Care
Centers in Jeddah were 276 Physicians representing 31.4% of the total Physicians
working in Primary Health Care Centers in Makkah Mukarramah region and 6% of the
total Government Primary Health Care Centers in the Kingdom.
The average number of Nursing Staff in Primary Health Care Centers in Jeddah was
688 Nurses representing 32.2% of the total Nurses in Makkah Mukarramah region and
6.3% of the total Nurses in the Kingdom.
The average numbers of Medical Assistant Staff in Primary Health Care Centers
working in Jeddah were 450 workers representing 33.5% of the total workers in the
Centers of Makkah Mukarramah region and 7.8% of the total workers in Health Care
Centers in the Kingdom.
It is clear from the above information that more than one third of the Labor Force in
the Government Primary Health Care Centers in Makkah Mukarramah were working
in Jeddah City and representing more than 7% of the total Labor Force in the Kingdom
- 202 -
Table (5 – 36)
Labor Force of the Government Primary Health Care Centers in Jeddah City compared to those in
- 203 -
Thirdly: The working Labor Force of the Private Sector health facilities in Jeddah
compared to those working in Makkah Mukarramah region and the Kingdom :
The average numbers of Physicians working in the health facilities of the Private
Sector in Jeddah were 2,392 Physicians representing 62% of the Physicians in Makkah
Mukarramah region and 19% of the total Physicians in the Kingdom.
The average Nursing Staff in health facilities of the Nursing Labor Force in Private
Sector in Jeddah were 3,839 Nurses, representing 73% of working Nursing Staff in
Makkah Mukarramah region and 23% of the total Nursing Staff in the Kingdom.
The average numbers of the Medical Assistance Staff in Private Sector health facilities
in Jeddah were 2,673 workers representing 71% of the workers in Makkah
Mukarramah region and 38% of the total working Medical Assistance Staff in the
Private Sector health facilities in the Kingdom.
It is clear from the above explanation that the workers in Private Sector Medical
Facilities in Jeddah representing more than 70% of the workers in the Health Sector in
Makkah Mukarramah region and more than a quarter or 26% of the workers were
working in the Health Facilities in the Kingdom, which clearly indicated the
importance of Jeddah as Economic, and Service Center where the highest percentage
of the Health Facilities, and a big number and percentage of working medical staff in
various fields are allocated in Jeddah.
- 204 -
Table (5 – 37)
Labor Force of Private Sector Health Facilities in Jeddaah compared to those in Makkah Mukarramah
- 205 -
5-6 Banking and Specialized Lending Institutions:
The Banking Sector rapidly grew in the last decade in Saudi Arabia because of the
conditions of improvement in domestic economic growth and in particular the growth
in Private Sector, and improvement of economic components and good management of
commercial banks of their financial resources. The financial services sector achieved
positive indicators during the Seventh Development Plan, where the percentage of the
total assets increased by 31.3% and the deposits grew by 44.8% and the profits by
about 91.3%.
The capital adequacy ratio of Banks in accordance with International Standards
achieved stability at outstanding level 21% as average of the plan time, the ratio
exceeded the global average rate set by the Basel Committee (8%) by about two and a
half times, this indicator reflected the success of the implemented monetary policy
during the plan period, which stipulated the continuation of the enhancement of the
efficiency of the Banking Sector, and its subjective to control to ensure its safety and
the preservation of its resources.
The Banking Sector also expanded in the number of Banks where the number rose
from 11 Banks to 17 Banks in 2008, consequently it expanded horizontally in the
number of branches, where the number rose to 1,289 branches and vertically in
increase the capital and use of modern technologies including Telephone Banking
Services, and the Internet Services.
These Sectors achieve positive indicators in Banking Credit Services during the year
of the Seventh Development Plan the important of which are:
1) The growth of total Bank Credit at annual rate of growth 10.4%.
2) Increase in the value of the Long Term Banking Credit at annual rate of growth
29.6%.
3) The growth of Bank Liabilities from the Private Sector at annual rate of growth
8.95% as shown in Table (5-38) below:
Table (5 – 38)
Bank Credit and Liabilities of Banks to the Private Sector according to lending period during the
years of the Seventh Development Plan 1999/2000 To 2003/2004 (Amount in Million Saudi Riyals)
Bank Credit
Bank Liabilities
Years
from
the Private
Medium
Short Term
Long Term
Total
Sector
Term
1999/2000
116,622
27,281
22,420
166,323
162,190
2000/2001
114,858
32,049
26,626
173,533
172,238
2001/2002
113,453
31,951
42,216
187,650
187,064
2002/2003
124,578
31,646
54,433
210,657
205,829
2003/2004
146,040
37,758
63,170
246,967
228,486
- 206 -
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
2004 /2003
2003 /2002
Bank Credit Short Term
2002 /2001
2001 /2000
Bank Credit Medium Term
2000 /1999
Bank Credit Long Term
Beside the Commercial Banks there are specialized lending funds supported by the
government provided loans to assist citizens in various economic activities, such as the
Saudi Industrial Development Fund, Real Estate Development Fund, The Saudi Credit
and Savings Bank and the Saudi Arabian Agricultural Bank, in the following there is a
review of the activities of Commercial Banks and specialized lending funds in the
province of Jeddah, compared to Makkah Mukarramah region and the Kingdom in
order to highlight the role of Jeddah Province in this field.
Firstly – The Commercial Banks:
The Commercial Banks played an important role in financing the domestic and foreign
trade through providing the necessary liquidity for activation of commercial business
movements as well as providing the necessary funds to businessmen and businesswomen,
and individuals through Credit facilities provided to the customers in form of financing
loans and Consumer loans.
During the recent years the Banks expanded in terms of number of branches, the
number of operating branches throughout the Kingdom were increased. The number of
operating banks in the Kingdom until the end of 2008 reached Seventeen Banks in the
last two years, Eight Banks were joined, these are Gulf International Bank, Emirates
Bank, Bank Muscut and National Bank of Bahrain, all these banks are in the beginning
of their formation and they operate through one branch, except the Bank al Bilad
which works within Sixty branches in major cities of the Kingdom.
5-6-1 Numerical and Percentage Distribution of branches of Commercial Banks in
Jeddah City compared to the Western Region and the Kingdom:
The total numbers of operating branches of banks in Jeddah were 213 branches until
2008, representing 40% of the total branches in the Western and Southern regions, the
number of branches in the region were 527 branches representing 38.4% of the total
branches in the Kingdom. It should be noted that the Saudi Arabian Monetary Agency
divided the Kingdom into three Zones (Western and Southern Regions as one region,
- 207 -
Central and Northern and Eastern Region), Jeddah Province representing 15% of the
total branches in the Kingdom. This percentage reflected the importance of Jeddah
City and the stability and increase of branches has been observed since 2002 and up
till now no decrease in the number of bank branches is was observed as shown in
Table (5-39) below:
Table (5 – 39)
Numerical and Percentage Distribution of Branches of Commercial Banks in Jeddah City compared to
those Branches in the Western Region and the Kingdom from 2001 To 2008
Years
The Number of
Branches in
Jeddah
The Number of
Branches in the
Western Region
% of Jeddah to
the Region
The Number of
Branches in the
Kingdom
2001
197
473
42
1,199
2002
2003
2004
2005
2006
2007
200
200
203
203
210
212
480
480
482
488
502
521
42
42
42
42
42
41
1,203
1,209
1,216
1,248
1,289
1,353
16
17
17
17
16
16
16
2008
213
527
40
1,371
15
% of Jeddah To
The Kingdom
Source: Saudi Arabian Monetary Agency, Annual Report Issues Number (40-44) 2008.
1,371
1,353
1,289
1,248
1,216
1,209
1,203
1,400
1,199
1,200
1,000
800
527
213
521
502
212
210
488
203
482
203
480
200
480
200
473
197
600
400
200
0
2008
2007
2006
The Number of Branches in Jeddah
2005
2004
2003
The Number of Branches in the Western Region
2002
2001
The Number of Branches in the Kingdom
5-6-2 Numerical and Percentage Distribution of Commercial Bank Branches in Jeddah
compared to the Branches in the Kingdom:
The total numbers of operating branches of Banks in the Kingdom until the end of
2008 were about 1,302 branches throughout the Kingdom, including 193 branches in
Jeddah City representing 15% of the total branches in the Kingdom.
Came in First place AlRajhi Bank, where the number of its branches were 41 branches
representing 10.5% of the branches of AlRajhi, and 3% of the total bank branches in
the Kingdom, followed by Arab National Bank branches in the Second place with total
number of 31 branches representing 25.6% of the bank's branches, and came in Third
place National Commercial Bank with the number of 27 branches representing 10.7%
of the bank's branches, then in the Fourth place Riyadh Bank with number of 27
- 208 -
branches representing 13.6% of the bank's branches. It is noted that these banks are the
more prevalent throughout the Kingdom in terms of number of branches, and the
branches spread in varying numbers, ranging between 4 and Seventeen branches of
any Bank.
It is noted that Bank AlJazeera branches were the most spread branches in Jeddah with
35% of the total operating network in the Kingdom, followed by SABB 28%, then the
Arab National Bank 25.6%.
These branches of Commercial Banks in Jeddah reflected the bank's desire to acquire
their share of customers in Jeddah, because it is the largest commercial center after the
city of Riyadh, which acquired the largest share of number of branches, representing
about 44% of the total number of branches in the Kingdom as shown in Table (5-40)
below:
Table (5 – 40)
Numerical and Percentage Distribution of Commercial Bank Branches in Jeddah according to Banks
compared to those in the Kingdom up till 2008
Bank Name
Number of Branches in
the Kingdom
Number of Branches in
Jeddah
Percentage
262
198
68
121
61
23
41
23
392
65
48
1,302
28
27
8.0
31
17
8
7
4
41
15
7
193
10.7
13.6
10.8
25.6
28
35
17
17.4
10.5
23
14.6
15
National Commercial Bank
Riyadh Bank
Banque Saudi Fransi
Arab National Bank
SABB
Bank of the Island's
Saudi Hollandi Bank
Saudi Investment Bank
Al Rajhi Bank
Spa Financial Group
Bank Al Bilad
Total
Source: Saudi Arabian Monetary Agency, Annual Report Issues Number 40-44, SAMA Data Base 2006-2008.
7
15
Bank Al
Bilad
Spa
Financial
Group
41
Al Rajhi
Bank
4
Saudi
Investment
Bank
7
Saudi
Hollandi
Bank
Bank of the
Island's
Number of Branches in the Kingdom
- 209 -
31
17
8
SABB
Arab
National
Bank
8.0
27
28
400
350
300
250
200
150
100
50
0
Banque Riyadh Bank National
Saudi Fransi
Commercial
Bank
Number of Branches in Jeddah
5-6-3 Numerical and Percentage Distribution of Operating ATM's in Jeddah compared
to those in the Kingdom:
The total number of ATM's in the Kingdom were 6,519 Machines till the end of 2008,
out of which 1,012 were in Jeddah province representing 16% of the total ATM's in
the Kingdom.
The number of ATM's in Jeddah province almost doubled from 347 in 2002 to 1,012
Machines in 2008 increased by 665 Machines or 192% and the devices increased
steadily over the last years and at annual rate of growth 22.5%.
This significant increase in the ATM Services reflected the provision of Automation
Services to customers with the opportunity to provide and enjoy quick and safe bank
services, and make their payments and settle their obligations to the subscribers in the
system of payments, and the use of Credit Cards, as well as the use of SPAN by
payment through the network of Saudi payments by debiting the existing balance in
the accounts of the customers.
This large spread of ATM's and availability in various districts of Jeddah showed the
importance of Jeddah as a big commercial center and provision of quick service to
customers wherever they are, as shown in Table (5-41) below:
Table (5 – 41)
Numerical and Percentage Distribution of the Operating ATM's in Jeddah Province compared to those in
the Kingdom from 2002 to 2008
Number of ATM's
% of Jeddah To
Years
% of Change
The Kingdom
Jeddah
The Kingdom
2002
347
2003
437
2004
541
2005
572
2006
695
2007
850
2008
1,012
Annual Rate of Growth 22.5%
2,577
3,120
3,676
4,104
4,588
6,079
6,519
13
14
14
14
15
14
16
36
26
18
11
22
22
19
Source: Saudi Arabian Monetary Agency, Annual Reports, Issues 40 - 44, SAMA Data Base 2009.
7,000
6,000
5,000
4,000
3,000
1,012
850
2,000
695
572
541
437
347
2006
2005
2004
2003
2002
1,000
0
2008
2007
Number of ATM's Jeddah
- 210 -
Number of ATM's The Kingdom
5-6-4 Bank Credits granted by the Commercial Banks to Jeddah Province according
Economic Activities compared to those granted ones all over the Kingdom:
Commercial Banks realized the importance of Jeddah, and this importance was
reflected in the volume of Credits allocated to it. The granted Credits to Jeddah
Province were doubled approximately one and a half times, rising from 36,673 Million
Saudi Riyals in 2002 to 88,338 Million Saudi Riyals in 2008, i.e. increased by 51,665
Million Riyals or 141%.
The average Bank Credits given to Jeddah was SR. 60,896 Million representing about
19% of the total banking Credit in the Kingdom which is approximately one fifth of
the total in the Kingdom. The Bank Credits given to Jeddah grew at an annual rate of
growth 16.2%.
Bank Credit given to Jeddah reached its highest percentage in 2006, where it was 24%
over the previous year 2005 rising from 58,380 Million Saudi Riyals to 72,601 Million
Saudi Riyals, i.e. increased by 14,221 Million Saudi Riyals or 24%.
Banks Credit in terms of Sectors, the Commercial Sector received the largest portion
of Bank's Credits in all the years with an average of 35% of the Credit granted to
Jeddah, and 27% of the total Credit granted to the Commercial Sector in the Kingdom,
and 7% of the total granted Credit to all activities in the Kingdom.
The Second largest Sector was "other activities", with an average of 30% of the total
Credit granted to Jeddah, and 13% of the total Credit granted to the Sector in the
Kingdom, and 5% of the total Credit granted to all economic activities in the
Kingdom.
Came in the Third place the Industrial Sector, with an average of 12% of the total
Credit granted to Jeddah, and 29% of the total Credit granted to the Sector in the
Kingdom, and about 2.5% of the total Credit granted to all economic activities in the
Kingdom.
Ranked in Fourth place the Building and Construction Sector, with an average of 11%
the total Credit granted to Jeddah, and 25% of the total Credit granted to the sector in
the Kingdom, and 2% of the total Credit granted to all economic activities in the
Kingdom.
The total Band Credit granted to the four Sectors was 88% of the total Credit granted
to the Province of Jeddah, and 16.5% of the total Credit granted to all economic
activities in the Kingdom as shown in Table (5-42) below:
These percentages reflected the commercial, industrial and real estate importance of
Jeddah as well as its importance for banking sector, where the banks employed one
fifth of their allotted funds to Jeddah Province.
- 211 -
Table (5 – 42)
Bank Credit Granted to Jeddah according to Economic Activity compared to the Kingdom
from 2002 To 2008 (Amount in Millions of Saudi Riyals)
- 212 -
5-6-5 Consumer Loans granted to Individuals in Jeddah Province compared to those in
the Kingdom:
The Commercial Banks expanded in granting Consumer Loans to Individuals since 2000, the
amount doubled more than six times and increased from about 24.8 Billion Saudi Riyals in
2001 to 182.6 Billion Saudi Riyals in 2008 i.e. increased by 157.8 Billion Saudi Riyals or
636%, this expansion allowing transference of salaries directly from employers to the Client
Accounts in the banks to provide the required security and guarantee for the repayment of
such loans, these loans were granted to finance a number of personal purposes such as
building, buying houses, buying cars and equipment and other necessary things.
In view of the importance of Jeddah as Commercial and Industrial Center a large number of
employees are working in Jeddah, therefore the banks are interested in employment of big
funds to grant loans to the citizens of Jeddah city.
Consumer Loans steadily increased in Jeddah, where it increased more than four and half
times, rising from 4.6 Billion Saudi Riyals in 20002 to 25.6 Billion Saudi Riyals in 2008 i.e.
increased by 21 Billion Saudi Riyals or 456%.
The percentage of Consumer Loans granted to the province of Jeddah was 13% of the total
number of Consumer loans granted to individuals in the Kingdom.
The annual rate of growth of Consumer loans in Jeddah was 42% as shown in Table (5-43)
below. The annual growth of Consumer loans indicated the banks contribution to the
development of Jeddah city in the economic and social aspects reflected the commitment of
citizens in repayment of the bank dues, because of the availability of adequate guarantees
through the transfer of salaries.
Table (5 – 43)
Consumer Loans Granted to the Individuals in Jeddah Province compared to those in the Kingdom
Years
Consumer Loans in
Jeddah
2002
4,596
2003
5,795
2004
7,896
2005
14,591
2006
22,690
2007
24,404
2008
25,630
Annual Rate of Growth 42%
Consumer Loans in
the Kingdom
Percentage
% of Change
38,447
52,874
73,305
115,306
180,586
180,710
182,588
12
11
11
13
13
14
14
79
26
36
85
56
8
5
2008
2007
2006
2005
2004
2003
2002
200,000 180,000 160,000 140,000 120,000 100,000
Consumer Loans in the Kingdom
- 213 -
80,000
60,000
40,000
20,000
0
Consumer Loans in Jeddah
5-6-6 Credit Card Loans granted by Commercial Banks to Jeddah compared to those in
the Kingdom:
The Commercial Banks are marketing the Service of different Credit Cards through
their branches and through Licensed Financial Mediators. These loans were rapidly
grew, they were more than triple and rising from 2,222 Million Saudi Riyals in 2002 to
8,896 Million Saudi Riyals in 2008, i.e. increased by 6,674 Million Saudi Riyals or
301%.
Jeddah Province received the attention of Commercial Banks in granting loans to
individuals through Credit Cards. These loans increased more than twice they
increased from 425 Million Saudi Riyals in 2002 to 1,366 Million Riyals in 2008, i.e.
increased by 940 Million Saudi Riyals or 221% representing approximately 18% of the
total Credit Cards in the Kingdom, and at annual rate of growth of 25%.
These percentages showed the importance of Jeddah Province and the interest in
Commercial Banks, where the percentage was almost one fifth of the total granted
loans through Credit Cards in the Kingdom as shown in Table (5-44) below.
Table (5 – 44)
Credit Cards, Loans granted by Commercial Banks to the Individuals in Jeddah Province compared to
those in the Kingdom from 2002 To 2008 (Amount in Millions of Saudi Riyals)
Credit Card Loans Credit Card Loans
Years
Percentage
% of Change
in Jeddah
in the Kingdom
2002
426
2,222
19
40
2003
460
2,857
16
8
2004
518
2,579
20
13
2005
646
3,295
20
25
2006
814
4,259
19
26
2007
786
7,349
16
46
2008
1,366
Annual Rate of Growth 25%
8,896
15
15
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2002
2003
2004
2005
2006
2007
2008
Credit Card Loans in Jeddah
- 214 -
Credit Card Loans in the Kingdom
Secondly, the specialized lending Institutions:
Specialized Lending Institutions were established to assist citizens in funding their own
projects through the provision of loans provided to Individuals and Private Sector
Establishments. These institutions played an active role in promoting the economic and
social development in the areas of industry, agriculture, housing and other activities which
was reflected in the performance of the economy in general terms of diversifying the
economic base in the country, and activating the role of the Private Sector by raising its
contribution to the development in general.
The most important of these Institutions are:
1) Real Estate Development Fund.
2) Saudi Industrial Development Fund.
3) The Saudi Arabian Agricultural Bank.
4) Saudi Credit and Savings Bank.
In order to help these institutions to play their roles in supporting the Private Sector and
the citizens they were supported by the government during the past two years with
Thousands of Millions of Riyals. The Saudi Credit and Savings Bank was supported by
more than 200 Million Riyals, and its duties were expanded to provide the necessary
funds to the professionals and small and medium enterprises. The Real Estate
Development Fund was supported by amount of One Billion Saudi Riyals during the last
year.
It is expected that these amount with other own sources of these institutions will
contribute to stimulate people to engage in new investments and take the advantage of
short and long term loans beside the support provided by these institutions. All these
facilities are expected to work for expansion in commercial, industrial, real estate and
education activities and thus providing new job opportunities which will contribute in
solving the problem of unemployment, and also make the private sector more dynamic
and increase its contribution to GDP and consequently contribute to enhance the national
economy, below is the details of the loans provided by these institutions:
5-6-7 Real Estate Development Fund:
Real Estate Development Fund was established Vide Royal Decree No. M/23, dated
11/6/1394 H with a capital of 250 Million Saudi Riyals, and continuously enhanced till it
reached 76,240.5 Million Riyals at the end of the Fiscal Year 2005/2006. Real Estate
Development Fund aiming to help citizens in provision of modern health housing. The
Real Estate Development Fund was able during the last years to create a qualitative
change in the overall level of housing in the Kingdom. A number of cities were expanded
and new districts were emerged and the prevailing architectural style was changed from
formerly housing style, now it is normal to see modern houses in towns and villages in the
Kingdom.
Real Estate Development Fund provided two types of loans which are:
1) Commercial Investment Loans, this type of loans were granted as a backup to the
private sector in provision of thousands of housing units and administrative offices to
meet the requirements of the citizens and the market.
- 215 -
2) Private Loans which are the main objective of Real Estate Development Fund they are
long term loans provided to citizens to finance the construction of private houses,
amount of which ranging from 200 Thousand Riyal to 300 Thousand Riyals payable
over twenty-five years without interest or fees, they are available for all Saudi
Nationals, provided that a citizen should be of 24 years of age or 21 years if he is
married, as well as orphans, widows and divorcees and the women who are of forty
years of age and never married.
The total loans granted by Real Estate Development Fund to the citizens until the end
of the fiscal year 2005/2006 were approximately 493,632 loans valued at 130,701
Million Saudi Riyals and the numbers of housing units were 592,376 units in all parts
of the Kingdom. Jeddah Province got a substantial portion of these loans.
5-6-7-1 Real Estate Loans granted by the Real Estate Development Fund to Jeddah
Province compared to those of Makkah Mukarramah Region and the Kingdom:
Total Real Estate Loans granted to Jeddah province for the period from 2002 To 2008
were approximately 20,785 loans valued SR. 6,155 Million, representing 39% of the
total loans in Makkah Mukarramah region and 7% of the total loans in the Kingdom,
the largest number of loans granted to the citizens of Jeddah province in 2007. They
were 6,406 loans amounting to 1,897 Million Saudi Riyals, representing 43% of total
loans in Makkah Mukarramah region and 9% of the total loans in the Kingdom.
The loans granted to Jeddah Province were fluctuated in number and value over the
past years. However it achieved annual rate of growth 30.3% as shown in Table (5-45)
below. These percentages reflected the importance of Jeddah as a modern city where
the Real Estate Development Fund allotted to Jeddah province approximately 40% of
the amounts approved for Makkah Mukarramah region and about 8% of the total loans
approved for all regions of the Kingdom.
Table (5 – 45)
Real Estate Loans granted by Real Estate Development Fund to Jeddah Province compared to those of
Makkah Mukarramah region and the Kingdom from 2002 To 2008
(Amount in Millions of Saudi Riyals)
Jeddah
Years
Number
Value
Makkah
Mukarramah Region
The Kingdom
Number
Value
Number
Value
2002
1,675
496
4,758
2003
956
285
3,222
2004
1,053
313
3,206
2005
2,726
816
8,483
2006
5,494
1,635
14,054
2007
6,406
1,897
15,155
2008
2,475
713
6,135
Total
20,785
6,155
55,013
Annual Rate of Growth 30.3%
1,378
930
932
2,466
4,089
4,397
1,737
15,929
36,628
26,875
23,523
56,871
73,016
73,687
32,048
322,648
10,282
7,554
6,618
16,048
20,548
20,850
8,983
90,883
% of
Jeddah
To The
Region
% of
Jeddah
To The
Kingdom
% of
Change
36
31
34
33
40
43
41
39
5
4
5
5
8
9
8
7
-4310
161
100
16
62--
Source: Real Estate Development Fund, Annual Reports and Data Base 2008.
- 216 -
9,000
1,897
8,000
1,635
7,000
6,406
5,000
5,494
Jeddah Value
Jeddah Number
6,000
713
4,000
816
2,475
496
2,726
285
313
1,053
2008
2007
2006
2005
2004
956
2003
3,000
2,000
1,675
1,000
0
2002
5-6-8 Saudi Arabian Agricultural Bank:
The Saudi Arabian Agricultural Bank was established in 1384 H (1974) as a main
pillar of the comprehensive agricultural development in the Kingdom. The Bank
aiming to address the problems of farmers through its Credit Services in order to
increase production and raise the rates of agricultural development, and improve the
agricultural sector structure.
Saudi Agricultural Bank provided Free-Interest Loans to all farmers and investors in
the agricultural sector to ensure provision of all requirements of the means of
agricultural production and supplies. It contributed to financing of specialized
agricultural projects in different kinds of activities. The Bank provided short-term
loans for one year period in order to face the seasonal agricultural expenditure, and
medium-term loans to cover all requirements of agricultural activities in fields such as
crops and livestock. In addition to that of financing specialized agricultural projects
and for which the period of payment of such loans extended up to ten years.
The Bank also granted nonrefundable agricultural subsidies to the farmers to cover
some of the requirements of production, and it will work with this system since 1393H
(1983) and the value of these subsidies were paid by the government to promote the
agricultural sector, and decrease the costs of expenditure to farmers and investors.
The total loans since the inception of the bank until the end of the fiscal year
2006/2007 were approximately 424,580 loans with an aggregate value of SR. 38,934
Million, the total subsidies disbursed to eligible farmers were about SR. 12,993
Million from 1983 till the end of 2007.
Despite the geographical conditions in Makkah Mukarramah region and Jeddah
provinces, however they attracted considerable support from the Agricultural Bank.
Below are the details of the loans and subsidies provided by the Bank to Jeddah and
- 217 -
5-6-8-1 Comparison of Agricultural Loans Granted By the Saudi Arabian Agricultural
Bank to Jeddah Province With Those of Makkah Mukarramah Region and the
Kingdom:
Total loans granted to Jeddah Province from 2003 up to 2007 were approximately 473
loans amounted to 242 Million Saudi Riyals representing 78% of the total loans in
Makkah Mukarramah region and 4% of the total loans in the Kingdom.
The biggest number of loans was in 2003, when it was 137 loans representing 29% of
the loans granted to Jeddah Province and 78% of the loans granted to Makkah
Mukarramah region and 4% of the total loans in the Kingdom. This low percentage of
Agricultural investment was due to lack of land that may be used in agriculture in
Jeddah as shown in Table (5-46) below:
Table (5 – 46)
Comparison of the Agricultural Loans granted by the Saudi Agricultural Bank to Jeddah Province with
those granted to Makkah Mukarramah region and the Kingdom from 2002 to 2007
Makkah Mukarramah
Region
Jeddah
Years
2002
2003
2004
2005
2006
2007
Total
The Kingdom
Number
Value
Number
Value
Number
Value
-137
80
76
98
82
473
-63
46
23
87
24
243
-181
114
99
118
103
615
-81
50
28
109
43
311
8,037
7,017
2,259
5,136
3,527
4,303
30,279
1,445
1,480
612
1,044
896
968
6,445
% of
Jeddah
To The
Region
% of
Jeddah
To The
Kingdom
-78
92
82
78
56
78
-4
8
2
10
2
4
Source: Saudi Arabian Agricultural Bank, the Annual Report from 2002 to 2007.
250
24
100
23
98
82
150
137
46
Jeddah Value
Jeddah Number
200
63
87
80
76
50
0
2007
2006
2005
2004
2003
0
2002
5-6-8-2 Agricultural Subsidies Paid to Jeddah Province With Those Paid to Makkah
The total subsidies disbursed to Jeddah Province were about 10 Million Saudi Riyals
representing 60% of the total subsidies paid to Makkah Mukarramah region and 0.7%
of the total subsidies paid to farmers in the Kingdom.
- 218 -
The biggest amount of subsidies disbursed to farmers was in 2004 when it was
amounted to 3.7 Million Saudi Riyals representing 84% of the subsidies paid to
farmers in Makkah Mukarramah region and 1.5% of the subsidies paid to all farmers
in the Kingdom as shown in Table (5-47) below:
It is noted that the subsidies paid to farmers in Jeddah were small when compared to
those paid to farmers in the Kingdom. It was not exceeding 1% of the total subsidies
and this was due to the lack of agricultural projects in Jeddah Province and Makkah
Mukarramah region as pointed out when analyzing the agricultural sector and this is
due to natural and geographical conditions in the province and the region.
Table (5 – 47)
Agricultural Subsidies paid to the Jeddah Province compared to those paid to Makkah Mukarramah
region and the Kingdom from 2002 To 2007 (Amount in Millions of Saudi Riyals)
Years
2002
2003
2004
2005
2006
2007
Total
Agricultural Loans Value
Makkah
Jeddah
Mukarramah
The Kingdom
Region
-1.2
3.7
3.4
1.4
0.2
9.9
-3.1
4.4
3.8
4.9
0.2
16.4
% of Jeddah To
Makkah Mukarramah
Region
% of Jeddah To
The Kingdom
-37
84
89
29
84
60
-0.6
1.5
1.4
0.6
0.06
0.7
228
188
250
246
250
259
1,421
Source: Saudi Arabian Agricultural Bank, The Annual Reports from 2003 To 2007.
259
250
246
250
228
188
300.0
200.0
0.2
0.2
2007
4.9
1.4
2006
3.7
3.4
2005
2004
100.0
0.0
3.1
4.4
3.8
1.2
2003
0.0
0.0
2002
Agricultural Loans Value Jeddah
Agricultural Loans Value Makkah Mukarrammah Region
Agricultural Loans Value The Kingdom
5-6-9 Saudi Industrial Development Fund:
The Saudi Industrial Development Fund was established Vide Royal Decree No. 2/3
dated 26/2/1394 H, to support the National Industry through provision of loans to
finance the Industrial Projects of the Private Sector as well as provision of advisory
services in Technical, Administrative and Marketing Fields to the borrowers.
- 219 -
The S.I.D.F. is also doing the assessment, follow-up and collection and visits from
time to time examining the performance of various industrial activities in the Kingdom
in order to develop appropriate policies to support all industrial activities.
Saudi Industrial Development Fund provides support to the joint plants as well the
national ones with a view to support the national industry with foreign experience and
transference of modern technologies in the developed countries which will help in the
advancement of national industry and the enhancement of production efficiency
quality and opening of foreign markets to the national products, and providing job
opportunities and training for the Saudi citizens.
Saudi Industrial Development Fund introduced a program to support small and
medium enterprises with capital of 200 Million Saudi Riyals in 2005 considering them
as infrastructure of the national economy, and therefore expected to play the following
roles:
1)
2)
3)
4)
5)
Support of the Gross Domestic Product and Upgrading of the added Value.
Provision of Job Opportunities.
Reduction of Value and Domestic Resources and Savings.
Attraction of Foreign Investment and Advanced Technology.
Encouraging the Spirit of Creativity and Innovation.
In view of the difficulties that faced people in obtaining loans to finance their Commercial
Projects because their inability to provide adequate guarantees for the loans, and the
absence of previous Credit experiences, in addition to the lack of the owners of reasonable
experience and management skills and planning. The Saudi Industrial Development Fund
taking the responsibility to provide the necessary guarantees to the Commercial Banks
after ascertaining the feasibility of the investment. The guarantee covers a specific
percentage of the value of the required funds for each project which will not exceed the
limits of 75% of the value of the project within the limits of 2 Million Saudi Riyals as
maximum amount against registered mortgage over the properties of the establishment in
favor of the financing institutions until the full payment of the value of the loan.
During the last years Saudi Industrial Development Fund provided more than 2,900
loans till the end of 2008 the total value of which was more than 56 Billion Saudi
Riyals to support about 2,060 Industrial Projects, below are the details of these loans:
5-6-9-1 Loans granted to the Industrial Projects Sector to finance Industrial Projects in
the Kingdom:
The Industrial loans granted by the Industrial Development Fund, were rapidly grew in
number and value during the course of time since inception and until today, the total
loans granted to the Industrial Sector were 2,393 loans amounted to SR. 40,260
Million for financing of 1,778 Projects in various industrial activities in all regions of
the Kingdom till the year 2002 the loans increased at ratio of not less than 2.5% per
year. The loans reached 2,913 loans at the end of 2008, i.e. increased by 520 loans or
21.7% at annual rate of growth 3.3%.
- 220 -
Lending value increased by not less than 4.5% in all years from 40,260 Million Saudi
Riyals in 2002 to 66,806 Million Saudi Riyals in 2008, i.e. increased by 26,546
Million Saudi Riyals or 66% at an annual rate of growth 8.3%.
The number of the projects financed by Saudi Industrial Development Fund increased
from 1,778 projects in 2002 to 2,064 projects in 2008, i.e. increased by 286 projects or
16% at an annual rate of growth 2.5% as shown in Table (5-48) below:
In view of the absence of detailed Statistics on the number of granted loans to regions, and
the industrial cities in the main cities is expected in the light of the available Statistics of
operating factories in the Kingdom that these loans were contributed to financing of 51%
of the total industrial projects in the Kingdom, bearing in mind the total operating
factories were 4,048 at the end of 2008.
Since the number of industrial projects in the city of Jeddah were 891 factories
representing 22% of the total industrial projects in the Kingdom, and 84% of the total
factories in Makkah Mukarramah region, it is expected that the Industrial projects in
Jeddah might enjoyed the same percentage of finance that is 50% of Jeddah Projects or
445 Projects were financed by Saudi Industrial Development Fund.
Accordingly, Jeddah share of the total loans was estimated to 14,230 Million Saudi
Riyals for financing Industrial Projects in the city.
Years
2002
2003
2004
2005
2006
2007
2008
Table (5 – 48)
Industrial Loans granted to the Industrial Sector in the Kingdom from 2002 To 2008
The Number
Number of
%
%
Value
%
of Loans
Projects
2,393
-1,778
-40,260
-2,483
3.8
1,818
2.2
42,075
4.5
2,574
3.7
1,856
2.1
44,824
6.5
2,650
2.9
1,899
2.3
48,115
7.3
2,731
3
1,942
2.3
51,973
8
2,817
3.1
1,999
3
58,262
12.1
2,913
3.4
2,064
3.2
66,806
14.7
Source: Saudi Industrial Development Fund, the Annual Reports from 2001 To 2008. Statistical Year Book Issue Number 44 - 2008.
80,000
66,806
70,000
58,262
51,973
60,000
48,115
44,824
Value
50,000
42,075 40,260
40,000
Number of Projects
30,000
The Number of Loans
20,000
2,064
1,999
1,942
1,899 1,856
1,818
10,000
1,778
0
2008
- 221 -
2007
2006
2005
2004
2003
2002
5-6-10 Saudi Credit and Savings Bank:
The Bank was established Vide Royal Decree No. M/44 dated 21/9/1391 H (1971)
named Saudi Credit Bank as a Loan Institution supported by the government to
provide support to Saudi citizens males and females from limited income categories to
meet their social and living needs according to easy terms and free interest loans, the
most important purposes are:
1) Marriage.
2) Renovation of Houses.
3) Family Loans.
This type of loan was recently introduced in 1419 H (1999) Vide Ministerial
Resolution No. 3/1086 dated 4/7/1419 H and was started in the fiscal year 1419/1429
(1999/2000).
The Bank introduced Professional Loans to the qualified Professionals and
Technicians Saudis to enable them to engage in professional work and specialized
expertise and they can establish their own small business through long-term loans on
facilitated terms and in accordance with the rules of lending to professionals issued
Vide Ministerial Resolution No. 1789 dated 28/6/1417 H (1997) and vide Royal
Decree No. 3/B/10325 dated 3/6/1422 H (2002) which approved the lending program
of Taxi Drivers aiming to employ National Manpower in the Transport Sector, the
implementation of the program started in fiscal year 1422/1423 (2002/2003).
The Bank was able to provide services to citizens through the Twenty Six branches in
all regions of the Kingdom, Jeddah Province benefited from these loans as described
below.
5-6-10-1 Social Loans granted by the Saudi Credit and Savings Bank to Jeddah
Province compared with total loans of Makkah Mukarramah Region and the Kingdom:
The Bank aims to assist the citizens in accordance with the terms and regulations of
Social Loans Index provided to citizens without interest to overcome the social and
living problems, these loans provided for the following purposes:
1) Marriage.
2) Renovation of the Houses.
3) Family Loans.
This type of loan is provided to the Head of the family who is in bad need of the loan
to face emergency conditions that faced the family or to meet urgent and necessary
requirements and to improve the living conditions of the family. Jeddah received a big
share of these loans as follows:
Total Social Loans granted by the Bank to all citizens in the Kingdom were 126,188
loans until the end of 2007, amounted to 2,493 Million Saudi Riyals.
- 222 -
Total Social Loans granted by the Bank to Makkah Mukarramah Region were 15,585
loans representing 12.4% of the total loans in the Kingdom, amounting to 309 Million
Saudi Riyals representing 12.4% of the total value of loans in the Kingdom.
The total number of loans granted by the Bank to Jeddah Province was 6,557 loans
representing 42% of the total loans granted to Makkah Mukarramah Region and 5.2%
of the total loans in the Kingdom.
The value of total Social Loans granted to Jeddah Province was 129 Million Saudi
Riyals representing 42% of the total loans provided to Makkah Mukarramah Region
and 7% of the total loans in the Kingdom.
The annual rate of growth of number of loans provided to Jeddah Province is 6%, the
annual rate of growth of the amount of loans granted to Jeddah Province is 6% as
Table (5 – 49)
Social Loans granted by the Saudi Credit and Savings Bank to Jeddah Province compared with those
granted to Makkah Mukarramah Region and the Kingdom from 2002 To 2008
Makkah Mukarramah
Region
Jeddah
Years
The Kingdom
% of
Jeddah
To The
Region
% of
Jeddah
To The
Kingdom
% of
Change
Number
Value
Number
Value
Number
Value
2002
2003
2004
2005
2006
--1,568
1,315
1,683
--31
26
33
--3,116
3,653
3,695
--62
72
73
16,190
16,314
20,142
20,123
22,080
320
322
397
396
437
--50
36
45
--8
7
8
---1627
2007
Total
1,991
6,557
39
129
5,121
15,585
102
309
31,339
126,188
621
2,493
38
41
6
7
18
--
Source: The Saudi Credit and Savings Bank, the Annual Reports from 2003 To 2008.
1,991
1,683
1,568
1,315
Jeddah Number
Jeddah Value
39
2007
- 223 -
33
26
2006
2005
31
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2004
5-6-10-2 Professional Loans granted by the Bank to Jeddah Province compared to those
of Makkah Mukarramah Region and the Kingdom:
In view of the important role played by small business enterprises in the development
of the economy the Bank gave priorities to support some categories of the citizens who
are professionals and technicians and encourage them to establish their own business
firms and manage them by themselves through providing loans in accordance with the
terms of the amended Professionals Index Vide The Ministerial Resolution No. 1789
dated 28/6/1417 H (1997), the Bank provided loans under this Regulation not
exceeding 200 Thousand Saudi Riyals to each Saudi Professional or Technician. A
number of citizens of Jeddah Province benefited from these loans in establishing their
own business firms as follows:
The number of loans granted to professional people in the Kingdom increased from 3
loans in 2002 to 476 loans in 2007 i.e. increase by 473 loans which means that they
were doubles more than 15 times 158%.
The value of Professional Loans increased from 3 Million Saudi Riyals in 2002 to 38
Million Saudi Riyals in 2007, i.e. increased by 37.7 Million Saudi Riyals more than
twelve times 12.567%.
The annual rate of growth of the total Professional Loans in the Kingdom was 8%.
The same period also witnessed a steady increase in the number and values of loans in
Makkah Mukarramah region and Jeddah Province.
The Professional Loans in Jeddah Province increased from 1.3 Million Saudi Riyals in
2002 to 1.8 Million Saudi Riyals in 2007, i.e. increased by 0.5 Million Saudi Riyals or
38.5%.
The Professional Loans value represent 40% of the total value of loans granted to
Makkah Mukarramah region and 4% of the total value of loans in the Kingdom.
The annual rate of growth of loans in Jeddah was 9% as shown in Table (5-50) below:
Table (5 – 50)
Professional Loans granted by the Saudi Credit and Savings Bank to Jeddah Province compared with
those granted to Makkah Mukarramah Region and the Kingdom from 2003 To 2007
Makkah Mukarramah
Region
Jeddah
Years
The Kingdom
% of
Jeddah
To The
Region
% of
Jeddah
To The
Kingdom
% of
Change
Number
Value
Number
Value
Number
Value
2003
2004
2005
2006
-19
20
22
-1.3
1.4
1.5
-67
57
62
-3.4
3.5
3.7
21
353
380
410
1.1
30
32
34
-38
40
41
-3
4
4
--8
7
2007
28
1.8
73
4.3
476
38
42
5
20
- 224 -
28
30
22
25
20
19
Jeddah Number
20
15
Jeddah Value
10
1.8
1.5
1.4
1.3
5
0
2007
2006
2005
2004
5-6-10-3 Taxis Loans granted to Jeddah Province compared to those of Makkah
Under the program of lending Saudi Professions carried out by the Bank, Royal Order
No. 3/2/10325 dated 6/3/1422 H (2002) was issued approving the adoption of the Taxi
Drivers Lending Program to grant a loan to each Driver not exceeding 80 Thousand
Saudi Riyals to any citizen who wishes to buy a Car to work in Transport activity from
the point of view to recruit new job opportunities for citizens, then the Bank
authorized Car Agents who have suitable vehicles for the conduct of activity and
securing them to be delivered to the citizens. The citizens of Jeddah received their
share of this type of loan as follows:
The number of Taxi Loans in all parts of the Kingdom increased from 375 loans in
2002 to 5,389 loans in 2007, i.e. increased by 5, 014 loans which mean that the
number was doubled more than 1,330 times or 1337 %.
The amount of loans rose from 24.2 Million Saudi Riyals to 355.4 Million Saudi
Riyals in the same period which means that the loan amounts increased by 331.2
Million Saudi Riyals and this means that the Taxi Loans annual rate of growth was
72%.
The same period witnessed a steady increase in Taxi Loans granted to Makkah
Mukarramah region and Jeddah. The number of loans granted to Jeddah Province
increased from 449 in 2004 to 1,099 loans in 2007, i.e. increased by 650 loans or
doubled almost one and a half times 145%, representing 48% of the total number of
loans in Makkah Mukarramah region and 20.4% of the total number of loans in the
Kingdom.
The amount of Taxi Loans in Jeddah Province increased from 28.3 Million Saudi
Riyals in 2002 to 72.5 Million Saudi Riyals in 2007, i.e. increased by 44.2 Million
Saudi Riyals, which means that they were doubled more than one and a half or 156%,
representing 48.2% of the total amount of loans in Makkah Mukarramah region and
representing 20.4% of the total amount of loans in the Kingdom which stand as
- 225 -
evident of the importance of Jeddah as shown in the following Table (5-51), the annual
rate of growth of Taxi Loans in the Jeddah was 28%.
Table (5 – 51)
Taxi Loans granted by the Saudi Credit and Savings Bank to Jeddah Province compared to the loans
granted to Makkah Mukarramah Region and the Kingdom from 2003 To 2007
Makkah
% of
% of
Jeddah
Mukarramah
The Kingdom
Years
Jeddah
Jeddah
% of
Region
To The
To The
Change
Region
Kingdom
Number
Value
Number
Value
Number
Value
2003
----375
24.2
---2004
449
28.3
879
55.9
2,161
138.6
51
20
-2005
656
42.7
1,207
87.2
2,954
191.8
55
22
51
2006
822
53.6
1,554
101.1
3,739
244.4
53
22
26
2007
1,099
72.5
2,285
150.3
5,389
355.4
48
20
35
1,200
1,099
1,000
822
800
656
Jeddah Number
600
Jeddah Value
449
72.5
400
200
53.6
42.7
28.3
0
2007
2006
2005
2004
0
2003
The Figures and Percentages showed that Jeddah Province acquired more than 40% of
the total Taxi Loans granted by the Saudi Credit and Savings Bank to Makkah
Mukarramah Region and more than 15% of the total loans granted to all citizens in the
Kingdom, and this indicated the importance of Jeddah at both sides' investment and
social development.
5-7 The Tourism Sector:
Saudi Arabia is considered as a cradle of many ancient civilizations, which created
many of the important archaeological sites and unique places such as the cities that
were inhabited by the Prophets and the homeland of Two Holy Mosques, and the
cradle and first homeland of human beings, where it is thought that Adam and Eve
(Peace Be Upon Them) landed in its territory and it is the homeland of the most sacred
and oldest place on earth i.e. Makkah Mukarramah and the Kaaba, which attracted
people from everywhere. Kaaba was built since Adam (PBUH) time by the Angels,
and then the construction was renewed by Ibrahim (Peace Be Upon Him). This historic
legacy gave the Kingdom its prestige in the Arab and Muslim worlds; therefore it
- 226 -
became and continued to be the destination for the Muslims from each and every parts
of the earth, where Pilgrims come to perform Pilgrimage and Umrah besides visiting
the Prophet's (PBUH) Mosque in Madinah Munawwarrah.
In addition to the above the Kingdom characterized by its largest geographical area,
which resulted in diversified climate, in addition to variety of natural resources and
historical, cultural and social heritage.
These characteristics made present and future base of tourism resources of the
Kingdom. It is expected that they will be the key element in tourism industry in the
Kingdom and will work to attract tourists from various parts of the world, especially
in the light of economic growth and the development of infrastructure, low customs
tariffs, and the accession of the Kingdom to many Arab, Islamic and regional
organizations as well as to World Trade Organization (WTO).
Tourism is considered as distinct industry due to its interacted with many other
economic sectors, and therefore it expected to contribute to the development of many
sectors and economic activities and provide many job opportunities for citizens, and
strengthen the reserves of foreign exchange and reflected in its contribution to the
improvement of the status of the balance of payments and work towards stability of the
currency exchange rate, all these will be reflected in its contribution to promote the
growth of GDP of the Kingdom.
In light of the foregoing, the government interested in this sector and started since the
beginning of this century to develop the tourism sector. The Supreme Commission for
Tourism was established Vide Council of Ministers Resolution No. (9) dated
12/1/1421 H (17/4/2000) which considered the adoption of Tourism Sector as
Productive Sector and set the functions of the Commission in the development of
Tourism Industry in the Kingdom in order to ensure optimal exploitation of the
resources and tourism potentialities or existing and promising components and
consequently contribute to the diversification of the economic base and its growth, and
creation of new feasible opportunities of investment, transfer of capital to the various
regions of the Kingdom, especially in the less developed areas which will result in the
achievement of balanced regional development.
This was followed by the merging of Antiquities and Museums to the Commission
Vide Council of Ministers Resolution No. 2/A dated 28/2/1424 H (30/4/2003) because
of its strong relation with the field of tourism.
The Commission started since inception to work on preparation of National Tourism
Development Projects, in this context the following achievements were made:
1) Preparation of the General Strategy of development of Tourism Industry, The
Council of Ministers approved the strategy on 24/1/1425 (2005) along with the
action plan.
2) Preparation of a Strategy of developing the Antiquities and Museums Sector.
3) Preparation of initial draft of the system of Antiquities and Museums.
- 227 -
4) Preparation of Tourism Development Strategy in Makkah Mukarramah region.
5) Preparation of Tourism Development Strategy of the Red Sea Area with the action
plan.
6) Preparation of the National Project for the development of Crafts and Traditional
Industries.
7) A Partnership approach between the Commission and the relevant government
authorities, through signing of Memorandum of Understanding with the regions
and 12 Memorandums of Understanding with the ministries and Government
Organizations interested in Tourism Development.
5-7-1 Tourism Resources and Facilities in the Kingdom:
The findings of studies and surveys prepared by the Commission led to find out more
than 12 Thousand natural sites, historical and cultural then documented electronically,
and accordingly, 40 Tourism Development Zones were identified in thee various
regions of the Kingdom and they were subject to integral development as Tourism
areas.
903 sites are subject to Tourism Development in the future and the decisions
protection and preservation of these sites have been issued.
1) The presence of 144 Museums in major cities in the Kingdom.
2) The existence of 25 National Parks and 14 reserved areas throughout the
Kingdom.
3) A number of permanent exhibitions and festivals of Culture and Arts.
According to Statistics of the Ministry of Commerce and Industry up to the end of
2008, number of hotels increased till it reached 1,209 hotels from all classes with total
capacity of 185 Thousand rooms, and the number of Licensed Residential facilities
were about 2,784 consisting of 68 Thousand Furnished Residential Units distributed
among the various cities of the Kingdom at different percentage. The largest share of
them was in Jeddah, where the total number was 624 Units, representing 22.4% or
more than fifth.
The numbers of Rest Houses were 17.
These developments led to significant improvement in raising added value of the
Tourism Sector in GDP, it increased from 30.9 Billion Saudi Riyals in 2004 to 37
Billion Saudi Riyals at the end of 2008, i.e. increased by 6.1 Billion Saudi Riyals or
19.7%, at annual rate of growth 4.7%.
The contribution of Tourism to GDP ranges between 2.5% and 3.9%. The contribution
of Tourism was declined from 3.1% in 2006 to 2.7% and 2.6% in 2007 and 2008
respectively. This was due to the substantial growth in Gross Domestic Product
because of the great boom in oil prices as shown in Table (5-52) below:
- 228 -
Table (5 – 52)
Added-Value and Percentage of Contribution of Tourism Sector in the Gross Domestic Product
Years
The Gross Domestic
Product of Kingdom
The Gross Domestic
Product of Tourism
% Contribution of
Tourism
% of Change
2004
2005
2006
2007
2008
80,406
938.8
1,182.5
1,335.6
1,430.5
30.9
34.2
36.5
35.5
37.0
3.9
3.6
3.1
2.7
2.8
-10.6
6.7
(2.7)
4.2
Source: Saudi Arabian Monetary Agency, Annual Reports, Issues 43, 44.
40.0
37.0
35.5
36.5
35.0
34.2
30.9
30.0
25.0
20.0
15.0
10.0
2.8
2008
2.7
2007
3.1
3.6
3.9
5.0
0.0
2006
2005
The Gross Domestic Product of Tourism
2004
Contribution of Tourism %
5-7-2 The Importance of Jeddah in Tourism:
Jeddah is characterized as the Main Gate of the Sacred Capital, which is the
destination of Pilgrims since it was the residence of the family of Ibrahim Al Khalil
(Peace Be upon Him) and since his call to people for Hajj. This situation created
economic importance to Jeddah, because it became the Sea and Airport for Pilgrims
and Umrah performers, and the Commercial Center of Marketing after the end of
Pilgrimage and Umrah.
Jeddah is a distinctive location on the Red Sea Coast and it is famous of Coral Reefs in
the Coast, and thus one of the most important Tourism Resources.
This Coast is attractive for the exercise of diving. The Coast became one of the most
important growing elements of tourism; it attracted a large number of citizens to build
homes and chalets on the Red Sea Coast.
Jeddah Provides shelter services, such as Hotels approximately 10% of the total Hotels
of all classes in the Kingdom are in Jeddah, and about 15% of the total Hotels in
Makkah Mukarramah region, and about 23% of the total of Furnished Apartments in
the Kingdom, and about 57% of the total of Furnished Apartments in Makkah
Mukarramah region.
- 229 -
Jeddah has significant heritage resources in the area of Old Jeddah, and famous of
historical of districts in the Kingdom and most important of these historical landmarks
in Jeddah are:
1) Beit Nassif.
2) The area of Khouzam Palace.
3) Cemetery of our Mother Eve (PBUH) and other landmarks that have already been
described in the first chapters of this guide.
Attractive Tourism Landmarks:
1) Corniche.
2) Fountain of Jeddah.
3) Leisure Villages.
4) Recreational Parks.
5) Shopping Centers.
6) Parks on Highways.
Jeddah as Business Center:
Jeddah is characterized by containing may of the Commercial and Cultural Events
such as:
1) Jeddah Annual fair Festival.
2) Exhibition Center in which many Trade, Industrial and Service Fairs took place
throughout the year.
3) Jeddah Shopping and Entertainment Festival.
4) Abhur Tourism Festival.
5) Economic Forums and other events.
All these activities are working together to create a supportive and stimulating
environment for the development and flourishing of Tourism Industry in Jeddah, they
are making it an attractive city for tourists and investors to build more tourist facilities,
which will work to improve the conditions of accommodation and the provision of
support services to tourism such as Hotels, Transportation, Communication and others.
5-7-3 Accommodation activity in the city of Jeddah:
The city of Jeddah receives Pilgrims and Umrah performers and visitors by Sea, Land
and Air. They need facilities for their accommodation before going to Makkah
Mukarramah and the Holy places and Madinah Munawwarrah, so the accommodation
industry in Jeddah, was established since its inception, hotels and residential units to
accommodate the growing numbers of Pilgrims and visitors year after year.
Besides these facilities, housing is constructed there for students and young people in
the Youth and Students Houses in Jeddah.
Hotels in Jeddah increased in number rapidly and this services were developed, the
numbers increased from 69 Hotels in 2005 to 112 Hotels in 2008 from different classes
- 230 -
i.e. increased by 43 Hotels or 62% which representing about 14% of the Hotels in
Makkah Mukarramah region and 9% of the total Hotels in the Kingdom.
The numbers of Hotel Rooms of various classes increased from 7,759 Rooms in 2005
to 11,382 Rooms in 2008, i.e. increased by 3,623 Rooms or 47%, these rooms
represent 14% of the total potential rooms in the hotels in Makkah Mukarramah region
and 9% of the total rooms in the Kingdom.
The numbers of Furnished Housing Units in different classes in Jeddah were 539 Units
in 2005 and increased up to 615 Units in 2008, i.e. increased by 76 Units or 14%, these
Units represent approximately 60% of the total units in Makkah Mukarramah region
and about 23% of the total Furnished Housing Units in the Kingdom.
The total number of Furnished Apartments in these Units were 14,267 Apartments in
2005 and the number increased till it reached 15,375 Apartments, i.e. increased by
1,108 Apartments or 8%, these Apartments in Jeddah represent about 57% of the total
Apartments in Makkah Mukarramah region and about 12% of the total Apartments in
the Kingdom.
The Youth and Students Houses in Jeddah are Two consisting of about 118 Rooms for
reception of Students and Young Men representing 33% of the Youth Houses in
Makkah Mukarramah region and 5% of the total Youth houses in the Kingdom as
Beside these facilities there are 18 Residential Compounds in Jeddah providing places
of accommodation for Tourists from different groups and places.
- 231 -
Table (5 – 53)
The Number of Accommodation Facilities in Jeddah compared to those of Makkah Mukarramah Region
and the Kingdom from 2002 To 2008
- 232 -
5-7-4 Hotels in Jeddah according to Class compared to those in Makkah Mukarramah
region and the Kingdom:
Total Hotels in various classes were 112 Hotels in Jeddah at the end of 2008, representing
15% of the total Hotels in Makkah Mukarramah region and 10% of the total Hotels in the
Kingdom, distributed according to Class as follows:
1) 22 Hotels represent First Class, 61% of the Hotels of this Class in Makkah
Mukarramah region and 32% of the Hotels of this Class in the Kingdom.
2) 20 First Class Hotels (Categories A + B) representing 14% of the total in Makkah
Mukarramah region and 8% of the total in the Kingdom.
3) 40 Second Class Hotels (Categories A + B) representing 13% of the total in Makkah
Mukarramah region and 8% of the total in the Kingdom.
4) The number of Third Class Hotels were 30 Hotels representing 12% of the total in
Makkah Mukarramah region and 9% of total in the Kingdom as shown in Table (554) below:
Table (5 – 54)
Hotels in Jeddah, according to Class compared to those in Makkah Mukarramah Region
and the Kingdom
Number
Jeddah
Makkah M
Region
The Kingdom
% of Jeddah
To Makkah M
Region
22
20
40
30
-112
36
140
318
252
-746
69
238
490
348
20
1,165
61
14
13
12
-15
Class
First Class
First Class A + - B
Second Class A + - B
Third Class
Un-Classified
Total
% of Jeddah
To The
Kingdom
32
8
8
9
-10
Source: Supreme Commission for Tourism and Antiquities, the Information and Tourism Research Center (MAS) 2008.
500
400
300
200
30
0
40
20
22
100
0
Un-Classified
Third Class
Number Jeddah
Second Class A First Class A + +-B
B
Number Makkah M Region
First Class
Number The Kingdom
5-7-5 Distribution of Hotels in Jeddah according to Class until the end of 2008:
The total number of Hotels in Jeddah according to Class until the end of 2008 distributed
as follows:
1) The number of First Class Hotels representing 20% of the total in the City.
2) The numbers of First Class Hotels (A) were 6 Hotels representing 5% of the total.
3) The numbers of First Class Hotels (B) were 14 Hotels representing 13% of the total.
- 233 -
4) The numbers of Second Class Hotels (A) were 21 representing 19% of the total.
5) The numbers of Second Class Hotels (B) were 19 representing 17% of the total.
6) The numbers of Third Class Hotels were 30 Hotels representing 26% of the total as
Table (5 – 55)
Distribution of Hotels in Jeddah, according to Class until the end of 2008
Class
Number in Jeddah
Percentage
First Class +
First Class - A
First Class - B
Second Class - A
Second Classs - B
22
6
14
21
19
20%
5%
13%
19%
17%
Third Class
Total
30
112
26%
100%
%20
+ First Class
%27
First Class - A
%5
First Class - B
Second Class - A
%12
Second Classs - B
Third Class
%17
%19
5-7-6 Distribution of Residential Units in Jeddah according to Class:
The total Residential Units in Jeddah were 615 Units until the end of 2008, consisting
of 11,382 Apartments and are divided into three Classes as follows:
1) The numbers of First Class Units were 233 Units representing 38% of the total.
2) The numbers of Second Class Units were 331 representing 54% of the total.
3) The numbers of Third Class Units were 51 Units representing 8% of the total as
Table (5 – 56)
Distribution of Furnished Residential Units in Jeddah, according to Class
Class
Number in Jeddah
Percentage
First Class
Second Classs
233
331
38%
54%
Third Class
Total
51
615
8%
100%
- 234 -
Third Class
%8
First Class
%38
Second Classs
%54
5-7-7 Areas of Conference Halls in Hotels in Jeddah compared to those in Makkah
Mukarramah region and the Kingdom:
The Hotels in Jeddah provided a number of services other than accommodation such
as, Conference Halls which equipped for making Parties and Conferences. The size of
the equipped Halls like Theatres 13,891 Sq. Meters, representing 77% of the total size
of the Halls in Makkah Mukarramah region and 37% of the total size of the Halls in
the Kingdom, and covering an area of 19,550 Square Meters, representing 84% of the
total area of Halls in Makkah Mukarramah region and 38% of the total area of the
Halls in the Kingdom as shown in Table (5-57) below:
Table (5 – 57)
Area of Conference Halls in Jeddah Hotels compared to those in Makkah Mukarramah region and the
Kingdom until the end of 2008
% of Jeddah
% of Jeddah
Makkah M
The
Areas
Jeddah
To Makkah M
To The
Region
Kingdom
Region
Kingdom
Size of the Theatre
13,891
17,191
37,145
77
37
Total Area in Sq. Mtrs.
19,550
23,232
51,082
84
38
51,082
The Kingdom
37,145
23,232
17,191
.Total Area in Sq. Mtrs
Makkah M Region
Size of the Theatre
19,550
13,891
60,000
- 235 -
50,000
40,000
30,000
20,000
Jeddah
10,000
0
5-7-8 Other Tourism Facilities:
Jeddah becomes attractive to Domestic and Foreign Tourism because of the potential
tourism resources. Beside this Tourism facilities, some other important attractive
elements including but not limited to the 24 Tourist Resorts, 10 Museums, 44 Fun
Cities, 85 Conference Halls, 101 Parks and Commercial Centers and Malls, which
provide the requirements and the needs of the Tourists, Visitors, Pilgrims and Umrah
performers after completion of Hajj and Umrah rituals as shown in Table (5-58)
below:
Table (5 – 58)
Other Tourism Facilities in Jeddah at the end of 2008
Facility
Number
Tourist Resorts
Musuems
Fun Cities
Conference Halls and Exhibitions
24
10
44
85
Shopping Centers and Malls
101
Total
264
Tourist Resorts
%9
Musuems
%4
Fun Cities
%17
Shopping Centers
and Malls
%38
Conference Halls
and Exhibitions
32%
5-7-9 The Number of Communications and Transportation Facilities in Jeddah
compared to those in Makkah Mukarramah region and the Kingdom:
Tourism is strongly linked with the infrastructure of Communication and means of
Transportation, Travel and Tourism Agencies use to provide to anyone reservations
and various kinds of shelters and accommodation in Jeddah, in addition to its main
activity in provision of Travel Reservation.
The number of Travel Agencies in Jeddah increased from 195 Agencies in 2005 to 254
Agency in 2008 i.e. increased by 59 or 39%. They represented about 75% of the total
Agencies in the Kingdom.
- 236 -
The number of Car Rental Offices increased from 107 in 2005 to 121 Offices in 2008,
i.e. increased by 14% or 13 Offices, representing about one quarter of the offices in the
Kingdom.
These figures and percentages showed the importance of Jeddah in the field of
Tourism and provision of Tourism Services support which act as the main factor to
attract tourists from inside and outside the Kingdom. These facilities were providing
the needs of the Visitors and all Arrivals to Jeddah, Makkah Mukarramah and
Madinah Munawarrah as shown in Table (5-59) below:
- 237 -
Table (5 – 59)
The Number of Communications and Transportation Facilities in Jeddah compared to those in Makkah
Mukarramah region and the Kingdom
from 2005 To 2008
- 238 -
5-7-10 Licensed Travel and Tourism Agencies to Operate Religious Trips:
Because of the specialty of Makkah Mukarramah and Madinah Munawwarrah and the
need of Pilgrims and Umrah performers to travel to the Sacred Places especially in
seasons when the Pilgrims and Umrah performers need to travel to Makkah
Mukarramah in masses, it was difficult to travel through the usual means of transport.
Therefore concerned authorities issued Licenses to some specialized Establishments
allowing the transporting passengers for religious purposes. These permits were
limited to the Holy Cities and Jeddah. The majority of these agencies are in Jeddah.
The numbers of Authorized Agencies to operate the religious trips in Jeddah were 25
agencies representing 48% of the total and 20 Agencies are in Sacred capital
representing 39% of the total and 7 Agencies are in Madinah Munawwarrah
representing 13% of the total as shown in Table (5-60) below:
Table (5 – 60)
Licenses Travel and Tourism Agencies to Operate Religious Trips
City
Number
Percentage
Makkah Mukarramah
Madinah Munawwarrah
20
7
39%
13%
Jeddah
Total
25
52
48%
100%
Source: Supreme Commission for Tourism and Antiquities, Information and Tourism Research Center (MAS) 2008.
Jeddah
%48
Makkah
Mukarrammah
%38
Madinah
Munawwarrah
%14
5-7-11 Number of Restaurants in Jeddah compared to those in Makkah Mukarramah
Jeddah is the main destination of the majority of Pilgrims, Umrah performers and
Visitors coming from outside the Kingdom by Land, Sea and Air, and because of the
need of those Pilgrims, Umrah performers, Visitors and Tourists to the
accommodation facilities and food active investments in Restaurants took place, so the
Restaurant Industry in form of Tourist and Luxurious Restaurants, Fast Food and
Buffets Food were opened around the clock.
- 239 -
The Restaurants in Jeddah witnessed noticeable increase in recent years to keep pace
with the increase in the number of Pilgrims and Tourists coming to Jeddah. The
number increased from 1,438 Restaurants in 2005 to 1,790 Restaurants in 2008, i.e.
increased by 352 Restaurants or 24% or about one quarter. These Restaurants
represented more than 60% of the total Restaurants in Makkah Mukarramah region
and about 8% of the total Restaurants in the Kingdom as shown in Table (5-61) below:
Table (5 – 61)
The Numbers of Restaurants in Jeddah compared to those in Makkah Mukarramah region and the
Years
Number in
Jeddah
Number in
Makkah
Mukarramah
Number in
Kingdom
% of Jeddah To
Region
% of Jeddah To
Kingdom
2005
2006
2007
1,438
1,438
1,722
2,481
2,481
2,706
23,654
23,654
24,600
58%
58%
64%
6%
6%
11%
2008
1,790
2,815
25,584
64%
7%
Source: Supreme Commission for Tourism and Antiquities, Information and Tourism Research Center (MAS) 2008.
25,584
24,600
23,654
23,654
30,000
25,000
20,000
15,000
2,815
1,790
2,706
1,722
2,481
1,438
2,481
1,438
10,000
5,000
0
2008
Number in Jeddah
2007
2006
Number in Makkah Mukarrammah
2005
Number in Kingdom
5-7-12 The Importance of Jeddah as a Tourist Attraction Center:
Statistics indicated that Jeddah enjoyed a number of Tourism Elements, a number of
Tourism Resources and Facilities that meet the needs of Tourists from different
countries and different groups and classes. Every Tourists coming to Jeddah can find
accommodation and food that commensurate with its financial situation, in addition to
free, entertainment and recreation facilities such as the Corniche and coastal facilities
which monitored by Jeddah Municipality.
All these factors worked to attract Tourists from In and Outside the Kingdom to go to
Jeddah for Tourism and Recreation, as well as the religious purposes of Pilgrimage
and Umrah, because the majority of people go to Jeddah, due to lack of
accommodation in Makkah Mukarramah and the expensive prices of accommodation.
In addition to that Jeddah contained large number of Business and Commercial
Centers and Public Markets, which provide the needs of visitors and it remains as
- 240 -
important market after the Pilgrimage. All merchants in Jeddah depend on those
people for marketing and disposal of their goods and services.
Recent years witnessed increasing Tourist Traffic, which clearly appeared in the
number of Tourists who came from in and outside the Kingdom to visit Tourist areas,
including Jeddah and Makkah Mukarramah, the details of which are as follows:
1) Jeddah Arrival Tourists:
This type of Tourism means the Tours made by Jeddah Arrived Tourist or NonSaudi who reside in the Kingdom. This kind of Tourism witnessed steady
increased during the past three years. It increased from 8,037 Thousand in 2006 to
8,620 Thousand in 2007, then jumped to 11,531 Thousand in 2008, i.e. increased
by 3,494 Thousand or 43%. The Share of Jeddah from Arrived Tourists according
to accommodation as follows:
The total number of Arrived Tourists in Jeddah were 604 Thousand Tourists in
2006, rose to771 Thousand Tourists in 2008, i.e. increased by 67 Thousand, or
about 28%, representing approximately 13% of the total Jeddah Arrived Tourists
in Makkah Region and 7% of the total Tourists in the Kingdom.
The Tourists were distributed according to place of residence between the Hotels,
Furnished Apartments and Private Accommodation with family member and
relatives as follows:
The average of Jeddah Arrived Tourist who lived in Hotels in Jeddah were about
40% of the total Tourists of the city and the average of those who resided in the
Furnished Units were 18%, and the average of those who lived in Private
Accommodation were 36% and those who lived in other places were around 6%.
It is clear from the foregoing figures that the Hotels received the largest portion of
Tourists, then Private Accommodation in the Second place and Furnished Units in
the Third place.
When comparing the percentage according to place of residence with Makkah
Mukarramah Region and the Kingdom, the following was found:
Those Tourists who stayed in Hotels in Jeddah representing 10% of those who
stayed in Makkah Mukarramah region and 7% of the total of the Kingdom.
Percentage of those who stayed in Private Accommodation representing 68% of
those who stayed in Makkah Mukarramah region and 13% of the Kingdom.
Percentage of those who stayed in Furnished Apartments representing about 6% of
those in Makkah Mukarramah region and 4% of the Kingdom. The percentage of
those who stayed in other places about 20% when compared to those in Makkah
Mukarramah region and about 10% of those of the Kingdom.
- 241 -
From the above figures one observed that Jeddah is an attractive place for Tourists
that invited them to stay. The percentages of Tourists remain the same for Three
years when compared to Makkah Mukarramah region, despite a reduction in the
ratio in 2008. It was witnessed that a remarkable increase in number of Tourists
was observed in the year 2006; the increase was estimated to about 251 Thousand
Tourists or 48%, which considered as indication of the importance of Jeddah as an
attractive place because of the availability of accommodation.
The average parentage of tourists who stayed in leased premises was
approximately 64% of the total Tourists coming to Jeddah. It is expected that the
number will increase with the improvement of services provided in the field of
accommodation. It is expected that the number will increase and those who lived
in Private Accommodation will decrease (with friends and relatives or their own
homes) as shown in Table (5-62) below:
- 242 -
Table (5 – 62)
Tourism Journey of Jeddah Arrivals according to accommodation place compared to those in Makkah
from 2006 To 2008
- 243 -
2) The Local Tourism:
The Local Tourism means the journey made by the Kingdom Residents, Citizens
and Expatriates. The studies conducted by the Information and Tourism Research
Center (MAS) of Supreme Commission for Tourism showed that this type of
Tourism is the one to be rely and depend on in the future, and all departments
should work to develop it in terms of providing appropriate services and provision
of all facilities and improve the Tourism Resources to attract Tourists.
The average Gross Domestic Tourism according to place of accommodation was
about 28,622 Thousand Tourists during the last Three years.
The average of Gross Domestic Tourism in Jeddah was 5,274 tourists representing
18% of the total Domestic Tourism in the Kingdom, and about 47% of the total
Tourism in Makkah Mukarramah region which about half of the Tourists.
In terms of accommodation facilities in Jeddah, the percentage of those who
stayed in Hotels was about 49% compared to Makkah Mukarramah region and
28% compared to the Kingdom.
The percentage of those who stayed in private accommodation in Jeddah was
5,390 compared to Makkah Mukarramah region and 16% compared to the
Kingdom.
The percentage of those who stayed in other accommodation facilities was 5%
compared to Makkah Mukarramah region and 3% compared to the Kingdom.
The average of those who stayed in Hotels in Jeddah was 31% of the total Tourists
in Jeddah.
The average percentage of those who stayed in furnished apartments was about
40% of the total Tourists in Jeddah.
The average percentage of those who stayed in private residence was 28% of the
total Tourists in Jeddah.
The average percentage of those who stayed in other accommodation facilities was
1% of the total.
From the above one concluded that about 72% of domestic tourists were staying in
leased accommodation facilities, which was about three-quarters of Tourists, and
also represented a substantial size of the total domestic tourism. It was also noted
that approximately half of the tourists were in Makkah Mukarramah region (47%)
were staying in Jeddah which indicated the importance of Jeddah as a tourist
destination for domestic Tourism as shown in Table (5-63) below:
- 244 -
Table (5 – 63)
Local Tourists Tours to Jeddah according to accommodation place compared to those in Makkah
from 2006 To 2008
- 245 -
3) The Average Length of Stay and Occupancy Rates of Hotels and Furnished Units:
The surveys conducted by the Supreme Commission for Tourism and Antiquities
indicated that the average length of stay in the Hotels was not less than Two
Nights, and the average occupancy rate was more than 51% during the year.
The average length of stay in Furnished Units was more than Two Nights and the
average occupancy rate was more than 48% as shown in Table (5-64) below:
It has been observed that this ratio was more than 75% in the Seasons in Makkah
Mukarramah, Jeddah and Madinah Munawarrah and up to more than 95% during
the month of Ramadan and the Pilgrimage Season in the three cities.
Table (5 – 64)
The Average Length of Stay and Occupancy Rates for Hotels and Furnished Residential Units
from 2006 To 2008
Average Length
% of Hotels Room Average Length of Stay
Occupancy Rate of
Years
of Stay in Hotel
Occupancy
in Furnished Units
Furnished Units
2006
51%
Two Nights
Three Nights
46%
2007
51.2%
Two Nights
Three Nights
48%
2008
51%
Two Nights
Three Nights
50%
Source: Supreme Commission for Tourism and Antiquities, Information and Tourism Research Center, Tourism Statistics 2006 - 2008.
5-7-13 Tours Expenses:
The average Foreign Tourists were 9,396 Thousand, representing 25% of the total, and
average local Tourists were 28,622 representing 75% of the total, which means that the
average total of Tourists over the past years was more than 38 Million Tourists per
annum.
This large number of Tourists spent Thousands of Millions of Riyals during the period
of their stay in the Tourist destinations and the expenditure was distributed among the
main Tourist activities, namely:
1) Accommodation
2) Food and Drinks
3) Transport
4) Shopping
5) Recreation and entertainment
Average expenditure of Local Tourists in all regions of the Kingdom was SR. 32,000
Million, representing 62% of the total expenditure.
Average expenditure of Foreign Tourists was SR. 19,499 Million, representing 38% of
the total expenditure, which means that the average total expenditure per year was
51,499 Million Saudi Riyals, details of which are as follows:
- 246 -
Firstly: The expenses of Foreign Tourists in Jeddah compared to Makkah Mukarramah
Foreign Tourists represented a large portion of purchaser in the main market in the
Kingdom in general, and in Makkah Mukarramah region in particular, the expenditure
of Foreign Tourists over the past Three years witnessed a steady increase, the
expenditure per Head in Jeddah increased from 1,728 Riyals in 2006 to 2,462 Riyals in
2007, i.e. increased by 734 Riyals or increased by 42%, then rose to 3,127 Riyals in
2008, i.e. increased by 1,399 Riyals or increased by 81%, this means that the average
expenditure per head during these years was amounted to 2,439 Riyals representing
88% of the total expenditure in the Makkah Mukarramah region :
1) The expenses of Foreign Tourists in Jeddah compared to Makkah Mukarramah
When comparing the average expenditure per head in Jeddah with that in the
Kingdom, one found that the expenditure was more than double due to the small
expenditure in some regions and big expenditure in Jeddah, where the percentage
was 157%.
Regarding the distribution of expenditure on the expenditure accommodation was
amounted to SR. 773 representing 32% of the average expenditure per head in
Jeddah, ranked in second place, the expenditure on food and drinks where the
average expenditure was SR. 690 representing 28% of the expenditure per head in
Jeddah. Ranked in the third place the expenditure on shopping, with an average of
SR. 609 riyals representing 25% of the total expenditure per head, this means that
these tourists activities percentage were 85% of the total tourist expenditure, the
leisure and recreation activity which is one of the objectives of tourism was not
significant during these years, the average amount was 362 riyals representing
14% of the total expenditure. However, it witnessed a significant increase, from
SR. 96 in 2006 and 2007 to SR. 170 in 2008, i.e. Increased by 74 Riyals or 77% as
shown in table (5-65) below:
The conclusion of these figures and percentages showed the importance of Jeddah
as a Political and Commercial Hub attracting the Tourists, and this was reflected
by the amounts spent by all Tourists in the City.
- 247 -
Table (5 – 65)
Expenses of Foreign Tourists per head in Jeddah compared to Makkah Mukarramah Region and the
(Amount in Riyals)
- 248 -
2) The Expenses of Foreign Tourists in Jeddah compared to Makkah Mukarramah
The average expenditure of Foreign Tourists in the Kingdom over the past Three
years was 19,499 Million Riyals; the average expenditure of Foreign Tourists in
Makkah Mukarramah Region was 12,932 Million Riyals representing 66.3% of
the total spent amount by Tourists in all regions of the Kingdom or Two-Thirds of
the total expenditure of Foreign Tourists. Average expenditure of Foreign Tourists
in Jeddah was 1,293 Million Riyals representing 10% of the total expenditure in
Makkah Mukarramah region and 7% of the total expenditure in the Kingdom.
More than 80% of this expenditure was for Accommodation, Food and Drink and
Shopping. This indicated the importance of Jeddah as Commercial City provided
the needs of Pilgrims, Umrah performers and Visitors such as Hotels, Furnished
Apartments, Restaurants and Shopping Centers.
The average expenditure of Recreation and Entertainment was about 10%, this low
percentage is due to the reason that most of the Foreign Tourists were Pilgrims and
Umrah performers who come to the Kingdom for religious purposes and because
of the limited duration of their stay in the Kingdom, Recreation and Entertainment
were not of their interest like other Tourist activities as shown in Table (5-66)
below:
- 249 -
Table (5 – 66)
Expenses of Foreign Tourists in Jeddah according to type of expenditure compared to Makkah
Mukarramah Region and the Kingdom
from 2006 To 2008
(Amount in Millions Saudi Riyals)
- 250 -
Secondly: Expenses of Domestic Tourism in Jeddah compared to Makkah Mukarramah
Jeddah City and Makkah Mukarramah Region are considered as the most attractive
areas of the Local Tourism. The Citizens and Expatriates used to visit them in the
seasons and holidays as Pilgrims and Umrah performers as well as the Tourists for
shopping Entertainment, and Recreation and visits to Friends and Family Members
especially during the time of annual festivals in Jeddah. Below are the details:
1) Domestic Tourism Expenditure per Head:
a. The average Domestic Tourism expenditure per head in the Kingdom around
SR. 1,105.
b. The average Domestic Tourism expenditure per head in Makkah Mukarramah
region SR. 1,270.
c. The average Domestic Tourism expenditure per head in Jeddah SR. 1,570.
It is noted that the average expenditure per head in the Local Tourism in Jeddah is
more than the average in Makkah Mukarramah region and the Kingdom where the
percentages were 124% and 142% respectively.
Average per head expenditure on Shopping in Jeddah SR. 615 representing 39%
of the total expenditure.
Average per head expenditure on Accommodation SR. 295, representing 19% of
the total expenditure.
Average per head expenditure on Food and Drinks SR. 222, representing 12% of
the total expenditure.
Average per head expenditure of Transportation SR. 168, representing 11% of the
total expenditure.
It is clear from the above that the total expenditure per head in Jeddah is more
than in Makkah Mukarramah region, and about one and a half time in all regions.
This is due to increased expenditure in Shopping and Entertainment, where the
individual expenditure was approximately 54%, the total expenditure i.e. more
than half of the expenditure goes on these two activities and these are the
activities that characterized Jeddah. In addition to that other cities of the
Kingdom, as well as the excellence of this Accommodation facilities and
Restaurants in Jeddah provide good services to Tourists; therefore all these
activities are working to attract Local Tourists to go to Jeddah, Table (5-67)
below shows that clearly:
It has been observed that the expenditure of the individual Domestic Tourist in the
activity of Entertainment is much more than the Foreign Tourist expenditure,
because the Domestic Tourists used to go to Jeddah for Tourism, Recreation and
Entertainment.
- 251 -
Table (5 – 67)
Expenses of Local Tourists per Head in Jeddah according to type of expenditure compared to Makkah
Mukarramah Region and the Kingdom
from 2006 To 2008
(Amount in Saudi Riyals)
- 252 -
2) Expenses of Domestic Tourists in Jeddah according to type of expenditure compared to
The average amount spent by domestic tourists during the past three years in all
regions of the kingdom was about 32,000 million Saudi Riyals.
Average expenditure of domestic tourists in Makkah Mukarramah region was
14,211 million Saudi Riyals, representing 44.4% of the total tourist expenditure in
the kingdom.
The average total spent amount by domestic tourists in Jeddah was about 4,244
million Saudi Riyals representing 58% of the total spent amount by domestic
tourists in Makkah Mukarramah region and 26% of the total spent amount by
domestic tourists in all regions of the kingdom.
Average expenditure of domestic tourists in shopping in Jeddah was 3,258 million
Saudi Riyals representing 39% of the spent amount in Jeddah, and 65% of
expenditure in Makkah Mukarramah region and 30% of spent amount on shopping
in the kingdom.
Average expenditure of domestic tourists in accommodation was about 1,624
million Saudi Riyals representing 20% of the amount spent in Jeddah, and 61% of
the total expenditure in Makkah Mukarramah region and 26% of the total
expenditure on accommodation in all regions of the kingdom.
The average spent amount by domestic tourists in Jeddah on entertainment and
recreation was 1,115 million Saudi Riyals representing 14% of the spent amount in
Jeddah and 8% of the total expenditure of the amount of domestic tourists in
makkah mukarramah region and 4% of the total expenditure in all regions of the
kingdom.
The average spent amount by domestic tourists in Jeddah on food and drinks was
1,183 million Saudi Riyals representing 15% of the spent amount in Jeddah and
8% of the spent amount in Makkah Mukarramah region and 4% of the total spent
amount in the kingdom.
It is clear from this explanation that the percentage of the average expenditure on
shopping entertainment, and recreation in Jeddah reached 53% of the total
expenditure which means that it is much more than half. This is in addition to the
expenditure of accommodation, food and drinks.
These percentages showed the importance of Jeddah as an attractive place for
domestic tourists because of markets, shopping centers, malls and places of
recreation and entertainment. In addition to that the domestic tourism for religious
purposes used to go to Jeddah after the completion of the religious rituals in order
to have rest and buy some goods from the markets of Jeddah, visit family members
and friends, table (5-68) below shows that:
- 253 -
Table (5 – 68)
The Expenses of Domestic Tourists in Jeddah according to type of expenditure compared to Makkah
Mukarramah Region and the Kingdom from 2006 To 2008 (Amount in Millions Saudi Riyals)
- 254 -
5-7-14 Tourism Festivals in Jeddah City:
Within the Development of Plan of Tourism in Makkah Mukarramah region in general
and Jeddah in particular, many attractive Tourism products were invented to attract the
Domestic Tourists in the seasons of religious occasions and holidays. The most
important of these products are Two Festivals:
1) Jeddah Shopping and Entertainment Festival.
2) Ubhur Tourism Festival.
These festivals are accompanied by many recreational activities involving more than
thirty Business firms working in the field of Entertainment. In addition to participation
of hundreds of Commercial Firms that provide special offers to sell products and
services at low cost which were working as attractive factors. These facilities attracted
the citizens of Jeddah themselves, as well as citizens from various areas of the
Kingdom, and Tourists from the Gulf States and the rest of the Muslim World.
Pilgrims and Visitors visited Jeddah, after performance of the rituals for Shopping,
Entertainment and Recreation in presence of good Tourists facilities and services.
1) Jeddah Shopping and Entertainment Festival:
Jeddah Shopping and Entertainment Festival took place during the Summer
Vacation event year, all potential publicity and propaganda were made to attract
people, beside an intensive preparation with the contribution of big number of
Commercial and Service Firms which compete in providing the best services at
most favorable prices.
Jeddah Shopping and Entertainment Festival was developed and improved steadily
since its inception. Due to its long duration that extended for more than two
months, the number of Visitors grew year after year.
This is clear in the extensive presence of Visitors as shown in Statistics of Festival
of 2008, where the number of visitors reached more than 2.3 Million visitors,
including more than 933 Thousand of Tourists, representing approximately 40% of
the total visitors to the Festival.
Average daily visitors to the Festival were more than 62 Thousand visitors as
Table (5 – 69)
Estimates of the Number of Visitors to the Jeddah Shopping and Entertainment Festival in 2008
Description
Number of Tourists
Total Visitors
Daily Average
The Number
Percentage
933,760
2,330,900
40
100
62,140
--
Source: Supreme Commission for Tourism and Antiquities, Information and Tourism Research Center, Statistics of Tourists Shopping and
Entertainment Festival in Jeddah 2008.
- 255 -
The Daily Rates of Expenditure per Individual on Tourism Services at Jeddah Shopping
and Entertainment Festival:
The total individual expenditure on tourism services in Jeddah Festival was increased more
than once, the average expenditure increased from SR. 1,101 in 2007 to SR. 2,276 in 2008,
i.e. increased by SR. 1,175 or 106%, the average of 1,656 distributed among Tourism
Services such as Accommodation and Shopping. The average expenditure on Shopping
during the past Three years was SR. 431 in a day, representing 26% of the total daily
expenditure per individual.
Average Accommodation expenditure was SR. 369 or 22% of the total daily expenditure of
individual.
The average expenditure on Entertainment and Recreation was SR. 254, representing 15% of
the total daily expenditure.
The average expenditure on Food and Drinks was SR. 219, representing 13% of the total daily
expenditure.
The average expenditure on Transportation was SR. 103, representing 6% of the total daily
expenditure.
The average expenditure on Other Tourism Services was SR. 280, representing 17% of the
total daily expenditure.
These percentages showed that visitors spent on Shopping, Entertainment, Food and Drinks
more than half of their expenses 58%. These were direct services from which Tourism
Facilities Firm in Jeddah were benefited. In addition to that expenditure on Hotels and
Furnished Apartments in which the Visitor spent more than 22% of his expenses which means
that the expenditure on these services was about 80% of the daily expenditure of the
individual as shown in Table (5-70) below:
Table (5 – 70)
Individual Daily Rates of Expenditure on Tourism Services in Jeddah Shopping Entertainment Festival
Food and
Entertainment
Years
Accommodation
Transport
Shopping
Others
Total
Drinks
and Recreation
2006
284
166
53
266
202
130
1,101
2007
363
194
74
456
230
274
1,591
2008
459
298
181
572
330
436
2,276
Source: Supreme Commission for Tourism and Antiquities, Information and Tourism Research Center, Statistics of Jeddah Shopping and Entertainment Festival
in Jeddah City, 2006 - 2008.
700
600
572
459
456
436
2006
363
330
2007
274
2008
298
266
230
202
181
130
284
194
166
500
400
300
200
100
74
53
0
Others
- 256 -
Entertainment
and Recreation
Shopping
Transport
Food and Drinks Accommodation
2006
2007
2008
%15
%52
%33
The Purpose of Visiting Jeddah:
Studies conducted by the information and tourism research center showed that about
three-quarters of visitors to Jeddah city (74%) came to Jeddah recreation and tourism,
11% to visit friends and family members, 8% for business, 4% for the festival and 4%
for shopping. These percentages indicated that the festival achieved its objectives in
terms of attracting people to visit Jeddah and enjoying the potential tourism facilities
and resources, as shown in table (5-71) below:
Table (5 – 71)
The Purpose of Visiting Jeddah during the Shopping and Entertainment Festival
Years
Recreation
and Tourism
Visit
Family and
Friends
Work
To Attend
The
Festival
Shopping
Others
Total
2006
2007
75%
72%
10%
12%
-8%
6%
2%
4%
6%
5%
--
100%
100%
2008
74%
10%
9%
3%
3%
2%
101%
Source: Supreme Commission for Tourism and Antiquities, Information and Tourism Research Center, Statistics of Jeddah Shopping and
Entertainment Festival in Jeddah City, 2006 - 2008.
%80
%70
%60
%50
2006
%40
2007
%30
2008
%20
%10
%0
Others
Shopping
To Attend The
Festival
Work
Visit Family and Recreation and
Friends
Tourism
Type of Accommodation used during the period of Jeddah Shopping and Entertainment
Festival:
The percentage of people stayed in furnished apartment during the festival was 54% of
the total visitors, the percentage of people stayed in hotels was 17%, this means that
around 71% or almost three-quarters of the visitors stayed in leased premises, while
the remaining quarter stayed with friends and family members or in their own houses.
- 257 -
It is also noted that more than half of the festival visitors (54%) preferred to stay in
furnished apartments in view of its privacy, and this indicated that the majority of the
festival visitors were families and furnished apartments provided privacy and
independence to them, whereas the individuals preferred to stay in hotels as shown in
table (5-72) below:
Table (5 – 72)
Type of Accommodation used during the period of Jeddah Shopping and Entertainment Festival
Furnished
Friends and
Private
Years
Hotels
Others
Total
Units
Family
Home
2006
2007
2008
61%
49%
51%
12%
17%
22%
12%
12%
11%
14%
22%
13%
1%
-4%
100%
100%
101%
%70
%61
%51
%49
%30
%20
%17
%12
%12
11
%10
%4
%1
0
Others
%50
%40
%22
%22
14
%13
%60
%0
Private Home
2006
Friends and
Family
2007
Hotels
Furnished Units
2008
The average number of Stayed Nights in Jeddah:
Percentage of those who stayed more than three nights in Jeddah during the period of
the festival was about 69% of the festival visitors.
Percentages of those who stayed three nights was about 11% of the total visitors to the
festival, which means that around 80% stayed relatively long period in Jeddah, and
this proved the success of the festival as an attractive factor for Tourists to visit Jeddah
for Recreation, Tourism and staying in Jeddah for these purposes.
The remaining percentages of 20% was distributed between the one and two days stay
at different percentage ranging between 5% - 9% as shown in Table (5-73) below:
Table (5 – 73)
The average number of nights stayed in Jeddah during Jeddah Shopping and Entertainment Festival
Years
One Day
One Night
Two Nights
Three Nights
More than
Three Nights
Total
2006
2007
5%
12%
3%
4%
7%
10%
12%
12%
73%
62%
100%
100%
2008
6%
5%
10%
9%
71%
101%
- 258 -
%80
%73
%71
%70
%60
%62
%50
2006
%40
%30
2007
2008
%
%12
9
More than Three Nights
Three Nights
%
%10
7
Two Nights
%
4
%5
3
One Night
%20
%12 %10
%6
5
%0
One Day
The Visitors average expenditure during Jeddah Shopping and Entertainment Festival:
Studies showed that Jeddah shopping and entertainment festival for the year 2008
lasted for about 47 days.
Since the average daily expenditure per individual reached sr. 2,276, the number of
visitors and tourists were 933,760 persons, and the average visitors of Jeddah residents
was 58% i.e. 576,381 persons, this means that 357,379 tourists and visitors. Estimated
expenditure during the period of their stay in Jeddah for a single day was 813 million
riyals, and therefore the total expenditure during the period of the festival reached
38,230 million Saudi Riyals, as well as the daily expenditure of other visitors in
Jeddah.
These figures illustrated the significant economic benefits to Jeddah from this festival
and the material returns on all tourism products and services activities.
It also showed the relative satisfaction of the visitors of the festival which was
reflected in their assessment of all the festival activities. About 47% of visitors were
satisfied with the festival activities, and said that it was very good, more than 32%
disagree and their satisfaction was good, and this means that more than three-quarters
79% of visitors were satisfied with the provided services and products of the festival at
least at good degree, as shown in table (5-74) below:
These percentages indicated the success of the festival; consequently some efforts
should be made to develop it and make it more attractive for domestic and foreign
tourism.
- 259 -
Table (5 – 74)
Evaluation of Visitors of Jeddah Shopping and Entertainment Festival
Years
Very Good
Good
Average
Bad
Very Bad
Total
2006
2007
44%
55%
37%
30%
17%
11%
2%
3%
-1%
100%
100%
2008
43%
30%
22%
3%
2%
100%
%60
%55
%50
%44
%43 %40
%37
2006
%30
%30
2007
%22
%17
%11
2008
%2
%1
%0
Very Bad
%20
%10
%
%3
2
Bad
%0
Average
Good
Very Good
2) Ubhur Tourism Festival:
The Festival of Ubhur started during the period of Eid-Al-Fitr, the Festival
activities continued for a week starting on the Second Day of the Eid. Many
Citizens, Residents and visitors from neighboring countries used to come to
Makkah Mukarramah during the last ten days of Ramadan to perform Umrah, some
of them prefer to stay in Jeddah for the purpose of rest and entertainment after the
completion of the religious rituals, and the Eid Prayers in the Holy Mosque.
Estimates of the number of Visitors of Ubhur Festival:
Average number of visitors to Ubhur Festival estimation based on the number of
Cars coming to Ubhur, the average number of passengers estimated to 626
Thousand Visitors came in 184 Thousand Cars as shown in Table (5-75) below:
Table (5 – 75)
Estimates of the Number of Ubhur Festival visitors during 2007 and 2008
Years
The Number of Cars
The Average Number of
Persons per Car
Estimated Number
Of visitors
2007
31,176
3.3
542,000
2008
203,761
304.0
709,233
Source: Supreme Commission for Tourism and Antiquities, Information and Tourism Research Center, Statistics of Ubhur Festival in
Jeddah, 2007 - 2008.
Type of Accommodation used during Ubhur Tourism Festival:
About 43% of the Visitors to the Ubhur Festival stayed in Furnished Apartments
and about 23% stayed in Hotels, and about 15% stayed with Friends and Family,
and 15% in their own houses. This means that around 30% did not stay in Leased
facilities prepared for Tourist accommodation.
- 260 -
This was due to the short duration of stay in Jeddah, and the purpose of the visit,
about 18% of the Visitors said that they came to Jeddah to visit Friends and
Family, and about 30% came to Jeddah to visit the Festivals usually, such people
did not stay for long periods, and most of them stay for one day or one night. The
percentage of this category was more than 35% and this percentage reflected the
reality.
One may conclude that about two-thirds or (66%) of the Visitors of the Festival
stayed in Furnished Apartments and Hotels as shown in Table (5-76) below:
Table (5 – 76)
Type of Accommodation used during Ubhur Tourism Festival
Years
Furnished
Units
Hotels
Friends and
Family
Private
Home
Others
Total
2007
39%
20%
16%
22%
3%
100%
2008
47%
25%
14%
9%
5%
100%
Source: Supreme Commission for Tourism and Antiquities, Information and Tourism Research Center, Statistics of Ubhur Tourism Festival, 2007 - 2008.
%47
%39
%50
%40
%30
%25
%20
%22
%
%16
14
%
%5
3
Others
%20
%10
%9
%0
Private Home
Friends and
Family
2007
Hotels
Furnished Units
2008
The Purpose of Visit:
The percentage of Visitors who came for Entertainment and Tourism was 41% of
the total Visitors, the percentage of Visitors who came to attend the Festival were
about 30% of the Visitors. This indicates that approximately three-quarters or 71%
of Visitors were interested in visiting and enjoying the Festival. The percentage of
those who came for Shopping was very low, it was not more than 6%, and this
possibly due to the fact that the Visitors came during the holiday of Eid-Al-Fitr and
they were in need of entertainment more than in need of Shopping, Table (5-77)
below shows that:
Table (5 – 77)
Purpose of Visiting Jeddah during Ubhur Tourism Festival
Years
Recreation and
Tourism
To Attend The
Festival in
Particular
Visit Their Relatives
and Family &
Friends
Work
Shopping
Total
2007
2008
45%
37%
28%
31%
18%
18%
3%
8%
6%
5%
100%
99%
- 261 -
%50
%45 %45
%40
%37
%35
%30
%25
%20
%15
%10
%5
%0
%31
%28
%18
2007
2008
%18
%8
%6
%3
%5
Shopping
Work
Visit Their
To Attend The
Relatives and
Festival in
Family & Friends
Particular
Recreation and
Tourism
The Average Stayed Nights in Jeddah during the period of the Festival:
Table (5-78) below showed that about 25% of the visitors stayed in Jeddah for one
night, and 24% stayed for more than three nights, and 22% stayed for three nights,
and 20% stayed for two nights and 9% have stayed for one night only. This means
that around one-third 33% stayed for one day or one night. This was due to the
short duration of the holiday period, as well as the events activities which mainly
associated with Eid-Al-Fitr holiday. table (5-78) below shows that:
Table (5 – 78)
The average stayed Nights in Jeddah during the period of Ubhur Tourism Festival 2007 – 2008
Years
Day
One Night
Two Nights
Three Nights
More Than
Three Nights
Total
2007
2008
40%
10%
13%
5%
25%
15%
11%
33%
11%
37%
100%
100%
%45
%40 %40
%37
%35
%33
%30
%25
%25
%20
2007
2008
%15
%11
%11
%15
%13
%10 %10
%5
%5
%0
More Than
Three
Nights
Three
Nights
Two Nights One Night
Day
Average Expenditure on Tourism Services per Person during Ubhur Tourism
Festival:
The average daily expenditure per person during Ubhur Festival was around SR.
1,959. The average expenditure on accommodation was about sr. 523, representing
26% of the total daily expenditure per person.
- 262 -
The average expenditure on shopping was SR. 533, representing 27% of the total
daily expenditure per person.
The average expenditure on entertainment was around SR. 290, representing 15%
of the total daily expenditure per person.
The average expenditure on food and drinks was SR. 239, representing 12% of the
total daily expenditure per person.
The average expenditure on transportation was SR. 199, representing 10% of the
total daily expenditure per person.
The average expenditure on other tourism services was SR. 176, representing 9%
of the total daily expenditure per person.
These percentages showed the importance of this festival to the tourism facilities.
The facilities that provide consumer products and services such as restaurants,
entertainment facilities and shopping were more than half of the daily expenditure
of visitors, 54% as shown in table (5-79) below:
Table (5 – 79)
Average expenditure on Tourism Services per Person during Ubhur Tourism Festival
Years
Accommodation
Food and Drinks
Transport
Shopping
Entertainment
Others
Total
2007
2008
441
605
169
308
109
289
410
656
198
381
152
200
1,479
2,439
Source: Supreme Commission for Tourism and Antiquities, Information and Tourism Research Center, Statistics of Ubhur Tourism Festiva, 2007 - 2008.
2007
2008
656
381
410
289
200
152
Others
198
109
Entertainment
Shopping
Transport
308
169
700
605 600
500
441
400
300
200
100
0
Food and Drinks Accommodation
About 60% of Festival Visitors were residents of Jeddah, the number of Tourist
Visitors estimated to 250,247 Visitors. In the light of Statistics and Information the
returns of the Festival were estimated to 490 Million Saudi Riyals in a day. As the
Festival extended for Six Days, returns were estimated to 2,941 Million Saudi Riyals.
The Evaluation of the Visitors of Ubhur Tourism Festival:
About 38% of the Visitors were satisfied with the Festival activities at Very Good
Grade, and about 34% said that the Festival was good, this means that around threequarters 72% of Visitors expressed their satisfaction with the Festival in general at
Good grade at least. The percentage of those who said the Festival was average 20%,
- 263 -
the remaining 8% was distributed between Bad and Very Bad 6% and 2%
respectively. Table (5-80) below showed that:
According to this evaluation the Festival served the purpose for which it was
conducted, though it needed to be developed in future through provision of new
provisional products and services in order to be more attractive to Visitors.
As clearly illustrated from figures and percentage that the Festival was useful in all
aspects such as Economic activities and Tourism Services in Jeddah. Moreover it is
indicated the importance and status of Jeddah as a Commercial Center and Tourists
attracted city in Makkah Mukarramah region and the Red Sea and the Kingdom in
general.
Table (5 – 80)
Evaluation of Ubhur Tourism Festival Visitors
Years
Very Good
Good
Average
Bad
Very Bad
Total
2007
2008
42%
34%
32%
36%
18%
22%
7%
6%
2%
2%
101%
100%
%36
%32
%42
%34
%22
%18
%2 %2
Very Bad
%6 %7
Bad
Average
2007
Good
% 50
% 40
% 30
% 20
% 10
%0
Very Good
2008
The most important suggestions to develop Tourism facilities and Festivals in
Jeddah:
The Information and Tourism Research Center conducted a number of opinion
polls among the Visitors to Festivals about the performance of those Festivals and
quality of provided services, and how to be developed and Visitors opinion were to
be converted into specific suggestions to develop these services and Tourism
facilities in Jeddah, the most important of them are the following:
1. Reduction of prices of Apartments, Hotels and Chalets etc.
2. Organization of activities and events for young people and finding special
places for them.
3. Distribution of Tourism publications among Tourists.
4. More attention to cleanliness.
5. Building of more entertainment cities.
6. Paving of roads.
7. Stabilization and consolidation of prices.
8. Development of Tourism sites.
9. Development of indicative sign boards showing the locations of Festivals.
10. Provision of more Tourist facilities.
11. More attention to Tourism in general.
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12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
- 265 -
Organizing more festivals and making marketing campaigns.
Development of The Red Sea Coast.
Organization and advertising campaigns to attract Tourists to come to
Festivals.
Development of services in Tourism areas.
Development of cities in general.
Development of areas adjacent to beaches.
Increasing the number of Festivals.
Organization of Traffic.
Measures not to harass the Tourists in the Tourist sites.
Distribution of Tourism programs among the Tourists.
Provision of appropriate public transport facilities.
Use of modern technology and employment of it in the services of Festivals.
Increase the number of security personnel.
More attention to car parking areas.
Provision of singing contests that suits everyone.
Making use of open spaces in the planning to accommodate the huge number
of visitors.
More attention to other sites in the regions.
Reduction of entrance tickets price of entertainment places.
Provision of restaurants near the sea.
Provision of free parking.
Provision of toilets along the Corniche.
Chapter Six
Investment Opportunities in the
Jeddah Province
6–1
6–2
6–3
6–4
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Size, Structure and Orientation of the Investment
Investment and Business Environment in the Kingdom
Potential Investment Opportunities in the Kingdom
Potential Investment Opportunities in Jeddah
6 Investment:
Investment is the main factor in the process of Economic Development and affects it in
two ways:
Firstly: It is considered as essential part of the total demand because it contributed
directly to stimulate the total production.
Secondly: In terms of its function in accumulation of productive assets needed to
preserve productive capacity of the economy and its development to increase its
competitive capabilities.
Therefore, the successive development plans focused on the promotion of investment
and capital development in the context of its quest towards achieving the development
objective to diversify the economic base and consequently the achievement of
sustained development.
This focusing resulted in the emergence of the big role of Non-oil Sector in economic
activities and investment. Non-oil Sector Investments was approximately 89.6% of the
total investment during the Seventh Development Plan 2000 – 2005, which included
the Private Sector investments percentage which approximately 75.6% of the total
investment. These big percentages indicated the importance of the investments
considering the fact that it became one of the main pillars of the national economy and
its growth.
6-1 Sizes, Structure and Orientation of the Investment:
The Capital Stock consists of three Investment Sectors which are Private, Government
and Oil Sectors. The government Capital Stock contributed during the previous plans
growth of the Stock despite depression slowdown periods during the Eighties due to
the big decline in Oil Revenues at that time.
The Oil Sector, was not developed during the same period due to the surplus in production
capacity and the lack of need for new substantial investments, consequently the field was
opened for the Private Sector which has achieved good rates of investment, taking the
advantage of its accumulated financial capacity, and the real growth in potential
investment opportunities. Besides the encouraging policies adopted by the government
with the aim to strengthen the role of the Private Sector in the National Economy. These
policies result in an increase in its Capital Stock from about 561 Billion Riyals at the end
of the Third Development Plan 1980/1985 to about 1,246 Billion Riyals at the end of the
Seventh Development Plan 2002/2005. The volume of investment during the Seventh
Development Plan was approximately 667.1 Billion Riyals, i.e. increased by 27% in size
during the Sixth Development Plan 1995/2000 which was about 99.3% of the targeted
investments.
Non-oil Sector Investment was about SR. 598.1 Billion during the Seventh Development
Plan compared to SR. 481.5 Billion during the Sixth Development Plan. However, it was
- 267 -
less than the targeted one in the Seventh Plan, which was estimated to SR. 638.3 Billion.
It should be noted that Oil-Sector Investment was concentrated in development and
diversification of Natural Gas Resource. Thus the share of non-oil sector in total
investment dropped from 91.7% in the Sixth Plan to 89.6% in the Seventh Plan and
therefore the oil sector's share increased from 8.3% in the Sixth Plan to 10.4% in the
Seventh Plan.
Nevertheless, investments in non-oil private sector witnessed positive developments
during the Seventh Development Plan it share of investment reached about SR. 504.5
Billion compared to SR. 404.6 Billion during the Sixth Development Plan, which
contributed by 75.6% of the total investment, and the reason for these positive
developments was due to growth of the investments in non-oil productive sectors during
the development plan, which amounted to SR. 277.1 Billion i.e. increased by 27.3% more
than in the Sixth Plan. These investments were concentrated in the sectors of Electricity,
Gas, Water and Petrochemicals. The Services Sectors such as Real Estate, Finance and
Insurance Services investment reached SR. 227.4 Billion during the Seventh Plan
compared to about SR. 187 Billion during the Sixth Development Plan as shown in Table
(6-1) below:
Table (6-1)
The Volume of Investments in the Seventh Development Plan compared to the Sixth Development Plan
Sixth Plan (Actual)
1995/1996 - 1999/2000
% of
Value
Distribution
Seventh Plan (Actual)
2000/2001 - 2004/2005
% of
Value
Distribution
A - Non-oil Sectors
1) The Productive Sectors
1-1. Agriculture, Forestry and Fisheries
1-2. Non-oil Mining, Quarrying
1-3. Manufacturing
1-3-1. Petroleum Refining
1-3-2. Perrochemicals
1-3-3. Other Manufacturing Industries
1-4. Electricity, Gas and Water
1-5. Building and Construction
2) Special Services Sectors
2-1. Trade, Hotels and Restaurants
2-2. Transport and Communication
481.47
217.67
20.59
1.54
87.05
11.19
46.13
29.73
99.23
9.26
186.97
23.12
23.54
91.7
41.4
3.9
0.3
16.6
2.1
8.8
5.7
18.9
1.8
35.6
4.4
4.5
598.1
277.0
18.8
1.4
94.0
8.9
52.0
33.1
154.4
8.5
227.4
25.6
24.7
89.6
41.5
2.8
0.2
14.1
1.3
7.8
5.0
23.1
1.3
34.1
3.8
3.7
2-3. Finance, Insurance, Business and Real
Estate Services
130.15
24.8
166.7
25.0
2-3-1. Real Estate Services
2-3-2. Finance and Insurance, Business Services
2-4. Collective and Personal Services
110.73
19.43
10.16
21.1
3.7
1.9
145.7
21.0
10.4
Total Non-oil Private Sector
3) Government Services
B - Crude Oil and Natural Gas
Total Investments
404.64
76.83
43.71
525.18
77.0
14.6
8.3
100.0
5.4.5
93.6
69.0
667.1
21.8
3.1
1.6
75.6
14.0
10.4
Category of Activity
100.0
Source: Ministry of Economy and Planning.
- 268 -
The government and private savings witnessed positive development during the
Seventh Plan due to the improvement of government revenues during the period, and
increased awareness of saving among the citizens. The savings increased from SR.
129.2 Billion at the beginning of the plan 1999/2000 to around SR. 369.6 Billion in the
year 2004/2005 at annual rate of growth 23.4%, and the percentage of savings to the
Domestic Product was 39.8% at the end of the Plan compared to 21.4% in the
beginning of the Plan as shown in Table (6-2) below:
Table (6-2)
Savings and Investment in the Seventh Development Plan (current prices)
Description
1 - Savings
2 - Investment
Budget (1-2)
Percentage of GDP (%)
1 - Savings
2 - Investment
Budget (1-2)
The Value
(Billion Riyals)
Annual Rate of
Growth during
Seventh
Development Plan
1419/1420
1424/1425
129.2
118.2
11.0
369.6
151.3
218.3
23.4
5.1
81.7
21.4
19.6
39.8
16.3
--
1.8
23.5
Accumulative
Amount during the
Seventh
Development Plan
(Billion Riyals)
20,919.0
1,201.5
670.1
531.4
--
1419/1420The Value (Billion Riyals
1424/1425The Value (Billion Riyals
400.0
350.0
300.0
250.0
200.0
150.0
100.0
50.0
0.0
)1-2Budget (
Investment - 2
Savings - 1
)1-2Budget (
Investment - 2
Savings - 1
Regarding the components of investment, the activities related to Machinery and
Transport Equipment achieved highest share SR. 361.7 Billion, representing 54.2% of
the total investments during the plan. The buildings constructed for Non-Residential
purposes ranked in the Second place at amount of SR. 162.74 Billion or 24.2% of the
total investments. The buildings constructed for Residential purposes amounted to SR.
142.66 Billion or 21.4%, Table (6-3) below show that:
- 269 -
Table (6-3)
Investment according to category of Capital Goods / The Seventh Development Plan
Category
Value (Billions SR)
The Relative Share (%)
Construction of Residential Buildings
142.66
21.4
Construction of Non-Residential Building
162.74
24.4
Machinery and Transport Equipment
Total Investment
361.70
667.1
54.2
100
Construction of
Residential
Buildings
%21
Machinery and
Transport
Equipment
%54
Construction of
Non-Residential
Building
%25
As a result of these developments in the investment, the balance of savings/investment
showed a surplus attributed to GDP, the surplus percentage during the Seventh Plan
was estimated to 23.5% at the end of the Plan.
The foregoing facts and figures showed that there are provisional financial resources
ready for investment, but they need stimulations investment environment and
attractive factor for investment, and thus employment of these resources to serve the
development of the National Economy. These factors include:
1) Promotion of items of the government investment expenditure through increasing
the budget revenues and decreasing the operational expenses and increasing the
efficiency of government expenditure.
2) Gradual funding of Oil Revenues to finance the development of human resources
and increase the productive assets in order to achieve these goals. It is a must to be
based on the following pillars:
a. Ensure the integration of government investment and private investment.
b. Increase of Non-oil government revenues to a level that allowed the financing
of an important aspect of operational expenditure and government services in
isolation from the oil revenues.
c. Reduction of operational expenditure through the privatization programs and
increasing the proportion of the partnership between the public and private
sectors.
d. Increase of government savings and investments and approval of investment
plans not to be affected by fluctuations in oil revenues.
- 270 -
e. Stimulate the mobilization of domestic savings by finding out diversified
investment instruments to provide a variety of rewarding within developed and
efficient financial market.
f. Attracting foreign and domestic savings as well as foreign direct investment to
the Saudi Market through expanding the fields of investment opportunities in
the national economy.
g. Create and improve the investment atmosphere and the development of the
business environment.
h. Provision of investment incentives that serve the priorities of the development
plan and help to achieve its strategic objectives as follows:
 The first objective: To increase the rate of domestic savings, private and
governmental.
 The second objective: Increase in net fixed capital formation of
government.
 The third objective: Repatriation of Saudi savings and investments abroad.
 The fourth objective: Encouraging direct foreign investment.
6-2 Investment and Business Environment in the Kingdom:
The government made during the past years many regulatory and procedural steps to
improve the investment atmosphere in the Kingdom to become more attractive to
domestic and foreign capitals and prepared a long-term economic strategy included
activation of the role of the private sector and its support to increase its contribution in
diversifying the economic base, and encouraging them to invest in capital goods,
bringing modern techniques and increasing job opportunities through its contribution
to the huge projects in the economic cities and its own production projects. The
government continued its policy of privatization of public utilities and service
facilities, which was owned and run by the government to ensure the provision of
better services, and management of such firm on a commercial basis, such as Saudi
Telecom or Saudi Arabian Airlines, and the Electricity Sector and others.
In order to enhance the role of the private sector and encourage it to increase its
investment in the government projects and invent its innovative projects. The
government made a number of measures to improve the investment environment, the
important of which are the following:
1) The Supreme Economic Council:
In view of the multiplicity of government departments that their roles and work are
related to economic affairs and issues the necessity emerged to develop the
organizational and administrative structure of the method of dealing with
economic affairs and decision making towards them through the government
specialized departments and the necessary of coordination and integration of the
work to avoid duplication, and to respond to the requirements of quick and
efficient decisions in economic affairs in order to build productive and effective
national economy as required by the higher interest of the State, so the Supreme
Economic Council was established to undertake the necessary tasks and to upgrade
- 271 -
the performance of the Council of Ministers while performing its responsibilities
exercising of its functions in relation to all aspects of economic affairs and taking
decisions related to them.
As the general economic policy of the Kingdom based on the concept of free
economy and open markets for all capitals, goods, services and products, in order
to ensure the overall welfare of all citizens of the Kingdom and to open equal
opportunities for them to contribute to the building of the National Economy. The
Supreme Economic Council was assigned to look after the following tasks and to
work to achieve them:
a. The growth of national economy on a regular basis and at appropriate level so
as to achieve a real increase in per capita income.
b. Stability of prices and the cost of living.
c. Provision of job opportunities and optimal employment of manpower.
d. Control of public debt within safe and acceptable limits.
e. Diversifying of the economic base and increase the resources of public revenue.
f. Development of savings and development of secured and investment channels
and instruments.
g. Increase the income of the country and linked it to the growth of the economy
so as to make it able to perform its responsibilities towards the national
development and comprehensive welfare of the society.
h. Increased capital investment and domestic savings in the national economy
through effective means and support the government's program of privatization
and development of the economic balance program.
i. Increase the participation of the private sector and expand its contribution to the
national economy and increase its effectiveness in the march of development
and participation in the government's privatization programs.
j. Enhance the capabilities of the national economy to flexibility and efficiently
interact with economic variables at local and international levels. The Council
is also responsible for looking after the privatization program and the follow up
of implementation of all requirements and coordination between the related
government authorities and the development of the time table to achieve these
tasks.
2) Saudi Arabian General Investment Authority (SAGIA):
Saudi Arabian General Investment Authority established Vide Royal Decree No.
(2) Dated 5/1/1421 (2001) to achieve the following objectives:
a. Continuous search to create and prepare the appropriate environment to attract
investment and investors.
b. Work with other concerned authorities to develop regulations and procedures.
c. Encourage the investment in a number of economic sectors with a comparative
economic advantage and added value such as energy and transport sectors.
d. Optimal use of the added value of the Kingdom and the advantages of
geographical location, and the industries bases on associated knowledge.
e. Activation of the national investment and attraction of foreign investment.
- 272 -
f. Provision of facilities to investors in their quest of establishment of their
projects.
g. Working to create strategic partnerships with interested parties to expand the
investment with governmental or semi-governmental authorities.
h. Working to establish a database on investment and investment opportunities
based on facts and figures to improve the competitiveness of the Kingdom.
In order to achieve these goals SAGIA prepared a Strategic Plan involving 10x10
program, which aims to achieve ranking of the Kingdom among the best 10 countries
in the world in terms of attractiveness of investment by the end of 2010 (1431 H).
SAGIA adopted a number of local and internal economic studies about the Kingdom
to develop its strategy, the features of the Eight Five Year Plan 2005 – 2010, the future
vision of the Saudi economy during the next twenty years 1445 H (2025).
The strategy was able to reach more than 100 initiative and roles that can be played by
SAGIA to attract investments, through adoption of five criteria:
1) Give priority to initiatives with higher economic impact.
2) Initiatives that can be implemented and completed quickly.
3) Low-cost initiatives.
4) Initiatives those are not complicated in implementation.
5) Initiatives that could easily obtain the necessary human resources to be
implemented.
SAGIA since its inception focused on to carry out the effective roles to attract
investment through:
1) Provision of comprehensive services and facilities, and provision of information to
all investors, Saudis and foreigners in modern manner.
2) Working to improve methods of providing necessary services and facilities to all
investors to simplify the procedures as an element of attracting and encouraging
the investors.
3) Marketing and Promotion of investment opportunities associated to a comparative
advantages and added value products in the Kingdom with specific investors.
4) Contacting people inside the country and abroad to attract investors to invest in
these opportunities and making that as an essential part of the efforts of the Mass
Media to encourage investment in the Kingdom.
5) Working to achieve balanced regional development in harmony with the inherent
advantages of investment in each region of the Kingdom.
6) Distribution of investment activities to serve the economic and social purposes that
have impact on the regional development and making it vital and encouraging
environments to the population and contributing to their stability, consequently
working to reduce migration to big cities.
7) Making maximum benefits of the geographical location of the Kingdom and
reduce the reliability on the local market, and encouraging investment in economic
projects depending on export to the neighboring Arab and Islamic countries.
- 273 -
8) Seeking new investors through supporting the citizens to start their own business
through lending from specialized lending funds, with provision ways and means to
finalize all government procedures on behalf of the citizens supported by the
lending funds institutions.
SAGIA focusing on strategic sectors in services such as: The Energy Sector, Transport
Sector and Communication and Information Technology Sector.
3) The System of Foreign Investment:
The new Foreign Investment Law was issued on 5/1/1421 H (10/4/2000) which
provides equal treatment to all Domestic and Foreign Investors, so as to enable the
foreign companies to have full ownership of all assets of their projects and provide
them with same incentives and benefits enjoyed by local investors, such as loans
provided by the Saudi Industrial Development Fund, and allowing them to carry
out their loses for unlimited number of yeas for tax purposes and reduce taxes up
to 20% of the profits.
4) Local Loans Program:
The Ministry of Finance implemented a Direct Program of granting loans to help
the local Private Sector to set up and establish Economic Development Projects.
The program began in 1390/1391 (1970) and provided a number of loans for the
establishment of Hotels, Tourist Resorts, Clinics Treatment Centers, Agricultural
Projects, Press Projects, Bakeries, Cold Stores, Dates Factories and projects of
Private Education and Training. The total granted loans up to the end of
2007/2008 were about 482 loans amounting to SR. 5,493.6 Millions.
5) Small and Medium Enterprises Guarantee Program:
Saudi Industrial Development Fund adopted jointly with Commercial Banks a
program aiming to support Small and Medium Enterprises. SIDF provided a
guarantee up to 75% of the value of loans provided by the Commercial Banks to
these establishments to a maximum amount of SR. 5 Million. SR. 200 Million was
allocated as a first step for this purpose.
6) Saudi Credit and Savings Bank:
The capital of Saudi Credit and Savings Bank was increased vide Royal Decree
No. A/227 dated 16/7/1427 H (2007) to reach SR. 6 Billion to provide the
necessary liquidity for the disbursement of loans granted to citizens. The rules were
amended as per Royal Decree No. M/34 dated 1/6/1427 H (2007) which stipulated
expansion of the bank's activities to enable it to play a role in pushing ahead the
development efforts and help the citizens, so the bank is playing the following
roles:
a. Provision of free interest loans to Small businesses and help the citizens who
are working as professionals, traditional craftsmen and in vocational jobs to
encourage them to establish their own business.
b. Play a role as integral coordinator to look after the small establishments.
c. Working to encourage individual and companies in the Kingdom for savings
and creation of tools and instruments to achieve this target.
- 274 -
7) The Centennial Fund: (Al Miawiyah Fund)
The institution was established Vide Royal Decree in the middle of 2005 and
began its work in 2006 in order to help young Saudi Males and Females to achieve
some sort of economic independency and establish of successful businesses with
the support of some Saudi businessmen and women.
The Fund role is to provide guidance and facilities and granting loans to Saudi
Youth of both sexes to convert them from job seekers to businessmen and women
who will become job providers.
The Fund since its inception in 2005 up to 2008, managed to support 540 projects
of total amount of SR. 88.6 Million, 63% out of them are outside the three main
cities (Riyadh, Dammam and Jeddah), and the percentage of lending to Female
was 20% of all supported projects.
8) Development of role of Commercial Banks:
The role of Commercial Banks was discussed in details in Chapter 6. The Saudi
Arabian Monetary Agency, in collaboration with Chamber of Commerce and
Commercial Banks Boards are trying to develop rules and regulations that create
an appropriate investment atmosphere to encourage the banks to develop their
services in supporting the economic activities and the expansion of financing and
granting loans to the Private Sector and expedite the procedures of completion of
the mortgage regulations to encourage banks to engage in the creation of new
banking products to be used by the Private Sector, where the Real Estate Mortgage
System will reduces the risk of loss of the banks debts.
9) The Kingdom 's accession to the WTO:
The Kingdom joined WTO in 1425 (2005). It is hoped that this joining will be
positively reflected in the environment of the business and investments, the most
important of these effects will be as follows:
a. Encourage investors in the Domestic and Private Sector and the Foreign
Investors to establish export oriented industries to improve the position of
competition of the national products in local, regional and international
markets.
b. Make maximum use of Commercial Regulations to protect the Kingdom from
the erroneous practices such as dumping of Trade and Commercial fraud and
abusive fees.. etc.
c. Avoidance of unilateral policies and the discriminatory policies practiced by
some countries in the trade operations.
d. Protection of Saudi exports from dumping charges and fees contained in WTO
Rules and Regulations.
e. The right of the Kingdom as well as traders to make use of these systems and
rules to defend their commercial interests that may be subject to damage.
- 275 -
6-3 Potential Investment Opportunities in the Kingdom:
SAGIA is working hard to attract Domestic and Foreign Investments and include them
with the framework of the general plans of economic and social development of the
country. In this context SAGIA made many initiatives such as but not limited to:
Firstly: The preparation of 400 investment opportunity cost of which approximately
SR. 50,545 Million in various sectors and in different regions and cities, the most
important sectors are:
1) Electricity and Water.
2) The Petrochemical Sector
3) The Industrial and Mining Sector.
4) The Health Sector.
5) The Education and Training Sector.
6) The Tourism Sector.
7) The Agricultural Sector.
8) The Services Sector.
These opportunities were distributed according to the departments that prepared them
Table (6-4)
Numerical and Percentage Distribution of the potential investment opportunities in the Kingdom
according to the departments that prepared them
The Opportunity Provider
Number
Percentage
Riyadh Chamber of Commerce and Industry
107
27
Saudi Basic Industries Corporation (SABIC)
91
23
Gulf Organization for Industrial Consulting
78
20
Saudi Arabian General Investment Authority
53
13
Al Jeel Center for Counseling and Studies
20
5
Saudi Electricity Company
18
4
High Commission for Hail Region Development
Madinah Investment Councils of the Central Region Madinah Central Area
9
8
2
2
16
400
4
100
Others (Chambers of Commerce, Abha and Jazan)
Total
Source: Based on information provided by SAGIA.
- 276 -
%2
%2
%4
Riyadh Chamber of Commerce and Industry
%5
)Saudi Basic Industries Corporation (SABIC
%27
%5
Gulf Organization for Industrial Consulting
Saudi Arabian General Investment Authority
%13
Al Jeel Center for Counseling and Studies
Saudi Electricity Company
High Commission for Hail Region Development
%19
%23
Madinah Investment Councils of the Central
Region Madinah Central Area
Others (Chambers of Commerce, Abha and
)Jazan
The opportunities included big number of big opportunities that needed hundreds of
millions of riyals to be implemented as well as small ones starting from a small
amount of One Million Riyals. So these opportunities are suitable for all
establishments and companies. Some of these opportunities need to be implemented by
Unions and Consortiums such as Electricity Projects and some Industrial Projects thus
providing investment opportunities for all segments of the businessmen where the
numbers of opportunities ranging from SR. 1 – 5 Million were about 118 representing
30% and the number of opportunities that ranged from SR. 5.1 Million to SR. 10
Million, were 78 or 20%. The opportunities that ranged from SR. 10.1 Million to SR.
20 Million were 62 or 16%, and the opportunities that ranged from SR. 20.1 Million to
SR. 30 Million were 25 or 6%, and the opportunities that ranged from SR. 30.1 to SR.
50 Million were 22 to 5%, and the opportunities that ranged from SR. 50.1 to SR. 100
Million were 38 or 9.5%, the opportunities that ranged from SR. 100.1 Million to SR.
150 Million were 8 or 2%, the opportunities that ranged from SR. 150.1 Million to SR.
200 Million is one opportunity. The opportunities ranged between SR. 200.1 Million
to SR. 500 Million were 15 or 3.75. The opportunities ranged from SR. 500.1 Million
to SR. 1,000 Million were 4 or 1%. The numbers of opportunities exceeding SR. 1,000
Million were 29 or 7%.
It is evident that about half of the opportunities 50% are suitable for small and medium
enterprises as the approximate cost of them are ranging between 1 – 10 Million Saudi
Riyals, and do not require high experience and sophisticated techniques.
The number of opportunities that require a large capital of more than SR. 100 Million
and the establishment of consortiums and high experience and modern technologies
for implementation are about 57 opportunity representing 14%. These opportunities in
general considered as potential opportunities to Foreign and Joint capital because of
their need of modern technology and specialized expertise, Table (6-5) below shows
that:
- 277 -
Table (6-5)
Numerical and Percentage Distribution of the potential investment opportunities in the Kingdom
according to the size of Finance (Amount in Million Riyals)
Size of Finance
Number of Opportunities
Percentage
1-5
118
29.5
5.1-10
78
19.5
10.1-20
62
15.5
20.1-30
25
6.25
30.1-50
22
5.5
50.1-100
38
9.5
100.1-150
8
2
150.1-200
1
0.25
200.1-500
15
3.75
500.1-1000
4
1
More than 1000 Million
Total
29
400
7.25
100
Source: Prepared by Dar AlKhibra, Based on information of SAGIA.
In terms of implementation place more than two thirds of the opportunities 260 or 65%
can be implemented in the major cities including Jeddah, which is expected to attract
at least one third on the basis of its economic resources and good infrastructure.
Secondly: The Foreign Investment:
The economic policy of the Kingdom aiming to attract capitals from everywhere for
investment in the Kingdom to activate the role of the Private Sector in development
and bringing new technologies and international expertise for the benefit of
businessman and workers in Saudi Companies and Establishments. The last Seven
years witnessed an increase in direct foreign investment as a natural result of the
procedures done by the government to improve the investment atmosphere.
1) The volume of direct foreign investment in the Kingdom according to major
economic sectors:
The total volume of direct foreign investments from all over the world, especially
from the Unites States, European countries and East Asia was about US$47,828
Million distributed among the major economic sectors as follows:
Came in the First place the Manufacturing Sector, which included more than
twenty industrial activities, the invested amount was about US$27,043 Million,
representing more than half of foreign investments in the Kingdom 56.5% of the
total foreign investment followed by the Real Estate Sector and other activities in
Second position with volume investment of US$5,108 Million, representing 10.7%
of the total, ranked in the Third position The Mining, Oil and Gas Extraction
Sector, where the investment amounted to US$4,722 Million, representing about
10% of the total investment. Then ranked Fourth position The Electricity, Water
and Gas Sector, the investment amounted to US$4,131 Million, representing 8.3%.
Ranked in the Fifth position Financial Insurance Services Sector with volume of
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investment amounting to US$3,805 Million, representing 8% of the total volume
of investment.
The total volume of investment in these five sectors was US$44,809 Million,
representing 93.7% of the total volume of direct foreign investments in the
Kingdom, and the remaining percentage distributed between other sectors at
different percentage as shown in Table (6-6) below:
Table (6-6)
Volume of Direct Foreign Investments in the Kingdom according to Economic Sectors until the end of
September 26, 2007 (Amount in Millions US Dollars)
Sector
Amounts in Million
(%)
The Agricultural Sector
The Mining, Oil Extraction and Gas Services Sector
The Manufacturing Sector
Elecricity, Water and Gas
The Contracting Sector
The Commercial Sector
Hotel and Restaurant Sector
Transport, Storage and Communications
Financial and Insurance Sector
71
4,722
27,043
4,131
1,700
120
149
979
3,805
0.15
9.9
56.5
8.6
3.6
0.25
0.31
2.05
8
The Real Estate and other activities sector
Total Investment
5,108
47,828
10.7
100
Source: Saudi Arabian General Investment Authority, 2008.
2) Percentage distribution of foreign investments in the Kingdom according to regions:
The total volume of foreign investments in the Kingdom was US$47,828 Million,
the Eastern region ranked first with the biggest share of these investments,
amounting to US$20,802 Million, representing 43.49% of the total.
Ranked in the Second position Makkah Mukarramah region, where forign
investment amounting to US$12,926 Million, representing 27.03%, Ranked in
Third position Riyadh region, where investment amounting to US$ 7,828 Million
representing 16,4 % of the total investment. Ranked in Fourth position Madinah
Munawwarrah region with investment amounting to US$5,078, representing
10.6% of the total.
The total direct foreign investment in these four regions amounting to US$46,634
Million representing 97.5% of the total. The remaining 2.5% was distributed
among remaining nine regions at small percentages as shown in Table (6-7)
below:
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Table (6-7)
Percentage Distribution of Direct Foreign Investments in the Kingdom according to region
until the end of 2007 (Amount in Millions US Dollars)
Region
Amount in Million US$
%
7,828
16.4
Qassim Region
7
0.01
Eastern Region
20,802
43.49
Makkah Mukarramah Region
12,926
27.03
Madinah Munawwarrah Region
5,078
10.60
Hail
801
1.7
Tabuk
22
0.05
Jazan Region
11
0.02
353
47,828
0.74
100
Riyadh
Other Areas of the Country
Total
Source: Saudi Arabian General Investment Authority, 2008.
3) Number of licenses of Foreign Investment Projects and the volume of investment in
the Kingdom according to major Economic Sectors from 02/2003 To 06/2007:
The last five years witnessed an increase in the number of licenses of foreign
investment projects and the volume of investment in the Kingdom according to
major economic sectors from 02/2003 to 06/2007. The number of licenses of
foreign investment projects 4,034 licenses; the biggest share of them was for
Services Sector with total number of 2,478 licenses representing approximately
two-thirds 61.4%. The total licenses of projects in the Industrial Sector were 1,282
licenses representing approximately one-third of the total, 31.7%. The total
licenses of projects in the Agricultural Sector were 8 licenses representing 0.02.
The total investment in these three sectors was SR. 356.3 Billion.
The total volume of investment in the Industrial Sector was SR. 161.5 Billion
representing 45.3% of the total investments in the Kingdom.
The total volume of investment in the Services Sector was SR. 194.6 Billion or
more than half of the investments, representing 54.6% of the total.
The total volume of investment in the Agricultural Sector was SR. 0.22 Billion
representing 0.6% of the total volume of investment in the Kingdom, as shown in
Table (6-8) below:
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Table (6-8)
The Number of Licenses of Foreign Investment and the volume of investment in the Kingdom according
to major economic sectors from 02/2003 To 06/2007 (Amount in Billion Riyals)
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4) Comparison between the number of licenses of Foreign Investment and the volume
of investment in Jeddah with those of Makkah Mukarramah region and the
Kingdom until the end of 2007:
The total number of licenses of Foreign Investment Projects in Jeddah until the
end of 2007 was 1,049 licenses, representing 90% of the total licenses in Makkah
Mukarramah region and more than one-fifth of the total licenses in the Kingdom
or 22.4%.
The total Foreign Investment in the projects in Jeddah was about SR. 10.2 Billion
representing 7.3% of the total investment in Makkah Mukarramah region and
2.7% of the total investment in the Kingdom. These small percentages of the
volume of investment in Jeddah was due to the huge projects in Rabigh in Makkah
Mukarramah region, because the investments in these projects were more than
80% of the total projects in Makkah Mukarramah region. The total licensed
projects in the Industrial Sector in Jeddah were 347 licenses representing 92% of
the total licenses of Industrial projects in Makkah Mukarramah region and 21.5%
of the total licensed industrial projects in the Kingdom. While the volume of
investment in these projects was about SR. 6.68 Billion representing 18% of the
volume of investment in Makkah Mukarramah region and 3.8% of the total
volume of investment in the Industrial Sector in the Kingdom.
The total licensed projects in the Services Sector in Jeddah was 702 licenses
representing 89% of the total licenses in the Services projects in Makkah
Mukarramah region and 22.8% of the total licenses in the Kingdom. The volume
of investment in these projects in Jeddah was SR. 3.52 Billion representing 3.3%
of the total investment in the Makkah Mukarramah region and 1.7% of the total
investment in the Kingdom as shown in Table (6-9) below.
It is clear from this explanation that Jeddah has the biggest number of licensed
projects and foreign investments, i.e. 90% of the total projects in Makkah
Mukarramah region, and more than fifth of the projects in the Kingdom 22.4%,
which showed the importance of Jeddah as attractive center of foreign
investments, especially in the fields of industry and services. It is noted that
Jeddah city and Makkah Mukarramah region have no investments in the
Agricultural Sector due to the geographical nature of the region.
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Table (6-9)
Comparison of number of licenses of direct foreign investment and the volume of investments in Jeddah
with those of in Makkah Mukarramah region and the Kingdom until the end of 06/2007.
(Amount in Billion Saudi Riyals)
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Thirdly: The Economic Cities
The idea of establishing the economic Cities started from the orientations of the
Government of the Kingdom, which summed up by the Custodian of the Two Holy
Mosques King Abdullah Bin Abdul Aziz in his speech to the consulting Council
(Majlis AlShura) Members in 2009, when he said – May God protect him "The
Development Plan focused on certain priorities, the most important of them is
achievement of balanced development in all the regions of the Kingdom, and the
provision of work to citizens and development of manpower and upgrading their
capabilities and diversifying the economic base, and increasing the contribution of the
private sector in the development. The coming period will witness more challenges,
more opportunities and the government will continue its policies in the development at
home and plan and establish a number of important national projects, including the
huge economic cities."
Within the framework of government support to private sector participation in the
implementation of the plans and development programs, The King said – "In view of
the importance of investment in national development the government will continue to
support the private sector and will make out its strategic partner in the economic
development, and will try to overcome all the obstacles that face the Saudi and Foreign
investors through making use of all possible added value aspects in the Saudi
economy."
Apart from this the idea of building giant Economic Cities emerged as big partnership
venture between the private sector and the government and attracting international
companies to contribute to the implementation and transfer of knowledge and
technical assistance to the Saudi private sector and supporting the infrastructure in
order to raise the value of the Kingdom competitiveness at regional and international
levels.
This ambitious project started with four economic cities distributed in various regions
of the Kingdom according to four basic principles:
The First Principle: Founded on the basis of global competitive advantages and added
value aspects.
The Second Principle: Provision of modern network of information technology.
The Third Principle: Implementation through the private sector.
Fourth Principle: Provision of a competitive investment environment. The first of
these cities is:
1) King Abdullah Economic City:
King Abdullah Economic City is the largest projects in the coming years. It was
designed to be one of the most important cities in the world and expected to
accommodate approximately 2 Million people.
a. Location: Rabigh
b. Area: 168 Square Kilometers
c. Infrastructure Cost: 100 Billion Saudi Riyals
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d. Expected Job Opportunities: One Million Jobs
e. Population: 2 Million
The main sections of the project:
a.
b.
c.
d.
e.
f.
International Seaport
Industrial Zone
Beach Resorts
Island of Finance (Central Business District)
Educational and Research City
Residential Area
Below is a brief explanation of the potential opportunities in this city:
The Port:
It is expected to be constructed to receive the containers in order to ease pressure
on Jeddah Islamic Port, and find an alternative to a trans-shipment container. The
total area of the Port is about 14 Million Square Meters, contains 30 Perths for
Unloading Tankers and large containers. The total capacity of the port is more than
10 Million containers a year beside millions of tons of general cargo in bulk and
liquid. The Port will receive the Pilgrims with a capacity of 500 Thousand Pilgrims
a year. It is expected to be an ideal Port for the supply and distribution activities
due to the use of modern techniques in handling of goods. It is expected that the
First Phase of the project will become completed and will start operation in 1433
(2012).
Central Business District:
The total area allotted to this District is about 3.8 Million Square Meters for
Offices, Hotels, Commercial Uses, and Banking Services and at the edge the resort
area and beach facilities on the beach, area of which is 3.5 Million Square Meters
of built up areas. It is expected to provide investment opportunities in the tourist
facilities so that the city will be one of the most important tourist façade in the
Kingdom and the Middle East.
Industrial Valley:
This project aims to expand and diversify the industrial potentialities of the
Kingdom. The valley processed area was approximately 63 Million Square Meters,
providing investment opportunities through provision of incentives and facilities
that help in promotion of industrial investment and establishment of factories and
specialized laboratories in various disciplines. Bearing in mind the city agreed to
issue 41 Industrial Licenses to local and international companies up to the end of
the First Quarter of 1430 H (2009).
Residential Districts:
This area of the city estimated to 51 Million Square Meters from the establishment
of more than 150 Thousand Apartments of various sizes, including 108 Thousand
Apartments in low-rise buildings, and an additional 56 Apartments and 5
Thousands distinct Apartments, and 25 Thousand Villas, and more than 50
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Thousand Shops, which providing enormous opportunities for investment in Real
Estate Sector.
Scientific and Research Institutions Area:
Establishment of an Integrated University City for Study, Housing and Research
Centers. The city expected to accommodate 18 Thousand of University Students in
addition to the Staff Members, Academic and Non-Academic Staff and the
University Hospital.
This city occupies unique site on the west Coast of the Kingdom and located near
the town of Rabigh Industrial City, and linked with Jeddah, where one can access
to Jeddah in less than an hour and similar time to Makkah Mukarramah. It lies on
the road to Madinah Munawwarrah.
The responsible company for the development of King Abdullah Economic City
was formed in 2006 as a Joint Stock Company named Emaar of the Economic City.
The "Emaar Real Estate" in UAE played the role of the main developer of this
project, which is their largest project outside the United Arab Emirates. Saudi
Arabian General Investment Authority looks after the implementation of the
project. It is expected that the investments in all projects of the city will be around
US$100 Billion out of which US$13.6 Billion in Industrial Investments.
2) Jazan Economic City:
Location: Gazan
Area: 103 Square Kilometers
Infrastructure Cost: 100 Billion Saudi Riyals
Job Opportunities: 500 Thousand Jobs
This City will be built along the Red Sea Coast about 60 Kilometers from the City
of Jazan on Coast of 11.5 Kilometers long.
It is expected that this city will attract investments exceeding SR. 100 Million in
many sectors and activities in the city, and it is expected to provide 500 Thousand
Jobs and accommodate 1,250 Thousands people and the city is composed of:
a. Seaport
b. Logistics Services Center
c. Power Plant and Desalination and Cooling Station
d. Industrial Zone
e. Business Center
f. Cultural Center
g. Corniche
h. Health Services Area
i. Educational Zone
j. Residential District
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The city activities will be focused on heavy industries and the development of
Secondary Industries in order to develop the local human resources and change the
pattern of living and lifestyle of the inhabitants of the region. Two thirds of the area
was allocated for the development of the Industrial Zone with the latest equipment
that is necessary for the establishment of Heavy Industries.
In this city thousands of Industrial Real Estate opportunities will be provided as
well as Commercial and Service opportunities for investment by local and foreign
companies and establishments, bearing in mind that the government will not bear
any financial burdens, and the developers will bear all costs of infrastructure
construction, and the government contribution will be limited to provision of the
facilities to be provided by Saudi Arabian General Investment Authority and
through coordination with other concerned government departments.
3) Prince Abdul Aziz Bin Musaad Economic City:
Location: Hail
Population: 140 Thousand People
The main sections of the Project:
a.
b.
c.
d.
e.
f.
g.
Transportation and Logistics Services Center
Dry Port
Industrial and Mining Services
Educational Services
Agricultural Services
Recreational Services
Residential Districts.
In consideration of the strategic location of the city of Hail as a Hub for a number
of Trade Routes, an International Airport and Dry Port, a Center for logistics and
Handling of Goods and an Integrated Station of Road Passengers will be
constructed, expected to handle approximately 1.5 Million Tons of Cargo through
the Dry Port and transport of 2.3 Million Passengers yearly through various means
of Road Transport. The city will contain comprehensive Educational Services
including Universities, Training Centers, Rehabilitation Centers and Schools. It is
expected to provide specialized Educational services to meet the needs of the Labor
Market, especially in the Professional and Technical disciplines. The allotted area
for Education Services is about 10 Square Kilometers providing services to
approximately 40 Thousand Male and Female Students from the region beside the
Staff Members and Administrators.
The Infrastructure:
The expected investments for the establishment of Infrastructure may exceed SR. 6
Billion to provide Water, Electricity and Telephone, in addition to the construction
of Roads that expected to reach 3,300 Kilometers to connect the cities and villages
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in the area. The estimated investment in housing is about SR. 10 Billion for
Construction of 30 Thousand Units expected to accommodate about 140 Thousand
people represented the total population of the city.
4) Economic Knowledge City (Taibah Technical and Economic Knowledge Complex):
Location: Madinah Munawarrah
Population: 150 Thousand People
The main sections of the Project:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Taibah Technical and National Economy Complex
Institute of advanced technology
Interactive museum of the Prophet's (PBUH) Biography
Islamic Civilization Studies Center
Medical and Biological Sciences Studies Center
Integrated Business and Hotels Center
Passengers Station
Commercial Complexes
King Abdul Aziz Mosque
Residential Districts.
The project aims to create a Technical Pool to take care of the technical
development of modern techniques, focusing on meeting the technical needs of the
Muslim world; its importance is derived from the Project site in Madinah
Munawarrah.
The Project consists of a group of Smart Buildings and Integrated Support Services
to provide a stimulating Technical Environment, focusing on the following areas:
a. Electronic Government
b. Digital Knowledge Techniques
c. Techniques of the Arabic Language
d. Techniques of Religious Tourism
e. Administration and Technical Colleges
f. Institutes of Advanced Technical Studies.
It is expected that built up area of the complex will be of 9 Million Square Meters
designed to attract investments in Economic Knowledge estimated to 25 Billion
Saudi Riyals. Beside the Colleges, the Institutes and the Scientific Centers. The
complex will provide Business Centers and Headquarters companies to be working
in the fields of Economic Knowledge in Madinah Munawarrah with the following
facilities:
a. Conference Halls
b. Exhibition Centers
c. Hotels
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d. Offices expected to accommodate more than 10 Thousand People
e. Residential Areas and Mosque with total capacity of Ten Thousand persons
f. Stations for Rail and Road Passengers
The Project would be constructed on land given as a gift by King Abdullah Bin
Abdul Aziz for the people of Madinah Munawwarrah.
The project will be connected with Internal Circular Roads surrounding the Central
Business Area, path of Electric Vehicles, connected to the Prophet (PBUH)
Mosque and connected with future Passenger Stations, as well as Prince
Mohammed Bin Abdul Aziz International Airport. The road will be connected to
the road leading to Makkah Mukarramah, Yanbu and King Abdullah Economic
City in Rabigh. For more details of these projects, please click the link:
http://sagia.gov.sa
Fourthly: The investment opportunities in the Strategic Sectors:
The Government of the Kingdom is intended to complete the Infrastructure Projects
and Basic Assets of Development of all sectors within the framework of
comprehensive development plans. These projects put to biddings from the private
sector companies for their implementation. The projects are concentrated in strategic
development sectors which would effectively expected to contribute to the
development of Society well-being. These projects are including:
1) The Energy Sector:
The Energy Sector is based on industries that heavily depending on energy such as
Heavy and Light Industries of Petrochemical, Mining and Minerals, Water and
Electricity.
The estimated requirements of the various activities of the sector around SR. 37.5
Billion yearly. It is expected that the bulk of investment will come from Domestic
and Foreign Private Sectors.
Saudi Arabia Mineral Company (MAADIN) allotted the following projects:
Integrated Phosphate Project, aiming to produce 4.5 Million Tons of Phosphate
Rocks in Jalamid Site, this project includes:
a. A project of production of Sulfuric Acid with production capacity of 4.1
Million Tons.
b. A project of production of Phosphoric Acid with production capacity of 1.4
Million Tons.
c. A project of production of Ammonia with production capacity of 650 Thousand
Tons.
d. A project to produce a bilateral Ammonium Phosphate fertilizer with
production capacity 2.9 Million Tons.
The total cost of these projects estimated to SR. 7 Million, and it is expected to
provide 2,800 jobs
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An Integrated Aluminum Complex:
The project aiming to produce 3.3 Million tons of Bauxite in Zubara Area, the
project includes:
a. Aluminum Refinery with production capacity of 1.4 Million Tons
b. Marry Aluminum melting project with production capacity 6.2 Million Tons
of primary Aluminum
c. A separate project for generation of Electric Energy capable to produce 1,600
MW to meet the needs of the complex.
d. A special Port for transportation loads up to 60 thousand tons.
The total cost of this complex is about SR. 12 Billion providing about 11,400 jobs
and will contribute to the creation of light industries estimated value of about SR.
2.8 Billion.
Manganese Project:
The project includes the development of manganese reserves in Alzergat Region.
The high quality reserves about 2.7 Million Tons, it is enough quality to operate
the project for a period of 22 years at annual production rate of 160 Thousand
Tons of raw Manganese. This quantity will be used to produce 20 Thousand Tons
annually of High Quality Manganese capable of carrying Electrical Power of High
Voltage and will be prepared for export in addition to approximately 20 Thousand
Tons of Charred Manganese to be sold to the local factories.
2) Electricity and Water Sector:
a. Electricity:
The demand of electricity expected to increase to about 59 Thousand MGW
by the year 1445 (2024), therefore Saudi Electricity Company is establishing a
number of projects to generate electricity. 7 Projects will be constructed
during the period from 2008 until 2017. The Generated Power estimated to
about 20 Thousand MGW. The expected total investment of these projects is
about SR. 40 Billion.
To meet the growing demand for Water and Electricity and Infrastructure
associated with them, the required investments to meet these estimated to SR.
150 Billion up to the year 1440 (2020).
b. Water Desalination:
The total current demand of water in the Kingdom is about 6 Million Cubic
Meter per day. It is expected to rise to 10 Million Cubic Meters per day by 1434
(2014) which will require establishment of new projects of Water Desalination.
Three of these projects will be on the West Coast and will be detailed in the
presentation of projects of Jeddah Projects, and one in Jubail for the production
of 2,232 Cubic Meters per day, and 1,100 MGW of Electricity with total cost of
SR. 4,200 Million. This project will be constructed through B.O.T. System.
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SABIC Company owns 14 Factories for the production of Petrochemicals, 70%
of the factories are Joint Ventures with major specialized international
companies. The ventures made in order to transfer of technology and
experience. These projects provide opportunities for local and foreign
investments to invest as Joint Venture or Private Investment to benefit from the
advantage of the specialized construction cost due to the availability of the
integrated infrastructure.
The Electricity Company is seeking to expand the network at an annual rate of
growth 5.5% during ten year plan to add more 2,500 MGW annually, the
estimated minimum cost of construction of the major projects is amounting to
SR. 180 Billion.
The company seeks to promote the participation of the Private Sector in
independent production and transformation of energy projects equivalent to
20% of the added generating capacity in (2015).
 Independent project to generate electrical energy to produce 2,400 MGW of
electricity, and the provision of 300 Thousand Cubic Feet of water, it is
owned by the Royal Commission of Jubail and Yanbu, the estimated cost is
SR. 8 Billion.
 Establishment of strategic regional projects to link the GCC Countries
(through the GCC link Organization) and with Arab Republic of Egypt and
the Yemen Arab Republic, the remaining portion of the project is
approximately 49%.
 Preparation of the National Plan rationalization of electricity consumption in
collaboration with Japan International Cooperation Agency (JAYT) which is
carried out by the Japanese Mitsubishi Institute.
c. Water:
The government is studying the Project of Privatization of Drinking Water in
major cities:
Contract Management, Operation and Maintenance of Water Plants will be
allotted to the Private Sector.
Allowing the Private Sector to build, own and operate New Stations on (BOO)
System.
Privatization of Sewage Plants in five major cities in the Kingdom, including
Jeddah.
All these projects in this sector are vitally important projects which are
potentials as of direct investment or strategic partnership with the private sector
with the owners of these projects.
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3) The Transportation Sector:
a. Road:
Government expenditure on this sector was approximately 13% of the total
expenditures in all development, resulted in building effective and efficient
network of highways that connected between the cities and villages of the
Kingdom. The government established Seaports, Airports and Railways
besides regulating the activities of Road Transport for both passengers and
goods. The private sector played a leading role in this sector, which provides
good investment opportunities.
 The total length of the main road network of about 54 Thousand
Kilometers out of which about 4 Thousand Kilometers of Highways.
Investment in this activity can be through the management and operation
of the network by private sector through application of road tolls.
 Establishment of Rest Houses and Fuel Filling Stations on the Highways.
 Establishment of Public Transport Centers of Passengers and Goods in
major cities for management and operation of these centers.
 Establishment and Management of Warehouses and Terminals to receive
and Transport goods.
 The possibility of emergence of new logistics services such as packaging,
repackaging, assembly, quality control and testing and inspection
laboratories.
b. Railways:
The Supreme Economic Council Resolution No. 3 – 23, dated 23/3/1423 H
(2003) was issued approving the executive program to expand the Railway
Network, and to include the project of the Railway that connected Makkah
Mukarramah, Madinah Munawwarrah, Jeddah and Yanbu to the said program.

The Land Bridge Project:
This project consists of the establishment of a Railway Line length of
which is 950 Kilometers connected to the cities of Jeddah and Riyadh and
linked with the existing line that connected Riyadh to Dammam.
Preparations for the implementation of this project and allotted to
companies with big experience in the field of Rail Transport going on. The
project provides many opportunities for the Local Private Sector in terms
of providing local input and cooperation with the Unions and Consortiums
of which will win the bid. The cost of this project was estimated to tens of
Millions of Riyals.

North / South Railway Project:
This project consists of establishment of Railway Line length of which
1,610 Kilometers connecting the Mining Areas in the North with Al
Jalameed and Az Zabirah with the Arabian Gulf the AlJouf and Hail, and
the city of Prince Abdul Aziz Bin Musaad Economic City and Qassim up
to Riyadh. This Line will be used to transport of Minerals and Goods and
Passengers. It will also be connected to direct line that connected Az
Zabirah with Ras Alzor at the coast of Arabian Gulf length of which 552
Kilometers.
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
Jeddah, Makkah Mukarramah and Madinah Munawwarrah Railway
Project:
The length of this Line is about 425 Kilometers connecting these cities , its
activities is concentrated on transporting pilgrims and Umrah performers
and visitors of the Holy Places, the government will bear the cost and
implementation of this line, the cost of the First Phase which limited to
construction and building of Stations and the route of the Railway
estimated to about SR. 6.5 Billion.
These huge projects in the Railway Sector are representing good
opportunities to the Private Sector, where investment can be made through
the formation of Unions and Consortiums and between the local and
international companies for the construction, management and operation,
particularly the government is willing to establish the first two projects on
B.O.T. System through long term contracts extended for many decades.
c. Projects of Public Transport inside the Cities:
 The Municipalities of the big cities, prepared studies for construction of
networks of Electric Trains and Buses for internal transportation projects,
according to the latest information that these projects will be allotted for
implementation within the current year.
 The activity of Passenger Transport within the city public Taxi
(Limousine)
 Rental Car offices
 The activity of Goods Transport.
d. Sea Ports Projects:
 Management and Operation of Ports through support contracts with Private
Sector Companies.
 Lease of Land and Terminals and the locations owned by the Ports to be
used in loading and unloading and storage activities.
 Establishment of projects to activate the coastal transportation aiming to
reduce the pressure on Road Transport, and to provide more cheap means
of transport.
e. Airports Projects:
New Airports project in the new Economic cities and the expansion of some of
the existing airports to accommodate the increasing air traffic.
f. Telecommunications Projects:
Building networks of ordinary and mobile telephones and the maintenance and
operation works in order to improve the services offered to the public. In the
presence of the competition between the services operators, there are many
potential investment opportunities for the operating companies in the field of
Telecommunication and Information Technology. The Kingdom market is
considered as the largest market in expenditure in the field of Information
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Technology. The average volume of expenditure in the last years was 9.4
Billion Saudi Riyals, and it is expected to jump to more than SR. 14 Billion by
the year 1431 (2011).
The opportunities in this sector are as follows:
 Participation in Telecommunications projects in the proposed Smart Cities
to be built in the coming years.
 Participation in the project of a computer for each person in the Kingdom.
 Strengthening partnerships with international companies to build the
capabilities and transfer of knowledge.
 Establishment of Training Centers specialized in Sale, Operation and
Maintenance.
 Management of Central Market for sale of Telecommunications Equipment
and Information Technology.
These projects are promising opportunities of businessmen and women who can
easily participate in them at all levels, from small-table project that can be done
by any establishment to implementation huge projects in the areas of energy
and transport through the establishment of partnerships with public sector
international unions and consortiums with big companies with the aim to bring
new technologies and gain high experience.
4) The Agricultural Sector:
The Agricultural Sector contained a number of projects in manufacturing
industries based on the local agricultural projects such as:
a. Fish Farming in the Western and Eastern Coasts through taking the advantage
of government support for this sector.
b. Investment in Fishing Boats, and the establishment of companies to do that and
will be formed by the businessmen and fishermen.
c. Development of Small and Medium size Plantations of high value in the rural
areas that have agricultural infrastructure and the use of loans allocated to these
activities.
d. Investment in the fruit canning industry.
e. Cooling and freezing of vegetables and meat.
f. Investment in the construction and management of vegetable and fruit markets
in the big cities.
6-4 Investment Opportunities in Jeddah:
In view of the Economic importance of Jeddah, in terms of its unique geographical
location as Sea, Air and Land Ports and as a Gate of the Two Holy Mosques and as a
center of finance and business in Makkah Mukarramah region, there are special
investment opportunities as well as access to the business of the province of Jeddah to
make use of the various investment opportunities in the Kingdom in general. Below
are some potential investment opportunities in the province of Jeddah, in particular:
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Firstly: The Major Projects:
In line with the policy of the government to develop the Saudi cities and improve the
environment and preservation and development of historic areas, to become attractive
for the integrated economic projects and thus working to provide job opportunities for
added value business. From this concept of understanding Jeddah Municipality
projected a number of giant projects in the city, the most important of which are:
1) Development of Central Jeddah Project:
The development of Central Jeddah Project is supported by all government
departments in line with the instruction of the Custodian of the Two Holy Mosque
King Abdullah Bin Abdul Aziz in supporting the private sector and providing
investment opportunities to it for full implementation of the government major
projects in various parts of the Kingdom. the project of Central Jeddah
Development is considered as a model of the strategic partnership between the
public and private sectors, where the project is to be implemented through
partnership between the Municipality of Jeddah Province and the Supreme
Commission for Tourism and Antiquities with the executing company of the
project namely, "Central City Development Company" which is a Union between
Architectural Development Company Ltd. Kingdom of Saudi Arabia and the
company Solidere International Limited Company (Registered in Dubai and
Affiliated with Solidere Company Beirut, Siraj Capital Company, Saudi Arabia
and the Commercial Real Estate Company (Kuwait) and Venture Capital Bank,
Kingdom of Bahrain. The project aims to revive the down town of Jeddah,
through a development project that raise the environment level of the region and
preservation of the historical area and develop it in appropriate way that would
make it attractive to a range of integrated economic projects that provide added
value to the standard of living of all Jeddah residents, making use of unique
heritage and cultural diversity inherent. The project extended over an area of Six
Square Kilometers and included the development and revitalization of downtown,
including the rehabilitation of the historical center of the city and improvement of
infrastructure and rehabilitation of lakes, and the development of the coastal front
at a length of Sixteen Kilometers and planting of Green Spaces, and Public Space
and Pedestrian Paths and recreation areas and remedy of the policy to make use of
the vacant land to raise the factor of vulnerability of construction to double
statistic to commensurate with the size of the expected investments of the project
so as to achieve greater economic feasibility and attracting selected investments.
So this project will create new opportunity for the development of the Central City
of Jeddah and transferred it into a modern city with sustainable features and at the
same time preserve its traditional and historical and social name.
The establishment of infrastructure for the project is expected to be completed
within three years and the estimated cost of construction is about 3.5 Billion Saudi
Riyals.
It is expected that the economic benefits of the project go to the government
agencies as well as the developing companies, and the owners of the Real Estates,
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who are expected to allocate their contribution to the capital of the company at
about 84% of the capital and the number of shares will be equal to the price of the
owned real estate in the regions. The economic studies predicted that the project
will exceed the returns on Real Estate Development by 22%.
Beside the owners of the properties this huge project offers a lot of investment
opportunities to different types of companies and establishments such as
Engineering, Consulting, Construction Companies, Equipment Dealers and
Commercial Establishment during and after the construction and completion of the
project.
2) Bab Jeddah Project:
Bab Jeddah Project is a main part of Central Jeddah Project. The project has a
particular importance because it represents the Commercial District in the City. It
will become a Business Center in Jeddah. It is an integrated, multi uses project as
its area is more than half a Million Square Meters, with an estimated total cost of
about Six Billion Saudi Riyals.
The project consists of Two Major Sites. The first one extended over 413
Thousand Square Meters along the King Abdullah Road, and the Second one
extended over an area of 140 Thousand Meters along the Abdullah Al Sulaiman
Road, a short distance of the main Railway Station connecting Makkah
Mukarramah and Madinah Munawarrah.
The project will include Commercial and Residential Towers, and many cultural
and recreational services and facilities such as Schools, Health Care Facilities,
Hotels, Parks, Mosques and Shopping Centers. It is expected that the project will
include 6,000 Residential Units and 230 Thousand Square Meters of Office Space
and 75 Thousand Square Meters of Commercial Space allotted for rent.
The project is characterized by its designs inspired from ancient Arab Designs
with modern architectural touches that give a unique architectural character. The
estimated cost of the project is about 6 Billon Saudi Riyals. It is expected to
contribute in attracting top local and international investors, as it directly
contributes to the activation of the Real Estate Sector, the prices of lands adjacent
to the project increased at 90% as the meter price rose from 800 Saudi Riyal to SR.
1,500. The specialists' people forecasted that the project will shift the compass of
the new sites in Jeddah and will lead to the center to faster growth. It will provide
more investment opportunities as well as provide Job Opportunities for specialized
Saudi Cadres, and thereby contribute to the solution of the problem of
unemployment in the Kingdom in general and in Jeddah in particular.
The Development of the project is taken over by Middle East Company a
Subsidiary of Emaar Real Estate Company based in Dubai, it is considered as one
of the leading Real Estate companies in the field of building and construction.
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The company started sales of luxurious Residential Units in the "Crescent Tower
Complex" to the citizens of GCC only. The residential unit composed of Two
Bedrooms, or three or four rooms area of each between 124-600 Square Meters,
and the process of selling is completed in a certain way where it is to handover 5%
of the value at booking and after thirty days raised to 15% of the value, and the
premiums will continue to be paid until 2010 by doing this, the project provided
good opportunities for investment in Real Estate for the citizens of the Gulf States.
The complex consists of three Residential Towers, their height ranged from 19 to
22 Storeys.
The complex is equipped with integrated facilities including Swimming Pool,
Basin outside the central platform. In addition to another closed Swimming Pool
for Ladies only. Beside fitness facilities and business center, this provided with all
necessary equipment from the offices and meeting rooms, and Kindergarten
Center for Children.
Work is now going on in "Bab Jeddah Project" in accordance with the approved
action plan Emaar Middle East Company signed some contracts with the
Specialized Saudi Companies for construction of the infrastructure and other
construction works in various parts of the project, so as to ensure the best and the
highest standards of quality and speed of delivery and delivery of Units to the
owners in due time. The company was simultaneously developed a plan to layout
the foundations of the infrastructure of Electricity and Water and Sanitation,
Sidewalks, Pedestrian Paths according to the approved schedule to complete the
construction works.
This project represents potential investment opportunities to all businessmen and
companies and the citizens in Jeddah and in other Saudi Cities, as well as citizens
of the Gulf States. It is expected that the project will contribute to attract more
Domestic and International Investment to the market of Jeddah City.
3) Transport and Communications in Jeddah:
a. Railways:
 Public Transport Project in Jeddah.
 Amended Railway track of the Land Bridge Project.
Public Transport Project in Jeddah:
 Central Station Project.
 Railway Tracks Project
 Sub-Stations Project.
b. Buses:




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Passenger Public Transport Center.
Allowing formation of companies to transport passengers within the city.
Construction of Stations.
Construction of company's offices, Terminals and Yards for Buses Parking
and Maintenance Workshops.
c. Taxis.
d. Car Rental Offices.
e. Transportation of Goods:
 Public Center for Transportation of Cargo and Trucks Parking.
 Preparation of Trucks Parking near the Port.
 Construction of Terminals of Loading and Unloading and open Store of
goods.
f. Potential opportunities in the expansion of Jeddah Islamic Port.
 Project of additional Piers for Transshipment and Interior Terminal for
Trucks and Container Stores.
 Entrustment of some Port Services to the Private Sector Companies, such as
Loading and Unloading, Security and Safety.
 Entrustment of some operation services such as Sea Guidance of the
Maritime to Private Sector.
 Project of Free Zone for re-export Cargo, completion of the construction of
this project and expansion the services it is providing.
g. Potential opportunities in expansion and development project of King Abdul Aziz
International Airport:
 Development of Aviation facilities for rehabilitation of Runways, Terminals
and Jet Parking. Cost of this project is estimated to SR. 902 Million.
 Complex project passengers lounges, area of which 400 Thousand Square
Meters to replace the North and South Lounges.
 Construction of Private Aviation Building and Safety Building, estimated
total cost SR. 227 Million.
 Car Parking Project to accommodate 25,000 Cars.
 Groundwater Research Services and Soil Geotechnical Tests Laboratory
Project.
 Entrustment Contracts for Management and Supervision Services, to be
allotted to National Companies.
 Contracts of Food Supply on Planes.
 Air Cargo Village Project to receive goods with capacity of 3 Million Tons
of Cargo annually.
h. Potential Opportunities in Tourism Sector:
On the basis of the proposals of Tourism Development Strategy of the Red Sea
prepared by SAGIA, Jeddah is considered as one of the most important areas in
this theme, because of the Integrated Infrastructure, Tourism Facilities and
availability of services and support of attractive Tourism Sites such as
Historical Sites, Resorts, Chalets and Sport and Cultural Events and Seasonal
Festivals. The new available opportunities in this area are:

Accommodation Projects:
Development Four or Five Star Resorts Project the number of rooms ranges
between 100 – 400 rooms, and the cost of construction per room of 4-5
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Stars about 400 Thousand Riyals. The proposed sites of the implementation
of these projects of Hotels and Chalets are:
o Rais.
o Ubhur and North Jeddah Areas.
o Thoal.
o South Corniche.
o Shuaibiah.

Fish and Sea Creatures Exhibition Project:
The strategic plan proposed the area between Jeddah Port and the Middle
Corniche as ideal sites of this project.
The project includes the premises of the exhibition and renovation of the old
Anchorage and Sea sight places.
It is expected that this project will be designed according to International
Standards reflecting the inherited design of Buildings in Jeddah so as to
become a attractive landmark in the city.
This project includes a number of investment opportunities that may attract
many of the proposals from various agencies in cooperation with the
Supreme Commission for Tourism Antiquities and Jeddah Municipality.

Investment in Hotels, Furnished Apartments and Tour Organizing Offices:
Statistics showed that the Tourism Sector in Jeddah is in need of more
investments in this area especially the Furnished Units because they are
demanded by the Kingdom Citizens and Tourists from the Gulf States
because of the availability of privacy that consistent with the Arab Muslim
values and traditions. It is their favorite accommodation especially the
average length of their stay is more than three days.
As shown in Statistics, the absence of guidance companies that provide
Tourism facilities and organizing tourist journeys. This is promising field of
investment with small costs all that needed is a number of Cars, Buses and
Coordination with Hotels and Furnished Units and the Municipality and
Organization of routes and time of beginning and ending of the tours.

Investment in Recreational and Sports Projects:
Jeddah contained many Sports facilities such as Jeddah Sports Stadium,
Clubs Sports Stadium, Grand Swimming Pool at a distance of 50 Km and
the Gym Hall in Jeddah, the Interior Sports facilities and other sports
facilities owned by the clubs and some other departments.
In spite of the availability of these facilities, they have not been used in a
good manner and it is possible to maximize the role of Tourism through
organizing Seasonal Festivals, Sport Facilities, by the Private Sector through
Strategic Partnerships between the owners of those facilities and Tourism
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companies and link them with the Seasonal Festivals such as the Annual
Jeddah Summer Festival, Ubhur Tourism Festival and making use of
religious events.
There are also opportunities for the investors in building more sports facilities
such as:
 Entertainment Cities.
 Water Parks.
 Ski Lounges.
 Closed Football Grounds.
 Integrated Gym Halls.
 Swimming Pools.
All these activities should be constructed in one place in Jeddah (Jeddah
Tourism Area) and thus becomes a landmark in Jeddah, and it will be attractive
place for Tourists and all youth activities, and at the same time it provides
comfort and enjoyment to families and elderly people from the tourist facilities.

Investment in Ecological Tourism:
There are good opportunities for Tourism investment in the Red Sea Coast,
such as Farasan Island. These islands can be exploited in construction of
Coastal Tourist Complex, oriented to provide diving the use of the
components of the natural environment of the islands such as Coral Reefs,
Sea Grass, Sea Dogs, Turtles, Arabian Deer and various species of Birds
that migrated to the island.
These opportunities need specialized feasibility studies and in cooperation
between the competent authorities in their preparation the use of a number
of expertise in this field.
Moreover, there are opportunities of Tourism Investment in Thoul Province,
which is currently classified within the scope of the Urban Area of Jeddah
Cosmopolitan taking into account the features of the old town. It is proposed
that the Tourism Projects will be constructed in a new town including all
attractive tourist facilities with no negative impacts on the local population,
but will become an element of attraction and incentive to them to engage in
new economic activities that will lead to change the pattern of economic and
social life in the town with the need to preserve the Sea life.
The proposed Tourism facilities should be built along the coastline and
connected to the highway in order to be more attractive to tourists, and to be
easily accessible from downtown of Jeddah and King Abdul Aziz
International Airport.
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Secondly: Small Projects:
The Small Projects are characterized by small amount of invested capital, ranging
between SR. 500 Thousand to One Million Saudi Riyals and reliance on local
materials as well as flexibility in spreading and the ability to expand with time. The
small projects are now Stores of new Job Opportunities and vital tools for reduction of
unregulated works as well as creation of new jobs and transference of youth from job
seeker to investors and employers. They also have the chances to make use of the
financial support from the different lending institutions such as the Centennial Fund,
the Saudi Credit and Savings Bank and Saudi Industrial Development Fund, as well as
the assistance of businessmen and the Chambers of Commerce, some of these
opportunities were prepared and supported by Jeddah Municipality in order to activate
the Municipality investments projects to increase its revenues to face the financing of
development projects, these opportunities are:
1) Making use of some of the extra spaced on both sides of the roads and the
separators of the roads in Jeddah in the densely populated areas for the
establishment of Cafes and Buffets, and Internet Cafes and other small
investments. These Lands could be limited to the following:
a. Organizational abundances in Residential Areas.
b. The broad areas of pavement width that are more than 4 Meters.
c. Green spaces on road and streets.
d. Median islands along the streets.
e. Separator islands at the intersections of roads and at the traffic signals.
f. Unexploited dry and wet lakes.
g. Large plain areas, and sidewalks and public places to construct the Sea Coast
directly.
h. Sixteen investment opportunities to construct stalls in districts in Jeddah.
i. Other locations owned by the Municipality
It is possible to obtain the Maps of such places from the Municipality of the city of
Jeddah. The investors can choose what suits their investment. These sites are more
than sixty in the Municipality representing 60 Investment opportunities at least.
Thirdly: Industrial Investment Opportunities:
The most important project is to develop the Second Phase of the Industrial City in
Jeddah, and the possibility of construction of Private Industrial Cities especially those
planned and funded by the Private Sector on condition that the land should be within
the Industrial Area in the approved structural plan of Jeddah and have easy access and
linked with the main roads.
There are also about 15 investment opportunities to construct factories in various
industrial activities, the cost of these factories range between 1 – 5 Million Saudi
Riyals such as:
1) Paper Industry.
2) Recycling of Paper.
3) Packaging
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The cost of some of them ranging between 5 – 10 Million Saudi Riyals such as:
1) Foodstuffs.
2) Paints.
And the cost of some of them is more than 10 Million Saudi Riyals such as:
1) Furniture and appliances.
2) Fertilizers.
3) Medical Supplies.
4) Medicines.
5) Planning, Construction and Management of Thoul New Industrial City, to
accommodate the distributed factories within the city and the future ones.
Fourthly: The Commercial Centers and Shops:
There are a number of suitable investment opportunities in construction of
Commercial Premises in some distinct areas in Jeddah; number of these opportunities
in this field is about 20 opportunities.
Fifthly: Warehouses:
There are a number of opportunities in the field of Logistics and Warehouses in the
Industrial Zone, total number of them is about 5 Business Opportunities.
1) Investment of 40 Yards as Open Stores and can be used as loading and unloading
terminals and trucks parking.
Sixthly: Recreational Cities and Sports facilities:
There are 5 Opportunities for recreational cities and Clubs, Young people Rest Houses
and Football Stadiums.
Seventhly: Water Desalination and Treatment Stations:
Two opportunities in this field are Station of Water Desalination and one of Waste
Water Treatment.
Eighthly: Environment:
Investment in location for the construction of waste debris.
Ninthly: Advertising Projects:
1) Investment opportunities in Site suitable of the Temporary Exhibitions and
Festivals.
2) Electronic Screen Sites.
3) Guidance Boards project in all Jeddah Roads.
4) Exploitation of King Abdullah Bridge for and Advertisement and Announcement.
5) Exploitation of Advertising Trucks and Vehicles.
6) Guidance Boards of various economic activities in the important places within the
residential districts.
Tenthly: Electricity and Water Projects:
1) Privatization of Sanitation Plants Project in Jeddah.
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2) Project of Wastage Water in Transmission and Distribution Networks and
leakages of Surplus Water from Water Tanks.
3) Construction of advanced Customer Service Centers in Jeddah.
4) Construction of Dual Purpose Water Desalination Plant and Electricity
Generation in Shuaibiah, total cost of which is about SR. 6,000 Million.
5) Construction of Dual Water Desalination Plant and Electricity is Shaqiq, total
cost of which is about SR. 3,800 Million.
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Chapter Seven
Social Affairs in Jeddah Province
7 – 1 Social Welfare Institutions
7 – 2 Care and Social Development Institutions in Jeddah Province
7 – 3 Social Security
7 – 4 Charity Association
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7 Social Affairs:
The Ministry of Social Affairs is performing big scientific efforts in the areas of Social
Welfare and Social Development in order to please the citizens and meet their needs
and help them to benefit from the capabilities and capacities available to them. The
government gave the Social Development Programs appropriate attention through
continuous support of the budget of the Ministry and its specialized agencies. It
opened the field for private sector to contribute through oriented volunteer and charity
work to serve the individual, family and the community.
The Ministry works to set up the programs and the projects that contributed in the
development of local communities in all regions of the Kingdom to reach the best
Social and Economic level through providing better services to raise the level of
individuals in society and provide them with necessary experience, skills and new
knowledge that help them to manage their own affairs and solve their problems as
well useful skills that motivate them to work and cooperate to carry out their
responsibilities, Study their needs and develop appropriate solutions to their problems
and give them a chance to participate in provision of financial resources to meet their
needs. The Ministry tried to develop the human resources through the promotion of
Cultural, Health, Social and Economic aspects in a trial to change the habits and
unsound concepts, discovery of local leaders who are able to participate in the
promotion of the development.
The Ministry works through the implementation of its programs to achieve the overall
planned objectives as stated in the National Development Plans and the advancement
level of living of the individual and the family and the Saudi Society. These objectives
are as follows:
1) Raising the efficiency of the Social Sectors to carry out their functions efficiently
and effectively.
2) Developing a Long-term Plan for Social Research and setting up the priorities in
accordance with Social Developments.
3) Provision of Social Welfare to the individuals within the institutions of Social
Welfare.
4) Provision of Social Welfare to the Individuals and Families in their natural
environment.
5) Provision of Health Care for the family within the Social Care Institutions in their
natural environment.
6) Assessment of the care given to delinquents in the institutions of guidance and
Social observation.
7) Emphasis on family cohesion and increased the attention of social projection
services programs and taking care of family and childhood.
8) Increase the attention to persons with disabilities and introduction of National
Programs for their rehabilitation.
9) Ensure the responsibility of the community individually and groups in the social
solidarity to the level of local communities through the Civil Volunteer activity.
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10) Development of Social Development activities to meet the growing needs of the
community.
11) Continue to support and promote the cooperative activity and the deployment of
the services of cooperative societies.
12) Interest in awareness and Guidance Programs.
13) Continue to encourage the Private Sector contribution to the Economic and Social
Development processes to be in line with the objectives and policies of Social
Affairs.
The Ministry set out a range of policies and Mechanisms to achieve those objectives
and to be in line with the requirements of groups that provide the services.
7-1 Social Care Institutions:
The Ministry of Social Welfare provides the Social Care to all community categories
according to their needs through a number of specialized institutions by giving the care
to each of these categories. These institutions scattered in various regions and cities of
the Kingdom to provide the required services as follows:
7-1-1 Social Nursery Centers:
These Centers providing Social and Psychological Care to the children of both sexes
from birth until the age of six for those children who are surrounded by special
circumstances preventing them from getting proper care within their natural families.
The numbers of these centers until the end of 2008 were four in Riyadh, AlRas,
Dammam and Jeddah. The numbers of beneficiaries are about 699 children, of whom
321 Males and 378 Females.
The care provided to those children surrounded with Special Circumstances through
one of following two ways:
1) Placement in one of a suitable Social Nursery Center.
2) Handed them over to one of the families that desire to take care of them within the
family members, these families are divided into two sections:
a) Nursing Families, who are taking care of the children who have no supporters.
b) Alternative families who are taking care of the remaining cases.
These families are paid a sum of SR. 1,000 monthly for the children under the age of
six, and SR. 1,200 monthly for the children over the age of six, and paid amount of
SR. 2,400 monthly for children over the age of six when attended school every year.
When the residence of the children with Alternative and Foster families ended an
amount of SR. 5,000 will be paid to the family as a gift for the good care they gave to
the child.
The number of nursing families during the year 2007/2008 around 5,756 families in
various cities of the Kingdom, and the amounts paid to them was amounted to SR.
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81,889,856 with increase in the number of families by 325 families compared to those
in 2004/2005 or 6%. The amount increased by SR. 1,940,041 or 2.5% as shown in
Table (7-1) below:
Table (7-1)
The Number of nursing and alternative families and the amounts disbursed to them
from 2004/2005 up to 2007/2008
Year
nursing and Alternative Families
Disbursed Amounts
(in Saudi Riyals)
2004/2005
5,128
69,864,694
2005/2006
5,172
68,986,694
2006/2007
5,431
79,949,815
2007/2008
5,756
81,889,856
Source: Ministry of Social Affairs, Statistical Year Book, Issues from 2004 – 2008.
Foster and Alternative Families
Disbursed Amounts (in Saudi Riyals)
85,000,000
80,000,000
75,000,000
70,000,000
65,000,000
60,000,000
5,800
5,600
5,400
5,200
5,000
4,800
/2007
2008
/2006
2007
/2005
2006
/2004
2005
/2007
2008
/2006
2007
/2005
2006
/2004
2005
The children are delivered and received to and from nursing Families in accordance
with certain regulations that obliged them to provide the following services to the
child:
1) Accommodation, Subsistence and full clothing with distribution of children within
the families, according to their age groups and categories.
2) Health Care treatment of cases of diseases, vaccination and immunization of
children against infectious diseases, and follow up of their health files.
3) Social and Psychological Care, providing Social and Psychological atmosphere in
which will compensate the children the lack of natural families.
4) Educational Care.
5) Cultural and Arts Programs to give the child some degree of general knowledge in
the social health aspects and others.
7-1-2 Hostels for people with Special Circumstances:
These Hostels were established in 2004 under the supervision of the Women Social
Supervision Office in Riyadh to be a model for children villages contained Small
Residential Units, the most Prominent objectives were:
1) Composition of a family atmosphere similar to natural family through similarity of
the family system, availability of alternative Mother, Grand Sister, Aunt etc.
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2) Granting greater degree of privacy for family members away from the institutional
atmosphere.
3) Give the children a chance to feel the Social relations that bind the family
members.
The Hostels containing 12 families up to the end of 2008, each family live in an
independent housing unit; the number of children will not exceed six children of
different age groups.
The Social Specialist are cooperating with the alternative Mother and Training her to
achieve the safe Social and Psychological growth of the child, taking into account the
psychological and social needs of each age group, the social specialist alternative
mother are working together to develop the normal relationships between the children
in a family atmosphere and give the chance to the expression of brotherly feelings.
Within this program, Friendly Family Program is applied to provide communication
with the Friend Family which helps for integration of the children with the outside
community, and the stimulation of the natural roles within the normal family, the
selection of Friend Family is done according to specific criteria that will help the child
to build his concepts and values in line with the concepts and values of the society,
beside developing a spirit of loyalty to his family member and his friends,
consequently he will seek to be a useful member in the society.
The total number of children in the Hostels in Riyadh was seventy children; all of
them were from the category of special circumstances and their ages between 6 – 21
years.
7-1-3 Social Education Houses:
These houses are taking Care of the Male children between the age of six and thirteen
years from the category of special circumstances like those who lost one or both
parents, and one or both parents not able to take care of them because of
disqualification or lack of proper socialization. Provided that the social investigation
proved the need of child to be looked after in these houses.
The number of Social Education Houses were 14 Houses including 10 for Boys and 4
for Girls in addition to two houses in Riyadh and the other in Jeddah, named Social
Education Organizations which accepted the graduate students of the Social Education
Houses for Boys obtaining the Certificate of Primary Schools for completion of their
Intermediate Education and thereafter. The total beneficiaries of these houses until the
end of 2008 were about 1,190 children, 842 of them are representing 71% and 348 are
Females representing 29% of the total as shown in Table (7-2) below:
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Table (7-2)
Number of Beneficiaries of Social Education Houses from 2004/2005 to 2007/2008
Number of Houses
Beneficiaries
Year
Male
Female
Total
Male
Female
2004/2005
9
4
13
890
362
2005/2006
9
4
13
892
352
2006/2007
10
4
14
840
347
2007/2008
10
4
14
842
348
Total
1,252
1,244
1,187
1,190
1,000
800
600
400
200
0
2008 /2007
Number of Houses Male
2007 /2006
2006 /2005
Number of Houses Female
2005 /2004
Beneficiaries Male
Beneficiaries Female
7-1-4. Social Protection:
The General Directorate of Social Protection was Established as per the Ministerial
Resolution No.1/10771/SH dated 1/3/1425 (2005) with aims to:
1) Working to protect children under the age of eighteen, and women at any age, and
some oppressed groups from exposure to various types of abusing or torturing.
2) Raising awareness among community members about the need to protect family
members from abused and torturing.
3) Work towards securing safe environment for healthy society.
4) Promote the principles of religion which encourage people of good treatment, and
compassion among the members of the community.
Protection committees received reports of cases of violence and then turned to
investigation and forwarded them to the competent authorities for doing the needful.
The total number of cases considered by the committees of protection since their
inception and up to now in all part of the Kingdom are 510 cases, 56 cases of males or
11% and 454 cases of females or 89%.
7-1-5 Delinquent Care Houses:
1) Social Guidance Houses:
These Houses are looking after the Juveniles when signs of delinquency appeared
among them at the ages between seven and eighteen years. These Houses played the
role of Education and Guidance and Amendment of behavior and directed them to
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adapt to the values and traditions of the community through social and psychological
guidance programs and other activities that occupy their leisure time.
The numbers of these Houses were five located in the cities of Riyadh, Madinah
Munawarrah, Dammam, Buraidah and Taif. These Houses are divided by sex into two
parts.
2) Observation Houses:
These houses are looking after the male delinquents who committed punishable
actions according to islamic law. In view of their youngest age they are looked at as
juveniles who committed offenses under pressure of environmental, social or
psychological condition, and required to be looked after and receive some sort of
treatment. The delinquent will remain in the house till the end of duration that will be
determined by the judge, and which considered sufficient for his reformery and
treatment. These houses were located in various cities of the Kingdom and one of
them is located in Jeddah.
3) Girls Care Institutions:
These institutions are responsible for girls who appeared to have some signs of
delinquency and they should not exceed the age of thirty years and have been
sentenced to imprisonment or arrest and those who are under the age of fifteen years
will spend the period of arrest in a special section in which will be allowed continue
their education at all levels of Elementary, Intermediate and Secondary. The
institution will constructively direct their behavior so as to rehabilitate them to adapt
to society's values.
The total numbers of these institutions are four institutions located in Riyadh,
Makkah Mukarramah, Ahsa and Aseer. The number of beneficiaries as in 2008
was 1,128 girls as shown in Table (7-3) below:
Table (7-3)
The Number of Beneficiaries of Girls Care Institutions from 2004 to 2008
Year
Number of Beneficiaries
2004/2005
2005/2006
2006/2007
2007/208
1,171
1,219
1,180
1,128
Number of Beneficiaries
2008 /2007
2007 /2006
2006 /2005
2005 /2004
1,220
- 310 -
1,200
1,180
1,160
1,140
1,120
1,100
1,080
7-1-6 Social Welfare Houses:
These Houses are responsible to create a decent accommodation, human Living
Conditions, and full Health Care for some group of Males and Females who cannot be
cared by their natural families, such as elderly people who faced economic conditions
that do not allow them to live among their families, and the disabled who are not
responded to vocational rehabilitation and those who crossed the age of twenty or
more.
The number of these Houses are Ten located in different cities of the Kingdom, and
the total number of beneficiaries till the end of 2008 were about 771 people as shown
in Table (7-40 below:
Table (7-4)
The Number of Beneficiaries of Social Welfare for the period from 2004 until 2008
Year
Male
Female
Total
2004/2005
2005/2006
2006/2007
2007/2008
480
420
415
440
272
245
251
271
752
665
666
711
271
440
251
415
2007 /2006
245
420
2006 /2005
272
480
500
2008 /2007
400
300
2005 /2004
200
Female
100
0
Male
7-1-7 Paralyzed Children Welfare Institutions:
These Institutions are responsible for provision of Educational Programs and Social
Welfare, Health and Psychological suitable care to paralyzed children of both sexes
and those who are similar to them with congenital disability that prevented them from
easy mobility, with a view to develop the remainder of their capabilities and prepare
them to accept their situation and to adapt socially and psychologically with the
community. The number of these institutions are two institutions, one in Riyadh and
the other in Taif in Makkah Mukarramah region and the total beneficiaries from these
two institutions as in 2007/2008 was about 270 individuals of both sexes. Table (7-5)
below shows that:
- 311 -
Table (7-5)
The Number of Beneficiaries of Paralyzed Children Welfare Institutions for the period
from 2004 until 2008
Year
Male
Female
Total
2004/2005
2005/2006
2006/2007
2007/2008
142
127
143
141
100
115
121
129
242
242
264
270
141
129
2008 /2007
121
143
127
2007 /2006
115
100
142
160
2006 /2005
140
120
2005 /2004
100
80
60
Female
40
20
0
Male
7-1-8. Vocational Rehabilitation Centers of Disabled People:
These Centers are responsible for the rehabilitation of the physically and mentally
disabled people to be fit for some occupations and professions that suit their conditions
of disability and give them appropriate training in some profession in order to make
them able to work and earn their living cost. The number of these Centers are two for
Males in Riyadh and Dammam and 11 Sections of Vocational Rehabilitation in Riyadh
for Female and in Taif for both Males and Females and in some of the major cities in
the Kingdom. Total numbers of beneficiaries are 416 cases; the cases that have been
rehabilitated were 320 cases in 2008 as shown in Table (7-6) below:
Table (7-6)
The Number of Rehabilitated Cases in Vocational Rehabilitation Centers from 2004 to 2008
Year
Beneficiaries Cases
2004/2005
541
2005/2006
519
2006/2007
404
2007/2008
416
- 312 -
Rehabilitated Cases
237
376
320
320
416
404
Rehabilitated Cases
2008 /2007
320
2007 /2006
376
519
Beneficiaries Cases
320
2006 /2005
237
541
600
400
2005 /2004
200
0
7-1-9 Comprehensive Rehabilitation Centers:
These centers are responsible for Vocational Rehabilitation and Social Rehabilitation
of Disables Persons; they are having special sections to look after the young disabled
persons. These Centers are in form of complexes providing services system to disabled
person in a single unit. The number of these Centers are 27 Centers for both Males and
Females and distributed in various cities of the Kingdom as shown in Table (7-7)
below:
Table (7-7)
The Number of Beneficiaries Males and Females from the Comprehensive Rehabilitation Centers
from 2004 to 2008
Year
Male
Female
Nursery
Day Care
Total
2004/2005
2005/2006
2006/2007
2007/2008
3,905
3,929
4,077
3,846
2,085
2,408
2,570
2,586
1,790
1,122
1,045
995
730
198
182
7,780
8,189
7,890
7,609
5,000
4,000
Male
3,000
Female
Nursery
2,000
Day Care
1,000
0
2008 /2007
- 313 -
2007 /2006
2006 /2005
2005 /2004
7-1-10 Begging Eradication Offices:
These offices are responsible for eradicating the phenomenon of begging, in
cooperation with the Ministry of Interior to arrest those found begging, and to examine
the situation of citizens, then to determine the conditions of begging and then to direct
them to the services departments to assist them to earn living. the responsibility of the
Ministry is limited to the Saudi citizen who is begging.
But the foreigner beggars will be dealt with the Ministry of Interior, which will work
to deport them outside the Kingdom, the number of these offices are 12 offices
throughout the major cities in the Kingdom, and the total arrested beggars in 2008
were about 26,342 beggars, 19% of them were Saudis and 81% were foreigners as
Table (7-8)
The Number of Beggars and their distribution according to Nationality from 2004 to 2008
Percentage
Year
Saudis
Non-Saudis
Total
Saudis
Non-Saudis
2004/2005
3,630
15,015
19
81
18,654
2005/2006
5,317
24,771
18
82
30,088
2006/2007
4,952
30,008
17
83
34,960
2007/2008
5,206
21,136
19
81
26,342
30,008
24,771
21,136
15,015
Saudis
Non-Saudis
5,206
2008 /2007
4,952
2007 /2006
5,317
2006 /2005
3,630
2005 /2004
7-2 Social Welfare and Social Development Institutions in Jeddah Province:
Jeddah Province received special attention by the concerned authorities of the Ministry
of Social Affairs and a number of institutions, welfare and Social Care facilities and
Social Development Institutions were built. The total institutions were ten, six of them
are for Males namely:
1) Social Nursery Houses.
2) Social Education Houses.
3) Observation Houses.
4) Vocational Rehabilitation Centers of Disabled Persons.
5) Comprehensive Rehabilitation Center.
- 314 -
6) Begging Eradication Office, Four Institutions are for Females namely:
a) Social Nursery Houses.
b) Social Education Houses.
c) Comprehensive Rehabilitation Centers.
d) Begging Eradication Offices.
There are some institutions which are not in Jeddah such as the Social Welfare Houses
and Paralyzed Children Institution, Institution of Welfare of Children with special
circumstances, Brotherhood Centers for Psychiatric Patients, but there are some
branches of some of these institutions in Makkah Mukarramah region distributed
among the cities Makkah Mukarramah and Taif. In the following pages there will be
comparison of the number of the beneficiaries of such institutions in Jeddah with those
in Makkah Mukarramah region and the Kingdom according to Sex and Institution.
1) Number of Males Social Welfare and Development Institutions in Jeddah Province:
The number of Male beneficiaries from the Social Nursery Houses in Jeddah was
between 108 Individuals in 2004/2005 and 125 Individuals in 2007/2008 and they
constituted 100% of the total beneficiaries in Makkah Mukarramah Region
because it is the only house in the region. The average beneficiaries are about 28%
of the total beneficiaries in the Kingdom.
The number of beneficiaries from the Social Education Houses ranging between
68 beneficiaries in the year 2004/2005 and 70 beneficiaries in 2007/2008 with the
average of about 33% of the total beneficiaries in Makkah Mukarramah region and
18% of the total beneficiaries in the Kingdom. The highest number of beneficiaries
of observation houses in Jeddah was recorded in 2004/2005 when the number was
1,913 individuals representing 97% of the total beneficiaries in Makkah
Mukarramah region and 15% of the total beneficiaries in the Kingdom. It is also
noted that the number of delinquents all over the Kingdom was the biggest, it was
12,647 delinquents then the number sharply reduced in the following year, when
the number was 1,370 delinquents i.e. the difference was 11,277 or it was
decreased by about six times (590%).
The number was also reduced in Jeddah from 1,913 delinquents to 254 delinquents
which means that the difference was 1,659 or decreased by more than six times
653%.
The percentage of the beneficiaries from the services of the Observation Houses in
Jeddah was 91% of the beneficiaries in Makkah Mukarramah region and 18% of
the total beneficiaries in the Kingdom.
The number of beneficiaries from the Vocational Rehabilitation Centers in Jeddah
considered as weak, it was not more than ten people in the best years, the
percentage did not exceed 19% as the highest level in 2005/2006.
- 315 -
The percentage of the beneficiaries from the services of Comprehensive
Rehabilitation Centers in Jeddah was 50% of the total beneficiaries in Makkah
Mukarramah region and 6% of the total beneficiaries in the Kingdom; this means
that half of the services provided in this category in the region went to Jeddah.
Regarding Begging Eradication Office in Jeddah it witnessed remarkable
improvement in the eradication efforts, where the number of Male Beggars
decreased from 1,418 beggars in 2004/2005 to 11 beggars in 2007/2008 due to the
efforts of the Eradication Teams, and the support services provided by the
government to the needy people , the percentage of beggars reduced from 29% of
the beggars in Makkah Mukarramah region to 11% in 2007/2008 and from 14% of
the beggars in the Kingdom to less than 1% during the same period. These figures
and percentages showed that Jeddah Province received considerable attention in
provision of the Services of the Welfare and Social Development Institutions for
the citizens of Jeddah as shown in Table (7-9) below:
- 316 -
Table (7-9)
Number of Males in Welfare and Social Development Institutions in Jeddah Province compared to
Makkah Mukarramah Region and the Kingdom from 2004 to 2008
- 317 -
2) The Number of Females in Welfare and Social Development Institutions in Jeddah
Province:
Jeddah enjoyed the services of two Institutions of Social Welfare Institutions in
Makkah Mukarramah region, they are: Social Nursery House, and Social
Education House, which provided Social Services to the citizens in all parts of
Makkah Mukarramah region, percentages of which is about 20% of the total
beneficiaries in the Kingdom.
The percentage of the beneficiaries of Comprehensive Rehabilitation Centers for
Females is about 62% of the total beneficiaries in Makkah Mukarramah region and
about 8% of the total beneficiaries in the Kingdom. The highest percentage in
Jeddah Province was in 2005/2006, it was 92% of the total beneficiaries in
Regarding Begging Eradication Office the numbers and percentages were
declined. The numbers fell from 2,092 beggars in 2004/2005 to 184 beggars in
2007/2008, i.e. decreased by 1,908 beggars or more than ten times (1,031%) which
indicated the success of the efforts of Begging Eradication Offices and the
recovery of the community of Jeddah from this negative phenomenon.
It should be noted that the number of Female Beggars are more than Males by
more than double in all years. This indicated that the Females are begging because
of the Social situations they are facing and because of unemployment due to the
scarcity of Women's jobs in the Private Sector in particular as shown in Table (710) below:
- 318 -
Table (7-10)
Number of Females in the Welfare and Social Development Institutions in Jeddah Province compared to
Makkah Mukarramah Region and the Kingdom from 2004 to 2008
- 319 -
7-3 Social Security:
The Government of the Kingdom looked after all categories of the society within the
development programs of human resources and created appropriate atmosphere for the
Saudi people in stability and productivity so as to achieve reasonable life. In this
framework the Social Security was established in 1382 (1972) to take the
responsibility for assisting some groups of the community surrounded by Special
Social conditions with a view to secure reasonable living conditions through provision
of regular assistance and support of productive projects for productive families. The
programs and plans of Social Security are carried out by 89 offices spread throughout
the cities of the Kingdom. The Social Security contributed to the achievement of the
strategic development basics; THE THIRD STRATEGIC BASE STIPULATED "the
expansion of Health and Social Welfare Services to all the population". FOURTH
STRATEGIC BASE STIPULATED "care of the needy groups of citizens and interest
in addressing the phenomenon of poverty and reducing it and reduction of its ratios by
focusing on policies and programs that aimed to increase the role of economic growth
and to achieve balanced development of all regions of the Kingdom ". The Social
Security aimed to achieve the following:
1) Reach the Beneficiary in its place.
2) Work to achieve financial support to groups of Beneficiaries.
3) Work to achieve the material support to categories of beneficiaries.
4) Support of productive projects of the poor families.
5) Improvement of Residential Environment.
6) Emphasis on the quality of performance of the Social Security Offices.
Social Security provided its services to citizens in one of the following forms:
1) Monthly Payment
2) Aids and Subscribers
3) Support of productive projects.
Aids and Subscribers and Salaries passed several steps. It was started in 1382 (1992)
by giving the family supporter SR. 360 monthly and lump sum amount of SR. 1.540
yearly for the family composed of seven members. The monthly payments witnessed
improvement and they reached SR. 28,000 for a family composed of seven members,
and then added the eighth individual as per the Council of Ministers No. 162 issued on
6/7/1427 (2007) added that the eighth individual to the family, therefore big segment
of society was joined. Therefore the maximum annual payment was increased to
become SR. 31,100 and the aids were increased to reach SR. 36,000. The Payments
and Aids are subject to annual changes review in order to know the changes in the
conditions of the beneficiary families to amend the payment either increasing it in the
case of additional child or divorce of one of the girls, or decreasing in case of reaching
adulthood by one of the family members so that he will earn money and support
himself.
- 320 -
7-3-1 Payments Paid to Citizens by the Social Security in Jeddah Province:
The payments witnessed a steady increase in the Kingdom since the inception of the
system and up to now. The amounts paid to the beneficiaries as monthly payment
increased from SR. 2,546,470 Thousand in 2004/2005 to SR. 7,797,319 Thousand in
2007/2008 or more than double 206%. Therefore this increase affected the
beneficiaries in various regions of the Kingdom. The total number of beneficiaries
during the same period increased from 303,520 cases to 558,898, i.e. increased by
255,378 cases or 84%.
Makkah Mukarramah region received considerable attention by the concerned
authorities in provision of support and necessary assistance to needy families through
the Social Security System. The total offices of Social Security in the region reached
12 Offices, representing 13% of the total offices in the Kingdom. The main Regional
Office of the Social Security is in Jeddah and the rest offices in the region are
associated to it.
The total monthly payments made to Makkah Mukarramah region increased from SR.
476,460 representing 19% of the total monthly payment in the Kingdom in 2004/2005
to SR. 1,577,580 Thousands in the year 2007/2008 i.e. increased by SR. 1,081,120
Thousand or more than two times (226%).
The percentage of disbursed monthly payment to beneficiaries in Makkah
Mukarramah region was about 20% in 2007/2008 of the total payments in the
Kingdom or about one-fifth of the payments.
The number of beneficiaries of Social Security who received monthly payments in
Makkah Mukarramah region was 59,224 cases in 2004/2005 and increased to 117,296
cases in 2007/2008 i.e. increased by 58,072 or approximately double which
represented 9%.
The percentage of beneficiaries of Social Security who received monthly payments in
Makkah Mukarramah region in 2007/2008 was approximately 21% of the total
The total amount of monthly payments in Jeddah was SR. 87,649 in 2004/2005,
increased to SR. 368,497 in 2007/2008 which means that it grew more than three times
320%.
The percentage of monthly payment paid to the beneficiaries in Jeddah was about 21%
of the total amount in Makkah Mukarramah region and 4% of the total amount in the
Kingdom.
The number of beneficiaries of Social Security in Jeddah increased from 11,742 cases
in 2004/2005 to 29,721 cases in 2007/2008, i.e. increased by 17,979 cases or the
number was grown by more than one and a half time 153%.
- 321 -
The percentage of the beneficiaries who received monthly payment in Jeddah was 22%
of the total beneficiaries in Makkah Mukarramah region and 4.5% of the total
These numbers and percentages indicated the attention and care given to the needy
people in Jeddah, where their percentage was not less than 20% of the total
beneficiaries of the region in any of the years and the paid amounts was not less than
19% of the total amounts paid to the beneficiaries of Makkah Mukarramah region and
not less than 4% of the total amount of the Kingdom. These figures indicated the
importance of Jeddah as a large population center inhabited by a big portion of the
population of the Kingdom as shown in Table (7-11) below:
- 322 -
Table (7-11)
The Total Amount of Monthly Payments and the Number of Beneficiary Cases from the Social Security in
Jeddah Province compared to Makkah Mukarramah Region and the Kingdom from 2004 to 2008
(Amounts in Thousands)
- 323 -
7-3-2 Aids and Assistance disbursed from the Social Security to the Citizens in Jeddah
Province:
The total aid disbursements made to the beneficiaries of Social Security in all regions
of the Kingdom increased from SR. 475,891 Thousand in 2004/2005 to SR. 2,969,710
Thousand in 2007/2008, i.e. increased by SR. 2,493,819 Thousand or more than five
times during the period (524%).
The number of beneficiaries of these Aid and assistance increased from 47,082 cases
to 199,310 cases i.e. increased by 152,228 cases, it means that the number increased
more than three times (323%).
The total Aid and assistance amount paid to Makkah Mukarramah region wiseacre
from SR. 88,826 Thousand in the year 2004/2005 to SR. 585,221 in 2007/2008, i.e.
increased by SR. 496,395, which means that the total Aid increased more than five and
a half times 559% approximately 19% of the total aid in the Kingdom.
The number of beneficiaries increased from 9,078 cases to 39,231 cases i.e. increased
by 30,153 cases which mean that the number grew more than three times 332% and
approximately 20% of the total beneficiaries in the Kingdom.
The total volume of disbursed Aid to the beneficiaries in Jeddah SR. 15, 972 Thousand
in 2005/2006 to SR. 137,105 in 2007/2008 i.e. increased by SR. 121,133 or the Aids
were increased more than seven and a half times 758%, representing 22% of the total
Aid in Makkah Mukarramah region and 4% of the total Aid in the Kingdom.
The number of beneficiaries of Aids and assistance in the Jeddah increased from 1,707
cases in 2004/2005 to 9,002 cases in 2007/2008, i.e. increased by SR. 7,295 cases or
number grew more than four times 427% representing 22% of the total beneficiaries in
Makkah Mukarramah region and 4.5% of the total beneficiaries in the Kingdom as
These figures and percentages indicated the Care and Welfare enjoyed by the needy
citizens in Jeddah, where their percentage was not less than 20% of the beneficiaries in
Makkah Mukarramah region, in any year and more than 4% of the total beneficiaries
in the Kingdom.
These Aids played their role in protecting the needy families and providing the
necessities to them, it opened the way to many of them to rely on themselves,
especially for those who are in school age. Despite the increase in the number of
beneficiaries, but there were many families tried to be independent after receiving the
aids and working by themselves to establish a small business and develop it in order to
gain their living from the proceeds of such business.
- 324 -
Table (7-12)
The Total Amount of Aids and the Number of Beneficiaries from the Social Security in Jeddah Province
compared to Makkah Mukarramah Region and the Kingdom from 2004 to 2008
(Amounts in Thousands)
- 325 -
7-3-3 Productive Projects (Supporting the Productive Families Project):
In enforcement of the amended social security system as per royal decree no. M/45
dated, 7/7/1427 article 17 of which narrated as follows:
"The Ministry will take in cooperation with the concerned authorities the necessary
measures for the rehabilitation of those beneficiaries who can be trained to enable
them to earn their living and support their productive projects." in accordance with the
regulations specified in social security law.
The idea of this program based on the development of the spirit of working and
earning of the citizens in order to prevent sluggishness and dependency and reliance
on subsidies provided by the government. The program also works to improve the
economic situation of beneficiaries by supporting productive projects submitted by the
families who are able to work and produce.
The program also works to create job opportunities for those who can convert their
families from dependent families to productive families able to support themselves.
In this context, the Ministry supported a number of projects in Makkah Mukarramah
region and Jeddah, including:
1) The Fishermen Project in Thoul Center those benefiting from that are about 200
beneficiaries from those who availed Social Security Aids, the project dealt in
building the Port, providing the Fishing Boats and Safety Tools and Equipment.
2) Projects of Building of Booth in the Holy Mosque are numbering 25 Booths for the
sale of Siwak and the numbers of beneficiaries were 60 who already engaged in
this business.
3) At the level of individual projects the Social Security used to assist many
individuals in financing their small projects, and more than 30% of them in the
province of Jeddah, such as the following projects:
a. Women's Restaurant Projects for Traditional Food.
b. Women are Tailoring Shops.
c. Manufacturing of Eastern Perfumes and Incense.
d. Vegetables and Fruit Shops.
e. Mobile Device Shops.
f. Children's Games and Toys Shops.
g. Livestock Projects.
h. Student Services Shops.
i. Textile and Sewing Projects.
Social Security is working with families to educate their members about the values of
work and help them to think in establishing some small projects which will generate
adequate income to secure needs, and make them desist from the Aids provided by the
Government or by others.
- 326 -
7-4 Charity Associations:
Islam urges Muslims to collaborate and cooperate in righteousness and piety, on these
principles the Kingdom's government paid attention to this aspect, and gave the chance
to citizens to support the government in its efforts to assist those who are in need from
different groups and encouraged them to organize their voluntary efforts to help their
needy brothers in their local settlements through formation of Charity Associations.
The government used to support these associations financially and technically to help
them to carry out their duties and exercise their activities effectively and efficiently.
The numbers of these Associations till the end of 2008 were approximately 499
Society about 39 of them were Women's associations representing 8% of the total and
460 were men associations spread in all regions of the Kingdom. These associations
are working in different areas of the charity works to provide services to those needy
people regardless citizens or residents.
The most important of these Associations are:
1) Childhood and maternity care.
2) Care of old people.
3) eradication of illiteracy among citizens
4) The development and rehabilitation and training of women and girls of some
profession (such as sewing and embroidery, typewriting, crafts and linguistics etc.)
5) Provision of health services.
6) Care of decrepit and disables.
7) Care of orphans.
8) Establishment and renovation of housing
9) Care of public facilities.
10) Programs of provision of public assistance.
7-4-1 Number of Registered Charity Associations in Jeddah Province compared to
The total numbers of registered operating Charity Associations in different parts of the
Kingdom until the end of 2008 were approximately 499 out of which 112 Associations
were in Makkah Mukarramah region, representing 22% of the total Association in the
Kingdom.
The total numbers of registered Charity Associations in Jeddah Province were 36
representing 32% of the total association in Makkah Mukarramah region and 7% of
the total number in the Kingdom, as shown in Table (7-13) below:
The activities of these Associations are financed from the funds obtained from their
members and from voluntary contributions such as Donations, Endowments and
Subsidies provided by the government.
- 327 -
Table (7-13)
Number of Registered Charity Associations in Jeddah compared to Makkah Mukarramah Region and the
Kingdom since inception and until the end of 2008
Number of Charity
Sl. No.
Region Name
Percentage
Associations
1
The Riyadh Region
92
18
2
Makkah Mukarramah
112
22
3
Madinah Munawwarrah
36
7
4
Al Qassim Region
44
9
5
Eastern Region
52
11
6
Aseer Region
49
10
7
Tabuk
15
3
8
Hail
34
7
9
Northern Frontier Region
7
1
10
Jazan Region
26
5
11
Najran Region
5
1
12
Al Baha Region
19
4
13
Al Jouf Region
8
2
Total
499
Associations in Jeddah Province
% of Jeddah to Makkah M Region
% of Jeddah to the Kingdom
100
36
32%
7%
Source: Ministry of Social Affairs, Statistical Year Book 2008 and Ministry Data Base.
Najran Region
1%
Al Baha
Region Al Jouf
2%
4%
Jazan Region
5%
Northern Frontier Region
1%
The Riyadh Region
18%
Hail
7%
Tabuk
3%
Aseer Region
10%
Makkah Mukarrammah
23%
Eastern Region
10%
Al Qassim
Region
9%
Madinah Munawwarrah
7%
- 328 -
7-4-2 Distribution of Subsidies Paid to the Charity Associations during the year
2007/2008:
The total Subsidies paid to the Charity Associations in the Kingdom was SR. 296,732
Thousands out of which SR. 61,160 Thousands was disbursed to Makkah Mukarramah
region representing with 21% of the total subsidies paid to all Associations in the
Kingdom.
The percentage of Charity Association in Jeddah Province was 32% of the total
Association in Makkah Mukarramah region. It is estimated that one third of the
subsidies go to those Associations, therefore the estimated disbursed amount to
Charity Association in Jeddah Province was about SR. 19,571 Thousands as shown in
Table (7-14) below:
It is clear from the foregoing discussion in respect of Welfare and Social Development
Services in Jeddah Province; it is receiving a significant share of these services not less
than 20% of the total services provided to Makkah Mukarramah region, the number of
beneficiaries is also not less than the same percentage. This indicated the importance
of Jeddah, in respect of benefiting from the Social Services provided by the
government agencies and the community voluntary organizations.
Table (7-14)
Distribution of Subsidies Paid to the Charity Associations according to the Region during the
Fiscal Year 2007/2008
Total Subsidies
Material Subsidy
for Women
Male
Region
Eastern Region
1
Subsidy
Amoun
t
100000
Al Baha
0
Al Jouf
0
The Northern
Frontier
Numbe
r
Numbe
r
Total
Female
Subsidy
Amount
Numbe
r
Number
Subsidy
Amount
10940000
149
50421000
Subsidy
Amount
126
39481000
23
0
43
7165000
0
0
43
7165000
0
24
3704000
3
700000
27
4404000
0
0
28
4035000
0
0
28
4053000
Riyadh Region
Qassim Region
1
0
100000
0
229
101
44174500
22141000
17
5
14420000
3460000
246
106
58594500
25601000
Madinah
Munawwarrah
Tabuk
Jazan Region
Hail Region
Aseer Region
0
0
1
0
0
0
0
100000
0
0
77
41
85
91
133
13120935
8096000
11360000
13370000
22957000
12
4
7
4
4
4700000
1785000
2910000
1270000
3850000
89
45
92
95
137
17820935
9471000
14270000
14640000
26807000
Makkah
Mukarramah
1
130000
253
46950000
21
14210000
274
61160000
Najran Region
Total
0
4
0
430000
16
1247
2325000
238879435
0
100
0
58245000
16
1347
2325000
296732435
Source: Ministry of Social Welfare Data Base 2008.
- 329 -
Najran Region
Makkah Mukarrammah
Aseer Region
Hail Region
Jazan Region
Tabuk
Madinah Munawwarrah
Qassim Region
Riyadh Region
Al Jouf
Al Baha
Eastern Region
50000000
40000000
30000000
20000000
Total Subsidies Female Subsidy Amount
- 330 -
10000000
0
Total Subsidies Male Subsidy Amount
Chapter Eight
Human Resources in Jeddah
8 – 1 the Education Sector, its Structure and Orientation
8 – 2 General Education
8 – 3 Higher Education
8 – 4 Technical and Vocational Education
- 331 -
8 Human Resources:
Human Resources are the Basic Element of Economic and Social Development and most
important factor in its sustainability, ultimately the objectives of the development plans
are to promote and develop the community economically and socially so as to reach the
well being society. This cannot be achieved without the educated man who can understand
the meaning of development and its objectives, as well as the skilled man who can
perform his duties and their function in society with professionalism. Consequently the
availability of the productive citizen who can contribute effectively in building and
developing the society. In order to create such skilled and educated citizens, it is a must to
educate a acculturate and train him to become a unique person in performing his work,
and committed to the values and beliefs of the Society as well as proudness of his
country's culture and civilization. He will be open minded to accept the cultures of other
societies and their sciences. So he will be able to take the good things and adapted it to
suit the values and ethics of his society, and ignore the bad which contradicted with his
values and human and religious ideals.
8-1 The Education Sector, its Structure and Orientation:
Proceeding from the general concept of the importance of education and training to build
the productive person who positively contributed to construct the economic development.
The government paid great attention to Education and Training aimed to develop the
Human Resources and increase their capacities and raise their efficiency. The educational
process is looked after by Three Government Institutions:
1) The Ministry of Education:
It is the Institution which is responsible for the general education at all levels from
Kindergarten, Primary, Intermediate and Secondary School, all education of both
Boys and Girls after the merger of the General Presidency for Girls Education with
Ministry of Education, Vide Royal Decree No. A/2 dated, 10/1/1423 (14/3/2002). In
addition to a number of other Schools Affiliated to some government departments
such as the Ministry of Interior, the National Guard and the Ministry of Social
Affairs, and at the same time it is responsible for the Private Schools.
2) Technical and Vocational Training corporation:
It is the Institution which is responsible for supervising the Institutes and Vocational
Training Centers, and Technical Colleges in addition to other colleges providing other
types of education and specialized training such as Health Colleges and also
responsible for supervising the Technical and Vocational Training Centers and
Institutes of the Private Sector.
3) The Ministry of Higher Education:
It is the Institution which is responsible for supervising the Universities and Higher
Colleges both – Governmental and Private Sectors.
The Kingdom worked hard to provide Free Education to all Citizens at all levels and
this interest was reflected in the volume of expenditure on education as a percentage
of GDP, it increased from 3.5% in 1980/1981 at the beginning of the comprehensive
- 332 -
development plan to 9.5% of GDP in 2008. This percentage exceeds the estimated
percentage of the developing countries as well as in a number of developed countries
such as France, Italy and Germany. The percentage of expenditure on Education in
the Kingdom is 25% of government expenditure compared to 12.5% in Industrial
Countries, and 18.4% in developing countries. The total allotted amount to the
Education Sector in the general budget of the State in the Seventh Development Plan,
was SR 244.3 Billion distributed almost equally between the two sexes 49.7% for the
Boys Education and 50.3 % for the Girls Education. The Eighth Development Plan
2005/2006 – 2009/2010 allotted about 276.1 Billion for the General Education Sector
for Financing and Developing the Educational Process and supporting the student's
services, the activities and operation and maintenance of the educational facilities and
programs to establish new schools and educational facilities. While the amount for
financing the requirements of Technical and Vocational Training was about SR. 13.4
Billion. The financial requirement of Higher Education Sector (Universities and
Colleges) was about SR. 56.1 Billion for financing the educational process.
The last four years of the current plan witnessed a leap in Higher Education, in form
of allocation of additional funds to the Universities, and the establishment of new
Universities which were not included in the plan, in addition to programs of scientific
research and academic development program, and The Custodian of the Two Holy
Mosques exchange program an amount of more than SR. 10 Billion were allocated for
it to qualify and train Saudi youth of both sexes who did not get opportunities in local
colleges and universities and who wish to specialize in same branches of Science and
Knowledge which are not available in local universities.
All these institutions worked together in perfect harmony to achieve the objectives
of the educational process in order to build skilled and educated citizens and gave
them necessary experience and develop and refine all aspects of Scientific,
Technical and Professional knowledge in them.
The main objectives of Education and Training System are as follows:
1) Development of education system in all its elements to ensure the internal and
external efficiency.
2) Securing equal opportunities to higher education for all citizens who are qualified
capable and desire to continue their university studies.
3) Expanding the base of education in line with the requirements of Economic and
Social Development.
4) Achieving a High Degree of Quality and Efficiency and raise the efficiency of
Scientific and Administrative performance of the Education System and its
Institutions.
5) Building the capabilities of scientific research and technological development.
6) Developing technical and vocational training education system in all its elements
and giving more attention to the graduates.
7) Activating the role of the private sector in financing education, training and
research programs.
- 333 -
The importance of Education and Training in Jeddah:
In view of the importance of Makkah Mukarramah region from Religious, Social,
Economic point of view and containing of the big cities, the government paid special
attention to the educational process and training in the region.
Jeddah received considerable attention as it is the main city in the region with the largest
population, and the second largest population in the Kingdom after the city of Riyadh.
This will be reflected when discussing the educational facilities and the growing number
of Male and Female students in all levels of education.
8-2 General Education in Jeddah:
The government focused on spreading of Education, since the beginning of foundation
of the Kingdom, on the entry of King Abdul Aziz to Hijaz Area in Jumada I of the
1344 (1924), when the religious Scholars encourage the implementation of educational
projects in the country. The Directorate of Education was formed to look after the
Education Affairs in Hijaz only. Then the basic instructions were issued in 1345H
(1925), which was stipulated in Article Twenty Eighth, the First definition of
Education Affairs as follows:
"General Education Affairs represent spreading of Science, Knowledge and
Professions and the Opening of Offices and Schools, and Protection of Science
Institutes with observation of the Principles of religion in all the Kingdom of Hijaz."
The pyramid of General Education in the Kingdom started from the Primary Level, the
duration of study is Six years, then the Intermediate Level the duration of study is
Three years and the Secondary Level the duration of study is Three years, these levels
prepared the student for enrollment in higher education in Universities and specialized
Colleges.
The government paid special attention to persons with special needs or Disabled
Persons Special Classes and Schools for Special Education and care were established
to meet the needs of this segment among citizens. The General Directorate of
Education was looking after the Education Affair till the establishment of the Ministry
of Education in 1373 (1953) with Eight Branches during the period from 1356 to 1370
(1936-1950) including Jeddah Branch which was established in 1369 H (1949), since
then the Department of Education was supervising Education Affair in Jeddah, both
Public and Private Education.
The most important role of the departments of Education is to provide a suitable place
to accommodate the students to take their lessons so schools construction and
furnishing and providing them with necessary requirements for completion of the
educational process was their responsibilities in this context, the number of schools
were developed for both Boys and Girls in the Kingdom in general and Jeddah in
particular as follows:
- 334 -
8-2-1 Numbers of Government Boys Schools according to level and type of education in
Jeddah Province:
General Education Sector witnessed a great interest at all levels, the average total
number of Schools in the three levels in Jeddah were 835 Schools representing 32% of
the total Schools in Makkah Mukarramah region and 6% of the Kingdom Schools.
The average Primary School for Boys were 368 Schools representing 31% of the total
Primary Schools in Makkah Mukarramah region and 6% of the total Primary Schools
in the Kingdom.
The average Intermediate Schools, for boys were 219 Schools representing 32% of the
total Schools in Makkah Mukarramah region and 6% of the total Schools in the
Kingdom.
Average Secondary School for Boys in Jeddah were about 159 Schools representing
40% of the total Schools in Makkah Mukarramah Region and about 6% of the total
Secondary Schools in the Kingdom.
The average Special Education Schools were 44 Schools representing 33% of the total
Schools in Makkah Mukarramah region and 6% of the total Schools in the Kingdom.
Average Elder Education Schools were 52 Schools in Makkah Mukarramah region and
3% of the total Schools in the Kingdom as shown in Table (8-1) below:
It has been observed that the number of government schools in Jeddah commensurate with
the education pyramid, the number is less by one third between each level and the other.
It is also noted that continuous decline in the number old people education schools which
is due to a decline in the number of illiterates in the Saudi Society due to the spread of
education at all levels and types.
It is also noted that the percentage of Schools at all levels in Jeddah Province were
approximately one third of schools in Makkah Mukarramah. It was not less than 31% of
Schools of any level and about 6% of the Kingdom total Schools, and these percentages
commensurate with the total population in Jeddah compared with the population number
of Makkah Mukarramah region.
- 335 -
Table (8-1)
The Number of Governmental Boys Schools according to Level and Type of Education in Jeddah
compared to Makkah Mukarramah Region and the Kingdom from 1423/1424 to 1425
- 336 -
8-2-2 Numbers of Government Girls Schools according to levels and type of Education
in Jeddah Province:
The government interested in spreading of the Education of Girls since the beginning
of the Renaissance and formed a Special Department and separate budget till its
merger in General Education with Ministry of Education in 1423 (2002). The total
Schools for Girls in all levels until the end of 2008 were about 15,960 School i.e.
increased by 1985 school from the schools number in 2003 or 14%. This increase
reflected the increase number of school in the regions and the provinces.
The total Schools in Makkah Mukarramah region were 2,971 Schools at the end of
2008, i.e. increased by 246 Schools or 9%. Total Schools in Jeddah were 1,028 at the
end of 2008 i.e. increased by 117 Schools or 13%, representing 35% of the total
Schools in Makkah Mukarramah region.
The average total schools for Girls at all levels in Jeddah Province were 946 Schools
representing 34% of the total Schools in Makkah Mukarramah Region and 6% of the
total Schools in the Kingdom.
The average total Primary Schools for Girls were 407 Schools representing 34% of the
total Schools in Makkah Mukarramah region and 6% of the total Schools in the
Kingdom.
Average total Intermediate Schools in Jeddah were 221 Schools representing 33% of
the total Schools in Makkah Mukarramah region and 6% of the Schools in the
Kingdom.
Average Secondary Schools for Girls in Jeddah were 162 Schools representing 39 of
the total Schools in Makkah Mukarramah region and 9% of total Schools in the
Kingdom.
There are 3 Vocational Institutes for Girls, representing 60% of the total institutes in
Makkah Mukarramah region and 11% of the total Institutes in the Kingdom.
There are 3 Vocational Training Centers for Girls in Jeddah representing 38% of the
total Centers in Makkah Mukarramah region and 6% of the total Centers in the
Kingdom.
There are 5 Schools for Special Education in Jeddah representing 50% of the total
Special Education Schools in Makkah Mukarramah region and 12% of the total
schools in the Kingdom.
Average Elder Women Education Schools are 136 Schools in Jeddah representing
about 30% of the total Schools in Makkah Mukarramah region and 5% of the total
Schools in the Kingdom, as shown in Table (8-2) below:
- 337 -
It has been observed that there is interest in Education and Vocational Training of
Girls in Jeddah Province. More than half of the Educational and Vocational Training
Facilities in Makkah Mukarramah region are in Jeddah Province.
It is also noted that there was a steady increase in the number of Girls Schools and
they are more than Boys Schools in all years, the difference in total was 1,169 schools
at the end of 2008 or 8%. This increase is due to the distribution of Schools for girls in
Urban Areas and Villages and the increasing number of girls and the presence of the
General Presidency for Girls Education for more than 50 years, which helped in
spreading of Schools in all parts of the Kingdom, including Jeddah Province.
- 338 -
Table (8-2)
Number of Government Girls Schools according to Level and Type of Education in Jeddah compared to
Schools in Makkah Mukarramah Region and the Kingdom from 2003 to 2008
- 339 -
8-2-3 Numbers of Students enrolled in Government Schools according to levels and type
of Education in Jeddah Province:
The total number of students enrolled in Kingdom schools, witnessed continuous
increase in number they increased from 2292 thousand students in 2003 to 2445
thousand students in 2008, i.e. increased by 153 thousand students or 7% during the
last five years.
The average total students in Jeddah were 241 thousand students representing about
45% of the total students in Makkah Mukarramah region, and about 10% of the total in
the Kingdom.
The average total primary school was 127 thousand students representing 45% of the
total students in Makkah Mukarramah region, and 10% of the total students in the
Kingdom.
Average total intermediate schools students were about 5952 thousand students,
representing 45% of the total students in the Makkah Mukarramah region, and 10% of
the total students in the Kingdom.
Average total secondary schools students in Jeddah were 50 thousand students,
representing 44% of the total students in Makkah Mukarramah region, and 8% of the
total students in the Kingdom.
The average of special education students were about 1200 students, representing
40% of special education students in Makkah Mukarramah region and 8% of the total
students in the Kingdom.
An average elder education student in Jeddah was 2920 students representing 45% of
the total elder education students in Makkah Mukarramah region, and 12% of the total
students in the Kingdom, as shown in Table (8-3) below.
it has been observed that the percentage of students at all levels and types of education
in Jeddah province was not less than 44% of the total students in Makkah Mukarramah
region, and 10% of the total students in the Kingdom, this indication of the importance
of Jeddah and the interest of qualifying the citizens and preparing them for higher
education.
It is also noted that there is fluctuation in the number of students from year to year due
to shifting of some students from government schools to private schools.
It is also noted that continuous decrease in the numbers of elder students (illiteracy
program), their number decreased from 3600 students in 2003 to 1800 in 2008 or
equivalent to half (50%) again it is an indication of the decline of illiteracy in the city
at a rapid rate.
- 340 -
Table (8-3)
The number of male students enrolled in government schools compared Governorate of Jeddah and Mecca in
the Kingdom of 2003-2008 (thousands of numbers)
- 341 -
8-2-4 Numbers of Female Students Enrolled in Government Schools According to Level
and Type of Education in Jeddah Province:
The number of female students in the governmental schools rapidly increased during
the past years, they increased from 2.0979 million students in 2003 to 2.2272 million
students in 2007 or by 6%, but the number dropped to 2.2213 million students in 2008
or decreased by 5900 students, (0.3%), this reduction may be due to transference of
some students to private schools.
The average numbers of students at the primary schools in Jeddah province were 121.5
thousand students representing 44% of the total female students in Makkah
Mukarramah region, and 11% of the total female students in the Kingdom.
The average number of female student, in the intermediate schools are 53.5 thousand
student representing 45% of the total students in Makkah Mukarramah region, and
11% of the total female student in the Kingdom.
The average number of female student of secondary school, were 47.3 thousand
students representing 45% of the total students in Makkah Mukarramah region, and
11% of the total students in the Kingdom.
It is important to mention that the Department of girls Education of the Ministry of
education is supervising other types of education such as vocational and technical
training and special education and elder women education.
Average female students in vocational training institutes were 660 thousand students
representing about 60% of the total students in these institutes in Makkah Mukarramah
region, and about 19% of the total students in the Kingdom.
The average numbers of female students in vocational training centers were around
220 thousand students representing 45% of the total students in Makkah Mukarramah
region, and 10% of the total students in the Kingdom.
The average numbers of students in special education schools were 650 thousand
students representing about 55% of the total students of this type of education in
Makkah Mukarramah region, and 12% of the total students in the Kingdom.
The average number of elder female students were 6.72 thousand students
representing about 45% of the total elder females in Makkah Mukarramah region, and
about 12% of the total students in the Kingdom, Table no(8-4) below shows that.
it has been observed that the numbers of female students at all levels of education were
in continuous increase during all year except in 2007/2008, in which the numbers were
decreased from that of previous year, and this decline may be due to transfer of some
students to private schools.
- 342 -
It is also noted that the numbers of elder female students, decreased due to the efforts
made to reduce the illiteracy among the elder ladies in the Kingdom in general and in
Jeddah in particular, as being a big city.
All these figures and percentages showed the great attention given to Jeddah province
in spreading governmental education; it was not less than 44% of the total students in
Makkah Mukarramah region, and 10% of the total in the Kingdom in all levels of
education and in all years.
- 343 -
Table (8-4)
The number of students enrolled in state schools by stages and types of education Governorate of Jeddah
compared to Mecca, and the Kingdom of e 2003-2008 (thousands of numbers)
- 344 -
8-2-5 Numbers Of Boys Private Schools According To Level In Jeddah Province:
The Private education is considered as important support to the education process, and
providing opportunities for education of the children of Arab expatriates in Kingdom
because of the limited chances in the government schools and compulsory education
for all citizens and residents, and the inability of Arab communities to open their own
private schools because of the Arab League agreements that imposed education on
The same syllabus students in the territory of the country, as well as many Saudis
who are receiving their education in the private schools.
From this point the number of private schools grew up in the Kingdom during the past
years where the number increased from 926 schools at all levels in 2003 to 1108
schools in 2008, i.e. increased by 182 schools, or 20%.
The average primary school for boys in Jeddah were 82 schools, representing about
72% of the total primary schools in Makkah Mukarramah region, and 21% of the total
schools in the Kingdom.
The average numbers of boys' intermediate schools were about 72 schools representing
70% of the total schools in Makkah Mukarramah region, and 21% of the total schools
in the Kingdom.
The average of secondary school in Jeddah were 50 schools, representing about 68%
of the total schools in Makkah Mukarramah region, and about 20% of the total schools
in the Kingdom.
from this explanation it is clear that the percentage of private schools in Jeddah
province was about three-quarters of the schools in Makkah Mukarramah region, and
about one-fifth of schools in the Kingdom 20% at all levels, this showed the
importance of Jeddah as a big population centre and an attractive location for
investment in educational facilities, as shown in Table (8-5) below.
- 345 -
Table (8-5)
The number of boys schools in stages according to the civil province of Jeddah compared to Mecca,and
the Kingdom of the 2003-2008
- 346 -
8-2-6 Numbers of Girls Private Schools According To Levels in Jeddah Province:
The girls Private education witnessed a steady growth in number of schools, the total
number of girls private schools in the Kingdom at all levels increased from 858
schools in 2003 to 1102 school in 2008 i.e. increased by 244 schools, or 28%. It is
noted that there is a little difference between the total of boys and girls schools, where
it was not exceeding six schools and this is because the majority of the private schools
owners in the Kingdom were established for both sexes.
The average number of private primary schools for girls in Jeddah was 134 schools
representing 78% of the total schools in Makkah Mukarramah region, and 27% of the
total schools in the Kingdom.
The average number of girls intermediate schools, were 82 schools representing 84%
of the total girls schools in Makkah Mukarramah region, and 25% of the total girls
school in the Kingdom.
The average number of girls secondary schools were 53 schools representing 83% of
the total schools in Makkah Mukarramah region, and 25% of the total schools in the
Kingdom, as shown in Table (8-6) below.
It has been Noted that the percentages of girls schools at all levels were more than
80% or four fifths of the total schools in Makkah Mukarramah region, and more than
25% of the total schools in the Kingdom, but also a higher percentage was observed in
girls schools they are exceeding the boys by 10% in favor of girls schools.
These percentages indicated once again the importance of Jeddah Province as a big
population centre that attracted investment in the education sector.
- 347 -
Table (8-6)
The number of girls schools in the civil province of Jeddah, according to stages and compared to Mecca and the
Kingdom in 2003-2008
- 348 -
8-2-7 Numbers of Male Students Enrolled in Private Schools According to Level in
Jeddah Province:
The total number of male students enrolled in the private schools in the Kingdom
witnessed a steady increase the number increased from 174287 students in 2003 to
256129 students in 2008, i.e. increased by 81,842 students, or 47%, or nearly doubled
during five years this increase was due to transference of big number of students from
governmental schools to private schools.
The percentage of students in private school compared to students in governmental
school was 10% of the total students in general education, this means that around 90%
of students in general education in the Kingdom are educated in government schools.
The average numbers of students in private primary schools in Jeddah were 21,292
students representing 73% of the total students in Makkah Mukarramah region, and
about 20% of the total students in the Kingdom.
The average number of male students in private intermediate schools in Jeddah were
8781 students representing 75% of the total students in the Makkah Mukarramah
region, and about 23% of the total students in the Kingdom.
The average numbers of students in private secondary schools in Jeddah were 10,450
students representing 65% of the total students in the Makkah Mukarramah region, and
about 20% of the total students in the Kingdom, as shown in Table (8-7) below.
it has been observed from this explanation that the number of students in Jeddah in
secondary level in particular, and in the Kingdom in general were more than the
number of students at the intermediate level, and this does not mean a disturbance in
the education pyramid, but because of the transference of students in third year of
secondary level in government schools to private schools with a view to improve their
educational level and gain better marks to qualify them to compete in the opportunities
in higher education.
The proof of that is the over crouded of students and increase in number of third year
classes in all private schools in the Kingdom and in Jeddah in particular.
It is also observed that the average percentage of students at all levels in Jeddah, about
three-quarters of the students in the Makkah Mukarramah region, and not less than
65% of total student in any year at all levels, and ranging between fifth to quarter
20-25% of the total students in the Kingdom.
- 349 -
Table (8-7)
The number of students enrolled civil province of Jeddah, compared to Mecca, and
the Kingdom of the 2003-2008
- 350 -
8-2-8 Numbers of Female Students Enrolled in Private Schools According to Level in
Jeddah Province:
The number of female students in private schools witnessed a steady growth during the
past years the number increased from 109102 students in 2003 to 152711 students in
2008, i.e. increased by 43,609 students, or 40%. It is a very high percentage compared
to the duration not more than five years at annual rate of growth 8%.
The average number of female students in private primary schools in Jeddah were
16,936 students representing 64% of the total students in Makkah Mukarramah region,
and 25% of the total students in the Kingdom.
The average numbers of female students enrolled in private intermediate school were
5955 students representing 86% of the total students in Makkah Mukarramah region,
and 27% of the total students in the Kingdom.
The average number of female students in secondary schools were 6,342 students
the total students in the Kingdom as shown in Table (8-8) below.
It has been observed from these percentages that the average percentage of female
students enrolled in both intermediate and high secondary schools in the Kingdom was
more than 80% in all years of the total students in Makkah Mukarramah region, while
the percentage of primary schools students was nearly two thirds 64%, and the
percentage of girls students in Jeddah, compared to the Kingdom was 25% in the
elementary and intermediate levels and secondary schools.
It is clear from this explanation that the percentage of female students enrolled in
private schools in Jeddah was continuously increasing due to the increase in
population and the trend of the people preference of private Education particularly in
the secondary level, which clearly reflected in the annual increase in student numbers,
it is also noted that the number of students in this level were greater than the number
of female students in The intermediate level ,this because of the same reasons
mentioned in the increase of the number of boys, namely the desire to achieve high
marks to qualify the students for admission to higher education at different levels.
- 351 -
Table (8-8)
The number of students enrolled the civil province of Jeddah compared to Mecca and the Kingdom of the
2003-2008
- 352 -
8-3 Higher Education:
The Ministry of Higher Education is responsible of Planning and development of the
Kingdom higher education policies and supervision of government universities and
colleges as well as private universities and colleges. The higher education witnessed
over the past years qualitative and quantitative leaps in terms of number and in take
capacity and improvement in internal efficiency through ensuring the quality of input
of university education, which is implemented by the National Center of Measurement
and Evaluation since its formation in 2001 with aim the to raise the external efficiency
through adjustment of the output of the higher education and verification of quality,
and the achievement of academic and institutional accreditation of the universities
which is done by the National Organization of Evaluation and Academic
Accreditation, which was established for this purpose in 2004. The Ministry did a
number of initiatives that aimed to raise the level of quality in the universities through
three major projects, namely:
1) Projected development of innovation and excellence of the teaching staff.
2) Establishment of centers of excellence and scientific research in the universities.
3) Contribution of both government and private sectors in supporting the government
universities through the funding of scientific courses.
The Ministry also supervising the program of the Custodian of the Two Holy Mosques
for exchange education in order to diversify the sources of knowledge and the
development and preparation of human resources by giving them the adequate skills
that qualify them for work, and consequently contribute to the march of economic and
social development.
The ministry is also preparing future strategic plan development of university
education for the coming twenty five years, the project known as “prospects for the
development of higher education project” (AFAQ)
8-3-1 Governmental Universities and Colleges:
Firstly: Universities:
The numbers of governmental universities until the end of 2008 were about 21
University, including eleven completed University which are:
1) Um Al-Qura University, in Makkah Mukarramah.
2) Islamic University, in Medina Munawara.
3) Imam Mohammed bin Saud Islamic university in Riyadh.
4) King Saud University in Riyadh.
5) King Abdulaziz University in Jeddah.
6) King Fahd University of Petroleum and Minerals, Dhahran.
7) King Faisal University in the Eastern Region.
8) King Khalid University in Abha.
9) Qassim University in Qassim region.
10) Taibah University in Madinah Munawara.
11) Taif University in Taif city.
- 353 -
Last year witnessed the establishment of ten new universities in different regions of
the Kingdom to accommodate the increasing numbers of students to achieve regional
development and provision of educational services to citizens in their regions and
cities nearer to the place of their residence, namely:
1) Jazan University in Jazan.
2) Aljouf University in Al-Jouf.
3) Hail University in Hail.
4) Al Baha University in Baha.
5) Tabuk University in Tabuk.
6) King Saud bin Abdul Aziz University of Health Sciences in Riyadh.
7) King Abdullah University, University of Science and Technology in Makkah
Mukarramah region.
8) Najran University in Najran.
9) University colleges Complex in Northern Frontier Region, located in the towns of
Arar and Rafha.
10) Princess Noura bint Abdulrahman Girls University, in Riyadh (former Riyadh
University for Girls).
Secondly: Colleges
1) Teacher's Colleges:
Besides these universities, the ministry is responsible for the teachers colleges
total of which are eighteen colleges spreading in towns across the Kingdom for
preparation of teachers, previously they were supervised by the Ministry of
Education, and they newly affiliated to the Ministry of Higher Education, the
project of restructuring of specialization is going on in order to facilitate their
integration into the existing system of higher education.
2) Girls colleges:
The girls college were established in order to prepare Saudi women to work as
teachers in the education of girls at different levels, they were supervised by the
General Presidency for Girls Education until 2002 when the Presidency was
merged to the Ministry of Education. In 2005 the colleges were affiliated to the
Ministry of Higher Education with the objective to consolidate the supervising
ministry of all higher education institutions.
The numbers of colleges at the end of 2008 were about 87 College in addition to 15
college of community service; they are currently restructured to be integrated into the
existing system of higher education.
Thirdly: the private Higher Education
The private universities and colleges are supervised by the Ministry of Higher
Education and all educational programs and syllabus are subject to standards of the
National Standards Organization for Evaluation and Academic accreditation, the
commitment to its terms and conditions is a must for giving the license to establish any
institute for higher education.
- 354 -
the Universities and colleges are spreading in location carefully studied before giving
the license to engage in work, these locations are in the major cities with high
population density and large number of schools of general education, thus the largest
percentage of students are in these cities, the important of which Riyadh, Jeddah,
Dammam, Madinah, Al Khobar, Abha, Tabuk, Qassim, and Hail.
1) Private Universities:
The number of private universities until the end of 2008 were three universities
which are:
a. Prince Sultan bin Abdul Aziz University in Riyadh it started its activities in the
academic year 2000/2001 and admitted both sexes boys and girls.
b. Arab Open University, its regional headquarter located in Riyadh and has
branches in many cities in the Kingdom, such as Jeddah, Dammam and Al
Ahsa, it started its activity in the academic year 2003/2004.
c. Prince Mohammed bin Fahd University, it is based in Al-Khobar, Eastern
Region, it started its activity in the academic year 2007/2008
2) Private colleges:
The numbers of private colleges in the Kingdom until the end of 2008 were 14
Colleges spreading in the major cities, seven of them are in Jeddah namely:
a. Dar Al-Hikma college, which is based in Jeddah, and started its activities in
the academic year 2000/2001, the college provided its programs for girls
only in the following disciplines:
 Graphic Design
 Interior design.
 Banking and money exchange.
 Management information systems.
 Financing
 Special Education (superiority and talent).
 Special Education (learning difficulties).
b. Effat College, based in Jeddah, the college began its activities in the academic
year 2000/2001 and provided its programs to female students only in the
following disciplines:
 Computer Science.
 Information systems.
 Kindergartens.
 English language.
 Translation.
 Educational Psychology science.
c. Private College of Business Administration , based in Jeddah, and started its
activities in the academic year 2004/2005 and provided its programs for
female students only in the following disciplines:
 Nursing.
- 355 -
 Medical Sciences.
d. Ibn Sina private College, based in Jeddah and started its activities in the
academic year 2005/2006 and provided its programs to male and female
students in the following disciplines:
 Human Medicine
 Pharmacology
 dental medicine
e. Prince Sultan College for tourism and travel management, based in the city of
Abha, and started its activities in the academic year 2000/2001 and provided
its programs for male students only in the following disciplines:
 Tourism and Hospitality management.
 Tourism and Hospitality Diploma.
 Business Administration.
f. Riyadh College of Dental Medicine, based in Riyadh city, started its programs
in the academic year 2004/2005 and provided its programs for male and
female students in the following disciplines:
 Dental medicine and oral surgery.
 Dental health.
 Dental technology.
 Pharmaceutical Sciences.
 Medical laboratory science.
 Doctor assistant.
g. Yamama Private College, based in Riyadh, and started its activities in the
academic year 2005/2006 and provided its programs for male and female
 Accounting.
 Marketing.
 Quality control.
 Management information systems.
 Insurance.
h. Al Baha private College , based in baha, started its activities in the academic
year 2002/2003 and provided its programs for male and female students in the
 Computer Engineering.
i. Quassim private Colleges, based in Qassim region,it started its activates in the
academic year 2006/2007 and provided its programs to male and female
 Dental medicine .
 Computer science.
- 356 -
 English language.
j. Prince Fahd bin Sultan College , which is based in Tabuk, and started its
activities in the academic year 2006/2007 and provided its programs to male
and female students in the following disciplines:
 Information systems.
k. Prince Sultan College for tourism and travel management, based in Jeddah and
started its activities in the academic year 2007/2008 and provided its programs
to male students only in the following disciplines:
 Tourism and Hospitality Management.
 Tourism and Hospitality Diploma.
 Business Administration.
l. Alaptrgi private College for medical and technical sciences, based in Jeddah,
and started its activities in the academic year 2007/2008 and provided its
programs to male and female students in the following disciplines:
 General medicine.
 Nursing.
 Physiotherapy.
 Health management.
 X-ray, laboratories and emergency.
m. Saad private College, based in Khobar, started its activities in the academic
year 2007/2008 and provided its programs to male and female students in the
 Nursing.
 Medical studies.
 Rehabilitation nursing.
 Special nursing
 Specialized nursing programs.
n. Almanie Private College of Applied Sciences, based in Khobar, and provided
its programs for female students only.
8-3-2 Number of Government Universities and Colleges in Jeddah, Compared to the
Kingdom:
The total government universities in Saudi Arabia until 2008 were 15 universities
spreading in most cities around the Kingdom composed of more than 360 colleges
offering various disciplines of scientific specialization and applied science and arts.
Three of the universities are in Makkah Mukarramah region, these are Um Al-Qura
University, Al-Taif University, and King Abdul-aziz University which is the only
government University in Jeddah, it is the second university in the Kingdom in terms
of establishments date and number of students.
- 357 -
The number of government colleges in various disciplines in the Kingdom were about
155 colleges until the end of 2008, composed of 34 colleges in Makkah Mukarramah
region and 18 colleges in Jeddah representing 53% of the total colleges in the Makkah
Mukarramah region, and 12% of the total colleges in the Kingdom as shown in Table
(8-9) below.
Table (8-9)
The number of government universities and colleges, in Jeddah compared to the Kingdom 2002-2008
universities
colleges
Year
% to
% to
% to
% to
2003/ 2004
2004/ 2005
2005/ 2006
2006/ 2007
2007/ 2008
Jeddah
Makkah
Kingdom
1
1
1
1
1
2
3
3
3
3
8
11
11
15
15
region
Kingdom
50
33
33
33
33
13
9
9
7
7
Jeddah
Makkah
Kingdom
21
16
16
16
18
34
29
30
32
34
97
109
116
142
155
region
Kingdom
62
55
53
47
53
22
15
14
11
12
Source: Ministry of Higher Education, annual reports from 2003 to 2006, ministry database of higher education statistics
160
140
universities Jeddah
120
universities Makkah
100
universities Kingdom
80
colleges Jeddah
60
colleges Makkah
40
colleges Kingdom
20
0
2008 /2007
2007 /2006
2006 /2005
2005 /2004
2004 /2003
8-3-3 Number Of Students (Boys And Girls) Enrolled In Government Universities In
Jeddah Compared To Makkah Mukarramah Region And The Kingdom:
The number of enrolled students (boys and girls) witnessed a rapid growth from 2003
until 2007, the total number of students increased from 211,408 students to 270,984
students, i.e. increased by 59,576 students, or 28.2%.
The number of students (boys and girls) in Jeddah, were rapidly increased from 49,418
students in 2003/2004 to 63,994 students, in 2003/2004 i.e. increased by 14,576 students,
or 29.5%, representing 64% of the students in Makkah Mukarramah region, and 22% of
The number of male students in the Kingdom increased from 200465 students in
2003/2004 to 174,000 students in 2006/2007, i.e. increased by 31,537 students or 22%.
the numbers of female students in Makkah Mukarramah region increased from 33,961
- 358 -
students in 2003/2004 to 43,100 student in 2006/2007, i.e. increase by 9,139 students,
or 27%.
The average percentage of male students was 65% of the total male students and the
percentage of female students was 35% of the total female students in government
universities in the Kingdom.
The average numbers of male students in Jeddah province were 32,983 students
The average number of female students in Jeddah province were 23,141 students
representing 60% of the total students in Makkah Mukarramah region and 28% of the
total students in the Kingdom as shown in Table (8-10) below .
Table (8-10)
The number of students (boys and girls) enrolled in government universities in Jeddah, compared to the
region and the Kingdom for the period 2004-2008
Year
2003/ 2004
2004/ 2005
2005/ 2006
2006/ 2007
the number of male students
% to
Kingdom
region
Jeddah
Makkah
28457
32350
32792
38333
44459
49335
52136
59202
65
149645
160268
174002
the number of female students
% to
Kingdom
region
% to
Kingdom
Jeddah
Makkah
20
22
20
22
20961
20833
25107
25661
33961
35414
41188
43100
64
66
63
65
68943
75209
88323
96982
62
59
61
60
Source: Ministry of Higher Education, annual reports, from2003 to 2006 ministry database of higher education statistics
180000
160000
140000
120000
2004 /2003
100000
2005 /2004
80000
60000
2006 /2005
40000
2007 /2006
20000
0
Kingdom
Makkah
Jeddah
the number of female students
- 359 -
Kingdom
Makkah
Jeddah
the number of male students
% to
Kingdom
30
58
28
26
8-3-4 The Number of Graduates (Boys and Girls) from Government Universities in
Jeddah Compared to those in Makkah Mukarramah Region and the Kingdom:
The total number of graduates increased steadily in the Kingdom, where the number
increased from 30,061 female and male graduates in 2003/2004 to 32,624 male and
female graduates in 2006/2007, i.e. increased by 2,563 male and female graduates or
8.5%.
The Average graduates in Jeddah were 6092 graduates, representing approximately
60% of the total graduates in Makkah Mukarramah region, and about 27% of the total
graduates in the Kingdom.
Average graduates (boys) in Jeddah, were 3,033 graduates, representing approximately
60% of the total graduates in the Makkah Mukarramah region, and about 16% of the total
graduates in the Kingdom.
The average female graduates in Jeddah were 2789 graduates representing approximately
63% of the total graduates in Makkah Mukarramah region, and 26% of the total graduates
in the Kingdom as shown in Table (8-11) below.
it Is clear from this explanation that the percentage of graduates from both sexes in
Jeddah, was more than 60% of the total graduates in the Kingdom. The numbers and
percentages indicated the importance of Jeddah in providing the labor market with more
than a quarter of labor force each year, and this showed the contribution in labor supply
from qualified university graduates in the Kingdom.
Table (8-11)
Number of graduates (boys and girls) from government universities in Jeddah, compared to those in
Makkah Mukarramah region and the Kingdom for the period from 2002-2008
Year
2003 / 2004
2004 / 2005
2005 / 2006
2006 / 2007
Jeddah
4130
3226
2871
2984
The Number Of Graduates
% to
Makkah
Kingdom
region
6220
5535
4730
5298
20520
21577
18839
20512
Numbers Of Graduates
66
58
61
56
% to
Kingdom
Jeddah
Makkah
Kingdom
% to
region
% to
Kingdom
20
15
15
15
2778
2561
2431
3385
3886
4413
4073
5417
9541
10440
10449
12112
71
58
60
62
29
25
23
28
Source: Ministry of Higher Education, annual reports from 2003-2006 ministry database of higher education statistics
25000
20000
The Number Of Graduates Jeddah
The Number Of Graduates Makkah
15000
The Number Of Graduates Kingdom
Numbers Of Graduates Jeddah
10000
Numbers Of Graduates Mahkka
Numbers Of Graduates Kingdom
3385 2984
2431 2871
2561 3226
2778
4130
5000
0
2007 / 2006
- 360 -
2006 / 2005
2005 / 2004
2004 / 2003
8-3-5 The Number of Female Students Enrolled and Graduates in Girls Colleges in
Jeddah, Compared to those in Makkah Mukarramah Region and the Kingdom:
The number of girls' colleges until the end of 2008 approximately 102 colleges in
different cities of the Kingdom including 15 colleges in Makkah Mukarramah region
and 4 colleges in Jeddah province:
1) College of Education - sciences departments.
2) College of Education - arts departments.
3) College of Education for preparation of teachers.
4) College of Education for Home Economics.
These colleges are responsible to qualify the female students to work in the Ministry of
Education and private sector schools, universities and other department which are
relevant to their qualifications, such as home economics graduates who work in health
sector.
Average total enrolled students in girls' colleges were 212501 students in all regions of
the Kingdom.
An average total graduate from girls' colleges in the Kingdom were 25,801 graduates.
Average total enrolled students in girls' colleges in Makkah Mukarramah region were
43,487 students representing 20% of the total students in the Kingdom.
Average total graduates from the girls' college in Makkah Mukarramah region were
6064 graduates representing 24% of the total graduates in the Kingdom.
Average total enrolled students in girls colleges in Jeddah, were 18,379 students
representing 42% of the total students in Makkah Mukarramah region and 9% of the
total students in the Kingdom.
Average total graduates from the in girls colleges in Jeddah were 3,225 graduates
representing 53% of the total graduates in Makkah Mukarramah region and 12.5% of
the total graduates in the Kingdom, as shown in Table (8-12) below.
It Is clear from this explanation that more than 40% of female students in girls
colleges in Makkah Mukarramah region were enrolled in Jeddah, and more than half
53% of female graduates in region were graduated from these colleges, which means
that the annual intake capacity of girls colleges in Jeddah, as an average was more
than 4500 students.
This showed the importance of Jeddah in provision of government education for the
girls living in Makkah Mukarramah region, as well as students from Jeddah itself.
- 361 -
Table (8-12)
The number of enrolled girls students and graduated in girls colleges in Jeddah, compared to those in
Makkah Mukarramah region and the Kingdom for the period from 2004-2008
Year
2004/ 2005
2005/ 2006
2006/ 2007
2007/ 2008
Number Of Enrolled Students
% to
Kingdom
Region
Jeddah
Makkah
20481
17676
17676
17684
45879
43747
43747
40576
230817
203511
203511
212168
45
40
40
44
Number Of Graduates
% to
Kingdom
Jeddah
Mahkka
Kingdom
% to
Region
% to
Kingdom
9
9
9
8
2894
3424
3424
3158
5672
5693
5693
7199
23272
25016
25016
29899
51
60
60
44
24
14
14
Source: Central Department of Statistics annual statistical book issues (41, 42, 43), and information Ministry of Higher Education Higher
Education Statistics database
250000
200000
The Number Of Graduates Jeddah
The Number Of Graduates Makkah
150000
The Number Of Graduates Kingdom
100000
Numbers Of Graduates Jeddah
Numbers Of Graduates Mahkka
Numbers Of Graduates Kingdom
3158
17684
3424
17676
3424
17676
20481
50000
2894
0
2008 /2007
2007 /2006
2006 /2005
2005 /2004
8-3-6. Private Higher Education:
The private universities and colleges are under the supervision of the Ministry of Higher
Education, and their educational programs are related to the current and future needs of
the labor market in the fields of health management, tourism, hospitality, and computer
science and others. Their programs were prepared with great attention under the
supervision of the National Organization of Evaluation and Academic Accreditation to
ensure that the outputs are distinguished and meeting to the needs of the national
development and the labor market requirements.
The number of private universities and colleges grew in the last years, till they reached
14 universities and colleges in 2008 out of which five colleges are in Jeddah,
representing 36% of the total private universities and colleges in the Kingdom.
8-3-6-1. Numbers and Percentages of Enrolled Students in the Private Universities and
Colleges:
The average total enrolled student (boys and girls) in the private universities and
colleges until the end of 2007 about 3393 students, out of them 2288 male students,
representing 67.4% of total students, and 1105 female students representing 32.6% of
the total, or about one third.
The Average enrolled students (boys and girls) in Jeddah were 1571 students
representing 46% of the total students in the Kingdom.
- 362 -
The Average male students were 618 students representing 39% of the total students in
Jeddah, and 18% of the total students in the Kingdom.
The Average female students in the college in Jeddah were 953 students representing
61% of the total students in Jeddah, and 28% of the total students in the Kingdom, as
shown in table (8-13) below.
Dar al Hikma private college and Effat private College provided education for female
students only and this is the reason for the rise in the number of girls by almost double
the boys, while the girls are sharing with boys the seats of the other three colleges.
- 363 -
Table (8-13)
- 364 -
8-3-6-2 Numbers and Percentages of Male and Female Graduates of Private Universities
in Jeddah Compared to the Graduates of the Kingdom:
Due to the establishment of the universities and colleges in recent years the graduation
from these institutions started in 2003, when two students were graduated from Prince
Sultan College for Tourism and Hospitality Sciences in that year, then graduation
continued in a number of universities and colleges which are:
1) Prince Sultan University in Riyadh.
2) Dar Al-Hikma private College in Jeddah.
3) Effat College in Jeddah.
4) Dentistry and Pharmacology College in Riyadh.
5) Quassim private College.
The remaining ten colleges, no one was graduated until the end of 2007 because of noncompletion of years of the planned program and the curriculum set for graduation.
The average number of graduates in all colleges and universities until the end of in 2007
were about 122 graduates, out of them 49 male graduates representing about 44% of the
total number of graduates and 63 female graduate representing 56% of the total graduates.
The average female graduates from Dar Al-Hikma and effat colleges in Jeddah were
53 graduates representing 84% of the total female graduates in the Kingdom and %43
of the total graduates (boys and girls) in the Kingdom.
The Total graduates since the establishment of the private universities and colleges till
the end of 2007 were approximately 447 graduates out of them 198 male graduates,
representing 44% of the total graduates, and 249 female graduate per resenting 56 %
of the total graduates.
The Total female graduates from the colleges in Jeddah were 210 graduate
representing 84% of the total female graduates in the Kingdom, and 47% of the total
graduates (boys and girls) in the Kingdom as shown in table (8-14) below.
It is clear from the foregoing explanation that the city of Jeddah city has 5 colleges out of
14 colleges and Universities in the Kingdom, including four colleges in medical and
health fields, and one in the fields of business administration. These colleges were
prepared to provide programs to female students, and this explains the high percentage of
female students in the college in Jeddah. Curriculums of these colleges were prepared to
meet the needs of the female labor market due to the expansion in governmental and
private hospitals in Jeddah, and Makkah region, and their need for women labor. The
women labor market in the health sector is attractive to the outputs of the colleges of
medical and health science, because of this reason the investment in private education was
focused on this field.
The Colleges of Business administration used to provide their programs to male and
female students to meet the requirement of the labor market in Jeddah to work in the
private sector companies.
- 365 -
Table (8-14)
The number and percentage of students enrolled in universities and colleges and the civil province of
Jeddah, compared to other colleges for the period 2003-2007
- 366 -
8-4 Technical and Vocational Training:
The Technical and Vocational Training corporation supervises the technical colleges,
which numbered 35 colleges at the end of 2008, distributed in various cities of the
Kingdom, including five colleges in Makkah Mukarramah region which are:
1) Technical College in Jeddah.
2) Tele-Communication and Electronics College in Jeddah.
3) Technical College in Makkah Mukarramah.
4) Technical College in Taif.
5) Technical College in Qunfutha.
And 34 secondary technical institutes, and 57 vocational training centers. In
2006/2007 the programs of the technical secondary schools were developed and
merged with technical colleges. The vocational institutes were increased and they
reached 91 institutes located in various cities of the Kingdom, and provided training
programs to qualify the Saudi youth to meet the requirements and the needs of the
labor market.
Besides that, corporation supervises the national program of joint training with the
collaboration of Human Resources Development Fund which is financing the project
and bearing the biggest cost share of training, and the Chamber of Commerce as
coordinator between the companies that give the practical training, and the labor
Office which is responsible for recruitment of Saudis, they do the nomination and
announcement of the potential vacancies to the graduates.
It also supervises the private training and evaluates its performance and output,
application and development of regulations and procedures governing the work.
8-4-1 Government Training:
Firstly: Technical Colleges
The technical colleges provide training packages for a period ranging from two and a
half years to three-years the trainee will be graduated after the completion of the
curriculum and awarded the Technical College Diploma that qualified him as
specialized technician .the trainee is subject to cooperative training programs that
arranged between colleges and private sector cooperating companies. The training
included full semester which is considered as prerequisite for graduation. In the last
years bachelor's program was introduced in some technical colleges. There were 35
colleges college until the end of 2008.
Secondly: Technical Institutes:
Secondary technical, commerce, and agricultural institutes provide training packages
continued for three-years after which the trainee will obtain a secondary diploma in
specific specialization, these training packages were carefully designed to meet the
needs of the labor market, taking into account the international standards in the
- 367 -
preparation of training programs and portfolios, the number of these institutes until the
end of 2006 were 34.
Thirdly: The Vocational Training Centers:
The vocation of training centers used to receive ran away school boys from the
education and those who missed enrollment in the academic education and provide
training packages to trainees to help them to gain the required skills related to the
profession to which the wish to practice after graduation. These centers prepared the
trainees to become skilled workers in the chosen specialization. In the preparation of
the training packages the needs of various development activities in both public and
private sectors will be put into consideration to ensure that the outputs of the training
process cope with the needs of the labor market. The corporation make use of
experienced people from the businessmen and from various economic activities to
produce training packages that suit the needs and requirements of the development
observing the international standards in terms of quality and efficiency. The numbers
of vocational centers until the end of 2008 were about 91 centers in all regions and
cities of the Kingdom.
Jeddah province has two technical colleges, one high technical institute and one
vocational training center as shown in table (8-15) below.
- 368 -
Table (8-15)
Distribution and relative numbers of the units of government education and training of the General
Organization for Technical and Vocational Training in the Kingdom and Jeddah Province of 2003/2008
- 369 -
8-4-2 Numbers of Trainees in Government Training and Educational Institute in
Jeddah Province:
The number of trainees in the government training institutes witnessed fluctuation
between increases and decreases, they reached their highest level in 2007/2008
numbered to 92020 trainees at all levels of training.
Total numbers of trainees in Jeddah were 15,843 trainees, representing 46% of the
total trainees in Makkah Mukarramah region, and 17% of the total trainees in the
Kingdom.
The average percentage of the total trainees in Jeddah was 56% of the total trainees in
Makkah Mukarramah region, and 14% of the total trainees in the Kingdom.
Average trainees in technical colleges in Jeddah were 7,202 trainees, representing 65%
of the total trainees in colleges in Makkah Mukarramah region, and 15% of the total
trainees in colleges in the Kingdom.
Average trainees in technical secondary institutes were 2,481 trainees representing
50% of the Kingdom.
Average trainees in vocational training centers, 2,752 trainees, representing 44% of the
total trainees in Makkah Mukarramah region, and 13% of the total trainees in the
Kingdom, as shown in table (8-16) below.
It is clear from this explanation that Jeddah province, share was big in technical and
vocational training with average percentage of trainees 56% of the total trainees in
Makkah Mukarramah region, and 14% of the total trainees in the Kingdom. Which is
considered as big number to meet the needs of the labor market in Jeddah?
- 370 -
Table (8-16)
Numbers of trainees and training to educational establishments of the government institution of
government technical and vocational training of 2003/2008
- 371 -
8-4-3 Number of Graduates of Government Educational and Training Institutes:
The a number of graduates from technical and vocational training institutes witnessed
continuous increase over the past years , the total number increased from 19,360
graduates in 2003/2004 to 33,245 graduates, in 2007/2008 i.e. increased by 13,885
graduates representing 72%.
The Total graduates of technical colleges increased from 7,310 graduates in 2003/2004
to 13,515 in 2007/2008 graduates, i.e. increased by 6,205 graduates, or 85%.
Total graduates of secondary technical institutes increased from 5,495 graduates in
2003/2004 to 6667 2007/2008 graduates i.e. increased by 1,172 graduates, or 21%. It
should be noted that the programs of secondary technical institutes merged with the
programs of technical colleges, and some of them were changed to training centers and
this why the number of trainees and graduates was increased in these centers.
The total graduates of vocational training centers increased from 6555 graduates in
2003/2004 to 19,730 e graduates in 2007/2008, i.e. increased by 13,175 graduates
which means that the number was more than double 201%, as shown in table (8-17)
below .
Table (8-17)
The total number of graduates from government educational and training institutes from 2003 to 2008
technical secondary
technical training
Year
technical colleges
Total
institutes
centers
2003 /2004
7310
5495
6555
19360
2004 /2005
10802
6246
7351
24399
2005 /2006
10056
6667
9178
25901
2006 /2007
11071
*
13012
24083
2007 /2008
13515
*
19730
33245
Source: General Organization of Technical and Vocational Training, the annual reports from 2003 -2008.
20000
18000
16000
14000
12000
technical colleges
10000
technical secondary institutes
8000
technical training centers
6000
4000
2000
0
2007
2008/
- 372 -
2006
2007/
2005
2006/
2004
2005/
2003
2004/
8-4-4 The Number of Female Trainees in the High Technical Institutes:
The Technical and Vocational Training Corporation responded positively to the
government policy of qualifying and training the Saudi girls and preparing them with
needful skills, which qualified them to compete in the labor market and in women's
centers and women's departments, with a view to prepare the Saudi girls to be able to
do the maintenance and operation of office machines and equipments in schools,
colleges, universities and women's departments and women's trading centers so as to
avoid the maintenance done by men at the present time after office hours and when
women leave the workplace.
Nine institutes were opened in the following cities Riyadh, Jeddah, and Al Ahsa,
Tabuk, Buraidah, Madinah, Hail, Baha, and Najran. The training started in 2006/2007
the total trainees in that year were 465 trainees the number increased up to 1814
trainees in 2007/2008, i.e. increased by 1349 which means that the number multiplied
almost three times or 290%. The total numbers of trainees in Jeddah Institute were 412
trainees till the end of 2008 representing approximately 23% of the total trainees in the
Kingdom.
8-4-5 The National Program of Joint Training
This program based on the foundations of basic strategies and government general
policies related to human resources development and provision of equal opportunities
for citizens in education, training and employment. It is also considered as
implementation of article (50) of the labor law, which stated "every employer should
prepare his Saudi workers and qualify them to replace non-Saudis by improving their
standard and knowledge in the technical works, which is now occupied by non-Saudis,
the program started in 2001/2002 in collaboration between five departments:
1) Technical and Vocational Training Corporation.
2) Chambers of Commerce and Industry.
3) Private sector companies.
4) Human Resources Development Fund.
5) Labor offices.
This program aims to achieve a number of objectives the important of which are:
1) Ensure the Partnership between the government educational and training
institutions and the private sector.
2) The program is working according to specific plans and programs that identify the
vacancies and the jobs for which the training packages will be prepared according
to international standards of training for professions.
3) The private sector enterprises will choose the trainee from the nominated
applicants to join in certain professions and jobs in these companies.
4) Technical and Vocational Training Corporation will implement the theoretical and
practical part of the training.
5) The Chamber of Commerce in all regions in the Kingdom will coordinate the
practical part of the training with the private sector companies.
- 373 -
6) The Human Resources Development Fund will finance the training activity and
ensure the quality of outputs.
7) The labor office will send the unqualified jobs seekers to enroll in the program so
as to acquire the necessary skills for the potential jobs in the labor market.
The national program of joint training programs are designed to qualify secondary
school graduates and students who drop out from general and higher education and
some university graduates whose qualifications are not commensuration with the needs
and requirements of the labor market.
The program aims to give the trainee some knowledge, skills, behavior aspects and the
measurement of capabilities and professional orientation to achieve the following:
1) Knowledge of work ethics and behaviors.
2) The techniques of searching for jobs.
3) The preparation of ideal curriculum vitae.
4) The ability to pass the personal interviews successfully.
5) The ability to communicate and deal with others.
6) Identify the rights and duties of the employee.
7) Discover the orientation and professional capabilities of the candidate.
The number of branches of the program until the end of the year 2005/2006 were (16)
branches in most cities in the Kingdom, the program is training young Saudi for (70)
jobs, duration of which ranging from 3 months to one year. The training program is
divided into two parts:
Part one:
The theoretical training which represents 25% of the duration of the program, it is
implemented in the training units of the T.V.T.C. or in the private units, which are
supervised by the organization. The program includes the basic knowledge of the
profession and the professional behavior related to it in addition to English language
and computer science.
Part two:
Practical part which represents 75% of the duration of the program, it is implemented
by the participated private sector enterprises according to specific training program
that meets the specific requirements of the labor market.
The program is paying monthly premium to the trainee, it is bearing 75% of the reward
training, and 50% of the salary of the trainee for one year after training, it is also
counting the trainee in the company within the Saudization percentage imposed on the
activity, and qualifying the trainee to perform the functions of the profession, in which
will work in the company, and following up the trainee to ensure that his performance
of the job duties is up to the standard.
The program implemented since its inception until the end of 2008 fourteen training
courses. The total numbers of participants were 22,646 trainees, and the number of
trainees, showed an annual increase that reflected the interaction of job seekers with
- 374 -
the program. The total number of participating companies were 1,109 companies from
different regions of the Kingdom, and the number of participating companies, from
Jeddah was 263 companies representing 24% of the total companies, the number of
participants trainees in the program in Jeddah were 6760 trainees representing 30% of
the total trainees.
These percentages indicate the contribution of Jeddah in the program, where the
percentage of the participating companies was about one quarter, and the number of
trainees was about one third of the total of the Kingdom, as shown in table (8-18)
below.
Table (8-18)
Numbers of trainees and the participating companies in the national program of join
training since its inception until the end of 2008
2003
branches
c1
2004
c2
c3
2005
c4
c5
2006
c6
c7
Riyadh
148
343
333
238
561
485
386

Jeddah
176
386
436
896
798
605


madinah
48
375
165
191
253


Quassim
88
47
101
57
55


Hail
17
29
138
145
314




Asseer
87
60
304



Tabuk
9
29
31
52




Dammam
263
349
486







Ar'ar







Aljouf







Makkah







YANBU







Jazan







Najran







Baha
Ihsa














Taef







Alkharj
Qurayat







Total
148
519
872
1034
2240
2116
2455
Source: General Organization of Technical and Vocational Training 2008
2007
2008
c8
c9
c 10
c 11
c 12
c 13
183
386
165


51
11
43











839
631
723
309
163
72
50
247
209
88
84
239
12

23
81
267
76


3274
71
456
149

51

43
27


128
26
27
12


13
36

1039
605
593
204
257

12
190
299
38
83
40
14
87


103
98
107

2730
379
730
224
455
32
96
270
159


71
31
67
32
51
164
160
128
20
2969
247
545
162
581
17
43
88
75

65
117
34
45
25
41
183
143


2411
Total
of
trainees
4510
6760
3145
1804
815
703
970
1835
126
232
595
117
226
92
173
717
490
271
20
22646
Besides that the program provides special training for some small crafts for those
willing to open their own shops, such as special training program of hair-dressing,
from which a large number of Saudi youth were benefited and this acts as revival of
traditional occupations in the community, such as hairdressing, carpentry,
construction, etc.
The program carried out during the year 2006/2007 special programs for females. The
numbers of benefited trainees were 7176 in all regions of the Kingdom. The courses
were divided in three tracks, the duration of each is 45 training hours. The program has
been associated with several institutes and training centers to conduct the women's
training programs. There were 93 institutes and centers; the cost of these programs was
8970. The numbers of trainees in Riyadh region alone were 1945 women representing
more than a quarter of trainees or 27.1%, followed by Makkah Mukarramah region in
the second place by 23.4%, including Jeddah province. courses were designed to meet
the requirements of the labor market, and to satisfy the needs of the most important
- 375 -
economic sectors such as the commercial sector, especially Most of the women's firms
are concentrated in this sector, as shown in table (8-19) below.
Table (8-19)
The number of trainees in the national program of joint training according to region
for the year 2006/2007
Region
Number
Percentage
Riyadh
1945
27.1
Makkah Mukarramah
1679
23.4
Eastern region
1630
22.7
Asseer
560
7.8
Quassim
489
6.8
Medina munawara
484
6.7
Hail
389
5.4
Total
7176
100
Source: Human Resources Development Fund 2008
Medina
munawara
%7
Quassim
%7
Hail
%5
Riyadh
%27
Asseer
%8
Eastern region
%23
Makkah al
mukarama
%23
8-4-6 Private Training Institutes:
The general directorate of private training looks after the private technical and
vocational training institutes, it is issuing the license, monitoring the performance,
ensuring the quality of the output and the granting the required certificates to students
after passing the required tests and examinations prepared by these institutes and
centers and the comprehensive test prepared by the directorate.
The directorate is also developing rules, regulations , procedures and tools to create a
positive environment for the success of the training process and to achieve the desired
objectives of the training, and considering the private sector as integral element to the
role of the government sector institutions and not as competitive elements, and
providing opportunities for those who could not admitted to the government institutes
and centers , the process of training in the private institutes and centers is divided into
four types:
- 376 -
1) Technical Training Institutes:
These institutes provide the diploma programs designed for intermediate and
secondary school graduates and some other people. The programs include many
disciplines such as computer, administration and various technical disciplines.
2) Secondary Technical Institutes:
They provide the same programs offered by the government secondary technical
institutes and subject to the same conditions and tests.
3) Development Training Centers:
They Provide development training courses designed for personnel of companies
and establishments to develop their skills and capabilities, they include various
disciplines in management, administration, accounting, law, media and technical
disciplines in addition to computer science and self-development skills.
4) Qualifying training centers:
They Provide programs and training courses designed for qualifying different
categories of training in various fields such as computer and secretarial and
technical disciplines required by the labor market, the training courses and
programs designed according to need.
8-4-7 Number of Private Training Institutes and Centers in Jeddah Province:
In view of the labor market need of people with high skills in management aspects,
marketing and other skills required for work in the private sector, a number of
businessmen invested in the area of technical and vocational training institutes and
centers. The number of institutes witnessed steady increase, they increased from 519
institutes in 2004 / 2005 to 739 institutes and centers in 2007/2008, i.e. increased by
220 or 42%, but the institutes and centers were decreased in 2007/2008 where the
number fell to 648 institutes, or decreased by 91 institutes, or 12%.
The number of institutes and centers in Jeddah province witnessed a steady increase
as the number increased from 56 institutes and centers in 2004/2005 to 113 institutes
and centers in 2007/2008, i.e. increased by 57 institutes or the number was doubled
101%.
The average percentage of the institutes and centers in Jeddah province was about 65%
of the total percentage of centers in Makkah Mukarramah region and about 13% of the
total institutes in the Kingdom; table (8-20) below shows that.
- 377 -
Table (8-20)
Compared the number of institutes and training centers in the civil province of Jeddah to Mecca and the
Kingdom in 2004-2008
- 378 -
8-4-8 Number and Percentage Distribution of Trainees Enrolled in Training Centers in
Jeddah Province, According to the Training Courses:
The number of trainees in training institutes and centers, witnessed a rapid increase,
the total number increased from 41,185 trainees in all areas of training in 2004/2005 to
67232 trainees in 2007/2008, i.e. increased by 26,047 trainees or 63%.
the numbers of trainees in Jeddah witnessed the same increase as the number increased
from 3877 trainees in 2004/2005 to 6,284 trainees in 2007/2008, i.e. increased by
2,704 trainees or 62%.
The percentage of trainees in the training institutes and centers in Jeddah was about
63% of region and 9% of the total trainees in the kingdom, the number of trainees in
various courses increased by an average of 67% of the total trainees in the Makkah
Mukarramah region and 9% of the total trainees in the Kingdom, table (8-21) below
shows
- 379 -
Table (8-21)
Distribution and relative numbers of trainees of training institutes and centers of the civil province of
Jeddah, according to the training courses in 2004-2008 and compared to Mecca, and the Kingdom.
- 380 -
8-4-9 Number and Percentage Distribution of Graduates from Training Institutes and
Centers According To Training Courses:
The number of graduates from the training centers and institutes witnessed a rapid
increase; they increased from 13,985 graduates in 2004/2005 to 52,505 graduates in
2007/2008 or double more than two and a half times 275%.
The number of graduates from the institutes and centers in Jeddah increased from 858
graduates in 2004/2005 to 4,677 graduates in 2007/2008, i.e. increased by 3,819
graduates, the number increased by about four and half times 445%.
The percentage of the graduates from the institutes in Jeddah was about 62% of the
total graduates in the Makkah Mukarramah region, and about 7% of the total graduates
in the Kingdom.
The percentages of graduates in various courses ranged between 57% and 75% of
graduates in these courses in the Makkah Mukarramah region, and between 2% and
12% of graduates in the Kingdom in those courses, as shown in table (8-22) below.
- 381 -
Table (8-22)
Distribution and relative numbers of graduates from institutes and training centers in
Jeddah, as training courses in 2004-2008 compared with Mecca and the Kingdom.
- 382 -
8-4-10 Female Training Institutes:
The Technical and Vocational Training corporation tends to look after the technical
training of girls after issuance of the Council of Ministers resolution No. 3108 / m b dated
4/3/2006 containing consolidation of supervision of the vocational training sector, the
corporation performed its functions to look after 249 institutes for girls which were
supervised by the Ministry of Education, they were brought under the corporation
supervision in addition to 45 institutes which were supervised by it , the total number of
institutes at the end of 2008 was approximately 294 institutes located in all regions of the
Kingdom. The number increased during the current year and become 372 institutes in
2009, i.e. increased by 78 institutes or more than quarter 27%.
These training institutes and centers are providing training fields containing more than 20
specialized training courses designed to meet the needs of girls and women's labor
market, namely:
1) Computer Technology.
2) Management techniques.
3) Nutrition technology.
4) Electronic techniques.
5) Photographing techniques.
6) Women's Ornamenting techniques.
7) Sewing techniques.
8) Techniques of gold and jewelry.
The trainees will be awarded diploma after completion of the designed courses in the
disciplines qualifying them to work in five areas related to women's labor market, namely:
1) Provision of the needs of the operation and maintenance of high-tech sector in the
government sector (schools, universities, colleges, women's departments in the
ministries and government departments).
2) Provision of the needs of the women labor market in two main sectors dominated by
the expatriate labor, women's tailoring, and beauty salons.
3) Provision of the needs of the women's sector such as the productive families and
small enterprises and employment at home.
4) Provision of the needs of some business sectors with high-tech and expected to be
suitable for women.
5) Supporting the needs of the women labor market in both public and private sectors in
order to increase the numbers of qualified women to fill in the gap in women's labor
market and to meet the large number of those needs and disciplines.
8-4-11 Number and Percentage Distribution of Private Female Institutes and Centers
and the Number of Graduates:
The number of female institutes and training centers increased from 294 institutes and
centers in 2007/2008 to 372 in 2007/2008, i.e. increased by 78 institutes, or 26.5%.
The biggest percentage of the institutes in 2007/2008 was in the Riyadh region, it was
34% of the total institutes in the Kingdom, followed by Makkah Mukarramah region in
second place 18.5%, then in third place Eastern Region where the percentage was
10.2% and in fourth place Aseer region 8.3%, and then Qassim Region in fifth place
- 383 -
7.5%, The total percentage of the female training institutes in these five regions, 78.5% or
more than three-quarters of the institutes. The rest were distributed among other regions at
different percentages.
The numbers of female graduates was markedly decreased in spite of the increase in the
number of institutes; the number fell from 9011 to 8267 graduates i.e. decreased by 744 or
8.3%.
Riyadh region, was in first place with 2279 graduates representing 27.6% of the total, or
more than a quarter, and in the second place the Eastern Region where the number were
1920 graduates representing 23% of the total, then ranked in third place Tabuk region
when the number were 829 graduates representing 10% of the total, ranked in fourth place
Qassim region and the number were 700 graduates representing 8.5%, and ranked in fifth
place Makkah Mukarramah region where the number were 646 graduates representing
7.8% of the total.
The total percentage of graduates in these five regions was 76.9% of the total graduates or
more than three-quarters of the graduates, as shown in table (8-23) below.
Since Jeddah acquired the biggest share of all educational institutions in Makkah
Mukarramah region the percentage was not less than 60% in any year, it is expected that
the number of female training institutes in Jeddah were about 41 institutes representing
11% of the total institutes in the Kingdom.
The numbers of graduates in Jeddah were about 388 graduate representing 60% of the
total graduates in Makkah Mukarramah region, and about 5% of the total graduates in the
Kingdom.
Table (8-23)
Number and percentage Distribution of private female training institutes and the graduates according to
region for the years 2006 / 2007and 2007 / 2008
The region
Makkah Mukarramah
Medina
Riyadh
Baha
Tabuk
Jazan
Aljouf
Hail
The northern frontier
Eastern region
Assir
Quassim
Najran
Total
Number
of
institutes
57
11
119
6
13
6
5
3
3
33
20
16
2
294
2006/ 2007
Number
%
of
graduates
19.4
3.7
40.4
2
4.4
4
1.7
1
1
11.1
6.8
5.4
0.7
100
665
454
2523
117
901
270
63
541
180
2072
396
766
63
9011
%
Number
of
institutes
7.3
5
28
1.3
9.9
3
0.6
6
2
23
4.3
8.5
0.7
100
96
17
126
14
20
6
9
6
5
38
31
28
3
372
2007/ 2008
Number
%
of
graduates
18.5
4.6
34
3.7
5.4
1.6
2.4
1.6
1.3
10.2
8.3
7.5
0.8
100
646
466
2279
105
829
254
58
494
102
1920
368
700
46
8267
Source: general directorate of private training, database of girls technical training
- 384 -
%
7.8
5.6
27.6
1.3
10
3
0.7
6
1.2
23
4.4
8.5
0.6
100
3000
Makkah mukarama
Medina
2500
Riyadh
2000
Baha
Tabuk
1500
Jazan
Aljouf
1000
Hail
The northern frontier
500
Eastern region
0
Assir
Quassim
Number of graduate
Number of institute
Number of graduate
Number of institute
Najran
8-4-12 Exchange Scholarship Program:
The Ministry of Higher Education is responsible for program of the Custodian of the Two
Holy Mosques for the exchange scholarship, which aims to fill in the requirement of the
labor market from specialized national cadres. The program seeks to attract thousands of
graduates from secondary schools and universities to study abroad in a variety of
disciplines which are compatible with the national requirements and needs of the national,
local regional and international labor market.
The program aims to prepare cadres in the rare specialties to meet the anticipated need in
teaching staff members in universities, especially after the opening of the new institutions
of higher education from universities, institutes and colleges. The program is aiming to
prepare the scholar to join one of the higher education institutions after graduation, as well
as the preparation of national cadres to meet the anticipated needs in some disciplines in
the new economic cities and scientific oases, and research centers that will be opened in
all the universities and science cities. Scholarship programs are concentrated in the
disciplines associated with the immediate and future needs of the labor market programs
including the following disciplines:
Medicine, dentistry, applied medical sciences, health sciences, engineering sciences,
computer science and information technology, basic sciences, finance and accounting,
economics, marketing, administrative sciences, law, materials and biological sciences,
pharmacology and biotechnology.
The Total students enrolled in scholarship programs until the end of 2007 was 18,900
students at all levels of education below Bachelor degree and up to doctoral Fellowship
degree.
The number of scholarships were more than 7,500 students during the year 2007/2008 H,
but no details of education level of this number, the total number of all students who study
abroad until the end of 2008 were about 26,400 students.
- 385 -
8-4-13 Numbers of Scholars Abroad According To Level of Education:
Total scholars until the end of 2006/2007 were about 17,682 students, out of them 12,584
male students representing 71% of the total scholars, and the number of female students
was 5,098 female students representing 29% of the total scholars.
The number of doctoral students were 1902 student representing 11% of the total scholars.
The fellowships students were 700 students representing 4% of the total, the master
students were 2557 students representing 14.5% of the total scholars.
The Higher Diploma students were 281 students representing 1.6% of the total scholars.
This means that the total scholars students of post graduate studies at all levels of
education were the approximately 5440 students representing 31% of the total scholars.
The undergraduate students constituted the vast majority of scholars, their total number
were 8631 students representing 49% of the total, or approximately half of scholars.
It is clear from the foregoing explanation those scholars' students at the university level
and post graduate studies number were 14,071 students, representing 80% of the total
students which is equivalent to four fifths of the total as shown in table (8-24) below.
There were no detailed statistics according to regions or cities, due to central selection of
the scholarship program. But Jeddah educational institutions and the private sector
companies can take the advantage and employ the graduates after their return especially
Jeddah city is attractive place for qualified people to work in the companies as previously
explained.
Table (8-24)
Number of scholars abroad according to level of education for the period from 2003 to 2007
The level of
education
Male
2003 / 2004
Female
Total
Male
2004 / 2005
Female
Total
Male
2005 / 2006
Female
Total
Ph.D.
1096
219
1315
189
29
218
156
Fellowship
415
60
475
67
6
73
87
Master
1451
358
1809
220
47
267
196
Higher Diploma
128
74
202
14
18
32
17
BA and bsc
5087
1642
6729
500
230
730
362
under BA
414
507
921
119
112
231
126
Others
638
749
1387
107
116
223
59
Total
9229
3609
12838
1216
558
1774
1003
Source: Ministry of Higher Education, Higher Education Statistics numbers 26, 27, 28, 29
28
23
43
1
140
117
113
465
184
110
239
18
502
243
172
1468
Male
2006 / 2007
Female
Total
152
86
197
23
506
131
41
1136
33
22
45
6
164
140
56
466
6000
. Ph.D
5000
Fellowship
4000
Master
3000
Higher Diploma
2000
1000
BA and bsc
0
under BA
Female
Male
Female
Male
Female
Male
Female
Male
Others
2007 / 2006
- 386 -
2006 / 2005
2005 / 2004
2004 / 2003
185
108
242
29
670
271
97
1602
Chapter Nine
The Contribution of Women
Entrepreneurs in the Private Sector
9-1
Number and Percentage Distribution of Commercial Registration
in Makkah Mukarramah Region.
9-2 Number and Percentage Distribution of Existing Commercial
Registration In Jeddah City.
9-3 Comparison of Commercial Registration in Jeddah with Those
in Makkah Mukarramah Region and the Kingdom.
Registration of Business Women In The Kingdom.
9-5 Number and Percentage Distribution of Commercial Registrations
of Businesswomen in Makkah Mukarramah Region.
Registration Of Business Women In Jeddah City.
9-7 Comparison of Commercial Registration of Business Women
in Jeddah City with Total Ones In Makkah Mukarramah Region.
9-8 Comparison of Commercial Registration of Business Women In
Jeddah City with Business Women Registrations in Makkah
Mukarramah Region And The Kingdom.
9-9 The Role of Sayedah Khadija Bint Khuwaylid Center in Supporting
the Businesswomen.
9-10 The Target Of Businesswomen In The National Economy
- 387 -
9 - The contribution of business women in the private sector:
The Government of Saudi Arabia interested to develop the status of women through
the expansion of opportunities for participation in the public life; the successive plans
focused on the participation of women and increased their contribution in the labor
force in accordance with the instructions of the Islamic law. But the Eighth
Development Plan focused on the development of the situation of women and ensures
their participation in the economic and social development and adopted a term of
reference ensuring an integrated perspective to develop the situation of women rather
than limited it to problem of participation in the labor force. The second strategic base
in the plan stipulated that: "to take care about the women affairs and develop their
capabilities, and to remove obstacles that stand in front of their participation in
developmental activities within the framework of what is stated in the values and The
Islamic teachings".
the plan not only limited to the development of women's participation in economic
activity to the strategic objectives and policies, but directly tackled the development of
operational mechanisms that help in expanding their participation, but according to a
set of controls and procedures to enhance the economic activity of women in order to
bring about a qualitative change in the patterns and extent of participation of women in
the economic activity. The plan identified the development of procedures of the
participation of women in the private sector as follows:
1) Government departments that issue licenses to women to engage in economic
activities, each in its area of specialization should receive women applications for
licenses to engage in those activities granted by these departments and will be
issued in accordance with the rules and regulations and the Islamic teaching.
2) those departments related to the allocation of lands or areas within the city
boundaries for establishment of industrial projects in which women will work
keeping in mind that it is preferred that the factories will be owned by business
women in order to have the administration , supervision , and the labor force are
of women.
Due to the lack of employment opportunities in the government sector because of its
saturation and in the private sector because of obstacles against the employment of
Saudi women, the appropriate alternative is the investment, especially in light of the
continuous -increasing number of female graduates, as their lower percentage was
54% of the total graduates over the past five years.
In addition to that, the investment fits a lot of women who are financially capable.
Bearing in mind that the savings of women in the banking system estimated to 38
billion Saudi riyals, therefore it is a must to encourage women to enter into new
investment fields that are suitable for women and provide them with good earning, and
help them to achieve remarkable social status in addition to the gained flexibility in
social life because they can conciliate between the positive participation in the
development and the fulfillment of their domestic duties at home.
- 388 -
Based on these facts, the governmental specified the main targets of women's
participation in economic activity which will be summarized as follows:
1) Enactment of new regulations and amendment of enforced ones so as to facilitate
and encourage the expansion of women's participation in economic activity.
2) Development of women's contribution in economic activity.
3) Ensure the necessary facilities to increase women's participation in the labor force
and the development of support services.
4) Expansion of the sector contributions of women to ensure the participation of
sector diversification of spectral contribution.
5) Reinforce the status and role of women in the family and society.
6) Encourage women for self-employment and the provision of necessary facilities to
help them to get loans and facilitate the procedure to help them for savings and to
avail credit facilities in order to reduce the risk of investment and production.
7) Creation of special funds for lending to encourage women to investment in small
and medium business.
8) Provide financial support to the financial institutions that serve small and medium
business of women.
9) Support the developmental role of women in the society and including it in the
educational system.
10) The development of creative information aiming to enhance the developmental
role of women.
In response to these trends lot of Saudi women entered into various activities of
business and achieved some success in that business. In the following pages the study
will review the role of business women in different economic activities in the
Kingdom at the level of Makkah Mukarramah region and Jeddah in particular.
9-1 Number and Percentage Distribution of Commercial Registration in Makkah
Mukarramah Region from 2002 To 2008
The number of the existing commercial registrations in Makkah Mukarramah region
increased from 6,526 in 2002 to 12,341 in 2008, i.e. increased by 5,815 or 89.1%.
The individual enterprises overcome the companies in all years; the percentage varies
between 87% and 93%. And therefore the percentage of companies, ranging between
7% and 13% these percentages are similar to distribution of commercial firms in the
Kingdom ,it is ranging between 91% to 95% for establishment, 5% to 9% for
companies.
The commercial registrations reached 12,341 i.e. increased by 3,875 or 45.8% which
means that nearly half of the increase in commercial registration occurred during this
year, as shown in Table (9-1) below.
- 389 -
Table (9-1)
Numerical and percentage Distribution of the existing commercial registration in Makkah Mukarramah
region from 2002 to 2008
Year
Sole Establishment
companies
total
Number
%
Number
%
Number
%
2002
6066
93
460
7
6526
100
2003
5907
91
583
9
6490
100
2004
6751
90
744
10
7490
100
2005
7258
90
819
10
8077
100
2006
6950
89
848
11
7798
100
2007
7376
78
1090
13
8466
100
2008
11115
90
1226
10
12341
100
Source: Ministry of commerce and Industry Information Center 2008
12000
11115
10000
8000
6066
6751
7258
6950
7376
5907
Sole Establishment Number
6000
companies Number
4000
2000
460
583
744
819
848
1090
1226
0
2002
2003
2004
2005
2006
2007
2008
9-2 Numerical and Percentage Distribution of the Existing Commercial Registrations in
Jeddah from 2002 to 2008:
The commercial registrations in Jeddah, witnessed a rapid increase, they rose from
3,688 in 2002 to 8894 i.e. increased by 5206, which means it doubled approximately
once and a half times (141%). The highest percentage increase in registrations was in
2008, when they reached 8,894, i.e. increased by 2583, or 41% from the previous year.
Table (9-2) below shows that.
Table (9-2)
Numerical and percentage Distribution of commercial registration in Jeddah city from 2002 to 2008
Year
Sole Establishment
Companies
Total
Number
%
Number
sum
%
2002
3331
90
357
10
3,688
100
2003
3377
89
433
11
3,810
100
2004
4299
88
560
12
4859
100
2005
5159
89
663
11
5822
100
2006
4905
87
707
13
5612
100
2007
5391
85
920
15
6311
100
2008
7865
88
1029
12
8894
100
Source: Ministry of commerce and Industry Information Center database 2008
- 390 -
7865
8000
7000
6000
5159
5000
4000
4905
5391
4299
3331
Sole establishments Number
3377
companies Number
3000
2000
1000
357
433
560
663
707
920
1029
0
2002
2003
2004
2005
2006
2007
2008
9-3 Comparison of Commercial Registration in Jeddah City with the Registrations of
When comparing the numbers and percentages of the commercial registrations in
Jeddah with the commercial registrations in the Kingdom It was found that. The lowest
level was in 2002 they were 3,688, C.RS. representing 13% of the total C.RS. in the
Kingdom, and 56% of the total C.RS. in Makkah Mukarramah region, and reached its
highest level in 2008 when number reached 8894 C.RS. representing 14% of the total
of the Kingdom, and 72% of the total of Makkah Mukarramah region. The percentages
of commercial registrations in Jeddah compared to, the Kingdom was 12% in 2003,
and 18% in 2006, and to Makkah Mukarramah region was 56% in 2002 and 75% in
2007.
It is noted that the average percentage of the commercial registrations was more than
70% of the total C.RS. in Makkah Mukarramah region during the last four years. From
2005 until 2008 and more than 17% of the total of the Kingdom during the same years
except in 2008, this was 14%.
The average number of commercial registration in Jeddah was 5,571, C.RS. and the
average of Makkah Mukarramah region was 8170 C.RS. and the average C.RS. in the
Kingdom was 37,858 C.RS. thus the average percentage of C.RS. in Jeddah compared
to the Kingdom was estimated to 15% of the total C.RS. compared to Makkah
Mukarramah region was approximately 68% of the total C.RS. in the region.
These numbers and percentages illustrate the importance of Jeddah as commercial
centers because more than two thirds of commercial registrations in Makkah
Mukarramah region are in Jeddah. And about 15% of the total C.RS. in the Kingdom.
This is considered as indication of the polarization of Jeddah as a Business center of
business women and Table (9-3) illustrates this.
- 391 -
Table (9-3)
Comparison of commercial registrations in Jeddah city with those in Makkah Mukarramah region and
the Kingdom from 2002 to 2008
year
Total C.R
% of Jeddah to
% of Jeddah to
region
the Kingdom
Jeddah
Makkah
Kingdom
Mukarramah region
2002
3688
6526
29240
56
13
2003
3810
6490
33116
59
12
2004
4859
7495
36252
65
13
2005
5822
8077
34930
72
17
2006
5612
7798
30810
72
18
2007
6311
8466
37874
75
17
2008
8894
12341
62782
72
14
Source: Ministry of commerce and Industry Information Center, 2008-commerce database
70000
60000
50000
40000
Total c.r Jeddah
30000
Total c.r mahkka Mukarama region
Total c.r Kingdom
20000
10000
0
2002
2003
2004
2005
2006
2007
2008
9-4 Numerical and Percentage Distribution of the Business Women Commercial
Registrations in the Kingdom during the Years 2002-2008:
Rules and regulations give a chance to Saudi women to participate in all economic
fields, without limiting the activities to be carried out by the firm, and many women
established multiple commercial firms such as trade, contractors, building and
construction beside the special fields of women such as women's tailoring shops,
beauty centers, women training institutes, the Women's Studios of photography… etc.
The years from 2002 to 2008 witnessed a rapid growth in the number of commercial
registrations of women, the number increased more than one and half times as it
increased from 1,086 C.RS. in 2002 to 3,021 C.RS. in 2008, i.e. increased by 1,935 or
(178%), the total sole establishments were 2,821 representing 93.4% of the total
C.RS. the number of companies C.RS. were 200 companies representing 7% of the
total. it has been observed that the number of companies owned by women are little,
they prefer to establish sole establishments because of economic and social reasons
related to the limited area of women's movement in the business and capital markets,
and because of social constraints and traditions inherited from the Arab environment,
and women's concern about the direct supervision of their work and money, to avoid
- 392 -
the dominance of man, and the attorney over their commercial activities and
movements. It is also noted that the largest number of C.RS was recorded in 2007 and
2008 with a total number of 2,109 and 3,021, respectively, the difference was 912 c.rs
during the year which representing 43.2%, the rise in the number of commercial
registrations is due to economic recovery in the country because of the steady
improvement in oil prices in recent years and opening of new fields of investment that
fit women as well as preparation to enter the international market competition after
the Kingdom 's accession to the WTO Table (9-4) below shows that.
One may conclude from this explanation that there is a noticeable increase in the
participation of women in economic activities by entering into various business areas,
where women's enterprises are in different economic activities. Despite that some
business fields are managed by men and the employees are men, such as the business
of construction, restaurants and trade of food stuff and others.
Table (9-4)
Numerical and percentage Distribution of the existing commercial registrations of business women in the
Kingdom from 2002 to 2008
Year
Sole establishments
companies
total
Number
%
Number
sum
%
2002
1025
94
61
6
1086
100
2003
1024
94
71
6
1275
100
2004
1366
95
74
5
1440
100
2005
1794
94
115
6
1909
100
2006
1767
94
118
6
1885
100
2007
1951
93
158
7
2109
100
2008
2821
93
200
7
3021
100
Source: Ministry of Commerce and Industry Information Center, 2008-commerce database
2821
3000
2500
1794
2000
1951
1767
1366
1500
1025
1024
companies Number
1000
500
61
71
74
2002
2003
2004
115
118
158
200
0
2005
2006
2007
2008
9-5 Numerical and percentage Distribution of the existing commercial registrations of
business women in Makkah Mukarramah region:
The commercial registration of business women increased steadily, they rose from 316
C.RS. in 2002 to 1016 C.RS. in 2008, i.e. increased by 700 C.RS. which means that
they were doubled more than twice (222%). The sole proprietorships were dominating
- 393 -
where their percentage ranged between 87% in 2007 and 90% in 2002 of the total
commercial registrations over the past seven years, and the percentages of companies,
ranging between 10% and 13% of the total commercial registrations, which were close
to the distribution of the total commercial registrations; Table (9-5) illustrates this.
Table (9-5)
Numerical and percentage Distribution of existing business women commercial registration in Makkah
Mukarramah region from 2002 to 2008
Year
Sole establishments
companies
total
Number
%
Number
%
sum
%
2002
283
90
33
10
316
100
2003
316
88
44
12
360
100
2004
361
89
46
11
407
100
2005
597
90
64
10
661
100
2006
610
89
76
11
686
100
2007
649
87
99
13
748
100
2008
908
89
108
11
1016
100
1000
908
900
800
700
597
610
649
600
500
400
300
283
316
361
200
100
companies Number
44
46
64
76
99
33
2002
2003
2004
2005
2006
2007
108
0
2008
9-6 Numerical and percentage Distribution of existing business women commercial
registration in Jeddah city:
The commercial registrations of businesswomen in Jeddah, witnessed a rapid growth
the rose from 246 in 2002 to 845 in 2008, i.e. increased by 599 which means that the
number was approximately doubled two and a half times, or (244%).
The sole proprietorships were dominating where the percentage ranged between 84%
in 2003 and 88% in 2008 whereas the percentage of companies ranged between 12%
and 16% of the total C.RS. table (9-6) below shows that.
- 394 -
Table (9-6)
Numerical and percentage Distribution of existing business women commercial registration in Jeddah city
from 2002 to 2008
Year
Sole establishments
Companies
total
Number
%
Number
%
sum
%
2002
214
87
32
13
246
100
2003
222
84
43
16
265
100
2004
277
86
44
14
321
100
2005
448
88
62
12
510
100
2006
489
87
75
13
564
100
2007
524
84
101
16
625
100
2008
740
88
104
12
845
100
800
740
700
600
500
448
489
524
400
300
Companies Number
277
214
222
200
100
32
43
44
62
75
2002
2003
2004
2005
2006
101
104
0
2007
2008
9-7 Comparison of Commercial Registrations of Businesswomen in Jeddah with the
Total Existing C.RS in Makkah Mukarramah Region and the Kingdom:
When comparing the commercial registrations of businesswomen in Jeddah with those
in the Kingdom and Makkah Mukarramah region the following findings emerged:
1) The percentage of commercial registrations in Jeddah, ranging from 0.8% in 2002
and 1.8% in 2006 when compared with the Kingdom total commercial
registrations.
2) The percentages of commercial registrations in Jeddah were ranging from 3.8% in
2002 and 7.4% in 2007 when compared with Makkah Mukarramah region total
commercial registration.
The average numbers of business women commercial registrations were 563 C.RS
representing 1.5% of the average total commercial registrations in the Kingdom, and
7% of the average total C.RS in Makkah Mukarramah region, Table (9-7) below
shows that.
It has been observed that the number of business women commercial registrations
steadily grew in the last four years, perhaps this was due to the new policies aimed to
- 395 -
activate the role of women and increase their contribution in economic activities as
well as initial steps taken by some women to enter new areas of new investment beside
the women's traditional activities.
Table (9-7)
Comparison of commercial registrations of businesswomen in Jeddah with those in Makkah Mukarramah
region and the Kingdom from 2002 to 2008
Total C.RS
Existing C.RS in
% of business
% of business
Makkah
women C.RS in
year
women C.RS in
Mukarramah
Kingdom
Jeddah
Kingdom
region
2002
2003
2004
2005
2006
2007
2008
246
265
321
510
564
625
845
29240
33116
36252
34930
30810
37874
62782
6526
6490
7495
877
7798
8466
12341
0.8
0.8
0.9
1.5
1.8
1.6
1.3
3.8
4
4.3
6.3
7.2
7.4
6.8
70000
62782
60000
50000
40000
30000
29240
33116
36252
37874
34930
Total C.RS Jeddah
30810
Total C.RS Kingdom
20000
10000
2002
2003
2004
2005
2006
845
625
564
510
321
265
246
0
2007
2008
9-8 Comparison of Commercial Registrations of Businesswomen in Jeddah with Those
in Makkah Mukarramah Region and the Kingdom:
1) The commercial registrations of businesswomen in Jeddah, witnessed a rapid
increase in number and percentage when compared to C.RS at the level of
businesswomen C.RS in the Kingdom and Makkah Mukarramah region, it is
clear that :
a. The percentage of the commercial registrations of businesswomen in Jeddah
was ranging from 25% in 2003 and 32% in 2006 when compared to the total
C.RS of business women in the Kingdom or between quarter and about one
third.
2) The percentage of commercial registrations of business women in Jeddah when
compared to those of Makkah Mukarramah region was ranging from 87% in 2007
and 90% in 2002, Table (9-8) below shows that.
- 396 -
3) These big percentages show the importance of the role of business women in
Jeddah in the overall economic movement, the average of commercial registrations
was 563 C.RS representing 31% of the average of the Kingdom, and 94% of the
average of the total commercial registrations of businesswomen in Makkah
Mukarramah region.
It is clear from this explanation that businesswomen in Jeddah are controlling about
one third of the Kingdom ladies companies, and more than 90% of economic activities
in Makkah Mukarramah region. These percentages ensure the growing role of
businesswomen in the economies of Jeddah in particular and in the Kingdom in
general.
Table (9-8)
comparison of commercial registrations of businesswomen in Jeddah with those in Makkah Mukarramah
region and the Kingdom from 2002 to 2008.
Total c.rs of business women
% of Jeddah
% of Jeddah to the
year
to the region
Kingdom
Jeddah
Mahkka M
Kingdom
2002
283
316
1086
26
90
2003
316
360
1275
25
88
2004
361
407
1440
25
89
2005
597
661
1909
31
90
2006
602
686
1885
32
88
2007
649
748
2109
31
87
2008
903
1016
3021
30
89
Source: Information Center - Ministry of Commerce
3500
3000
2500
2000
1500
1000
500
0
2002
2003
2004
Total c.rs of business women Jeddah
2005
2006
2007
2008
Total c.rs of business women Mahkka M
Total c.rs of business women Kingdom
9-9 The Role of Sayyedah Khadija Bint Khuwaylid Center in Supporting Businesswomen:
Businesswomen in Jeddah initiated a number of activities in order to activate the role
of women and increase their contribution to the economic and social life in view of of
the expanded participation of women in economic development. Some of the business
women engaged into some new areas of business and thus invaded the business
community and played an integral role with business men and not competitive one.
They established the Center of sayyedah Khadija Bint Khuwaylid affiliated to Jeddah
Chamber of Commerce and Industry to provide all services needed by women
- 397 -
entrepreneurs in particular, and those needed and required by female labor force in
general. The Center began its activities to achieve the following objectives:
1) Provision of moral and advisory support to business women through
communicating programs with all groups of women.
2) Support of women's employment opportunities and create new job opportunities.
3) Cooperation with local and international institutions to provide training and
education programs in some fields of specialization.
4) Create an appropriate atmosphere based on exchange of experiences and
information and communication between generations.
5) Building a database on all the activities of women and formation of relations
networks that put clients under the umbrella of the Center.
6) Support and adoption of actions, business women projects led by women.
7) Identifying the problems that faced women in different areas of work and try to
refer them to the competent authorities for consideration and finding ways and
means to solve them.
In order to achieve these goals the Center made many efforts and activities through its
different departments, notably the following:
1) Department of government files.
2) Department of women's empowerment and research.
3) Department of women specialized activities.
4) Department of projects development.
5) department of Business Women services, which composed of the following units:
a. Events coordination Services Unit.
b. The Information Technology Services unit.
c. Customer Service unit.
6) During its march, the Center was able to achieve more success in the areas of
business development, training and community services, and the most important
achievements are as follows:
7) opening the way for women to participate in the National services Center, it
succeeded in introducing two gentle ladies to the Chamber of Commerce
membership through direct election in the current session in 2005,:
a. Dr. Luma al-Suleiman.
b. Ms. Nashwa Taher.
Who obtained the membership of the Chamber of Commerce and Industry in Jeddah;
they are the first two ladies entering the field of public service in the finance and
business sector in the Kingdom.
1) Organization of the Forum of sayyedah Khadija Bint Khuwaylid "realistic
participation of women in the national development."
2) Study of the regulations, rules and laws in collaboration with the concerned
ministries to modify and amend them so as to find the possibility to remove the
problems and obstacles that faced the women.
3) Meeting with a number of high officials, ministers, members of the Shura Council
and discussing the hindrances that faced business women investments.
- 398 -
4) Preparation of a number of specialized studies to address the issues of women
labor force and the mechanisms of how they participate in the development of
Jeddah, and in the overall development.
5) Reception of commerce delegations and educating them about the role of women
in the national economy.
6) Preparation of set of working papers and participation in a number of events,
conferences, symposiums and seminars in and outside the country.
7) Conducting a number of lectures, symposiums and workshops in cooperation with
the specialized agencies, associations and universities to discuss many issues
related to women's participation in the national economy.
8) Conducting a number of free discussion groups at the center of the national
dialogue on the role of women in the economy and how to overcome problems and
obstacles that faced the working businesswomen.
9) Meeting with a number of companies factories managers aiming to find a way to
train and employ women.
10) The Center tried through collaboration with a number of specialized training
centers to train Saudi girls.
11) Offering advices and information to women's sector and business women.
12) Cooperation with international and local centers to provide economic feasibility
studies and establish electronic sites and specialized courses.
13) Preparation of handbooks, brochures, pamphlets and flyers that introduce the,
center and propagate its activities and the annual reports of the Center.
14) specialized clubs, such as Jeddah ladies club, and female bankers club .the role of
the center not only limited to care about the status of businesswomen, and women
labor force but also extended to contribute to the awareness of many programs that
affected Jeddah, and participation in all events that organized by the Chamber of
Commerce, beside material and financial contribution to social responsibility
programs through the support of many charity associations.
9-10 The Targeted Role of Businesswomen in The National Economy:
Apart from the limited participation of women in economic activity, the current ratio
of which did not exceed 14% of the total labor force, and limited participation in the
business field and the volume of commercial registrations did not exceed 1.5% of the
total commercial registration in the Kingdom, and in the light of the following facts
the women role can be explained as follows:
1) Regarding for the educational qualifications the percentage of female graduates
was not less than 54% in the past five years of the total graduates in any year.
2) Possession of approximately 10% of the total real estate in the Kingdom.
3) Ownership of approximately 40% of the assets of companies and family
establishments in accordance with the Islamic sharea law in the inheritance
system.
4) Possession of one third of the accounts in the Saudi capital market.
5) Possession of more than 37 billion Saudi riyals (U.S 12 billion) dollars) cash in
current accounts in banks.
6) The total unemployment rate for females is 21.7%.
7) Total unemployment among university graduates is 50.6% of the total job seekers.
- 399 -
It is expected that Saudi women in general and the businesswomen in particular will
play great role in the economic and social development through the following:
1) Amendment of rules, regulations, instructions and procedures relating to
engagement of the commercial business so as to give women greater opportunity
to look after and manage their own affairs.
2) Open the market for women's semi-frozen funds in the banking system to
contribute effectively to the real economy in the fields of industry and trade, which
will open new job opportunities for qualified women to work.
3) increase of women in the labor market through education, training, and expansion
in the technical and vocational training institutes in the fields that will be
suitable for women there are new qualified candidates of trained women will be
there to work in the establishments of the business women.
4) Increase women's opportunities in specialized education and training in technical
science, engineering, administration and information technology fields.
5) Launch of the inherent potentialities of women in terms of material resources and
funds, and professional capabilities to contribute effectively to the economic cycle.
6) Development of the traditional activities for the investment of businesswomen.
7) Propagation of investment fields that will be suitable for businesswomen, and to
promote and publicize their importance and focus on their profitability in order to
be attractive fields for women investment and to allocate investment opportunities
through preparation of feasibility studies for such opportunities.
8) activating the role of women's committees in the chambers of commerce, and to
make use of the experience of Jeddah Chamber of Commerce in involving women
in the boards of directors where four women are members in the current session
they are
a. Dr. / Luma Abdul Aziz alSuleiman.
b. Ms. / ulfat Mohammad Qabbani
c. Ms. / Madhawi Abdullah alHassoun
d. Ms. / Nashwa Abdulhadi Taher.
They proved themselves as capable directors in performing the tasks entrusted to them.
They played an active role and did recognized efforts in the implementation of the
programs of the board of directors that fall within their responsibilities.
1) joining of women to the boards of directors,and managements of family
companies beside husbands and brothers and playing more vital role according to
qualifications guided by the experience of some successful businesswomen in the
fields of administration, such as Mrs. Lubna Olayan, Ms. Nadia Al-Dosari, and dr.
Nahed tahir who established her own investment bank in the Kingdom of Bahrain
in 2005.
2) Establishment of units and special women's sections in the ministries and
government departments that provide services related to women.
3) Taking the necessary actions in coordination with the competent authorities for
implementation of distance work system as one of the available work opportunities
- 400 -
4)
5)
6)
7)
for women, especially in the presence of appropriate technical equipments and
availability of computers in their homes and lines of the Internet.
Provisions of the necessary funds inform of granting loans from specialized fund
institutions for establishment of small and medium-size projects prepared and
submitted by businesspersons.
Entering into partnerships with the international companies with high experience
in the fields in which women will work in order to gain experience and save time
and effort.
making use of the franchise system by entering the field of business with some
companies having distinctive trademarks in various commercial, industrial,
services fields to benefit from their accumulated experience, particularly in the
areas of ready-made garments, perfumes cosmetics, accessories ,food and drinks at
the local and global levels.
Making use of the potential opportunities in investment in the Arab Gulf States
and some other countries in implementation of the signed agreements between
these countries and Government of the Kingdom of Saudi Arabia.
- 401 -
Chapter Ten
Achievements and Services of the
Chamber of Commerce in Jeddah
10-1 Introduction
10-2 The Chamber of Commerce Vision
10-3 Mission of the Chamber of Commerce
10-4 Strategic Objectives
10-5 Spectral Committees
10-6 Achievements of the Chamber of Commerce in 2008
- 402 -
10-1 Introduction:
The Chamber of Commerce and Industry in Jeddah is considered as the first Chamber of
Commerce in KSA and was established in 1946 to operate as a house of merchants. It
developed its work, and its role was developing with the development of economic and
social life in the Kingdom. It adapted to all the changing conditions experienced by the
economy of the Kingdom till the present time.
The Chamber of Commerce is managed by a board of directors consisting of twenty – one
members representing all sectors and economic activities and assisted in the management
affairs by the president and members of the specialized committees, as well as the general
secretariat of the Chamber, and specialized departments, which are managed by qualified
and experienced persons with academic qualifications that suit each department activities.
Chamber's board of directors used to be elected every 5 years and the current session
which began in 2005 and will end in 2009. It is the nineteenth session of Jeddah Chamber
of Commerce, the current board of directors stated its strategic vision as follows:
1) Maintaining and preserving the achievements.
2) Creating job opportunities for the enterprises.
3) Creating job opportunities for the individuals.
4) Contributing to the distribution of new businessmen.
5) Preserving of the natural environment and investment (laws and regulations, roads
and enterprises and environment).
6) Application of the concept of management by objectives.
7) Activating the role of economic information.
8) Activation and utilization of technology and promotion of the staff role.
9) Activating the powers of the different sectors to give sufficient flexibility to achieve
the objectives.
10) Giving the chances to the directors to support the sectors according to their
knowledge and experience.
10-2 The Chamber's Vision:
The chamber is working for implementation of the strategy in accordance with the
vision of the board as follows:
The chamber supposed to be the main engine and the basic element in economic
growth and business development in Jeddah province and contribute to make the
province the main commercial and cultural gateway to the Islamic World.
10-3 The Chamber of Commerce Mission:
The board of directors planned:
1) Become a model organization that maintains and preserves achievements and
gains and encourages the positive changes in the private and public sectors to
achieve a constructive partnership between the two sectors.
2) Care of the interests of its members and provision of more information and added
value services and work on the development of the branches of the Chamber to
enable them to provide services such as the main office.
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3) Contribution to find out new commercial and investment opportunities and
contribute in making Jeddah a favorite destination and option of businessmen at
regional and international level.
4) Cooperation with all relevant authorities in order to achieve the following:
a. Maintaining the infrastructure (road and sanitation utilities and the natural
environment).
b. Development of the investment environment (regulations and laws).
c. Creation of job opportunities for individuals in the private sector.
d. Establishment of the concept of individual economic initiative among the
youth.
e. Activation of the role of the committees through the mechanisms of the
selection of their members and the organization of meetings and forwarding
the recommendations to concerned agents and following the implementation
of the resolutions to improve the performance of all sectors.
5) Contribution in making Jeddah the center of attraction of investment, and a
starting point to support the export of local products to regional and
international markets.
6) Working to encourage the private sector to adopt the concept of social
responsibility values that contribute to the improvement of the standard of
living in Jeddah province.
7) Adoption of best practices and modern applications in the field of management
and technology and to train the chamber of commerce staff to enjoy distinctive
capabilities and high spirits through the policy that support the process of
learning and development of the capacity of their human resources.
8) Achievement of financial balance to insure the continuity of the functions of the
chamber and expansion of its activities to fulfill its obligation.
9) Allowing the directors to practice flexible and effective voluntarily
participation in the administrative activities of the chamber through direct
support to different sectors of the chamber.
10-4 Strategic Objectives
1) Maintaining the achievements and gains through the following:
a. Raising the level of the satisfaction among customers.
b. Contributing to the development of infrastructure, roads, utilities and natural
environment in Jeddah city.
c. Maintaining the perspective image of the chamber leading institution through
the development of strategies and achievement of the objectives and targets.
2) Saudization process through :
a. Contribution to the reduction of unemployment.
b. Creation of economic and investment environment that encourages the Saudi
youth to engage in private sectors free business.
3) Committees role through :
a. Development of some mechanisms to activate the work of the committees and
enhance their role.
- 404 -
4) The business community through:
a. Spreading the economic awareness among the people.
b. Contribution in developing the regulations, rules and laws that support the
national economy.
c. Improving the business administration environment in order to respond to the
requirement of the current economic boom.
5) Domestic and foreign investment through:
a. Creation of suitable environment for investment in Jeddah to cope with the
local, regional and international changes.
b. Creation of economic and investment environment that encourage the Saudi
youth to engage in free business activities.
6) Services provided by the chamber:
a. Development of the services provided by the chamber to its members.
b. Increasing and provision of information.
7) Chamber of commerce staff:
a. Creation internal work environment that encourages the staff to work
effectively to improve the performance and focus on results based on goals
and objectives.
b. Raising the morals of the workers to find out highly qualified cadres who help
to raise the levels of external polarization.
c. Development of staff capabilities and enhancement of their competence and
performance to be linked with incentives and rewards.
10-5 Spectral Committees:
The board of directors of the chamber of commerce intended to develop the formation
mechanism of electing the sectoral committees and the method of their work focusing
on the participation of the biggest possible number of businessmen in these
committees through appointment and election. The number of committees was 56
specialized committees with the number of 1,150 members. They held 250 meetings
during 2008; they issued 915 recommendations out of which 599 recommendations
were implemented.
These committees are:
1. The commercial committee.
2. Gold and jewelry committee.
3. Car agents committee.
4. Medicines committee.
5. Industrial committee.
6. Food industry committee.
7. Paint industry committee.
8. Bottled water committee.
9. Transport and maritime services committee.
- 405 -
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
Land transportation committee (Buses, Trucks).
Mixed companies committees.
Customs agents committee.
Taxi drivers committee.
Contractors committee.
Real estate committee.
Offices committee.
Advertisement committee.
Printing presses committee.
Recruitment offices committee.
Public services offices committee.
Insurance committee.
Health services committee.
Environment committee.
Tourism committee.
Hajj and Umrah committee.
Awareness and eradication committee.
Commercial papers committee.
Infrastructure and public utilities committee.
Stock companies committee.
Trademarks committee.
Information technology committee.
Private schools committee.
Lawyers committee.
Consulting offices and economic studies committee.
Chartered accountants committee.
Will makers committee.
Manufacturers of medicines and medical supplies committee.
Tanning and leather industries committee.
Restaurants and cafes committee.
Retail trade committee.
Security and safety committee.
Brokers and fishermen committee.
Patients' friends committee.
Maritime activities committee.
Human resources committee.
Rental cars committee.
Training committee.
Business youth committee.
Organization of events and other activities committee.
Girls' private school owners committee.
Ship owners committee.
Car maintenance committee.
Bakeries committee.
Shopping centers committee.
Plastics industry committee.
- 406 -
10-6 Achievements of the Chamber of Commerce in 2008:
The most significant achievements of the chamber of commerce and industry in
Jeddah as follows:
Firstly: the services provided to members:
1) The application of the archive system that maintains records, agenda of the
meetings of the committees.
2) Sending invitations and agenda through SMS.
3) Allocation of electronic sites for the committees in the main electronic site of the
chamber.
4) Sending of 250,500 letters to members of the chamber to attend the meetings and
other activities of the chamber, and participate in the delegations.
5) Issuance of 429 circulars between commercial, industrial, transport and maritime
services and other sectors … etc..
6) Allocation of free invitation to committee members to attend events and activities
of the chamber of commerce in Jeddah.
7) Participation in (16) of national committees in the council of Saudi chambers of
commerce, the number of members were 65 members in the sectoral committees.
Secondly: Services of business sectors:
1) Overcoming industrial obstacles and following up of new industrial land project.
2) Following up the development of the industrial city project and the project of car
workshops.
3) Coordination with the competent authorities to try to find solutions of the problem
of industrial land to provide 200 million square meters in various locations in
cooperation with the industrial cities authority.
4) Conducting a number of meetings, workshops and arrangements of visits to
various sectors.
5) Preparation of a number of specialized studies in various areas of interest to the
business sector.
Thirdly: Meetings with government officials:
1) A number of (20) meetings were conducted with the government departments
aiming to communicate with business sectors in order to identify the constrains
and obstacles they face and work out to overcome them.
Fourthly: meetings of business sectors:
1) Meetings with about 19 government departments and official, local or foreign
bodies with various businessmen to discuss some issues that of interest to them.
Fifthly: Legal services:
1) Drafting and reviewing contracts of chamber of commerce to be signed with
domestic and foreign companies, and cooperation agreements.
2) Conducting a number of specialized legal courses.
- 407 -
3) Protest office settled more than 1,347 cases of total amount SR 373.2 million,
some of them were solved in reconciliation and some were referred to commercial
papers disputes settlement office.
4) Conducting a number of legal seminars and meetings with some government
officials and judicial authorities.
5) Activating the role of the credit network.
Sixthly: Membership and verifications services and business services:
1) Opening of 8 new branches of the chamber in different areas of Jeddah and in
some government departments.
2) Establishment of the special women's department to provide subscription and
verification services at the main building of the chamber of commerce.
3) Renewal of the membership of the chamber through payments system.
4) Designing of a special certificate for two categories excellent and first class
categories in Arabic and English.
5) Increasing the number of subscribers by 2%.
6) Updating the database of business owners.
7) Issuance of more than 8,243 certificates, and 1,597 permits of different activities.
Seventhly: Community forums and seminars:
1) The ninth Jeddah economic forum 2008 sponsored by about 35 patronages of the
leading national and international economic companies and about 36 specialized
scholars from 20 countries delivered lectures.
2) Conduction of first national forum of contractors, which was attended by 700
participants, including 15 who delivered speeching in various issues concerning
the construction and contracting sector.
3) Jeddah first environmental forum.
4) First consultant forum.
5) Human resources forum.
6) Gulf tourism and investment forum in 2008.
7) Maritime transport forum.
8) The industry forum.
Eighthly: Seminars, lectures, symposiums and workshops:
1) Conducting a number of seminars, lectures, symposiums and workshops that
discussed all economic and social issues.
Ninthly: Exhibitions, fairs and festivals:
1) Hostage of 43 local and international exhibitions in different activities at Jeddah
forum and events center.
2) Organization of tourism festivals, and participation in them, such as Jeddah
festival and Ubhur festival.
3) Cooperation with a number of Saudi chambers of commerce and the Gulf, Arab
and international chambers of commerce to conduct a number of exhibitions and
participation in the annual meetings of some of them.
- 408 -
Tenthly: Memorandum of understanding and agreements:
1) Signing of 44 agreements and memorandums of understanding with a number of
agencies, authorities and local chambers of commerce at local, regional and
international levels, in order to develop economic relations between the
businessmen to encourage the exchange of economic information and trade
delegations.
Eleventh: Development and support of small enterprises:
1) Conduct of a forum to preserve the coral reefs and the photography exhibition, and
revive of the profession of fishing project in Makah Mukarrammah region, the
forum discussed a number of issues including:
2) The economics of coral reefs and sea reserve areas and the issue of ship waste
dropped into the sea and sanitation.
3) Urban development on beaches, buildings and burial areas and the importance of
maintaining the sea and coastal environment in the red sea and gulf of Eden.
4) Overfishing and proposed solutions to preserve the fish wealth in KSA.
5) Guaranteed 15 projects by the chamber special funds and facilitate financing of
100 projects through other financing institutions.
6) Compensation paid to the heirs of the deceased subscriber amounting to
SR.100,000 from cooperative solidarity program.
7) Conduct of a number of meetings, lectures and workshops on the idea of small
projects and the importance of self-employment and the development of
entrepreneurs and owners of small enterprises.
8) Designing of 1,000 website of small businesses.
9) Implementation of electronic trade program of small businesses.
10) Provision of more than 1,350 technical and marketing advices to small business
owner and the new initiators.
11) Preparation and evaluation of 90 feasibility study to be submitted to the financing
funds institutions, and identifying opportunities for small investment.
12) Provision of a number of training programs in collaboration with the academic and
funding institutions for a number of initiators.
13) Conducting of exhibitions and seminars related to youth business activities and
initiators of small enterprises.
14) Establishment of fishermen's cooperative association in Makkah region and the
provision of premises to headquarters.
15) Participation in the establishment of the institute of fishing with one businessman.
16) Inclusion of the profession of fishing within the national programs of joint training
activities.
17) Processing of 50 training boats equipped with GPS technology and radar system
and detection equipment.
18) Designing and mapping of four berths with sketch maps of the location in Thole,
Qunfudhah, Laith, and Sarooj.
19) Conduct of forums and printing brochures to publicize the franchise system and
financing institution among small businesses.
- 409 -
Twelfth: The Saudization of jobs and labor development:
1) Establishment of the office and the council of Jeddah human resources
development.
2) Support the employment of Saudis in the private sector through paths of
employment in the programs of the national joint training program. A total of
2,454 work contracts for males and 1,340 work contracts for female.
3) Direct recruitment in a number of industrial and commercial companies.
4) Communicating with related training and recruitment agencies to discuss and
examine the obstacles facing the Saudization programs.
5) Conducting of a number of seminars, meetings and workshops to discuss the
issues of Saudization.
6) Signing of number of agreements with some specialized institutions and centers
for preparation of training courses to qualify the Saudi youth.
7) Assisting the private sector enterprises to make descriptions of a number of
professions.
Thirteenth: Development of administrative and technical services:
1) ISO in technical and information services.
2) Various training programs both internal and external.
3) Conduct of a number of specialized training courses in various fields in
cooperation with local, regional and global institutions.
4) Operation of six new systems and linking them to databases of the chamber of
commerce.
5) Development of electronic network of the chamber, and installation of protection
systems.
6) Promotion of different speeds of the internet, and wireless network,
communication line of the e-mail messages to the higher speeds.
Fourteenth: Construction and maintenance work:
1) Rehabilitation of Jeddah activities center for festival and events to host big forums
and were provided with the major appliances and equipment and required services.
2) Development of membership verifications services of the excellent and first class
members.
3) Establishment of smart hall named (Samira Jamjum Hall).
4) Preparations of services sites for the clients for photocopying and sending faxes.
5) Development of security and safety services.
6) Maintenance and rehabilitation of a number of facilities of Jeddah chamber of
commerce such as Jeddah international business center and sheikh Ismail AbuDawood hall, and car sheds.
Fifteenth: Social responsibility programs:
1) Sponsorship of a number of occasions by the chamber.
2) Hostage of a number of events and exhibitions.
3) Field visits to a number of productive and needy families and people with special
needs in cooperation with Bab Riziq Jameel program to serve the community.
4) Construction of 20 masjids to accommodate people special in cooperation with the
National Commercial Bank.
- 410 -
5) Introduction of Jeddah award for social responsibility of the banks.
6) Conducting of a collective marriage ceremony.
7) Preparation of the program and working papers and the time table of the forum of
social responsibility "Towards sustainable developed partnership between the
private sector and the charity associations".
8) Sponsoring the convention of the employment of people with special needs in
cooperation with Makkah region and the national commercial bank.
9) Conduct of a number of forums and special programs for some activities of civil
society institutions working in the social and welfare services.
Sixteenth: Jeddah economic gateway:
1) The objectives of the gateway:
a) Documentation of all economic data that of interest to the business community
in Jeddah.
b) Provision of economic information such as statistics and studies to decision
makers, academicians and researchers and other related authorities and
institutions.
c) Providing information to the business community about the latest
developments in various economic sectors.
d) Easy communication between the local and international business enterprises.
2) The contents of Jeddah economic gateway:
a) Studies and reports such as:
 Annual reports of government departments and community organizations.
 Research papers.
 Articles.
 Books.
b) Economic statistics, which cover all sectors and activities such as:
 The various economic sectors (industrial, commercial, service, … etc.).
 Human development.
 Foreign trade.
 Foreign investment.
 Financial and banking sector.
c) Infrastructure
Information technology and services include:
 Electronic market (import and export opportunities).
 Industrial, commercial and service directories.
 Investment opportunities.
 Tenders.
 Business and economic news.
 Exhibitions, conferences at local and global levels.
 Government regulations and procedures related to the private sector.
- 411 -

Jeddah Guide Facts and Figures

Transcription

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