Saudi Arabia Industry Sectors

Saudi Arabia’s industry sectors are dominated by petrochemicals and petrochemical based products. The main industries in Saudi Arabia include crude oil production, petroleum refining, ammonia, industrial gases, sodium hydroxide, fertilizers, cement, plastics, metals, construction, commercial ship and aircraft repair. The following chart illustrates Saudi Arabia’s industrial production growth rate from 2003-2009. (All data in percentages.)[br]

Saudi Arabia’s industry sectors are dominated by petrochemicals and petrochemical based products. The main industries in Saudi Arabia include crude oil production, petroleum refining, ammonia, industrial gases, sodium hydroxide, fertilizers, cement, plastics, metals, construction, commercial ship and aircraft repair. The following chart illustrates Saudi Arabia’s industrial production growth rate from 2003-2009. (All data in percentages.)[br]

 

Saudi Arabia Industry Sectors: Real Estate

The real estate sector in Saudi Arabia continues to flourish, despite the economic downturn, and is expected to exceed $400 billion in 2010. The contribution of the real estate sector to the country’s GDP was 6.8% in 2004, and grew to 7.2% in 2009. The residential sector, which has been growing at 5.8% during 2004-2009, will continue its upward trend in 2010, but at a slower pace. About 1.5 million new homes are expected to be built by 2015. The contribution of Saudi Arabia’s real estate sector to the economy represents 5.1% of the GDP at SAR55 billion. Weak lending operations have led to a decline in investments in the residential real estate sector over the past decade, resulting in a shortfall of more than 20% in investment levels. This figure fell to 20% in 2008. However, in the light of the economic resurgence in the Gulf, the demand for housing is expected to rise by about 50% going forward.

 

Saudi Arabia Industry Sectors: Oil and Gas[br]

Saudi Arabia will account for 20.83% of the Middle Eastern regional oil demand by 2013, while providing 39.45% of the supply. Oil use is expected to increase to 12.17 million b/d by 2013, while oil production is expected to rise to 28.01 million b/d by 2013. State owned Saudi Aramco’s oil and gas production is expected to rise to 11.05 million b/d by 2013. Gas production in Saudi Arabia, according to oil experts, should reach 104 bcm by 2013, up from 78 bcm in 2008. Saudi Arabia’s oil production is forecasted to grow 14.3% by 2018, with volumes steadily rising to 12.4 million b/d by 2018. Oil consumption is expected to increase by 30.9% by 2018.

 

Saudi Arabia Industry Sectors: Automotive

Saudi Arabia’s automotive sector has remained relatively resilient to the economic downturn with several automakers posting good results in 2009. Suzuki Motors posted growth in both volume and sales during 1H 2009. Suzuki Saudia reported growth of 5% in volume sales and an 8% increase in revenues. Meanwhile, Ford increased its sales by 5% in Saudi Arabia between the beginning of 2009 and late November 2009.