Summary Sheet G.9 SSA (2) Term 3

MANARAT AL-RIYADH INTERNATIONAL SCHOOL
SOCIAL STUDIES (SSA) // SUMMARY SHEET 2 (2022-23)
NAME: ________________________________ GRADE: 9
DATE: _________________________________
Saudi Arabia: Industry and Trade
Economy is the system of trade and industry by which the wealth of a country is made and used.
Trade, or commerce, involves the transfer of the ownership of goods or services, from one person or entity
to another, in exchange for remuneration, goods or services. A network that allows trade is called a market.
Business is an organization or economic system where goods and services are exchanged for one another or
for money.
Industry is the production of goods or related services within an economy.
Although industrialization is relatively recent in Saudi Arabia, it has witnessed a steady development, during
which distinguished accomplishments were achieved. These are attributed to the importance of the industrial
sector and the support it receives from the government owing to its role in achieving strategic and economic
goals of the country. The efforts exerted by the government for the support of industrial development
covered several basic spheres including implementation of required infrastructure, construction of Jubail and
Yanbu industrial cities, construction of industrial cities in various regions of the Kingdom, establishment of
Saudi Industrial Development Fund (SIDF), and continued provision of other industrial support and incentives.
The response and cooperation of the private sector with the governmental plans and efforts have an effective
impact on actualization of the industrial development's achievements.
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.
Trade
In recent years, Saudi Arabia sought to join the World Trade Organization. Negotiations have focused on the
degree to which Saudi Arabia is willing to increase market access to foreign goods and services and the
timeframe for becoming fully compliant with World Trade Organization obligations. In April 2000, the
government established the Saudi Arabian General Investment Authority to encourage foreign direct
investment in Saudi Arabia. Saudi Arabia maintains a list of sectors in which foreign investment is prohibited,
but the government plans to open some closed sectors such as telecommunications, insurance, and power
transmission/distribution over time. As of November 2005, Saudi Arabia was officially approved to enter
World Trade Organization. Saudi Arabia became a full WTO Member on 11 December 2005.
Saudi Arabia is an oil producing country. What is the volume of its oil production and its reserves?
Saudi Arabia’s production of oil is estimated to be between 10 to 11 million barrels of crude oil per day. Its
reserve is estimated to be more than 264 billion barrels. Saudi Arabia also produces large quantities of natural
gas with the reserves standing at 242 trillion cubic feet making Saudi Arabia number four among gas
producing countries and its reserves of gas make it the fifth among other countries. Saudi Arabia has the
capability to raise its production by up to 4 million barrels per day in case of emergency to guarantee stability
of the world markets and in consultation with OPEC. International energy sources expect high increase in the
Saudi oil production and reserves capacity during the coming two decades.
What are the major companies involved in oil industry in Saudi Arabia?
The state- owned Saudi Aramco is the biggest oil company in Saudi Arabia. It is an international oil company in
term of the diversity of its activities like oil exploration, production, refining and marketing and shipping to all
parts of the world. The company discovers two giant oil fields, they are Al-Ghawar, in the eastern province
and AlSufaniya, an oil field offshore the Arabian Gulf. Saudi Aramco, the world’s largest oil company, is to
increase crude production to record levels in a bid to win market share in the global tussle over energy prices.
The company owns and operates the second biggest shipping fleet in the world. The company has 54,000
employees, 85% of them are Saudis. The company has a number of joint ventures and offices around the
world.
What are the most important industries in Saudi Arabia?
Beside oil refinery industries, there are a number of industries in Saudi Arabia, namely steel, cement,
construction materials, plastic industries, glass, canning and preservation of vegetables and fruits, dates, juice
and dairy products. The private sector invests mainly in furniture, gold formation and shoes. Every city in
Saudi Arabia has an industrial zone with various operating factories. As the Saudi market consumes most of
the products, so export of domestic products is limited to few products like cement, petrochemicals and
foodstuff.
What are the major industrial cities in Saudi Arabia?
The major industrial cities in Saudi Arabia are located in Jubail industrial city at the coast of the Arabian Gulf
and in Yanbu industrial city at the Red Sea coast. The Royal Commission for Jubail and Yanbu supervises the
operation of the two cities. The eastern province, where Dammam is the largest city, is a headquarter for
major oil industries. Rabigh at the Red Sea coast is also home to a number of industries. Recently work has
started on the construction of King Abdullah Economic City. It is the biggest integrated city in Saudi Arabia
and the world. The City has a land port and big industrial zone covering an area of 8 million square meters,
offices for regional an international finance companies, a centre for exhibitions and conferences and a
tourism area that includes large number of resorts and hotels. There is also a residential area and educational
institutions.
Q.1 Define:
 Economy
 Industry
 Business
 Trade
 Market
 Industrial city
 Labor
Q.2 How does industry affect the economy of Saudi Arabia?
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MANARAT AL-RIYADH INTERNATIONAL SCHOOL

SOCIAL STUDIES (SSA) // SUMMARY SHEET 2 (2022-23)

NAME: ________________________________ GRADE: 9

Saudi Arabia: Industry and Trade

Industry is the production of goods or related services within an economy.

What are the most important industries in Saudi Arabia?

Q.2 How does industry affect the economy of Saudi Arabia?

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