A key element in the Saudi Arabian government's economic strategy is industrial diversification, a process which has as its primary objective the reduction of the Kingdom's dependence on oil revenues. To this end, the government has encouraged the development of a wide range of manufacturing industries.
The government has provided a range of incentives to encourage the private sector to participate in the Kingdom's industrial effort. Eight industrial estates provide private Saudi manufacturing companies with the necessary infrastructure and services at a very low cost. Credit facilities on generous terms are readily available for such enterprises.
The Kingdom has adopted a free market economic model. The financial, industrial and trade sectors of the economy have made rapid progress, enabling the private sector to play an increasingly important role in the development and diversification of the economy, especially in the fields of construction and farming.