Table of Contents

Preface
Glossary of terms
Table of Contents
List of Table
List of illustration
1. The National Economy during the seventh development plan ……………………………................	3
1.1 Introduction ...…….…………………………………..............	3
1.2 Economic Development Indicators …...……….…….........	4
1.2.1 Growth Rates …..……………………...............................	4
1.2.2 Gross Capital Formation ………………..……..................	8
1.2.3 Foreign Trade and the Balance of Payments …………….	10
1.2.4 Human Resources Development and Employment …...…	11
1.2.5 Public Finance – Government Revenue and Expenditure	13
1.2.6 Financial Sector ……………………………………….…	16
1.2.7 The Private Sector …...…………………………...............	22
2. Directions of the Eighth Development Plan	27
2.1 Introduction ……………………………..................................	27
2.2 Future Challenges …………………..…………....................	27
2.3 General Objectives and Strategic Principles of the Eighth Plan ………………………………..…………………..	30
2.3.1 The General Objectives ………………………………….	30
2.3.2 The Strategic Bases ………………………..…….............	32
2.4 General Framework of the Eighth Development Plan's Directions …………………………………………..…	34
2.4.1 Standards of Living and Quality of Life ……………….	34
2.4.2 Poverty Reduction Strategy ………………………...….	35
2.4.3 Balanced Regional Development ………………………	36
2.4.4 Human Resources Development …………………….…	38
2.4.5 Diversification of the Economic Base ………………….	40
2.4.6 Economic Stability ……………………………………..	41
2.4.7 Domestic and Foreign Investments …………………...	42
2.4.8 Institutional and Administrative Reform …………….…	43
2.4.9 Privatization ……………………………….....................	45
2.4.10 Public Finance ………………………….........................	46
2.4.11 Rationalization of Water ……………………................	46
2.4.12 Technology and Informatics ………...............................	47
2.4.13 Economic, Social and Cultural Impacts of Globalization	50
2.4.14 Increasing Women's Participation and Enhancing the Family Role in the Society ……………………...……..	52
2.5 Implementation of Directions ……...……...………………	53
3. The Long Term Strategy of The Saudi Economy ……………………………………………………..	57
3.1 Introduction ……..……………...…………………….........…	57
3.2 Strategic Issues and Challenges ……..………………..….	58
3.2.1 Raising the Standard of Living and Improving the Quality of Life …………………………………..…….…	58
3.2.2 Achieving of Sustainable Development …………………	58
3.2.3 Enhancement of Competitive ……………………………	61
3.2.4 Regional and Arab Integration ………………………...…	62
3.3 Supporting Factors for Confronting Challenges and Achieving Strategic Goals ………........................................	62
3.4 Targeted Paths of the Long Term Strategy ……………	65
3.4.1 Long Term Population Forecasts ……………………...…	65
3.4.2 Future Vision for the Saudi Economy ………………...…	66
3.4.3 Targeted Path for Improving the Quality of Life ………...	76
3.4.4 Targeted Path for Development of Scientific, Technological and Knowledge Capacities ….………..….	78
3.5 The LTS and the Eighth Development Plan ……..…...….	78
4. The National Economy in the Eighth development plan ……...…………………………….....	81
4.1 Objectives and Policies of the Eighth Development Plan …………………….……………………………………….	81
4.2 Major Socio-economic Objectives …………………….….	82
4.2.1 Boosting Economic Growth …………………..…..........	82
4.2.2 Increasing Employment Opportunities and Reducing the Unemployment Rate ……………………………………	86
4.2.3 Providing Care for Poor and Needy Families ….……....	86
4.2.4 Diversification of Economic Activities and Sources of National Income ………………………..........................	87
4.2.5 Expansion and Development of Public Services (Health, Education, Housing and Environment) …………...……	89
4.2.6 Emphasis on Regional Development …..……………....	90
4.2.7 Increasing Productivity and Improving Competitiveness	90
4.2.8 Increasing Exports ……..…………………………….....	91
4.2.9 Balance of Payments …………………………...............	92
4.2.10 Enhancing Integration with GCC States and merging with the Global Economy ………………………………	93
4.3 Economic Policies …................................................................	93
4.3.1 Macroeconomic Policies ……………………………….	94
4.3.2 Structural Economic Developments ……………..……..	96
4.4 Sectoral Objectives and Policies …………..……………..	97
4.4.1 Agriculture, Forests and Fishing ……………….………	98
4.4.2 Mining and Quarrying ………………………………….	98
4.4.3 Petroleum Refining …………………………..…………	99
4.4.4 Petrochemicals ……………………….................………	99
4.4.5 Other Manufacturing Industries ………...……...………	100
4.4.6 Electricity, Gas and Water ……………………………...	100
4.4.7 Building and construction ……………………...………	101
4.4.8 Commerce, Restaurants and Hotels …………….………	101
4.4.9 Transport and communications ……….……….……….	102
4.4.10 Real Estate …...............................................................…	103
4.4.11 Finance, Insurance and Business Services………..…….	103
4.4.12 community and personal Services …………………...…	104
4.4.13 Crude Oil and Natural Gas ………………………......…	104
4.5 Financial Requirements of the Development Agencies	105
4.5.1 Government Financial Expenditure ………………..….…	106
4.5.2 Government Financial Revenues ……..……………….…	108
4.6 Resources and Resource Utilization ……….………….…	109
4.6.1 Available Resources ………………..............................…	110
4.6.2 Utilization of Available Resources ………………………	110
5. Institutional and Administrative Development ………………………………………………	115
5.1 Introduction ………………………......................................…	115
5.2 Present Conditions …..………………………………………	116
5.2.1 The General Framework of Institutional and Administrative Development …………………….........…	116
5.2.2 Development of Economic Administration .......................	116
5.2.3 Development and Improvement of Public Services ......…	118
5.2.4 Development of Educational Administration ................…	119
5.2.5 Other Developmental Steps ...........................................…	120
5.3 Issues and Challenges .............................................................	120
5.3.1 Efficiency of the Projects Implementation Cycle ..........…	121
5.3.2 Policies Evaluation and Follow-up ................................…	122
5.3.3 Rationalization of Government Procurements Procedures	122
5.3.4 Implementation of Electronic Governance (e-government) …...……………………………………...	123
5.3.5 Internal and External Efficiency of the Public Sector ......	123
5.3.6 The Development Plan and the Role of the Private Sector	124
5.4 Development Strategy ...........................................................	125
5.4.1 General Objectives .........................................................…	125
5.4.2 Policies ...........................................................................…	125
5.4.3 Targets ..........................….............................................…	126
6. The Private Sector .....................................….............…	129
6.1 Introduction ......................................…....................................	129
6.2 Present Condition ......................................…..........................	130
6.2.1 Main Indicators of the Sector ........................................…	130
6.2.2 The Investment and Business Environment ......................	133
6.2.3 Privatization ......….....................................................……	134
6.3 Structural Features of the Private Sector ....................	137
6.4 Issues and Challenges .....................................................……	139
6.4.1 The Investment Environment .......................................…	139
6.4.2 The Investment Incentives System ................................…	140
6.4.3 The Labor Market and Saudization ...........................……	141
6.4.4 Constraints Facing the Development of the SMEs Sector	142
6.4.5 The Activation of the Saudi Stock Market ....................…	143
6.4.6 The Implications of the Kingdom's Accession to WTO …	145
6.4.7 The Privatization Implementation Program ..............…	147
6.4.8 Development of Non-Oil Merchandize Exports.................	147
6.4.9 Mobilizing Commercial Banks Resources ....................…	149
6.5 The Future Vision .....................................…............…………	150
6.5.1 Development of the Financial Services .............................	150
6.5.2 Development of the Small and Medium Scale Enterprises (SMEs) ………………………………………………...…	150
6.5.3 Promotion of Public – Private Partnerships………...……	151
6.5.4 Private Sector Institutions……………………...…………	151
6.5.5 Increasing the Role of the Private Sector in the GCC Countries …………………………………………………	152
6.6 Development Strategy ……………………………………...	153
6.6.1 Objectives……………………………………………...…	153
6.6.2 Policies…………...……………………………………….	153
6.6.3 Targets………………..…………………………………..	154
7. Investment …………………………...……………………	157
7.1 Introduction………………………………..…………………	157
7.2 Present Condition………………………………………….....	158
7.2.1 Development of the Capital Stock………………..………	158
7.2.2 Investment…………….……………………..……………	159
7.2.3 Savings ………………….…..……………………………	162
7.3 Key Issues and Challenges….………………………………	163
7.3.1 Government Capital Stock…………………...…………...	163
7.3.2 Investment and Sustainable Development…………...…...	165
7.3.3 Private National Savings……………………...…………..	165
7.4 Development Strategy …………………………………..….	166
7.4.1 Objectives……………………..………………………….	166
7.4.2 Planned Investment……………...………………………..	166
7.4.3 Strategic Projects in the Eighth Development Plan	168
8. Manpower and Employment…………………..…….	175
8.1 Introduction…………………………………………………..	175
8.2 Present Conditions……………………………………….......	176
8.2.1 The Total Labor Force…………………………………..	176
8.2.2 The Labor Market ……………………….……………...	178
8.2.3 Employment in the Public Sector ………………………	179
8.2.4 Employment in the Private Sector………………………	180
8.3 Labor Force and Employment Issues………………….…..	181
8.3.1 Contribution of Saudi Workforce to Economic Activities ……………………………………………….	181
8.3.2 Macro and Structural Labor Market Imbalances………..	182
8.3.3 Saudization ………………………………...…………...	183
8.3.4 Public-Private Sector Partnerships……………………...	184
8.3.5 Employment imbalance…………………………………	184
8.3.6 Employability of the National Workforce………………	184
8.4 Objectives of Labor Force Development……….………..	185
8.5 Policies and Implementation Mechanisms……….……….	185
8.5.1 Policies of Improving Workforce Skills…………….…..	186
8.5.2 Employment Polices…………………………………….	187
8.5.3 Expanded Women Participation Policies ……………....	188
8.5.4 Policies of Labor Market Services Development ………	188
8.6 Key Indicators of the Labor Market ………………….…	189
8.6.1 National and Total Labor Force Indications…….………	189
8.6.2 Employment & Unemployment ………………...…..….	190
8.6.3 Educational Composition of New Entrants into the Labor Market………………………………………...….	191
8.7 labor Requirement and Saudization…………………..…..	193
8.7.1 Demand by Economic Sectors …………………………	194
8.7.2 Demand by Key Occupations Categories……….………	195
8.8 Labor Force Balances…….………………………………....	196
9. Population and Standard of Living………….….	203
9.1 Introduction…………………………………………..………	203
9.2 Present Condition…………………………………….………	203
9.2.1 Structure of Population….………………………………	203
9.2.2 Population Characteristics………………………………	204
9.2.3 Implications of the Demographic Characteristics of Saudi population………...………………………………	205
9.2.4 Population Characteristics of Expatriates (Foreign Workers)………………………………………………...	208
9.2.5 Geographic Distribution of the Population …………….	208
9.3 Future Vision…………………………………………………..	210
9.3.1 Population Policies……………………………………...	210
9.3.2 Standard of Living ……………………………………...	213
9.3.3 The National Strategy for Poverty alleviation……….….	214
9.4 Development Strategy To Raise Living Standards…….	217
9.4.1 Objectives………………………………………….……	217
9.4.2 Policies………………………………………………….	217
9.4.3 Targets…….…………………………………………….	218
10. Regional Development ……………………………….	221
10.1 Introduction……………………………………………..……	221
10.2 Present Condition…………………………………………….	221
10.2.1 Population Distribution………………………………..	221
10.2.2 Distribution of Economic Activity………………….…	224
10.3 Issues and Challenges………………….…………………….	226
10.3.1 Development of the Regional Production Base……...…	226
10.3.2 Completion of Infrastructure…………………………….	227
10.3.3 Administrative Decentralization…………………………	227
10.3.4 Regional Data and Information Base……………………	228
10.4 Future Vision……………………………………………….….	228
10.5 Development Strategy………………………………………	230
10.5.1 Objectives……………………………………………….	230
10.5.2 Policies………………………………………………….	231
10.5.3 Targets…………………………………………………..	231
11. Construction………………………………………...……	235
11.1 Introduction……..……………………………………………	235
11.2 Present Condition………………………………………….…	235
11.2.1 Developments……………………………………….…	235
11.2.2 Companies and Establishments in the Construction Sector …………………………………………………	235
11.2.3 Building Materials……………….…………………….	237
11.2.4 Manpower in the Construction Sector………...………	238
11.3 Issues and Challenges…………………………………….….	239
11.3.1 The Performance of Small and Medium Size Contractors ……………………………………………	239
11.3.2 The Financial Structure of Small and Medium Contractors…………………………………………….	239
11.4 Future Vision……………………………………………….….	240
11.5 Development Strategy………………………………………	241
11.5.1 General Objectives …..………………………………..	241
11.5.2 Policies………………………………………………...	241
11.5.3 Targets…………………………………………………	242
12. Environment and Sustainable Development	245
12.1 Introduction …………………………………………………..	245
12.2 Present Conditions …………………………………………..	246
12.2.1 Developments………………………………………….	246
12.2.2 Meteorology and Environmental Measures…………...	247
12.2.3 Wildlife Conservation and Development……………...	248
12.2.4 Pollution Levels & Environmental Health…………….	254
12.2.5 Budgetary Allocation …………………………...........	257
12.3 Key Issues ……………………………………………………….	257
12.3.1 Conservation of Natural Resources……………………	258
12.3.2 Treatment of Sewage…………………...…………......	258
12.3.3 Clean Fuels and Control of Emissions……………...…	258
12.3.4 The Coastal Environment……………………………...	259
12.4 Future Vision ………………………………………………….	259
12.5 Development Strategy…………………………………...….	260
12.5.1 General Objectives…………………………………….	260
12.5.2 Policies ………………………………………………..	261
12.5.3 Targets…………………………………………………	261
12.6 Financial Requirements……………………………………..	262
13. Tourism……………………………………………………….	265
13.1 Introduction…………………………………………….…….	265
13.2 Present Condition…………………………………………….	265
13.2.1 Tourism Institutions and Organizational Development.	265
13.2.2 Significant Developments……………….…………….	266
13.2.3 Demand for Tourism Services………………………...	267
13.2.4 Tourism Resources and Facilities……………………..	268
13.2.5 Heritage and Cultural …………………………………	273
13.2.6 Targeted Markets……………………………………...	274
13.2.7 Recreational Tourism………………………………….	274
13.2.8 Budgetary Allocation …………...…………………….	275
13.3 Role of the Private Sector……………………………...….	275
13.4 Issues and Challenges…………………………………….….	276
13.4.1 Improving Tourism Services…………………………..	276
13.4.2 National Labor in the Field of Tourism……………….	277
13.4.3 Marketing and Promotion of Tourism…………...……	277
13.4.4 Seasonality of Tourism in the Kingdom………………	278
13.4.5 Information on Tourism……………………………….	278
13.4.6 Development of Traditional Crafts and Industries…….	279
13.5 Future Vision ………………………………………………….	279
13.6 Development Strategy…………………………………...….	280
13.6.1 General Objectives…………………………………….	280
13.6.2 Policies………………………………………………...	280
13.6.3 Targets…………………………………………………	281
13.7 Financial Requirements………………………………….….	282
14. Trade…………………………………………………….…….	285
14.1 Foreign Trade……………………………………………...….	285
14.1.1 Introduction …….……………………………...….	285
14.1.2 Present Conditions ……………………………..…	285
14.1.2.1 Current Account and Balance of Payments…………...	285
14.1.2.2 Imports and Exports…………………………………...	287
14.1.2.3 Growth of Commodity Exports………………………..	288
14.1.2.4 Geographical Distribution of Commodity Exports……	289
14.1.2.5 Growth of Imports……………………………………..	291
14.1.2.6 The Competitive Advantage of the Saudi Economy…..	294
14.1.3 Issues and Challenges …………….………………	298
14.1.3.1 The Comparative Advantage of Energy-Intensive Manufacturing Products……………………………….	298
14.1.3.2 Regional Trade ………………………………………..	298
14.1.3.3 Export Oriented Industrial Zones……………………...	299
14.1.3.4 Institutional Structure of Exports' Development………	300
14.1.3.5 Balance of Services and Transfers…………………….	300
14.1.4 Future Vision………...…..…………………………	302
14.1.5 Development Strategy …………...…………….	303
14.1.5.1 General Objectives……………………………….........	303
14.1.5.2 Policies………………………………………………...	303
14.1.5.3 Targets………………………………………………....	304
14.2 Domestic Trade……………….……………………………….	305
14.2.1 Introduction ………...…….……………………….	305
14.2.2. Present Condition …..…………………………….	305
14.2.2.1 Indicators of Domestic Trade Development………......	305
14.2.2.2 Growth of Companies………..………………………..	307
14.2.2.3 Standards and Specifications ……………………...….	308
14.2.2.4 Institutional and Organizational Development…….….	309
14.2.2.5 Manpower Development ……………………………...	310
14.2.3 Issues and Challenges ….………..……………….	310
14.2.3.1 Development of Small and Medium Enterprises……...	311
14.2.3.2 Combating Dumping of the Domestic Market by Imported Goods ……………………………………….	311
14.2.3.3 Business Ownership Concealment…………………….	311
14.2.3.4 Issuance of Uncovered Cheques………………...…….	311
14.2.3.5 Trade Fraud Control…………………...………………	312
14.2.3.6 Development of a Trade Information System ………...	312
14.2.3.7 Saudization of Manpower in the Trade Sector …..........	312
14.2.3.8 Application of Standards and Quality Control……...…	313
14.2.4 Development Strategy ……………………...……	313
14.2.4.1 Objectives………………………………………….......	313
14.2.4.2 Policies………………………………………………...	314
14.2.4.3 Targets………………………………………………....	314
14.2.5 Financial Requirements ………...…………….….	315
15. Financial Services…………………………………...….	319
15.1 Introduction……………………………………………….….	319
15.2 Present Condition ……………………………………………	320
15.2.1 Main Features of the Banking Sector………………….	320
15.2.2 Size and Competitiveness of Banks…………………...	324
15.2.3 Specialized Credit Institutions………………………...	326
15.2.4 The Saudi Stock Market…………………..……...........	327
15.2.5 Government Securities…………………….…..............	328
15.2.6 Investment Funds……………………….......................	329
15.2.7 The Insurance Market………………………................	330
15.3 Development Strategy………………………………...…….	330
15.3.1 Objectives…….…………………..........……………....	331
15.3.2 Policies……………………….......................................	331
15.3.3 Targets………………………........................................	332
16. The Family and Society…………………………….….	335
16.1 Introduction…………………………………………….…….	335
16.2 Present Conditions………………………………………..….	337
16.2.1 Family Conditions ……...…………………………….	337
16.2.2 Social Services ……………...……………...................	345
16.3 Issues and Challenges ………………………………...…….	347
16.3.1 The issue of Partners and Coordination ……………....	347
16.3.2 Regulations………...…………………………………..	349
16.3.3 Development of Social Services…….........…………...	351
16.3.4 Poverty and Social Security………...…………………	352
16.4 Development Strategy………………………………...…….	354
16.4.1 General Objectives…………...………………………..	354
16.4.2 Policies……...…………………………………………	354
16.4.3 Targets…………………...…………………………….	355
17. Women and Development…………………………..…	359
17.1 Introduction…………………………………………….…….	359
17.2 Present Condition…………………………………………….	362
17.2.1 Demographic Status………...………………………..	362
17.2.2 Educational Status ….……...…….………………….	364
17.2.3 Health Status ….……………………………………..	365
17.2.4 Employment Status of Women ……………………...	366
17.3 Issues and Challenges ……………………………………….	370
17.3.1 Education and Employment – The Integrated Relationship …………………………………………	371
17.3.2 Females and Illiteracy………...……………………...	372
17.3.3 Education and Females – Arts Disciplines ……...…..	373
17.3.4 Higher Education Females – Diversification of Specialties…………………………………...……….	373
17.3.5 Expansion and Diversification of Women Economic Participation ……………………………………...….	374
17.3.6 Females Unemployment ….…...…………………….	378
17.3.7 Females and Employment Opportunities in Government ……………………………………...….	379
17.3.8 Women and Investment ...………...…………………	380
17.4 Development Strategy………………………………………	381
17.4.1 General Objectives…………………………………...	383
17.4.2 Policies…………...…………………………………..	383
18. Housing……………………………………………………….	389
18.1 Introduction…………………………………………….…….	389
18.2 Present Condition ………………………………………...….	389
18.2.1 Developments……...………………………………...	393
18.2.2 Efficiency of Housing Sector………………………...	391
18.3 Issues and Challenges ………………………...…………….	391
18.3.1 Housing Units for Limited Income Groups……...…..	391
18.3.2 Role of Real Estates Development Fund (REDF)…...	392
18.3.3 Consistency Between Spatial Planning and Housing Requirements ………………………………………..	393
18.3.4 Construction Costs of Housing…………...………….	393
18.3.5 Providing an Integrated Data Base for the Housing Sector……………………………………………...…	394
18.4 Forecasts of Demand for Housing ………………………...	394
18.5 Future Vision ………………………………………………….	395
18.6 Development Strategy …………………………………..….	398
18.6.1 General Objectives…………………………………...	398
18.6.2 Policies……………………………………………….	398
18.6.3 Targets…………………...…………………………..	399
19. Science and Technology…………………….……….	403
19.1 Introduction…………………………………………….....….	403
19.2 Present Condition ………………………………………...….	403
19.2.1 General and Higher Education……………………….	403
19.2.2 Research and Development (R&D) …………...…….	404
19.2.3 Support Services for Science and Technology…...….	408
19.2.4 Creativity and Innovation Encouraging Institutions…	409
19.2.5 Transfer and Indigenization of Technology………..	410
19.2.6 Scientific and Technological Information……...……	410
19.2.7 International Cooperation……………...…………….	411
19.2.8 Budgetary Allocation …...……...…………………..	411
19.3 Issues and Challenges ……………………………………….	411
19.3.1 Funding ……………..………………….……………	412
19.3.2 Human Technological Capabilities…………………..	412
19.3.3 Infrastructure …………...……………………………	412
19.3.4 Identifying Priorities…………...…………………….	413
19.4 Future Vision………………………………………………….	413
19.5 Development Strategy…………………...………………….	415
19.5.1 General Objectives…………………………………...	415
19.5.2 Policies ………………………………………………	416
19.5.3 Targets ...…………………………………………….	416
19.6 Financial Requirements ………………………………...….	417
20. Development of Human Resources…………...….	421
20.1 General Education…………………………………..……….	421
20.1.1 Introduction………………...…………………….	421
20.1.2 Present Condition…….…………………..……...	422
20.1.2.1 General Developments……………………………….	422
20.1.2.2 Private Education ……………………...…………….	424
20.1.2.3 Special Education……...………………………….....	425
20.1.2.4 Illiteracy Education and Adult Education……………	425
20.1.2.5 Institutional and Organizational Development………	426
20.1.2.6 Manpower Training………………………………….	427
20.1.2.7 Budgetary Allocation …...……...…………………..	427
20.1.3 Issues and Challenges …………………………..	428
20.1.3.1 Enrollment Rates……………………...……………..	428
20.1.3.2 Internal Efficiency……...……………………………	429
20.1.3.3. External Efficiency………...………………………...	430
20.1.3.4 Private Education…………………...………………..	431
20.1.3.5 School Building……………...………………………	432
20.1.4 Demand for General Education ………………	432
20.1.5 Future Vision ……………………………………..	436
20.1.6 Development Strategy …………………………	437
20.1.6.1 Objectives………...………………………………….	437
20.1.6.2 Policies……………...………………………………..	438
20.1.6.3 Targets……………...………………………………..	439
20.1.7 Budgetary Allocation …...……………………	440
20.2 Higher Education …………………………………………….	441
20.2.1 Introduction ……………………………...………	441
20.2.2 Present Condition ...………………………..……	442
20.2.2.1 Enrollments at Higher Education Institutions ……….	442
20.2.2.2 Admission at Higher Education Institutions ………...	443
20.2.2.3 Graduates at Higher Education Institutions …………	444
20.1.2.4 Postgraduate Studies………………...……………….	445
20.2.2.5 Scholarship Students and Those Studying Abroad…..	446
20.2.2.6 Absorptive Capacity……………………...………….	447
20.2.2.7 Teaching Staff ……...………………………………..	448
20.2.2.8 Research and Development (R&D) Activity……...…	448
20.2.2.9 Academic Accreditation…...………………………...	448
20.1.2.10 Budgetary Allocation …...……...…………………..	449
20.2.3 Key Issues and Challenges………………...……	449
20.2.3.1 Absorptive Capacity………...……………………….	449
20.2.3.2 Internal Efficiency …………………...……………...	450
20.2.3.3 External Efficiency……………...…………………...	451
20.2.3.4 Partnership Between Higher Education and Community …………………………………….……	451
20.2.4 The Demand for Higher Education……………	452
20.2.5 Future Vision ……………………………….…….	455
20.2.6 Development Strategy ……………………...….	456
20.2.6.1 Objectives……...…………………………………….	456
20.2.6.2 Policies…………………...…………………………..	457
20.2.6.3 Targets…………….…………………………………	457
20.2.7 Financial Requirements…………………...……	459
20.3 Technical Education and Vocational Training…..…….	460
20.3.1 Introduction ………………………………..…….	460
20.3.2 The Present Condition ………………………….	460
20.3.2.1 The General Organization for Technical Education and Vocational Training (GOTEVT)…….…………..	461
20.3.2.2 Institute of Public Administration (IPA)………...…..	466
20.3.2.3 Other Government Agencies……………...…………	467
20.3.2.4 The Private Sector……………………………………	468
20.3.2.5 Budgetary Allocation …...……...…………………..	468
20.3.3 Issues and Challenges………………………...…	468
20.3.3.1 Absorptive Capacity ……...…………………………	468
20.3.3.2 Internal Competency………...……………………….	469
20.3.4 Demand For Technical Education and Vocational Training ……………………….……	470
20.3.5 Future Vision………………………………...……	474
20.3.6 Development Strategy……………………….…	474
20.3.6.1 General Objectives .………………………………….	474
20.3.6.2 Policies………...……………………………………..	475
20.3.6.3 Targets………...……………………………………..	475
20.3.7 Financial Requirements …....…………………...	477
21. HEALTH SERVICES AND HEALTH CARE……………….	481
21.1 Introduction………………………………………….……….	481
21.2 Present Condition…………………………………………….	481
21.2.1 Progress of Health Indicators………………………...	481
21.2.2 Progress of Health Services………...………………..	484
21.2.3 The Role of the Private Sector ……………...……….	485
21.2.4 Institutional and Organizational Development…...….	486
21.2.5 Health Sector Manpower ……………………………	489
21.2.6 Budgetary Allocation …...……...…………………..	490
21.3 Issues and Challenges……………………………………….	490
21.3.1 Demand for Health Services……...………………….	490
21.3.2 Efficiency of Health Care Services…………………..	491
21.3.3 Health Services Coverage……………...…………….	491
21.3.4 Saudization of Health Sector Manpower……...……..	492
21.3.5 Health Services Database…………………...……….	492
21.4 Health Services Demand Estimates……………………….	493
21.5 Future Vision………………………………………………….	494
21.6 Development Strategy………………………………...…….	494
21.6.1 General Objectives…………………………………...	494
21.6.2 Policies ………...…………………………………..	495
21.6.3 Targets ………...…………………………………..	496
21.7 Financial Requirements ……………………………………	500
22. Information and Communications Technology ………………………………………..………	503
22.1 Information & Communications Technology …………..	503
22.1.1 Introduction ….………………………….………	503
22.1.2 Present Condition ………………………..……...	503
22.1.2.1 Institutional and Organizational Development ….......	503
22.1.2.2 Infrastructure ………...………………………………	506
22.1.2.3 Trends Towards the Information Community ...……	507
22.1.2.4 The Domestic IT Industry ……………………….......	510
22.1.3 Issues and challenges …..……………………….	510
22.1.3.1 Completion of ICT Infrastructure …………………...	511
22.1.3.2 Digital Arabic Content …...………………………….	511
22.1.3.3 The Digital Divide …...……………...………………	511
22.1.3.4 Application of E-Government …………...…...……..	512
22.1.4 Demand For ICT Services ………………..……..	513
22.1.5 Future Vision ………………………….………….	515
22.1.6 Development Strategy …..……………………..	516
22.1.6.1 Objectives……………………...…………………….	516
22.1.6.2 Policies……………………………………………….	517
22.1.6.3 Targets ……………………………………...……….	518
22.2 The Postal Services Sector……………………...…………	519
22.2.1 Introduction ..……....…………………………….	519
22.2.2 Present Conditions …..……...…………..……….	519
22.2.2.1 Organizational and Institutional Development .……..	519
22.2.2.2 Postal Facilities………………………………………	521
22.2.2.3 Postal Services Volume …..…………...…………….	522
22.2.2.4 Manpower Development…………………………….	523
22.2.2.5 Development of Productivity………………………...	523
22.2.2.6 Budgetary Allocation .……………………...………..	523
22.2.3 Issues and Challenges ...………………………..	524
22.2.4 Demand for Postal Services …………..……….	525
22.2.5 Future Vision ……………...……………………...	527
22.2.6 Development Strategy ……………………..…..	527
22.2.6.1 Objectives……………………………………………	528
22.2.6.2 Policies……………………………………...……….	528
22.2.6.3 Targets…………………………...…………………..	529
23.2.7 Financial Requirements ….……………....…….	529
23. Water …...…………………………………………………….	533
23.1 Introduction………………...………………………………...	533
23.2 Present Condition…………………………………………….	534
32.2.1 Conventional Water Supply Sources ..………………	534
23.2.2 Non-conventional Water Resources…...…………….	536
23.2.3 Water and Waste-water Services……...……………..	538
23.2.4 Total Resources of Renewable & Non-Conventional Water ……………………………………………..….	539
23.2.5 Water Consumption……...…………………………..	539
23.2.6 Water Supply and Demand Balances and Ground Water Utilization…………………………………….	542
23.2.7 Water Cost…………………………...………………	543
23.2.8 Institutional and Organizational Development…...….	544
23.2.9 Budgetary Allocation ……………………………….	545
23.3 Issues and Challenges……………………………………….	545
23.3.1 Water Pricing………………...………………………	546
23.3.2 Consistency between Water Supply and Waste-water Networks ………………………..…………………...	546
23.3.3 Maintenance of Existing Facilities…………………..	546
23.3.4 Reclaimed Waste-water……………………………...	547
23.3.5 Water and Waste-water Services…………………….	547
23.3.6 Water Conservation………………………………….	548
23.3.7 Monitoring, Follow-up and Enforcement of Regulations…………………………………………..	549
23.3.8 Strengthening of Water Legislation …………………	549
23.3.9 Administrative Centralization………………………..	549
23.4 The Role of the Private Sector……………………………	550
23.5 Water Demand Forecasts…………………………………...	551
23.5.1 Water Tariff …………………………………………	551
23.5.2 Reclaimed Waste-water……………………………...	551
23.5.3 Water Desalination Capacity………………………...	551
23.5.4 Total Water Demand…………………………………	552
23.5.5 Demand for Water and Waste-water Services……….	553
23.6 Future Vision………………………………………………….	553
23.7 Development Strategy………………………………………	554
23.7.1 General Objectives…………………………………...	555
23.7.2 Policies……………………………………………….	555
23.7.3 Targets ……………………..………………………..	556
23.8 Financial Requirements ………………………..…………..	557
24. Oil and Natural Gas …………………………………....	561
24.1 Introduction………………………………………………......	561
24.2 The Kingdom's Oil Policy …………………………………..	562
24.3 Present Condition…………………………………………….	563
24.3.1 Development of Crude Oil and Natural Gas Reserves	563
24.3.2 Production of Crude Oil and Natural Gas……………	563
24.3.3 Refining and Distribution……………………………	566
24.3.4 Restructuring and Privatization ……………………..	568
24.3.5 Domestic Consumption of Energy…………………...	569
24.3.6 Budgetary Allocation During the Seventh Plan .…….	572
24.4 Aspirations and Forecasts of the Eighth Development Plan ..............................................................................................	572
24.4.1 Crude Oil and Natural Gas Reserves………………...	572
24.4.2 Crude Oil and Natural Gas Production………………	572
24.4.3 Refining, Transportation and Distribution …………..	573
24.4.4 Continuation of the Privatization Process ..………….	573
24.4.5 Indigenization and Development of Technologies ...	573
24.4.6 Domestic Consumption of Energy During the Eighth Plan …….....…….………………………...…………	574
24.5 Future Vision ………………………………...………………..	577
24.6 Development Strategy………………………………………	579
24.6.1 Objectives……………………………...…………….	579
24.6.2 Policies……………………………………………….	579
24.6.3 Targets……………………………………………….	580
24.7 Financial Requirements ………………………….....................	581
25. Mineral Resources …………...………………………...	585
25.1 Introduction………………………………………………......	585
25.2 Present Condition ……………………………………………	585
25.2.1 Key Developments…………………………………...	585
25.2.2 Mineral Resources Sector Revenues………………..	596
25.2.3 Institutional and Organizational Progress……………	597
25.2.4 Budgetary Allocation .……………………………….	598
25.3 Issues and Challenges……………………………………….	598
25.3.1 Infrastructure…………………………………………	598
25.3.2 Role of the Private Sector…………………………....	600
25.3.3 Integration of Production Cycles…………………….	600
25.3.4 Land Use for Mining Purposes………………………	601
25.4 Opportunities Available for the Private Sector………	601
25.5 Future Vision……………………………….…………………	603
25.6 Development Strategy………………………………………	604
25.6.1 General Objectives ..…………………...…………….	604
25.6.2 Policies …………………..…………………………..	604
25.6.3 Targets …...………………………………………….	605
25.7 Financial Requirements……………………………………..	605
26. Agriculture………………………………………………..	609
26.1 Introduction………………………………………………......	609
26.2 Present Condition ……...……………………………………	609
26.2.1 Developments…………………………...…………...	609
26.2.2 Crop Acreage, Livestock and Production .…………..	609
26.2.3 Agriculture Loans and Subsidies …………………....	614
26.2.4 Institutional and Organizational Development………	615
26.2.5 Budgetary Allocation …………...…………………...	615
26.3 Issues and Challenges……………………………………….	616
26.3.1 Crop Economic Efficiency…………………………..	616
26.3.2 Efficiency of Irrigation Systems……………………..	617
26.3.3 Utilization of Reclaimed Wastewater for Agricultural Purposes…………………………………...…………	617
26.3.4 Supply and Demand for Fish Products………………	618
26.3.5 Dates Production and Marketing Efficiency ………...	618
26.4 Demand for Main Agricultural Products……………….	619
26.5 Future Vision ………………………………………………….	619
26.6 Development Strategy………………………………………	620
26.6.1 Objectives……………………………...…………….	620
26.6.2 Policies……………………………...………………..	621
26.6.3 Targets…………………………...…………………..	622