Structure changes in the manufacturing sector and its impacts on the competitiveness of Saudi industrial products

The research focuses on the reality of the manufacturing sector in the kingdom of Saudi Arabia (KSA) , and the structural developments and that have occurred in the light industrial development policies adopted by(KSA) since early 90s of the last century. This policy is to bring about a change in the production structure in favor of manufacturing, instead of relying on oil revenues only to achieve the desired development goals. The paper is aimed at knowing the structural changes in the manufacturing sector in terms of the industrial- scale, mixing ratios of production resources (labor & Capital intensives), the added value and productivity of labor and capital. Also, the research investigates the impact of these changes on local and external competitiveness and to what extent the Saudi industries benefit from the advantages of (Economic of scale) to reduce the cost per unit of production and maintain local market share and enhance its external competitiveness. The study importance comes in light of the economic openness adopted by the Kingdom within three trends: the neighboring Gulf countries in the framework of the Gulf Cooperation Council (GCC), the Arab countries in the framework of Greater Arab Free Trade Zone and world countries in the framework of the World Trade Organization (WTO).