Ability of the Foreign and Joint Venture Industries in Jeddah to Spread Benefits to the Local Spatial and Economic Environments

ABSTRACf. It is widely accepted that the incentives provided for industries succeeded overwhelmingly in attracting foreign capital to participate on a sole or on a joint venture basis in the Saudi industrial development. This is in line with the Saudi long-term goals of achieving self-sufficiency and economic diversification. However, if incentives ceased, a significant prop­ ortion (if not all) of the foreign capitals might cease out of the Saudi indust­ rial economy. This stresses the need to maximi,ze positive impacts of such foreign capitals on national industrial and spatial developments. Regarding this, the explorative question is: to what extent do the foreign and joint ven­ ture industries operating in Saudi Arabia actually spread benefits within the local spatial and economic environments? With reference to the Jeddah In­ dustrial Estate as a case study, the paper attempts to answer this question. In light of the answer, recommendations are drawn for the future of the Saudi Industrial Development Strategy, amongst which is the call for link­ ing joint venture and foreign industries with the Saudi national factors of production whenever and wherever possible.