Identifier
Created
Classification
Origin
07RIYADH1983
2007-09-26 06:45:00
UNCLASSIFIED
Embassy Riyadh
Cable title:  

SAUDI TEXTILE AND APPAREL PRODUCTION

Tags:  ECON ETRD KTEX 
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VZCZCXYZ0007
OO RUEHWEB

DE RUEHRH #1983 2690645
ZNR UUUUU ZZH
O 260645Z SEP 07
FM AMEMBASSY RIYADH
TO SECSTATE WASHDC IMMEDIATE 6581
UNCLAS RIYADH 001983 

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ECON ETRD KTEX
SUBJECT: SAUDI TEXTILE AND APPAREL PRODUCTION

REF: SECSTATE 114799

UNCLAS RIYADH 001983

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ECON ETRD KTEX
SUBJECT: SAUDI TEXTILE AND APPAREL PRODUCTION

REF: SECSTATE 114799


1. Per reftel request, Post compiled the most recent data
available regarding Saudi Arabia's textile and apparel
industry:

Total Finance of Operating Industrial Units(2006): US$79.1
Billion

Total Finance of Textiles, Ready Made Garments and Leather
Products(2006): US$1.3 Billion

Textile and Textile Articles share of imports(2006 -
provisional): 0.04%

Textile/apparel share of exports: not specified, but "other"
exports and "re-exports" totaled 0.025% of 2005 exports.

Exports in textiles and apparel to the United States: not
available, but total exports to the United States in 2006
(provisional and excluding oil exports) were valued at US$541
Million.

Total Manufacturing Employment(2006): 395,609

Total Textiles, Ready Made Garments and Leather Products
Employment(2006): 23,174

Total Number of Operating Industrial Units(2006): 3,906

Total Number of Textiles, Ready Made Garments and Leather
Products Units(2006): 192 (2005- 190, 2004- 181, 2003- 174)

Source: Central Department of Statistics & Information,
Ministry of Economy and Planning, Kingdom of Saudi Arabia


2. Given the small size of Saudi Arabia's textile and
apparel industry and its complete reliance on foreign workers
(and lack of a minimum wage),the questions in paragraph 5 of
reftel generally do not apply. Further, the manager of
Investment Procedures Development at the Saudi Arabian
General Investment Authority confirmed that while the Kingdom
is taking deliberate, aggressive steps to increase its
competitiveness, it is not focusing on the textile and
apparel industry because of its negligible size.
FRAKER

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