SAUDI TEXTILE AND APPAREL PRODUCTION

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