ABSTRACT
The Second Development Plan issued in 1975 first put forth the goal of economic diversification away from near-total dependency on the oil sector. A noteworthy development pertaining to Saudi business opportunities which was expressed in the Third Plan involves the concept of Saudization. The Third Plan is expected to provide numerous opportunities for medium-sized companies, particularly in communications and service industries. The government of Saudi Arabia realizes that the objectives of industrial development may be more effectively attained if the business community bears in the long run the responsibility of implementing projects. Tax incentives have been established to encourage domestic and foreign investment. The trade policy of Saudi Arabia exemplifies the philosophy of free competition which flows throughout the economy. The bottlenecks in the Saudi economy could create constraints to investment objectives, just as they could hinder the efforts of the government to achieve development targets incorporated in the Third Plan.
