An Increasing number of investors, both Saudi and foreign, are beginning to realise the fullÊpotential and size of the Saudi industrial market.

The country's high profile campaign to attract investment from foreign companies in the Kingdom's gas and downstream infrastructure has been well documented. But there are other forces working in the Kingdom to ensure that the country's policy of industrial diversification is a success for both majors and smaller investors.

The Saudi Arabian General Investment Authority (Sagia), headed by Prince Abdullah bin Faisal bin Turki Al Saud, is working hard to meet the needs of potential investors, helping to explain the country's Foreign Investment Laws and generally making the process as easy as possible by playing an overseeing role.

So-called 'Comprehensive Service Centres' will be set up across the Kingdom, where investors will be able to gain access to representatives from the Kingdom's various government departments.

The investment process is, according to the Prince, now more of a registration formality than a licencing application. The ultimate aim is for a service market, but the Prince has warned that Sagia must take into account both positive and negative impacts of any investment, policies, law or procedure and their effects on the country.

The downstream sector of Saudi Arabia is expected to attract significant interest and investments, particularly petrochemicals which are already witnessing a spate of projects involving local and foreign capital.

The opening of the Kingdom's gasfields is expected to spark off a wide range of industrial activity, impacting the entire economy.

''I hope that the investments that will be made in due course in the gas initiative will help us in our drive towards increasing localisation, providing new jobs and, even more importantly, transferring technology and training Saudi people,'' said the Prince.

The gas initiative is part of a wider plan for the Kingdom to develop a self-sufficient, fully integrated industry which is able to make gas available to the economy at competitive prices to spur petrochemical development.

With further direct foreign investment on the cards in Saudi Arabia, Sagia says that it will be looking to enhance the efficient and practical management of skills and technology which the nation previously lacked.