Opening a conference on financing GCC industrial projects at Asharqiya Chamber, he said the industrial sector’s contribution to the Kingdom’s GDP increased from 2.5 percent in 1968 to 10 percent in 2009.

“Saudi Arabia has given utmost importance to the industrial sector, which has played a major role in the Kingdom winning a leading position among world economies,” the minister said.

He said the Saudi Industrial Development Fund gave 2,694 loans worth SR71 billion to industrial projects across the country. Total investments in industries reached SR272 billion ($72.5 billion).

Alireza said the establishment of new industrial cities and expansion of existing ones in Jubail, Yanbu, Jeddah and other cities have provided necessary infrastructure to carry out various industrial projects.

Abdul Rahman Al-Rashid, chairman of Asharqiya Chamber, emphasized the need for more funds to finance industrial projects. “We are looking forward to new mechanisms to finance industrial projects in the GCC,” he said.

The conference, which is being attended by officials and industrialists from Saudi Arabia, Qatar, Bahrain, Oman, Kuwait and the UAE, stressed the importance of technical support and consultancy services for industrial progress.

Speakers who addressed the conference on the first day were unanimous that finances to industrial projects should only be given when the success and continuity of the projects are ensured through feasibility studies and the personal integrity of project owners.

Speaking at the opening session, Adel Al-Sihaimi, acting director of credit at the Saudi Industrial Development Fund, said his organization provides technical, administrative, financial, and marketing consultancy to the projects it is financing. "This helps upgrading the level of performance and enables the projects to overcome the difficulties facing them," he said.

Al-Sihaimi said of SR71 billion SIDF had given, only SR33 billion were repaid. SIDF finances about 50 percent of all fixed assets such as buildings, civil works, industrial security requirements, machinery, equipment, vehicles, furniture, the operating capital and other pre-establishment expenses.

Yasser Al-Tuwaijri, director of public relations at the Centennial Fund, said there is immediate need for at least 200,000 new job opportunities. “There are 876,719 unemployed Saudis,” he said, adding that 79 percent of the released prisoners are jobless.

He said the Centennial Fund aims to enable youths to become businessmen and create jobs for young men and women. "The fund gives about 30 percent of its finances in the form of liquid cash while the remaining 70 percent will be in the form of guidance services by volunteers,” he said. There are now 5,100 volunteers at the fund, he added.

Qasim Saqr, a member of the board of directors of the Kuwait Chamber of Commerce and Industry, chaired the first session. Ammar Al-Awamji, coordinator of projects Tamkeen program in Bahrain, said his organization charges every foreigner in Bahrain 10 dinars every month to support its projects.

Talal Al-Zadjali, head of the department of studies and research in the Oman Development Bank said the industrial sector represents an important pillar for development in his country and a substitute for the depleting oil wealth.

He said the bank extends finances of about a million Omani riyals to industrial, agricultural, tourist, health, professional and IT projects for a period of 10 years against an interest of nine percent of which the government pays six percent.

Jassim Al-Ammar, director of the economic division at the Kuwait Industrial Development Fund said the bank, which was established in 1973 at the initiative of the government has so far financed 867 projects.

Working papers from various organizations and banks including the HSBC, the Gulf investment Corporation, the Islamic Corporation for the Development of the Private Sector of the IDB Group and others.