The Saudi industry has developed successfully over the past 30 years as a result of far-sighted and well-planned efforts of the State to use the kingdom's huge accumulated capital of both the government and its citizen investors.

It is true that the Saudi capital invested abroad still adds to the national revenues and achieves many financial and strategic advantages for the kingdom.

However, we can see that the capital invested in Saudi industry has brought in increasing benefits for the citizens and the country alike.

The government's direct contribution to the industrial sector through investment funds and the citizens' confidence in investing their capital in this sector have helped establish industries that nobody had even dreamed of.

Several Saudi industrial products have helped the kingdom attain self-sufficiency in many fields. Moreover, most of these products are of high quality and have gained a share of Arab and international markets.

Transfer of technology

One can claim that most of the current Saudi industrial activities have been transferred from more advanced foreign industrial environments. Except for the technically and economically limited activities in the field of crafts, most of the Saudi factories take the form of joint ventures with international factories.

Perhaps, most of these Saudi factories were established with agreements on transfer of technology. In these agreements, the Saudi party was mostly concerned with the use of technology, that is, the know-how.

We did not expect that the main concern would be focused on creation, innovation and development of the available raw materials, equipment and the 'know-why' systems.

In fact, use of technology is easier than its transfer, acquisition and application. Understanding the basics of design and operation technology involved in the industrial process (materials, labour, equipment and systems) as well as the characteristics and applications of end products in the form of goods and services extends beyond routine industrial operation.

However, understanding the basics is still easy compared to the more difficult task of acquiring in-depth knowledge of technical input and to attempt to create it in a way that allows the Saudi industrial establishment to hold sway over its industrial processes.

In other words, the Saudi industrial establishment, in the case of 'know-why', would need financial and human capabilities that help it to effectively deal with the technological system it applies, rather than being limited to use of know-how for innovation of raw materials, equipment, systems and new or developed products.

We believe that the Saudi industrial sector, in spite of its relatively short history, has made great strides in the field of using technology.

This sector was not expected to start acquiring and developing such technology, that is, the know-why, as a second stage prior to completing the first stage of use of this technology. This could be attributed to the volume of capital, technology and human resources required for implementation of the second stage.

However, some national companies have completed the first stage and successfully started the second stage. Arabian Danish Paint Company (ADPC) is a distinguished example. By utilising capable national cadres and foreign expertise, it has managed to develop several paint products of its own, meeting the requirements of the Saudi market.

Dyrup eco-friendly paints top of these products, which were launched on the Saudi market in mid-2001.

The Saudi companies' success in achieving technological control and development does not necessarily mean their separation from international companies in the field of technological development.

On the contrary, the more the national companies increase their ability to develop, the more they need to work closely with international companies to gain more support, integration and cooperation, which leads to significant technical, administrative and marketing achievements.

The international companies, which supported Saudi companies when they imported technology for the first time, are usually nominated to continue the technological cooperation for historical and technical reasons based on the close relationship between the two parties.

To exemplify this theory, ADPC has entered into an agreement for technological cooperation with Dyrup International for the next 10 years in the areas listed below: