The industrial sector of the Kingdom is forecast to improve performance this year, according to a report by Saudi British Bank.

Saudi Economic Bulletin, a publication of the bank, said the private sector is expected to post 3.5 per cent growth this year. Coupled with this, the buoyant loan disbursements in 2000 by the Saudi Industrial Development Fund (SIDF) should promote a major increase in manufacturing activity in 2000 and till 2002, says the report.

It said during 1995 - 1999, 793 manufacturing units were set up in the Kingdom at a cost of SR87 billion ($23.5 billion).