They are the raw materials that are extracted from the ground. The extractive industries depend on natural resources that cannot be renewed or compensated, such as phosphate, cement, oil, metallurgy, oil, and gas. They are industries whose activities involve the conversion of raw materials into final products or intermediate products, which are activities that address Raw materials extracted from nature and agricultural, plant and animal materials and converting them into another form that can be used from it. The revenues of extractive industries have a strong impact on reducing poverty and promoting common prosperity
The Importance of Extractive Industries
First: It reduces the contribution of the crude oil sector to the domestic product, employment, investment, the balance of payments and the government budget, if its contribution to the local product is raised, which will allow to raise the level of the development process and achieve a fundamental change in the economic structure.
Promoting Economic Independence
Second: Promoting economic independence and reducing import rates of manufactured goods of all kinds, as well as reducing commercial and technological dependency rates for the advanced industrial countries.
The Physical Basis of the National Economy
Third: Building the material basis for the national economy through developing the remaining branches and activities of the national economy.
Achieving Optimal Use of the Workforce
Fourth: This sector can achieve the optimum use of the workforce, for the ability that it enjoys in achieving professional mobility, and to transport workers from industrial activities in which the level of labor productivity decreases or the demand for it decreases towards activities that are high in productivity or which witness an increase in demand for it.
Fifth: The extractive industry is considered one of the most dynamic sectors of the national economy, as it can move and stimulate other sectors by creating productive linkages, whether front or back.
Sixth: Raising the level of the economic surplus achieved in this sector. The process is not only limited to providing the necessary funds for investment, but rather creating the means of production and other industrial equipment that are used in the investment process.
Low Volume of Difficulties
Seventh: The low volume of difficulties facing the investment process and the reduction of import rates for investment goods and other similar commodities
Eighth: The singularity of this sector by achieving productive diversification, due to the many stages and production processes, which mean added values and new varieties of goods with greater benefit, and acquire the issue of productive diversification.
The Social Basis
Ninth: The extractive industry is working on a major change in the social, cultural, and organizational basis through changing the system of values and social and family traditions related to the countryside and agriculture, for example, the Arab Gulf states.
Legislative and Legal Framework
Tenth: The extractive industry is working to change the legislative and legal framework, especially investment laws, labor laws, and financial and tax legislation to be consistent with the continued expansion of the role of industry in economic life.
The Constant Change in the Administrative Apparatus
Eleventh: The extractive industry itself is working on the continuous change in the administrative and organizational bodies and raising the level of its performance efficiency to keep pace with the continuous expansion in industrial institutions.