The Doha-based Gulf Organization for Industrial Consulting (GOIC) has revealed that the GCC industrial base has witnessed a major expansion over the last five years: the value of investment capital increased from nearly 181 billion USD in 2009 to almost 369 billion USD in 2013 (a cumulative growth rate of 19.5% for five years).
In a report issued here on Thursday, GOIC said the number of factories paralleled this growth rate: from 13002 factories in 2009 to 15689 in 2013 (a cumulative growth rate of 4.8% for five years). In addition, the number of workers jumped from nearly 1031825 worker in 2009 to almost 1379257 in 2013 (a cumulative growth rate of 7.5%).
GOIC Secretary General. Abdulaziz Bin Hamad Al-Ageel stated: “The industrial sector has witnessed a huge progress and impressive achievements because of the support of GCC countries and the major role it plays in accomplishing strategic and economic objectives.” He further said; “GCC countries’ efforts to back industrial development included providing adequate infrastructure, creating industrial cities and industrial development funds and offering several other industrial incentives. The positive response of the private sector and its cooperation with governments resulted in achieving industrial development goals,” he added .
The biggest investments are in chemical and petrochemical products According to GOIC’s IMI Plus databases, there are several industrial development indicators in GCC countries between 2009 and 2013. These countries offered incentives and supported the industrial sector, hence increasing the value of investments in factories operating in GCC countries end of 2013. In this regard, chemical and petrochemical products manufacturing gathered the biggest amount of investments, 220.3 billion USD (59.6% of the total investments) with an average growth rate of 21.7% for five years. Ranked second, the basic metals industry received investments worth 51.6 billion USD (14% of the total investments) with an average growth rate of 19.6%.
The sector of construction metals, transport and other industries gathered investments worth 34.6 billion USD (9.4% of the total investments) with an average growth rate of 23.6%. The building materials sector’s investments were almost 34.5 billion USD (9.3% of the total investments) with an average growth rate of 13.5%, said the GOIC report.
The GOIC report further indicated that Food products, beverages and tobacco received almost 18.1 billion USD worth of investments (4.9% of the total investments) with an average growth rate of 10%. Paper industry, printing and copying got nearly 5.4 billion USD of investments (1.5% of the total investments) with an average growth rate of 11%. Textile, clothing and leather products industry gathered nearly 2.6 billion USD (0.7% of the total investments) with an average growth rate of 6.4%.
Furniture sector received investments worth 1.7 billion USD (0.5% of the total investments) with an average growth rate of 9.6%. Wood and wood products (except furniture) got nearly 0.68 billion USD dollars (0.2% of the total investments) with an average growth rate of 4.8% for five years.
Construction metals and transport factories in the lead In light of the distribution of factories operating in GCC countries end of 2013, GOIC’s database revealed that the construction metals, transport and other industries are in the lead in terms of number of factories (4426 firms, 28.2% of the total factories) with an average growth rate of 5.7% for five years.
The chemical and petrochemical products industry has 3184 factories (20.3% of the total factories) with an average growth of 4.5% for five years. The construction materials sector has 2741 plants (17.5% of the total factories) with an average growth of 6.6%. The food products, beverages and tobacco sector has 1857 factories (11.8% of the total factories) with an average growth of 3.8%, the report showed.
The furniture sector includes 1041 plants (6.6% of the total factories) with an average growth of 4.2%. Paper industry, printing and copying have 938 firms (6% of the total factories) with an average growth of 2.6%. Textile, clothing and leather products sector includes 758 factories (4.8% of the total factories) with an average growth of 0.3%. Wood and wood products (except furniture) have 435 plants (2.8% of the total factories) with an average growth of 3.8% and the basic metals industry includes 309 factories (2 % of the total factories) with an average growth of 9.4 % for five years.
As per the labour force distribution, the GOIC’s databases revealed that the construction metals, transport and other industries sector is in the lead in terms of the workforce. In fact, this sector employs 371000 workers (26.9% of the overall workforce) with an average growth rate of 10.4% for five years. The chemical and petrochemical products industry employs 270.9 thousand workers (19.6% of the overall workforce) with an average growth rate of 6.7%.
Building materials sector employs 234.1 thousand workers (17% of the overall workforce) with an average growth rate of 10%. Food products, beverages and tobacco sector employs 195.7 thousand workers (14.2% of the overall workforce) with an average growth rate of 7%. Textile, clothing and leather products sector employs 92.1 thousand workers (6.7% of the overall workforce) with a negative growth rate of -2.7% for five years.
The report further said that the basic metals sector employs 68.1 thousand workers (5% of the overall workforce) with an average growth rate of 13%. Paper products, printing and copying sector employs 66.2 thousand workers (4.8% of the overall workforce) with an average growth rate of 5%. Furniture sector employs 56.7 thousand workers (4.1% of the overall workforce) with an average growth rate of 5.6%. Wood and wood products (except furniture) sector employs 24.1 thousand workers (1.7% of the overall workforce) with an average growth rate of 6%.
The report showed that Saudi industrial investments are in the lead As to industrial investments, the ranking is as follows: Kingdom of Saudi Arabia 54.2%, State of Qatar 22.2%, United Arab Emirates 8.8%, the Sultanate of Oman 6.5%, Kuwait 5.5% and the Kingdom of Bahrain 2.8%.
Saudi Arabia in the lead in terms of factories and workforce; The 2013 ranking as per number of factories is as follows: Saudi Arabia 40%, UAE 35.1%, Oman 9.9%, Kuwait 5.3%, Bahrain 5.1% and Qatar 4.7%.
As to workforce, the ranking is as follows: Saudi Arabia 52%, UAE 27.1%, Kuwait 6.2%, Oman 5.3%, Qatar 5% and Bahrain 4.3%.
It is noted that GOIC is a regional organization that brings together the UAE, Bahrain, Saudi Arabia, Oman, Qatar, Kuwait and Yemen. It is an advisory knowledge-based institution aiming at developing regional industries by providing data, information, specialized researches, consultations and technical services for the public and private sectors in GCC countries. This organization is the top industrial consultations expertise hub boosting industrial development in GCC countries and Yemen. It seeks industrial integration and coordination between Member States and endeavours to shape a regional industrial policy.
Source : Qatar News Agency
