DOHA: The GCC industrial base has witnessed a major expansion over the past five years with the total number of its manufacturing factories increasing to 16,292 in 2014, from 13,035 in 2010. The figures disclosed by GOIC (Gulf Organisation for Industrial Consulting) suggest that a total of 3,257 factories were set up and became operational during this short period of time.
In a parallel development, the region’s invested capital jumped to $380bn last year, from approximately $222bn in 2010, a 5-year CAGR of 14.4 percent. An estimated $158bn was invested in industrial ventures over the last five years and in expansion projects of existing industries, the GOIC disclosed.
The region’s labour force increased from about 1.1 million in 2010 to about 1.5 million in 2014. New factories have provided about 400,000 new job opportunities.
The GCC manufacturing industries have witnessed an accelerated growth and several developments, from the increase in the number of factories and size of investments to the growth of the industrial labour force. These developments took place in various industrial activities shaping the manufacturing sector, notably hydrocarbon industries that include refining, petrochemicals, gas liquefaction, production of chemical fertilisers, iron and steel, food industries and others. This was the direct result of GCC countries supporting this sector by providing necessary infrastructure, building industrial cities, creating industrial development funds and offering a series of industrial incentives. In fact, manufacturing industries play a critical role in achieving strategic and economic objectives of these countries.
The maximum number of factories were launched in the Metal and Transportation-related sectors (4,594), followed by chemical and petrochemical products (3,365); building materials manufacturing units (2,858); food products, beverages and tobacco(1,965) and furniture manufacturing sector (1,062)
The chemical and petrochemical products was ranked first in terms of investments, with about QR220.2bn representing 57.9 percent of the total investments in operating factories. The investment in the basic metals industry accounted for QR52.5bn. An estimated $37.3bn investment was made in building materials manufacturing sector.
Saudi Arabia ranked top in terms of number of factories (41.8 percent), followed by the UAE (34.5 percent), Oman third (9.6 percent), Bahrain fourth (4.8 percent), Qatar fifth (4.7 percent) and Kuwait sixth (4.6 percent).
Saudi Arabia was also ranked first in terms of total investments (55.3 percent), followed by Qatar (21.7 percent), UAE (9.1 percent), Oman (6.2 percent), Kuwait (5.1 percent) and Bahrain (2.7 percent).
