Dubai-Mubasher: Saudi Arabia and Qatar accounted for 55.3% and 21.7%, respectively, of the industrial investments in the GCC region. The UAE controlled 9.1%, Oman (6.2%), Kuwait (5.1%) and Bahrain (2.7%), according to a recent report by the Gulf Organization for Industrial Consulting (GOIC).
The GCC industrial base has witnessed a major expansion over the last five years. The number of manufacturing factories increased from 13,035 in 2010 to 16,292 in 2014 (a 5-year compound annual growth rate (CAGR) of 5.7%).
The industrial development indicators in the GCC between 2010 and 2014 showed that GCC countries have focused on supporting and encouraging industrial development by all means. Thus, the Gulf industrial sector achieved a quantum leap, particularly in the number of factories, investments and labour force.
Invested capital jumped from approximately $222 billion in 2010 to about $380 billion in 2014 (a 5-year CAGR of 14.4%). Nearly $158 billion were invested in industrial ventures over the last five years and in expansion projects of existing industries.
Furthermore, the labour force increased from about 1,129 workers in 2010 to about 1,529 workers in 2014 (a CAGR of 8%). New factories have provided about 400 thousand new job opportunities.
IMI Plus data revealed that 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, the report stated.
These developments took place in various industrial activities shaping the manufacturing sector, notably hydrocarbon industries that include refining, petrochemicals, gas liquefaction, production of chemical fertilizers, 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.
Saudi Arabia ranked first in terms of number of factories (41.8%), followed by the UAE (34.5%), and then Oman (9.6%), Bahrain (4.8%), Qatar (4.7%) and Kuwait (4.6%).
Saudi Arabia took the lead in terms of labour force (56%), followed by the UAE (25%), Kuwait (5.3%), Oman and Qatar (4.9%) and Bahrain (3.9%).
