GCC industry value of investment capital jumps to $369 billion…

The Doha-based Gulf Organisation for Industrial Consulting (Goic) has said the GCC industrial base has witnessed a major expansion over the last five years with the value of investment capital increasing from nearly $181bn in 2009 to almost $369bn in 2013; a cumulative growth rate of 19.5% for five years. 

In a report issued here yesterday, Goic said the number of factories jumped from 13,002 in 2009 to 15,689 in 2013; a cumulative growth rate of 4.8%. The number of workers jumped from nearly 1,031,825 in 2009 to almost 1,379,257 in 2013; a cumulative growth rate of 7.5%. 
Goic secretary general Abdulaziz bin Hamad al-Ageel said, “The industrial sector has witnessed a huge progress and impressive achievements because of the support of GCC (Gulf Co-operation Council) 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 co-operation with governments resulted in achieving industrial development goals,” he added. The biggest investments were 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. The countries offered incentives and supported the industrial sector, leading to an increase the value of investments in factories operating in GCC countries by the end of 2013. 

Chemical and petrochemical products manufacturing accounted for the biggest amount of investments, $220.3bn (59.6% of the total investments) with an average growth rate of 21.7% over five years. Ranked second, the basic metals industry received investments worth $51.6bn (14% of the total) with an average growth rate of 19.6%. 

Construction metals, transport and other industries received investments worth $34.6bn (9.4% of the total investments) with an average growth rate of 23.6%. The building materials sector’s investments stood at almost $34.5bn (9.3% of the total investments) with an average growth rate of 13.5%, the Goic report said.

The report further indicated that food products, beverages and tobacco received almost $18.1bn investments (4.9% of the total) with an average growth rate of 10%. The paper industry, printing and copying got nearly $5.4bn investments (1.5% of the total) with an average growth rate of 11%. Textile, clothing and leather products industry gathered nearly $2.6bn (0.7% of the total) with an average growth rate of 6.4%. 

The furniture sector received investments worth $1.7bn (0.5% of the total investments) with an average growth rate of 9.6%. Wood and wood products (except furniture) got nearly $0.68bn (0.2% of the total investments) with an average growth rate of 4.8% for five years. 
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. 

As for labour force distribution, the Goic database revealed that the construction metals, transport and other industries sector is in the lead, employing 371000 (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%. Saudi Arabia ranked first in industrial investments in the GCC with a 54.2% share, followed by Qatar (22.2%), UAE (8.8%), Oman (6.5%), Kuwait (5.5%) and Bahrain (2.8%).