GCC industrial sector investments worth $380bn in 2014: GOIC

The Gulf Organisation for Industrial Consulting (GOIC) booth at ‘Project Qatar 2014’. According to GOIC, Qatar ranked second or 21.7% in terms of distribution of investments among GCC manufacturing industries.The Gulf industrial sector witnessed accelerated growth in 2014 as investment capital jumped to $380bn from $222bn in 2010, the Gulf Organisation for Industrial Consulting (GOIC) said.According to GOIC, Qatar ranked second or 21.7% in terms of distribution of investments among GCC (Gulf Cooperation Council) manufacturing industries, trailing behind Saudi Arabia (55.3%). Qatar was followed by the UAE (9.1%), Oman (6.2%), Kuwait (5.1%), and Bahrain (2.7%).GOIC said growth in investment capital registered a five-year compound annual growth rate (CAGR) of 14.4% as $158bn was invested in industrial ventures over the last five years and in expansion projects of existing industries.GOIC also said the GCC industrial base has witnessed a major expansion over the last five years; the number of manufacturing factories increased by 3,257 new factories from 13,035 in 2010 to 16,292 in 2014 (5.7% CAGR).“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,” GOIC said.GOIC said new factories have provided about 400,000 new job opportunities, increasing the labour force from 1.1mn in 2010 to 1.5mn in 2014 (8% CAGR). IMI Plus data also 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. Saudi Arabia ranked first in terms of number of factories (41.8%) followed by the UAE (34.5%), Oman (9.6%), Bahrain (4.8%), Qatar (4.7%) and Kuwait (4.6%). In terms of labour force, GOIC said Saudi Arabia topped the list at 56%, followed by UAE (25%), Kuwait (5.3%), Oman and Qatar (4.9%). and Bahrain (3.9%). 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, and food industries among 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,” GOIC said.A study of the sectoral structure of GCC factories end of 2014 revealed that “structural metal products, transport and other industries” ranked first compared to other sectors in terms of number of factories (4,594 factories representing 28.2% of the total factories or a five-year CAGR of 6%). The sectoral structure of the distribution of investments on factories operating in GCC countries end of 2014 revealed that the manufacture of chemical and petrochemical products ranked first in terms of investments, with about $220.2bn representing 57.9% of the total investments in operating factories (five-year CAGR of 14.8%). The sectoral structure of labour distribution within factories operating in GCC countries end of 2014 revealed that the manufacture of structural metal products, transport, and other industries came in first in terms of labour force (409,000 workers representing 26.8% of the total labour force with a five-year CAGR of 8%).