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4/ 380 billion USD Worth of Investments in GCC Industries.

Muscat, Oct 3 (ONA) ---- The Gulf Organization for Industrial Consulting (GOIC) data revealed that the GCC industrial base 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 CAGR (compound annual growth rate) of 5.7%). This means that 3.257 factories were set up and became operational during this short period of time.

GOIC stated that 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. In a parallel development, invested capital jumped from approximately 222 billion USD in 2010 to about 380 billion USD in 2014 (a 5-year CAGR of 14.4%). Approximately 158 billion USD 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 thousand workers in 2010 to about 1.529 thousand 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. 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. In fact, manufacturing industries play a critical role in achieving strategic and economic objectives of these countries. The Distribution of Factories Studying the sectoral structure of factories operating in GCC countries at end of 2014 revealed that "structural metal products, transport and other industries" was ranked first compared to other sectors in terms of number of factories (4.594 factories representing 28.2% of the total factories with a 5-year CAGR of 6%). The second sector was chemical and petrochemical products with 3.365 factories representing 20.7% of the total operating factories (a 5-year CAGR of 6.2%). The third was the building materials manufacture sector with 2.858 factories representing 17.5% of the total operating factories (a 5-year CAGR of 7.6%). The fourth sector was the food products, beverages and tobacco with 1.965 factories representing 12.1% of the total operating factories (a 5-year CAGR of 5.2%), followed by the furniture manufacture sector with 1.062 factories representing 6.5% of the total operating factories (a 5-year CAGR of 4.5%). The manufacture of paper and paper product, printing and reproduction of recorded media sector came in sixth with 969 factories representing 5.9% of the total operating factories (a 5-year CAGR of 3.5%), followed by the manufacture of textiles, wearing apparel, leather and related products with 730 factories representing 4.5% of the total operating factories (a 5-year CAGR of 1.1%). The eighth sector was the manufacture of wood and wood products -- except furniture -- with 437 factories representing 2.7% of the total operating factories (a 5-year CAGR of 3%), followed by the manufacture of basic metals with 312 factories representing 1.9% of the total operating factories (a 5-year CAGR of 12.8%). 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 was ranked first in terms of investments, with about 220.2 billion USD representing 57.9% of the total investments in operating factories (a 5-year CAGR of 14.8%). The second was the basic metals industry with about 52.5 billion USD representing 13.8% of the total investments in operating factories (a 5-year CAGR of 11.2%), followed by the building materials manufacture with approximately 37.3 billion USD representing 9.8% of the total investments in operating factories (a 5-year CAGR of 13.6%). The fourth sector was structural metal products, transport and other industries with about 35.7 billion USD representing 9.4% of the total investments in operating factories (a 5-year CAGR of 20.4%). The fifth was food products, beverages and tobacco with about 23.8 billion USD representing 6.2% of the total investments in operating factories (a 5-year CAGR of 14.8%). The sixth sector was the manufacture of paper, paper products, printing and reproduction of recorded media with 5.6 billion USD representing 1.5% of the total investments in operating factories (a 5-year CAGR of 8%), followed by the manufacture of textiles, wearing apparel, leather and related products with about 2.6 billion USD representing 0.7% of the total investments in operating factories (a 5-year CAGR of 5.3%). The eighth sector was the manufacture of furniture with approximately 1.8 billion USD representing 0.5% of the total investments in operating factories (a 5-year CAGR of 7%), followed by the manufacture of wood, wood products except furniture with about 0.7 billion USD representing 0.2% of the total investments in operating factories (a 5-year CAGR of 9.8%). 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. (about 409 thousand workers representing 26.8% of the total labour force with a 5-year CAGR of 8%). The second sector was the manufacture of chemical and petrochemical products with approximately 300 thousand workers representing 19.6% of the total labour force (a 5-year CAGR of 7.8%). The third was the manufacture of building materials with approximately 260 thousand workers representing 17% of the total labour force (a 5-year CAGR of 8.7%), followed by the manufacture of food products, beverages and tobacco with approximately 239 thousand workers representing 15.6% of the total labour force (a 5-year CAGR of 10.6%). The fifth sector was the manufacture of textiles, wearing apparel, leather and related products with approximately 89 thousand workers representing 5.8% of the total labour force (a 5-year CAGR of 0.6%), followed by the manufacture of paper, paper products, printing and reproduction of recorded media with approximately 74 thousand workers representing 4.9% of the total labour force (a 5-year CAGR of 5.1%). The seventh sector was the manufacture of basic metals with about 74 thousand workers representing 4.8% of the total labour force (a 5-year CAGR of 15.4%), followed by the manufacture of furniture with approximately 59.5 thousand workers representing 3.9% of the total labour force (a 5-year CAGR of 4.4%). The last sector was the manufacture of wood and wood products except furniture with approximately 26 thousand workers representing 1.7% of the total labour force (a 5-year CAGR of 4.8%). In term to the number of Factories, the Kingdom of Saudi Arabia (KSA) ranked first to close at (41.8%), the United Arab Emirates (UAE) ranked second with (34.5%), followed by the Sultanate of Oman with (9.6%), Kingdom of Bahrain ranked the fourth with (4.8%), the State of Qatar ranked the fifth with (4.7%) and State of Kuwait ranked sixth with (4.6%). In terms of investment volume, KSA ranked first with (55.3%), followed by Qatar (21.7%), UAE (9.1%), the Sultanate (6.2%), Kuwait (5.1%) and Bahrain (2.7%). KSA ranked first in terms of labour force (56%), followed by UAE (25%), Kuwait (5.3%), the Sultanate and Qatar (4.9%) and Bahrain (3.9%).

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Publication:Oman News Agency
Date:Oct 3, 2015
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