DUBAI, 21 November 2004 — The Gulf Cooperation Council (GCC) countries must concentrate on developing a stronger manufacturing base in order to survive, according to Dr. Hischam El-Agamy, director of corporate development, IMD International, Switzerland.
Dr. El-Agamy addressed delegates at the inaugural event of the Gulf Construction Conference Week 2004, which runs until Nov. 24 at Dubai’s Emirates Towers Hotel. He called for more investment, both locally and in terms of foreign direct investment (FDI) in order to build a stronger manufacturing base and halt reliance on imports. He quoted figures that revealed annual imports to the GCC are equivalent to the total combined imports of India and Russia. “Imports at this level are simply not sustainable. Unemployment is rising across the GCC and the Arab world, gross domestic product (GDP) is stagnant, populations are expanding, non-oil exports remain small, and productivity is low, despite increases in education,” he said.
Dr. El-Agamy suggested attracting more FDI through smart infrastructure and smart reform, and advocated the creation of “clusters of light industry.” While acknowledging Dubai is a good model of an economy diversifying away from reliance on energy revenues, he suggested there was a lot more to be done to ensure the long-term sustainability of the GCC. “We must learn to complement each other and not compete. There needs to be a move away from the agency model of business in the region, and a strong move toward building a healthy sustainable manufacturing base.
“Education needs to build stronger links with business and we must facilitate stronger venture capital interest and more efficient processes to enable existing small to medium enterprises to grow. The region needs to move with a new mind set and to avoid viewing cooperation in terms of a ‘win-lose’ mentality,” he added.
The Gulf Construction Conference Week is a series of parallel conferences, which present an ideal opportunity to raise awareness of current trends and issues on the part of industry decision makers, such as owners, contractors, architects and consultants.
Dr. El-Agamy is one of almost 70 global speakers at the event, who will provide the region’s booming construction players with the vital tools they need to survive in a rapidly changing environment.
The lively event kicked off with a two-day conference on Aluminum and Glass, which will be followed over the next four days by forums on Insulation, Concrete Technology and Corrosion Protection and Heating, Ventilation and Air Conditioning.
Keynote speaker Khalid M. AlFuhaid, general manager of Saudi Arabia’s Aluminum Products Company (ALUPCO), suggested that the region’s aluminum industry should not follow traditional, accepted strategies, but strive to become more creative, in order to weather globalization, and problems in supply versus demand.
He said the GCC aluminum production sector is heading toward 100 percent over capacity by 2014 — “and it’s a race that will have no winner.” “With such overcapacity, levels of competition are high across the region, so it is time to think hard about how we can add value, how we can continue to compete on world markets.” He also suggested governments could take firmer steps toward ensuring product integrity, quality and safety.
Gulf Construction Conference Week is staged in association with Gulf Construction magazine.
