DUBAI, 23 October 2007 — Gulf Cooperation Council (GCC) countries are investing heavily in their industrial manufacturing sectors, stimulated by booming economic growth which is fueling demand for finished products and materials. According to research company Proleads, the total value of all non-oil and gas industrial projects in the region currently exceeds $115 billion.
Gulf demand for manufacturing machinery and tools is estimated to be growing at around 22 percent annually, MEMEX said in a statement yesterday in announcing the launch of Middle East Manufacturing Exhibition to be held at the Abu Dhabi National Exhibition Center (ADNEC) on Dec. 9-12, 2007.
It said that Saudi Arabia, already a major manufacturer, has an estimated total value of active industrial projects well in excess of $50 billion. The Kingdom has started to accelerate the growth of its industrial base with numerous industrial zones being created. King Abdullah Economic City is now being developed outside of the Red Sea port of Jeddah, at an initial investment of $26.6 billion.
Across the causeway, with $5 billion in investment, Bahrain is planning a variety of industrial initiatives in the metals sector with 15 projects in the aluminum sector valued at $142 million. It is also witnessing wide-scale development in the steel sector with key projects such as Stainless Steel Company’s cold rolled stainless steel mill worth more than $200 million.
In the United Arab Emirates alone, just over $25 billion is currently being invested in manufacturing machinery, facilities and equipment. Abu Dhabi is planning a series of industrial cities offering huge incentives such as 100 percent foreign ownership and tax-free status.
The first Industrial City of Abu Dhabi (ICAD 1) includes economic zones for base metals, building and construction products, electronics, plastics manufacturing and automotive industries and has already attracted $2.99 billion in investment. ICAD 2 has already attracted nearly $1.63 billion with new projects including air conditioning water chillers, architectural hardware and aluminum windows and doors manufacturing. Dubai Industrial City is also targeting $2 billion in investment over the next five years.
Qatar is looking to bring in nearly $15 billion in investment to drive its industrial sector.
MEMEX will provide a platform for regional manufacturers to meet local, regional and international suppliers. In addition, organizations looking to establish a base in the region will also meet key industry players and decision-makers, such as the Higher Corporation for Specialized Economic Zones (ZonesCorp).
Trevor Punt, group exhibition director, IIR Middle East, said “the manufacturing sector is currently experiencing annual growth rates in excess of 22 percent. This new wave of manufacturers are catering to the new economy providing machinery and tools for industries related to construction, shipbuilding, infrastructure, power generation and even retail. The traditional oil and gas and associated downstream industries are still vitally important to the regional economy but it is the success of diversification that is driving the non-oil growth.”
Running alongside the MEMEX exhibition are two concurrent conferences, the Middle East Strategic Manufacturing Summit and Rotate, a conference designed to improve the performance of all types of rotating equipment. Key conference themes include creating successful public/private partnerships; attracting FDI and assessing new sources of investment capital. Workshops and case studies examining product innovation and productivity and manufacturing in the community will also be held.
