Industry

Dubai: Industry holding firm

Representing the first step in Dubai's policy of economic diversification, launched in the 1970s, industry continues to play an important if reduced role in the emirate's economy. From relatively small beginnings, Dubai's industrial base has expanded to include chemicals production, textiles, aluminium, building materials, food processing, machinery and fabricated metals products. According to a report from the UAE Ministry of Economy, the manufacturing sector's share of non-oil GDP fell slightly from 20 per cent in 2001 to 18.8 per cent in 2006. However, this does not so much reflect falling industrial output as it does the increasing role played by other sectors of the economy.

Qatar: Industrious Emirate

Qatar's long standing policy of diversifying its economy is bearing fruit, with the country's industries making greater contributions to Gross Domestic Product (GDP), increasing their share of export earnings and offering employment opportunities. Directly or indirectly, most of Qatar's industrialisation process is dependent on the country's massive reserves of natural gas - the third largest in the world. Gas either provides the power source used to fuel much of Qatar's industrial plants or serves as the raw feedstock for industries such as the petrochemical, plastics and fertiliser sectors.

Gulf plastic industries sector at US$5 billion

A group of industrialists expressed optimism for the future of the plastic industries sector in the UAE and throughout GCC member-states over the coming period. Sector investments within the Gulf bloc exceed US$5 billion (AED18.3 billion). The experts gave their positive estimates in spite of the indirect impact of the international financial crisis on regional markets, pointing out that demand for plastic products in the Gulf edged up by 20 per cent last year.

CI Capital launches a SME Industrial Fund

HE Mr. Rasheed M. Rasheed, Minister of Trade and Industry, witnessed the signing of a Memorandum of Understanding between CI Capital Holding (CICH) and the Industrial Modernization Center (IMC) to launch Egypt's first industrial SME fund under the name of the "SME Industrial Fund". The Fund’s sponsors are the Commercial International Bank (CIB), CI Capital Holding (CICH), CIB’s investment banking arm and the fund’s manager, and the Industrial Modernization Center (IMC). The fund's target size is E£250 million. As sponsors, CIB/CICH and IMC will provide seed capital representing 10 per cent of the fund's capital each. The remaining capital will be raised from Egyptian and regional institutional and private investors.

Textiles makers urge for protective measures

Textiles makers have discussed proposals to request the government to impose protection measures against imports of textiles products to help local manufacturers stand up against the competition. Their discussions unveiled plans that will see imported products receive large subsidies from the governments compared with subsidies to local producers. Hamada al-Kalioubi, head of the textiles industry chamber, said the members’ meeting discussed methods to combat smuggling at free zones, noting that they sent memos to the Minister of Investment to clamp down on smugglers.

MEED Report forecasts promising long-term outlook for the Middle East steel market despite short-term challenges

After five years of strong growth, the collapse in global commodity prices in the second half of 2008 and the sharp slowdown experienced in the Middle East construction sector have cast long shadows over the regional steel industry, according to Middle East Steel 2009, a report published by MEED Insight. "With high stockpiles, particularly in the UAE, and slackening demand, steel prices are expected to remain subdued in 2009 in the range of $500 a tonne," the report states. "This would be a third of what they were at their peak in mid-2008, but a slight increase on their recent lows recorded in November 2008."