Gulf SMIs are concentrated on chemicals, plastic and mining

The event is jointly organised by the Gulf Organization for Industrial Consulting (GOIC) and the Ministry of Energy and Industry in cooperation with Qatar Chamber of Commerce and Industry.

The seminar aims to supplement the industrial sector in the State of Qatar with a group of investment opportunities including the important data that helps in sound decision-making in investment. According to H.E. Dr. Lulwa bint Abdullah al-Misnad, Assistant Secretary General for Industrial Promotion and Investment in GOIC, the seminar focuses on SMIs.

Experts will present technical presentations to introduce the kind of technologies required for the projects in a facilitated manner. Besides, the seminar provides participants with the opportunity to meet with different participants such as investors, financiers and agencies working in industrial development and licensing. Participants will receive profiles of investment opportunities for which GOIC can prepare feasibility studies.

Dr. al-Misnad also added that the seminar agenda includes three work sessions in which 29 investment opportunities in different industrial fields will be introduced. The total investment in all proposed opportunities is some QR 680m and creates, in case of implementation, 980 job opportunities. The investment volume of the proposed projects ranges between QR 544,000 and QR 426m. The internal rate-of-return on capital varies starting from 18% to reach 36%; while workforce ranges between 7 and 135 workers.

In addition, Dr. al-Misnad noted to the important role of the private sector in the State of Qatar in the industrial field, especially in SMIs sector, indicating that the number of SMEs in Qatar was 506 enterprises in 2007, thus representing 91% of the total number of industrial enterprises, and investing $463.5m, i.e. 3.9% of the total industrial investments in the state. Workforce in those enterprises is 21,045 workers, thus representing 63.2% of the total workforce in the industrial sector.

According to data from GOIC, the number of SMIs in GCC member states reached some 10,000 mainly concentrated in the sectors of chemicals and plastic, as well as non-metal mining industries (except Petroleum). SMIs represent 86.3% of the total number of Gulf factories. The volume of investment in this sector is some $10.8 billion and manpower is some 464,490 worker.

In addition, SMIs have achieved growth in terms of number; from 7000 factories in 2002 to some 10,000 factories in 2007, an average growth rate of 43% and an average annual growth rate of 7.4%. The United Arab Emirates achieved the highest rate in term of the number of factories in this sector by having 3,828 factories in 2007, compared to 2,282 factories in 2002, a growth rate of 68% during the same period. The Kingdom of Saudi Arabia ranked second, as SMIs increased from 2,546 to 3,323 at a growth rate of almost 30% during the same period.

GOIC presented in 34 seminars over 370 investment opportunities. Amongst them are the opportunities that will be introduced in the coming seminar in Doha, which comes within the activities of investment opportunities program adopted by GOIC since 1987. The process of opportunities' selection is subject to a number of criteria such as relying on advanced techniques and modern production methods; together with being industrially experimented and feasibility-proved.

Attention to environmental concern is taken into consideration in terms of not using hazardous materials or producing harmful residues. Also they should not be labor-intensive but rather rely on skilled labor, suit the needs and requirements of Gulf industry and depend on raw materials and other production inputs available in the region. In addition, there is the willingness of owners to transfer of technology and training of technical personnel necessary to operate as well as their desire to establish joint ventures with Gulf investors.