The Gulf Organization for Industrial Consulting (GOIC) revealed that the United Arab Emirates and Bahrain were the leading GCC countries in terms of the ratio of small and medium enterprises to the total number of industrial firms: about 85.5% in the UAE and 81.8% in the Kingdom. In comparison, the total number of SMEs in all GCC countries combined is 83.6% of the total number of industrial enterprises.

 

GOIC made this statement during its participation at the International Exhibition for Small and Medium Industries from the 17th till the 19th of November at Doha Exhibition Centre.

During an interview, GOIC Secretary General Mr. Abdulaziz Bin Hamad Al-Ageel stated that the total investments in these industries throughout GCC countries was up to 14 billion US dollars (nearly 4.2% of the total investments in the Gulf industrial sector in 2012). According to Al-Ageel, these figures are very low and need to be reinforced just like in advanced countries.

 

Al-Ageel clarified that SMEs represent 90% of the total number of businesses in the UAE; they offer job opportunities to 85% of the labour force. Nevertheless, their contribution to the GDP is limited to approximately 30%. When it comes to Saudi Arabia, Al-Ageel continued, SMEs represent about 93% of the total number of enterprises and employ 27% of the labour force. The Secretary General said: “Saudi SMEs’ contribution to the Saudi GDP is limited to 33%, which is a relatively weak contribution compared to the growth of the Saudi diversified economy and to advanced countries where SMEs contribute with no less than 50% to the GDP.”

 

In this regard, GOIC statistics which are updated on a regular basis reflected that the number of small and medium size industries was 12.684 enterprises in GCC countries in 2012 (83.6% of the total number of industries, an undoubtedly high share). These small and medium industries offer employment to 46.1% of the total industrial sector labour force, which is average. Al-Ageel opined: “GCC countries need to increase local employment in small and medium industries to cope with unemployment and achieve development goals.”

 

Furthermore, Al-Ageel said: “SMEs play an important role in the economic and social development all over the world.

 

They broaden the base, galvanise commercial activities and offer job opportunities to citizens. Most governments realised the importance of SMEs especially after the worldwide financial crisis in 2008. Developing countries also started giving particular attention to SMEs in light of their active role in increasing productivity and economic growth, providing job opportunities and boosting GDP.”

 

Al-Ageel talked about the role of GOIC in providing continuously updated data about these industries. The data allow assessing these industries, performing a follow-up and envisioning their future in the Gulf. In fact, the Organization constantly updates its databases and makes sure they remain accurate in order to determine industries’ role in the economic development of Gulf countries.

 

Moreover, GOIC helps developing the capacities of local SMEs by meeting the needs of procurers and determining lucrative markets, businesses or investment opportunities for companies in GCC countries and Yemen. The Organization endeavours to create a link between local GCC companies and supply chains of major local and international companies. It also contributes in creating an online high quality and updated database for GCC suppliers. In addition to that, the GCC Subcontracting and Partnership Exchange (GSPX) network  - an industrial cooperation initiative suggested by GOIC and developed in collaboration with the UNIDO – plays an important role in implementing the industrial subcontracting and partnership exchange in the area of SMEs. It offers an integrated approach by creating links between all industrial subcontracting and partnership exchange centres. Al-Ageel considered that GOIC’s contribution in launching several subcontracting and partnership exchange centres in GCC countries is the seed that will lead to yielding fruitful results in the area of small and medium industries. It will also help reviving the Gulf industrial sector and boosting economic development in the region.

 

Industrial exports – the 2014 conference topic
In a related development, GOIC’s platform was visited by His Excellency Dr. Ali Bin Masoud Al-Sanidi, Omani Minister of Trade and Industry, and head of the Omani delegation.

In addition, Al-Ageel announced the upcoming 14th Conference of Industrialists organised by GOIC under the title of: “Industrial Exports: Challenges and Opportunities”. It will be held in the Sultanate of Oman between the 23rd and the 25th of March 2014. He opined that this conference comes in response to the challenges that developing Gulf industrial exports are facing such as: increasing their share of the markets, building regional distribution centres in Europe and North and South America, reorganising the supply relationship with partners in Asian markets and building new centres in the African markets.

 

Al-Ageel concluded that GOIC decided to shed light upon industrial exports in terms of challenges and opportunities in GCC countries and Yemen. The objective is to create new channels with international markets and worldwide industries in order to reinforce commercial relationships. This will also lead to laying the foundations of export trade in the Arabian Gulf to boost Gulf industrial exports to worldwide markets. The main focus should always remain reinforcing relationships between Gulf countries and allowing small and medium industries and industrial entrepreneurs to invest in export industries and establish international export projects and companies. The conference will also introduce the most important international success stories and the possibility of replicating them in GCC countries and Yemen.