GOIC: $ 15.3 billion investments in SMEs industries in 2014

“The Gulf Organization for Industrial Consulting” (GOIC) revealed that the number of small and medium- sized factories in the GCC countries was around 13480  in 2014, including 10809 small factories and 2671 medium factories.

Mr. Abdulaziz Bin Hamad Al-Ageel, secretary- general of GOIC pointed out that the total investments in small and medium industries throughout GCC countries touched $ 15.3 billion in 2014, which is the equivalent of 4.1 per cent of the total investments in the Gulf industrial sector, amounting to $ 380.1 billion. Al-Ageel noted that $ 6 billion were invested in small-scale industries and $ 9.4 billion dollars in medium industries.

GOIC relies for the classification of industries, on the uniformly invested capital standard to distinguish between the different types of gulf industries, after a thorough review of the manufacturing industry database components in the Gulf Cooperation Council states, where small industries are those that have less investments than $ 2 million, and medium sized industries are those with a capital ranging between $ 2 million and less than $ 6 million.

According to GOIC data, the small and medium-sized factories amounted in 2014 for 82.7% of the total number of factories operating in manufacturing industries. In the same context, these industries offer employment to 44.1 percent of the total industrial sector workforce in spite of the small size of investments which contributed by 4% of the total investments in the manufacturing industries.

Existing industries in the GCC countries in 2014

According to GOIC data, the number of small and medium- sized factories in the GCC countries was around 13480 in 2014, including 10809 small factories and 2671 medium factories. These factories represent 82.7 per cent of the total number of manufacturing industries in the GCC estimated to a total of 16292 factories.

Total investments in small and medium industries was up to $15.3 billion, just 4.1% of the total investments in the Gulf industrial sector estimated around 380.1 billion dollars in 2014. $6 billion of these investments were in small-scale industries and $ 9.4 billion in medium industries.

As for the workforce, small and medium industries offered employment for 674,933 workers or 44.1 per cent of the total number of workers in manufacturing industries, which recruit roughly 1.5 million workers. Small industries have recruited 28.7 per cent of the total employees while medium industries recruited 15.5 per cent.

Number of factories, investments and employment in small and medium-sized industries, distributed according to the economic activity

According to GOIC, small and medium industries are distributed numerically on all industrial activities, but they are largely concentrated on the activity of construction metals, transportation and other industries with 3683 factories constituting 27 per cent of the total number of small and medium- sized factories. The production of non-metallic material industry, that is building materials, came in second place with about 2297 plants accounting for nearly 17 per cent of the total number of small and medium- sized factories, followed by the food and beverage industries and rubber and plastics products with 11 per cent and the remaining industrial activities with smaller percentages.

In terms of accumulated capital, structural metals manufacturing, transportation and other industries came first with $ 3.9 billion, accounting for about 25 cent of the total investments in small and medium- sized industries. The building materials industry came in second place with $ 3.2 billion as the size of cumulative investment in 2014 was about $ 3.2billion, or 21%, followed by food products and beverages industry with $ 1.9 billion, amounting for 13 per cent of the total investments, followed by the rubber and plastics industry with $ 1.7 billion amounting to10.8 per cent, followed by the rest of the industries at less percentages.

Distribution of small and medium factories in the GCC by the industrial activity- 2014

As for the number of employees, construction metals, transportation and other industries ranked first with 184 000 workers accounting for 27 per cent of the volume of workers in small and medium-sized industries. Building materials industry came in second place with 118,000 workers forming 17 per cent of the total number of workers in small and medium-industries, followed by food products and beverages industry with 71 thousand workers and 10 per cent, then manufacturing of rubber and plastic products with 65 thousand workers and 53 per cent, followed by the rest of industries with less percentages.