1. INDUSTRIALIZATION IN MIDDLE EAST
Presented by
Just & Fair Consultants
Industrial Consultants & Engineers
(A Member Firm of AGN International)
P.O. Box: , Dubai – U.A.E
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2. WHAT IS INDUSTRIALIZATION?
Industrialization is a process of social and economic change whereby a human group is transformed from a pre-industrial society into an industrial one.
It is a part of a wider modernization process, where social change and economic development are closely related with technological innovation, particularly with the development of large-scale energy and metallurgy production.
Industrialization also introduces a form of philosophical change, where people obtain a different attitude towards their perception of nature.

3. INDUSRIALISATION HISTORY - COUNTRIES
The industrial revolution had started first in Britain in the 19th century which spread to other countries during 19th and 20th century.
This created major changes in agriculture, manufacturing and transportation which had a profound effect on the socio-economic and cultural conditions in Britain and other countries.
The world’s most industrialized democracies of United States of America, Japan, Canada, France, Germany, Italy, United Kingdom and Russia are popularly called Group of Eight (G8) Nations.
Together, the G8 countries represent about 65% of the Gross World Product, the majority of global military power (seven are in the top 8 nations for military expenditure), and almost all of the world's active nuclear weapons.
The eight countries making up the G8 represent about 14% of the world population, but they account for 65% of the world's economic output measured by gross domestic product

4. GDP & INDUSTRIAL GROWTH IN MOST INDUSTRIALIZED NATIONS
COUNTRIES
GDP
in bln USD
Per capita income
in USD
Ind. Growth
Rate (%)
United States
13,780
45,800
-1.70%
Japan
4,272
33,500
1.30%
Germany
2,807
34,100
5.20%
United Kingdom
2,130
35,000
0.50%
Russia
2,097
14,800
7.40%
France
2,075
32,600
1.80%
Italy
1,800
30,900
0.60%
Canada
1,271
38,600
0.30%

5. POPULATION & LABOUR FORCE IN MOST INDUSTRIALIZED NATIONS
COUNTRIES
Population
(In Millions)
Labour Force
United States
303.82
153.10
Japan
127.29
66.69
Germany
82.37
43.54
United Kingdom
60.94
30.89
Russia
140.70
75.10
France
64.06
27.91
Italy
58.15
24.74
Canada
33.21
17.95

6. INDUSTRIALIZED Vs DEVELOPING COUNTRIES
The industrialized country is called & known as developed country. The concept of “Industrial Countries" is to be preferred to “Developed Countries".
There is a striking difference in the employment figures when comparing the industrial and developing countries.
The industrial sector accounts for 33% of the workforce in the industrial countries but only 10% in the developing ones.
Agriculture employs 61% of the working population in developing countries but a mere 10% in the industrial ones.
The service sector occupies a great proportion of the workforce in industrial countries, which is 57%, while it is only 23% in the developing countries.

7. ECONOMIES OF INDUSTRIAL SOCIETIES
The Urbanization of Production
Rise in Productivity leads to rise in living standard.
The Shift from Labor-Intensive to Capital-Intensive Industries
Changes in the Labor Force
The Rise of Market Economies
Moves Toward Mixed Economies
Evolution of the Modern Corporation

8. OUTLOOK OF INDUSTRIALIZED ECONOMIES Vs ECONOMIES IN THE REGION
The growth momentum of the world economy is clearly slowing from the second half of 2008 and growth is likely to remain subdued during 2009 and few years thereafter.
Barring major catastrophes affecting the world economy, a modest upturn is likely to start in the second half of the year 2009 in response to additional policy stimulus in industrial countries, particularly in the US, Euro area and Japan.
Consumption demand has played an important role in the past few years in supporting economic growth in industrial countries, particularly in the US.
The upturn in industrial countries is projected to further strengthen in 2009 as uncertainties in the world economy abate.
In contrast to the substantial slow down in industrialized countries, economies of Middle East world likely to grow at much faster pace.
GCC countries and Iran in Middle East are implementing big agenda for substantial industrialization and growth.

9. DRIVING FACTORS OF INDUSTRIALIZATION
Liquid Capital
Natural Resources
Infrastructure
Technological Advancement
Cheap Labor
Sources of Energy
Markets
New forms of Business Organization

10. RESULTS OF INDUSTRIALIZATION
Overall economic growth.
Rapid growth of cities and increased immigration
New emphasis on Scientific Research and Development
Beginning of Mass Marketing
Employment opportunities and better living conditions
Exploitation of natural resources

11. MIDDLE EAST REGION Middle East Countries Kuwait Bahrain Oman Qatar
Saudi Arabia
United Arab Emirates
Yemen
Egypt
Turkey
Syria
Jordan
Lebanon
Iran
Iraq

12. Industrialization in Middle East
Given opportunities and emerging economic factors, the Middle East region is being considered for investment and commerce especially the GCC Countries.
Although major multinationals are in the region, global midsized companies ($ million) are expanding in this region.
Region is currently stable and governments are investing heavily in infrastructure.
Real Estate has been the driver of growth in the middle east which has resulted in industrial expansion as well.
Most governments in GCC and Gulf are keen in developing huge industrial base and there is clear shift in the policy.
Petro Dollar surplus and thrust for value addition by using energy resources for down stream projects would lead to huge industrialization which can sustain the growth for next two decades.

13. MIDDLE EAST - ECONOMY
The Middle East economy is USD 3.36 Trillion economy with an average annual industrial growth rate of 5%.
The GCC per capita income ranks among the highest in the world due to its enormous oil and gas wealth.
Having high per capita income of USD 20,000 on an average while Qatar’s per capita income of USD 80,900 is the highest in the world.
The GCC nations mainly depend on oil & gas and hold almost 42% of world’s proven oil resources.
The region’s economy is traditionally a trade and commerce based economy due to its excellent geographical location, but given the huge resources and liquid capital, big change is expected for the drive towards industrialization.

14. POPULATION Vs LABOUR FORCE

15. GDP & INDUSTRIAL GROWTH IN MIDDLE EAST REGION
Countries
GDP
in bln USD
Per capita income
in USD
Ind. growth
rate (%)
Kuwait
130
39,300
1.7%
Bahrain 25
32,100
5.2%
Oman 62
24,000
3.2%
Qatar 58
80,900
8.0%
Saudi Arabia
565
23,200
2.9%
U.A.E
167
37,300
4.3%
Yemen 52
2,300
Egypt
404
5,500
7.5%
Turkey
888
12,900
5.4%
Syria 87
4,500
2.5%
Jordan 28
4,900
7.7%
Lebanon 42
11,300 -
Iran
753
10,600
4.8%
Iraq
102
3,600
7.9%

16. EASE OF DOING BUSINESS- GLOBAL RANKING FOR MIDDLE EAST

17. CHARACTERISTICS OF MIDDLE EAST MARKET
Young societies
Rapid economic growth
Continuous inflow of foreign capital
High standard of living
Countries competing with each other
Economic link between Europe and Asia

18. DRIVING FACTORS FOR INDUSTRIALIZATION IN M.E.
Population growth
Diversification from oil and gas
Regional growth/Intra Port trade
World trade organization membership
Oil and Gas
Tourism
Freehold ownership for expatriates

19. MIDDLE EAST OUTLOOK
The Middle East countries are going to play the key role in reconstruction of the current global financial turmoil especially, the GCC Countries.
The Industrial Products sector is large and diverse in the Middle East, but most sector players face similar challenges.
Increased costs for oil, natural gas, steel, copper and plastics are squeezing margins, unless offset by pricing and surcharge increases.
There is significant pressure as competition increases, particularly from low-cost manufacturing centers such as China.

20. KEY SECTORS Energy & Power
Building & Construction (including interior furnishings)
Manufacturing, Consumer goods, Pharmaceuticals, Food & Beverages Petrochemicals in downstream
Transport & Logistics services

21. POTENTIAL SECTORS IN MIDDLE EAST
Petrochemical & Energy Sectors
Electricity and Power Generation
Manufacturing of FMCG, Pharmaceuticals & others.
Banking & Islamic finance
Environmental Equipment & Services
Automotives
Railroad & Locomotive Equipment
Medical Equipment
Hotel & Restaurant Equipment

22. THANK YOU JUST & FAIR CONSULTANTS
Prepared By
JUST & FAIR CONSULTANTS
Industrial, Business & Management Consultants
(A Member Firm of AGN International)
DUBAI ABU DHABI
# 3 Oud Metha Building, , Al Ahlia Insurance Building,
8/319, Oud Metha Area, Hamdan Street,
P.O. Box P.O. Box 29236
Dubai- UAE. Abu Dhabi, UAE.
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