Industrialization-mago Presentation- Mr Mago

8/8/2019 Industrialization-mago Presentation- Mr Mago

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INDUSTRIALIZATION

IN

MIDDLE EAST

Presented by

Just & Fair Consultants

Industrial Consultants & Engineers(A Member Firm of AGN International)

P.O. Box: 124600, Dubai U.A.ETel: +971 4 3354233, Fax: +971 4 3351711

Email: [email protected]: www.jfc-group.com


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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 socialchange 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 theirperception of nature.


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INDUSRIALISATION HISTORY - COUNTRIES

The industrial revolution had started first in Britain in the 19th centurywhich spread to other countries during 19th and 20th century.

This created major changes in agriculture, manufacturing andtransportation which had a profound effect on the socio-economic andcultural conditions in Britain and other countries.

The worlds most industrialized democracies of United States ofAmerica, Japan, Canada, France, Germany, Italy, United Kingdom andRussia are popularly called Group of Eight (G8) Nations.

Together, the G8 countries represent about 65% of the Gross WorldProduct, the majority of global military power (seven are in the top 8nations 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 economicoutput measured by gross domestic product


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GDP & INDUSTRIAL GROWTH IN MOSTINDUSTRIALIZED NATIONS

COUNTRIES GDPin bln USD

Per capitaincomein USD

Ind. GrowthRate (%)

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%


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POPULATION & LABOUR FORCE IN MOSTINDUSTRIALIZED NATIONS

COUNTRIESPopulation(In Millions)

Labour Force(In Millions)

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


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INDUSTRIALIZED Vs DEVELOPINGCOUNTRIES

The industrialized country is called & known as developedcountry. The concept of Industrial Countries" is to be preferredto 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 theindustrial countries but only 10% in the developing ones.

Agriculture employs 61% of the working population indeveloping countries but a mere 10% in the industrial ones.

The service sector occupies a great proportion of the workforcein industrial countries, which is 57%, while it is only 23% in thedeveloping countries.


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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


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OUTLOOK OF INDUSTRIALIZED ECONOMIESVs ECONOMIES IN THE REGION

The growth momentum of the world economy is clearly slowingfrom the second half of 2008 and growth is likely to remainsubdued during 2009 and few years thereafter.

Barring major catastrophes affecting the world economy, amodest upturn is likely to start in the second half of the year2009 in response to additional policy stimulus in industrialcountries, particularly in the US, Euro area and Japan.

Consumption demand has played an important role in the pastfew 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 atmuch faster pace.

GCC countries and Iran in Middle East are implementing bigagenda for substantial industrialization and growth.


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DRIVING FACTORS OFINDUSTRIALIZATION

Liquid Capital

Natural Resources

Infrastructure

Technological Advancement

Cheap Labor

Sources of Energy

Markets New forms of Business Organization


10/22

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


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MIDDLE EAST REGION

Middle East Countries

Kuwait

Bahrain

Oman

Qatar

Saudi Arabia

United Arab Emirates

Yemen

Egypt

Turkey

Syria

Jordan

Lebanon

Iran

Iraq


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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 ($200-800

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 fornext two decades.


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MIDDLE EAST - ECONOMY

The Middle East economy is USD 3.36 Trillion economy with anaverage annual industrial growth rate of 5%.

The GCC per capita income ranks among the highest in the world dueto its enormous oil and gas wealth.

Having high per capita income of USD 20,000 on an average while

Qatars 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

worlds proven oil resources.

The regions economy is traditionally a trade and commerce basedeconomy due to its excellent geographical location, but given the hugeresources and liquid capital, big change is expected for the drivetowards industrialization.


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POPULATION Vs LABOUR FORCE

Population Vs Labour Force

3.100.66

3.20 1.41

23.51

4.50

18.70

77.50

70.59

17.16

5.31 3.68

71.21

24.00

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

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Syr

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Jord

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Iran

Iraq

Countries

Populationin

Population

Labour Force


15/22

GDP & INDUSTRIAL GROWTH INMIDDLE EAST REGION

CountriesGDP

in bln USD

Per capita income

in USDInd. growthrate (%)

Kuwait 130 39,300 1.7%

Bahrain 25 32,100 5.2%

Oman 62 24,000 3.2%

Qatar 58 80,900 8.0%

SaudiArabia 565 23,200 2.9%

U.A.E 167 37,300 4.3%

Yemen 52 2,300 3.2%

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%


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EASE OF DOING BUSINESS- GLOBALRANKING FOR MIDDLE EAST

Ease of Doing Business- Global Rank

12 3

16 18

3746

5257

98 99 101

114

137

152

0

20

40

60

80

100

120

140

160

Sina

pore

NewZe

alan

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Unite

dstates

SaudiA

rabia

Bahr

ain

Qatar

U.A.E

Kuwait

Oman

Yeman

Lebe

non

Jordan

Egypt

Syria Ira

q


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CHARACTERISTICS OF MIDDLE EASTMARKET

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


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DRIVING FACTORS FORINDUSTRIALIZATION 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


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MIDDLE EAST OUTLOOK

The Middle East countries are going to play the key role inreconstruction of the current global financial turmoil especially,the GCC Countries.

The Industrial Products sector is large and diverse in the MiddleEast, but most sector players face similar challenges.

Increased costs for oil, natural gas, steel, copper and plasticsare squeezing margins, unless offset by pricing and surchargeincreases.

There is significant pressure as competition increases,particularly from low-cost manufacturing centers such as China.


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KEY SECTORS

Building &Construction

(including interiorfurnishings)

Energy &Power

Manufacturing,Consumer goods,Pharmaceuticals,Food & BeveragesPetrochemicals in

downstream

Transport & Logisticsservices


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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


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THANK YOU

Prepared By

JUST & FAIR CONSULTANTSIndustrial, Business & Management Consultants

(A Member Firm of AGN International)

DUBAI ABU DHABI# 3 Oud Metha Building, 1102, Al Ahlia Insurance Building,8/319, Oud Metha Area, Hamdan Street,P.O. Box 124600 P.O. Box 29236Dubai- UAE. Abu Dhabi, UAE.Tel: +971 4 3354233 Tel: +971 2 6260480Fax: +971 4 3351711 Fax: +971 2 6260490

Email: [email protected], Email: [email protected] : www.jfc-group.com

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Industrialization-mago Presentation- Mr Mago

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