The development of the industrial sector has become a major goal for the Arab Gulf states, after they made great strides in the field of industrial cooperation and coordination between them, and worked to support everything that would lead to enhancing the continuation of industrial development in the GCC countries.
Partnership in the industrial sector is not limited to building factories and companies, but has expanded into partnership in the production and manufacture of cars and various military and electronic industries.
With the recent Gulf summit in Saudi Arabia folding the page of differences between the Gulf states, it is expected that the next phase will witness cooperation in all fields, foremost among which is the industries side, and the completion of joint projects that were suspended after the Gulf crisis.
- Omani Qatar Bus
The partnership between the members of the Gulf Cooperation Council has been going on for years, the latest of which was the announcement of an Omani company being ready to produce the first bus from its factory located in the Special Economic Zone of Duqm in the Sultanate, in light of the partnership between the Sultanate and Qatar.
The CEO of Karwa Motors in Oman, Ibrahim bin Ali Al Balushi, said on April 24, 2021: The company “plans to produce at least 200 buses during the current year, and the aforementioned buses will be of the advanced school bus type. This type of bus will suffice, as it will transfer later to city buses and long-line buses.
Al-Balushi explained that "the production capacity of the factory in its early stages amounts to 500 buses annually, but the annual production after the first stage will range between 500 and 700 buses."
He emphasized that the production of the new bus, which bears the trademark "KARWA", on which the inscription "Made in the Sultanate of Oman" is written, is not an easy matter, indicating that the company has prepared 40 internal work stations in which the employees form and manufacture the bus and install its various parts, paint and check its quality.
The agency indicated that the factory is one of the strategic investments between Oman and Qatar, through the Oman Investment Authority's contribution with a 30% stake, and the Qatar Transportation Company with a 70% share.
- Saudi-Emirati partnership
On February 22, 2021, the UAE Economic Balance Council and the General Authority for Military Industries in Saudi Arabia signed a memorandum of understanding in the field of military industries.
The Memorandum of Understanding aims to build partnership and complementarity relations between the two countries, exploit capabilities related to the military industries sector, define joint projects in the field of military industries, and discuss a working mechanism to implement these projects.
In addition, in November 2020, the Saudi company "Boss Bunny Games" signed an agreement with the Emirati production studio "Lamtara" to develop and publish a set of electronic games inspired by Lamtara's works, starting with the popular series Freej.
The Saudi company says: The partnership "will contribute to strengthening the Saudi-Emirati economic cooperation in the digital field, and to acquire the share that the region as a whole, and the Gulf region in particular, occupies in the electronic games industry."
- Below the ambitious level
Economic analyst Wafiq Salih believes that the joint Gulf industrial projects are still below the level of ambition, pointing out that the Gulf capital in the Gulf industrial projects does not represent much of what exists.
He believes that the volume of joint Gulf investments finds them more interest than industries, which he said, "They are supposed to be financed more so that the Gulf countries can diversify their production as an alternative to oil."
He added to "Al Khaleej Online": "If we take a quick look at the reality of the Gulf-Gulf joint industrial projects, it will inform us that these projects are less than the aspirations and expectations confirmed by the joint Gulf work agreements since its establishment."
But he believes that after the economic crisis and the Corona pandemic, "there is a Gulf trend to move towards developing joint industries, especially after the end of the Gulf crisis, which may have been a major cause and obstacle in this aspect over the past years."
- Gulf partnership
The countries of the Cooperation Council sought to increase the contribution of the industrial sector to their GDP to 25% during the year 2020, compared to only 10% in 2015, as Gulf industrial investment is expected to increase, especially with the Corona crisis.
The black gold countries are trying to enter new industries that achieve great and rapid economic feasibility for them, away from the oil sector on which they have relied over the past years, and at the forefront of that is joint industries.
The Director General of the Public Authority for Industry in Kuwait, Abdul Karim Taqi, says that the Gulf Organization for Industrial Consulting of the Cooperation Council has assigned the Industrial Committee, under the umbrella of the Secretariat, to develop a clear strategic plan, and to restructure the organization to reach the goals for which the organization was established.
He explained in his statement to reporters, early last year, that the committee "aims to create a common industrial system among the countries of the Cooperation Council, and to create joint industrial projects through the idea of the platform, which is the creation of industrial activities in which more than one Gulf country can participate, and to divide an industrial system on Various countries of the Cooperation Council.
He added, "A Gulf state cannot establish huge industries through the platform alone. More than one country must participate in these projects, especially since the single market cannot meet the investment expenses of these industries."
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