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    Green Certifications: A Strategic Imperative for GCC Food Producers

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    Global Agrifood Systems Require $1.1 Trillion Annually to Achieve Sustainability Goals by 2030

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    FAO Report Highlights Severe Agricultural Land Degradation Across the Arab Region

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    Oman: Over 250 Model Farms Drive Fruit Production Growth in Dhahirah

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      UAE Launches New AI-Powered Strategic Planning Cycle Aligned with 2031 Vision

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      Middle East Gaming Market to Surpass $42 Billion by 2033, Driven by Youth Demand and Mobile Adoption

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      Emerging Trends Reshape GCC’s Rapidly Growing Retail Sector

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      Consumer Electronics Boom Continues Across GCC, Middle East

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      Qatar’s Consumer Electronics Market Set for Steady Growth Driven by Premium Demand and Digital Transformation

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          Iraq Set to Launch First Nuclear Training Reactor in Partnership with China

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              Saudi Arabia Welcomes Record 116 Million Tourists in 2024, Spending Reaches $76 Billion

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                    Iraq to Establish Four New Desalination Plants in Basra

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                    Major Road Infrastructure Upgrades Underway in Oman’s Dhofar Governorate

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                    Baghdad Metro Project Moves Forward Under New Implementation Strategy

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                      Green Certifications: A Strategic Imperative for GCC Food Producers

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                      Oman Grants Licences to 24 Integrated Aquaculture Farms in 2024

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                      Global Agrifood Systems Require $1.1 Trillion Annually to Achieve Sustainability Goals by 2030

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                      FAO Report Highlights Severe Agricultural Land Degradation Across the Arab Region

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                      Oman: Over 250 Model Farms Drive Fruit Production Growth in Dhahirah

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                        UAE Launches New AI-Powered Strategic Planning Cycle Aligned with 2031 Vision

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                        Oman’s GDP Expands 4.7% on Non-Oil Sector Growth

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                        Qatar’s Booming Consumer Electronics Market Sets the Stage for ConsumerTeQ 2025

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                        Middle East Gaming Market to Surpass $42 Billion by 2033, Driven by Youth Demand and Mobile Adoption

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                        Emerging Trends Reshape GCC’s Rapidly Growing Retail Sector

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                        Consumer Electronics Boom Continues Across GCC, Middle East

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                          Oman’s Al Dhahirah EZAD Sets Sights on Regional Prominence with Seven Strategic Deals

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                          Construction Underway on Iraq’s Tallest Twin Towers in Baghdad

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                          Qatar’s Construction Sector Poised for Transformation, Says New Report

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                          Jeddah Tower Set to Claim Title of World’s Tallest Building

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                          UAE Highlights Sustainable Breakthroughs in Cloud-Seeding Technology

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                          Iraq to Establish Four New Desalination Plants in Basra

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                          Over 111 km of Internal Road Projects Underway in Oman’s Al Dhahirah Municipality

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                          Saudi Arabia’s PPR Pipes Market to Reach 34,119 Tons by 2033, Driven by Sustainability, Infrastructure Expansion, and Water Conservation Efforts

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                          Whitewill Expands into Oman’s Real Estate Market Amid Rising Foreign Investment

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                            Turkish Firm ENKA Secures $289M Contract to Upgrade Power Plant in Iraq’s Sulaymaniyah

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                            Oman Seeks Bids for Two Major Substation Projects

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                            Iraq Set to Launch First Nuclear Training Reactor in Partnership with China

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                            Qatar 2025: From Energy Powerhouse to Innovation Leader

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                            Iraq Aims for 12 GW of Renewable Energy by 2030

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                            Iraq Launches Ambitious Plan for 1,000 Solar Projects in Three Years

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                            Iraq and Power China International Sign Deal to Strengthen National Power Grid

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                            Qatar Adds 875 MW in Solar Power, Boosts Renewable Energy Push

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                              Middle East Pharma Market Set to Reach $36 Billion by 2028 as GCC Drives Innovation and Local Production

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                              Qatar Medicare 2025 Returns to Doha as the Premier International Healthcare Platform

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                              Qatar’s Health Spending Set to Climb 14% by 2029

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                              Qatar Precision Health Institute and Qatar Foundation’s Pre-University Education Expand Collaboration to Inspire Future Scientists

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                              Qatar and the UK Explore Deeper Cooperation in Healthcare

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                              Qatar’s Ambulance System Sets Global Benchmark with Cutting-Edge Pre-Hospital Care

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                              Sidra Medicine Pioneers Holistic, Culturally Sensitive Fertility Care in Qatar

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                              Hamad Medical Corporation Receives Global Recognition with JCI Accreditation

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                                Saudi Arabia Leads Middle East’s Strategic Push into $600 Billion Global Sports Economy

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                                Global Tourism Set to Reach 30 Billion Trips and $16 Trillion GDP by 2034

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                                Oman Awards Over $600 Million in Contracts for Tourism Expansion

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                                Qatar Expands Role as a Leading Global Tourism Destination

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                                Saudi Arabia Welcomes Record 116 Million Tourists in 2024, Spending Reaches $76 Billion

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                                Oman Secures $6.7 Billion in Tourism Investments Toward $7.8 Billion Goal by 2025

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                                Oman Unveils 3-Kilometer Tourist Walkway in Nakhal: A Transformative Step for Local Tourism

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                                Middle East’s Schengen Style GCC Tourist Visa Approved, to be Rolled Out ‘Soon’

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                                  Technological and Sustainable Innovation Drives Growth in Digital Printing

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                                  Middle East Pharma Market Set to Reach $36 Billion by 2028 as GCC Drives Innovation and Local Production

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                                  Oman’s Manufacturing Sector Adds $10 Billion to the National Economy

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                                  Abu Dhabi’s Aldar Targets 87% Construction Waste Recycling In 2025 Sustainability Push

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                                  Qatar Strengthens Circular Economy with Expansion of Recycling Facilities

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                                  Food Tech Market Set to Reach $224.31B by 2032, Powered by Smart Kitchens and Sustainable Innovation

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                                  Packaging Becomes Lifeline for Struggling Print Industry

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                                    UAE Launches New AI-Powered Strategic Planning Cycle Aligned with 2031 Vision

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                                    Dubai Launches Region’s First PropTech Hub to Back 200 Startups by 2030

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                                    Qatar’s Booming Consumer Electronics Market Sets the Stage for ConsumerTeQ 2025

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                                    Consumer Electronics Boom Continues Across GCC, Middle East

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                                    Qatar’s Consumer Electronics Market Set for Steady Growth Driven by Premium Demand and Digital Transformation

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                                    The Top 10 Emerging Technologies for 2025

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                                    Saudi Arabia’s ICT Spending Tops $10 Billion: Key Trends and What’s Ahead

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                                    GCC Drone Market to Surpass USD 2 Billion by 2033, Driven by Tech Innovation and Industry Demand

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                                      Oman’s Al Dhahirah EZAD Sets Sights on Regional Prominence with Seven Strategic Deals

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                                      Iraq to Establish Four New Desalination Plants in Basra

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                                      Over 111 km of Internal Road Projects Underway in Oman’s Al Dhahirah Municipality

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                                      Saudi Arabia Leads Middle East’s Strategic Push into $600 Billion Global Sports Economy

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                                      Iraq to Open Three Major Airports in 2025

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                                      Turkey Set to Gain $50 Billion from Major Iraqi Infrastructure Project

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                                      Major Road Infrastructure Upgrades Underway in Oman’s Dhofar Governorate

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                                      Baghdad Metro Project Moves Forward Under New Implementation Strategy

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                                      Home Business & Economy Business

                                      Saudi Arabia investing more than $70 billion in building six new economic cities

                                      The Economist

                                      January 2, 2015
                                      in Business, Finance
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                                      Sweet-toothed locals cheered when Mars, an American confectioner, opened its first factory in Saudi Arabia in December. The kingdom’s policymakers cheered too. It was a sign of progress in their drive to create a more extensive and sophisticated manufacturing industry as a way of reducing dependence on oil, which accounts for 45% of GDP and 80% of government revenues. Manufacturing’s share of GDP has long been stuck at around 10%, and much of that has involved making pretty basic stuff like bulk chemicals.

                                      For all the country’s huge reserves of cheap crude, the recent slump in the oil price makes that seem a sensible aim. Yet there are good reasons to question whether manufacturing is the right sector to seek to expand, and whether Saudi Arabia is a good place to locate factories.

                                      The government is throwing money at its policy. It is investing more than $70 billion in building up to six new “economic cities” with modern infrastructure and business-friendly regulations. Mars put its factory in one of them, King Abdullah Economic City, on the Red Sea coast. It hopes these cities will host clusters in which firms from a particular industry huddle together, their proximity boosting their productivity and creativity.

                                      The country is not starting from scratch. It is already strong in plastics and petrochemicals. SABIC, its largest public company, is one of the world’s biggest producers of these; and Saudi Aramco, the national oil company, is building a $20 billion petrochemicals plant in a joint venture with an American giant, Dow Chemical. Several large aluminum producers have already set up shop, including Alcoa of America, since Saudi Arabia has the two ingredients needed to produce the metal: bauxite ore and cheap electricity. Some fairly big Saudi food manufacturers already export around the region, such as Almarai, which produces milk and baby formula among other things, and Savola, whose mainstay is edible oils.

                                      The government now wants to attract companies that will turn plastics into packaging, aluminum into car parts (or even fully assembled cars) and basic foodstuffs into strong consumer food brands. Some of the world’s big carmakers, which are switching from steel to aluminum for bodywork, are said to be looking at Saudi Arabia as a manufacturing base. Indian-owned Jaguar Land Rover has been in talks with the government since 2012, as yet without a result.

                                      The size and wealth of the regional market ought to make it attractive for the motor industry: around 4m cars a year are bought in the Middle East and north Africa, making it a bigger market than Germany, with about 3m sold each year. Within the region Saudi Arabia is the largest market, with annual sales of about 1m. And sales are expected to keep growing across the region: the Boston Consulting Group reckons they could reach 9m by 2020. Luxury models—far more profitable than mass-market ones—are in particular demand.

                                      Saudi officials argue that besides lots of rich consumers, their country has a central location, between Europe and Asia, and cheap and plentiful (expatriate) labor. But some analysts doubt if all this adds up to much of a competitive edge. “China is hard to compete with on scale and cost; places such as Germany have the high-tech market; the region doesn’t consume that much; and the currency is pegged to the dollar, so America dictates the terms of trade,” says Meda al-Rowas of IHS, a research outfit.

                                      What is more, Saudi Arabia is a difficult place to do business. Regulations can be cumbersome and unpredictably enforced, and as yet it is unclear how much companies locating in the economic cities will be spared this problem. Foreign and domestic businesses alike need to attract skilled foreign workers. But these are often put off by the country’s strict social rules—especially women, who are banned from driving and must wear the abaya, a full-length black dress, in public. The only way to give staff a bit of freedom from all this is to locate manufacturing plants in closed compounds, though this is hardly a good way to attract foreign talent.

                                      The government has lots of big contracts to hand out as sweeteners to foreign investors. But it tends to restrict these to the top firms in any particular industry. Foreign firms have to employ a certain proportion of Saudis, and it is hard to get ones with the right skills. Many firms depend on public spending, which provides little incentive to be innovative.

                                      Saudi Arabia has a rival in its attempt to become the region’s manufacturing base: the United Arab Emirates. It does not have quite as much money to splash about, but it has many of the same advantages and fewer of the disadvantages. For instance, the UAE’s constituent emirates are better regulated, mostly more open to the outside world and less socially conservative. Abu Dhabi, one of the largest, has already attracted some foreign firms to make parts from aluminum and plastic composites. Boeing plans to start making some aircraft components there. Abu Dhabi and another of the emirates, Dubai, have become important global aviation hubs, which makes them attractive locations for the regional operations of all sorts of manufacturers, not just aerospace firms.

                                      In any case, says John Sfakianakis, a Riyadh-based economist, most of the types of manufacturing the Saudi government wants to promote will do little to develop the economy. Many of them are dependent on cheap energy and therefore, he argues, not really a diversification from oil. Also, manufacturing does not create many jobs and would thus do little to provide work for the burgeoning population.

                                      There are some signs that the government is becoming more realistic in its ambitions. An official involved in the industrial-development program says that a plan to create a cluster of domestic-appliance makers has been dropped. Ms Rowas thinks that instead of aiming to attract large-scale industrial plants, the government would do better to promote smaller firms in such areas as telecommunications and IT services. Jeddah already has a bunch of firms creating online content and smartphone apps, and Saudis are voracious internet users.

                                      As ever, officials can look to examples where governments’ efforts to create industrial clusters have worked—electronics in Taiwan, or shipbuilding in South Korea, perhaps. But the list of failures is longer. Opening up the economy and cutting bureaucracy for all kinds of businesses would be a surer route to success.
                                      The Economist
                                      2 January

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