Industrialisation is the only way to enhance Gulf economic output and lead the world out of recession thanks to the sector' great track record of sustainability throughout economical depressions, said a top Saudi industrialist.

Dr Solaiman A Al-Twaijri, managing director and chief executive officer Saudi Arabian Amiantit Company was speaking at the 'Gulf Industry Forum,' which was held alongside the third edition of the Gulf Industry Fair, a key industrial event in the Middle East region.

It is one of the few sectors which has a solid foundation based on tangible assets and products, Dr Twaijri noted. "This sector gives sustainable products throughout financial crisis; ensures least lost jobs during the crisis; is the easiest and quickest to recover; is attractive to investors and lenders and creates more jobs," he added.

Citing its track record of sustainability in difficult times, Al-Twaijri said the industrial sector was compatible with most economical systems and "most importantly never lost its trust with governments."

Dr Twaijri pointed out that the least affected countries from crisis were China (which had a conservative financial system but well established industries); Malaysia (mixed economical system and reputation of being the alternate manufacturer to China); and Brazil (mixed economical system and recently a major manufacturing country).

"On the other hand, countries that got badly hit were US, UK, Japan and Dubai," he added.

The industries which survived the downturn were pharma, consumer goods, food, power and water while the most affected were financial, insurance, housing and construction industry.

On the Saudi scenario, he said industrialisation started in late 60s and by early 70s there were 472 factories which went up to 3,906 in 2006 attracting investments worth over SR296 billion ($79 billion).

Industrial sector employs 25 per cent of the Saudi Arabia’s workforce, he added.

Dr Twaijri said the future challenges for Saudi industries were to keep pace with global market developments; expedite transfer and adoption of technology; accommodate with WTO regulations and developments besides tackling industrial pollution and its negative impact on environment; development of local manpower and improving industrial management.

Bahrain Petroleum (Bapco) acting CEO Faisal Al Mahroos in his address focused on the Kingdom's industrialisation which was triggered by the discovery of natural gas.

“Industries in countries rich in gas have enjoyed cheap gas prices because gas could not be shipped to various destinations. However, with current technologies, gas can be liquefied and shipped anywhere in the world. This has resulted in a trend of increasing gas prices to almost match the oil prices," he explained.

"As such, energy intensified industries may require to expect a new reality,” Mahroos added.

He pointed out that Bahrain’s energy consumption was one of the highest at 81 per cent when compared to US (54pc), UK (26pc), Italy (22pc), Saudi Arabia (45pc) and China (9 pc). “When we have such demand, it will put pressure on reserves and supply,” Mahroos added.

Ameet Shah, co-chairman and director, Astonfield Management, who spoke on “Alternative energy sources for powering industrial development” said the Mena region could power the world three times over if it effectively harnessed its solar resources.

“The Gulf has the potential to become a global solar manufacturing and research and development hub. Stimulating generation lays the foundation for a robust solar sector, providing local employment and attracting international investment,” Shah said.

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