GCC small and medium factories are punching well above their weight, showed a research by Gulf Organisation for Industrial Consulting (GOIC).

The report on the website of the Qatar-based organisation said that small and medium factories that employ 44 per cent of the GCC’s total industrial workforce have got only 4.1 per cent share ($15.3 billion) of the $380.1 billion invested in the sector last year, reported the Gulf Daily News (GDN), our sister publication.

The report quoted GOIC secretary general Abdulaziz bin Hamad Al Ageel as saying that $6 billion were invested in small-scale units and $9.4 billion in medium industries.

The organisation defines small industries as those with capital of less than $2 million and medium-sized units as those with capital ranging between $2 million and $6 million.

Founded in 1976 by the GCC member states, the GOIC’s mandate includes identifying and introducing new industries to the region and shaping industrial policies.

According to GOIC data, small and medium factories made up 82.7 per cent of manufacturing units in the region.

Of the 16,292 factories counted at the end of last year, 10,809 were found to be small and 2,671 were medium.

Small and medium units were also found to be employing 674,933 workers or 44.1 per cent of the 1.5 million strong total workforce in manufacturing industries.

As many as 184,000 workers or 27 per cent of the total workforce was found to be employed in the construction, metals, transportation and allied sectors, data showed.

The building materials industry was the second biggest employer with 118,000 workers, followed by the food products and beverages industry at 71,000, and manufacturing of rubber and plastic products at 65,000.

Nearly a third (27 per cent) of the small and medium factories were active in construction, metals, transportation and allied industries, whereas 17 per cent of them were engaged in the manufacture of building materials.

A substantial number of units were also found to be engaged in making food and beverages, rubber and plastic products.

In terms of accumulated capital, structural metals manufacturing, transportation and other sectors came out on top with $3.9 billion, accounting for about 25 per cent of total investment.

Building materials was second with $3.2 billion of cumulative investment followed by food products and beverages getting $1.9 billion and rubber and plastics having $1.7 billion.

Bahrain Small and Medium Enterprises (SMEs) Society vice-president and director of community services Abdulrahim Abdullah Fakhro told the GDN that a concerted effort involving all stakeholders was needed to increase investment in small and medium manufacturing units.

“There are many initiatives at the government level and by organisations like the Bahrain SME Society, however they seem fragmented and a pan-GCC campaign is needed,” he said.

Fakhro said a key meeting to be held in Qatar during August would look at challenges facing SMEs, where he would represent the Bahrain Chamber of Commerce and Industry. - TradeArabia News Service