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8/8/2019 Industrialization-mago Presentation- Mr Mago
1/22
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: mago@agnintl.comWeb: www.jfc-group.com
8/8/2019 Industrialization-mago Presentation- Mr Mago
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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
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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
80.00
90.00
Kuw
ait
Bah
rain
Om
an
Qat
ar
Sau
diAra
bi
Uni
ted
Arab
Em
irat
Yem
an
Egy
pt
Turk
ey
Syr
ia
Jord
an
Lebe
non
Iran
Iraq
Countries
Populationin
Population
Labour Force
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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
d
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: mago@jfcintl.com, Email: krish@jfcintl.comWeb : www.jfc-group.com
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