Feasibility study recommends developing Gulf auto industry
A recently study conducted by the Gulf Organization for Industrial Consulting (GOIC), suggests that an automobile industry should be developed in the Gulf States, in cooperation with international car manufacturers. The study recommended that the industry specialize in the mass-production of small and mid-sized vehicles, with between 2.4 to 2.7 liter capacity, reported Al-Hayat.
The Qatar-based non-profit organization noted that Gulf states interested in advancing an auto industry better act within five years, prior to the implementation of a more strict set of economic guidelines, under the various World Trade Organization agreements recently signed.
The GOIC added that a Gulf auto industry would be able to utilize various locally manufactured car parts, such as batteries, filters and radiators.
In 1998 the Gulf states — Saudi Arabia, Qatar, Bahrain, Oman, Kuwait and the United Arab Emirates (UAE) — imported more than 446,000 cars, most of which came from Japan, the United States, South Korea and Germany.
The Gulf countries import spare car parts from these countries for a total worth of about eight billion dollars annually. The figure grew six percent between the years 1994 and 1998.
Around 200 authorized automobile companies currently operate in the Gulf States with total investments of approximately one billion dollars. Saudi Arabia has 132 of these factories, bringing into the country nearly 90 percent of the overall regional investment. — (MENA Report)
© 2001 Mena Report (www.menareport.com)