Number of factories in GCC increases, labour force doubles: GOIC report

Muscat - 

In its report on ‘Labour Force and Productivity of Manufacturing Industries in GCC Countries’, the Gulf Organisation for Industrial Consulting (GOIC) announced an increase in the number of factories in the GCC.

The report found that rise in the number of factories has led to an increase in the labour force from approximately 774,000 workers in 2005 to more than 1.6mn in 2015.

Labour force has more than doubled, hence achieving a compound annual growth rate (CAGR) of 7.8 per cent.

GOIC highlighted that “labour plays a key role in the industrial sector. In fact, they form an added value when added with the availability of raw materials. Therefore, labour productivity is seen as a criterion to measure industrial development and the efficient use of labour force. It also sheds light on the strengths and weaknesses of an industrial activity”.

The process of fabrication involes a number of industrial activities like manufacture of metal products, electrical equipment, transport equipment and others. These industries are most in need of labour force.

Its share of the total manufacturing labour force in the GCC in 2015 was around 25.8 per cent, followed by the manufacture of cement and building materials (about 16.8 per cent), manufacture of chemical and petrochemical products (15.8 per cent), manufacture of food products and beverages (15.4 per cent) and the remaining industries.

Saudi Arabia was ranked first in terms of labour force in the manufacture of fabricated metal products in the GCC countries in 2015.

Its share of the total labour force in this sector throughout the GCC was about 53.3 per cent, followed by UAE (28.8 per cent) and other GCC states.

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