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Posted On: 31 December 2019 10:56 am
Updated On: 12 November 2020 02:21 pm

Volume of industrial investments amounted to QR 13 bn within past five years

Khadiza Begum
Khadiza Begum
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The manufacturing industries sector has seen considerable growth within the past five years in terms of the number of facilities and production fields. The volume of industrial investments amounted to QR 13 bn ($3.5bn), with the establishment of more than 380 new industrial facilities, said a statement issued by Qatar Chamber.

Titled "Production capacities and degree of utilization as an input to enhance the growth of the manufacturing industry in Qatar", the study said that in terms of the type of manufacturing industries, they are distributed in an appropriate economic manner over the entire branches of manufacturing industries, even though a large percentage of it is distributed in the field of food industries.

Based on data of the Ministry of Trade and Industry (Qatar Industrial Gateway), the study indicated that the facilities of the food products industry have increased by 103%, which is the largest growth rate among all other manufacturing industries, including oil and gas related industries.

"This quantitative and qualitative development contributed significantly to increasing the industrial diversity in a manner that corresponds to the plans adopted by the country to achieve the economic stability through diversifying sources of income as well as increasing the attractiveness of the Qatari economy to domestic and foreign investments." the study added.

The study also noted that the rise in market shares of Qatari manufacturing industries in local markets to satisfying levels near to achieving the relative self-sufficiency would help provide the national economy a solid basic foundation for the next stage in planning for the future of the industry.

It also showed that the machinery and equipment manufacturing has grown significantly as their facilities have also increased by 82% during the last five years. This gives manufacturing more flexibility in planning for other components with lower comparative advantages such as raw materials and other productive inputs.

It also stressed that meeting domestic demand for basic products, even if it is sufficient in the short term, it will not be so in the medium and long terms, especially when markets reach the saturation stage, on the one hand, and on the other hand, the continued targeting of Qatari market by current and potential competitors that leads to a high level of competition.

"Qatari industries have to effectively control over the various cost elements to improve the level of competitiveness of their products at the local and foreign markets" it recommended.

The Chamber stressed that the interest in studying productive capacities in the non-oil manufacturing sector is of special importance as it helps in shaping the future policy for this sector within a long-term strategy.

In conclusion, the study emphasized, that with all these scenarios, attention must be focused on the degree to which the available production elements are exploited in the production process with the least possible amount of these elements and at the lowest possible cost. The cost here is an important element essentially related to the use of optimal energy so that there is no excess production capacity that constitutes expenses for the enterprise without return.

(Source: QNA)