Food manufacture has grown into a multi-billion-dollar hi-tech industry within the GCC, attracting growing investment and generating fierce competition The food and beverages industry has seen enormous growth in recent years in the GCC states thanks to a growing population and changing food habits.
The sector has attracted large investments and a high degree of competition, making some cry foul over unfair trade practices by rivals.
Saudi Arabia has registered the highest value of investments in the past decade in this sector within the region.
Investment in food industries in the GCC countries totaled $6.405 billion in 1999 compared to $2.849 billion at the start of the decade, registering an increase of 124.8 per cent, according to a report prepared by the Gulf Organisation for Industrial Investment (Goic).
The number of factories also increased by 61.6 per cent from 664 to 1,073.
The average investment per factory in the past decade was $6 million. The number of workers increased by 102.6 per cent from 39,000 to 79,000, while the average number of workers per factory increased from 62 to 80.
Saudi Arabia topped with a 149.4 per cent increase from $1.767 billion to $4.048 billion in investment, with the average investment per factory increasing from $5.1 million to $8.7 million.
The UAE was second with an increase from $199.4 million to $641.4 million (221.7 percent). The average investment per factory in the UAE rose from $2.1 million to $3.2 million.
Kuwait registered a 10 per cent rise from $546.7 million to $601.2; with the average investment per factory dropping from $11.2 million to $7.9 million.
In Oman, investment increased from $160.5 million to $438.8 million (173.4 per cent). The average investment per factory rose from $2.5 million to $2.9 million.
The Qatari food sector grew from $80.8 million to $180.2 million (123 percent) with the average investment per factory increasing from $2.1 million to $3.5 million.
Bahrain's investments rose 43.2 per cent from $94.3 million to $113.5 million and average investment per factory increasing from $1.3 million to $1.5 million.
Although the Kingdom had the biggest investment volume, the UAE showed the fastest growth rate. The others were, in descending order, Oman, Saudi Arabia, Qatar, Bahrain and Kuwait.
As for manpower in the food industries sector in the '90s, the number of workers in the Kingdom increased from 22,344 to 47,737 (113.6 percent). The average number of workers per factory increased from 46 to 95.
The Kingdom was followed by the UAE, with a rise from 5,251 to 14,582 in the total number of workers (177.7 percent) and from 55 to 73 in the average number of workers per factory.
Kuwait was next with a 9 per cent increase from 6,795 to 7,405 workers but its average number of workers per factory decreased from 139 to 97.
In Oman, the number of workers rose from 1,440 to 5,109 (254.8 per cent) and the average number of workers per factory increased from 23 to 34.
In Bahrain, the number of workers increased from 1,623 to 2,157, (32.9 per cent) and the average number of workers per factory rose from 23 to 24.
Worker strength in Qatar rose from 1,386 to 2,066 (49.1 per cent) with the average number of workers per factory increasing from 37 to 40.
As for the rankings based on percentage increase in the number of workers in the GCC food industry sector in the 90s, Oman topped, followed by the UAE, Saudi Arabia, Qatar, Bahrain and Kuwait.
The growth in food sector has given a boost to the packaging sector as well with an increasing number of companies coming into this field.
Competition is perceived to be rather cut-throat in these two sectors with industrialists complaining of very low margins. Dumping by manufacturers, foreign and regional, is also causing concern for producers within some GCC states.
