Over protection of businesses in the Gulf states could spell a disaster as globalisation gathers strength, says Abdulla Al Zamil, senior vice-president of Zamil Air-Conditioners (ZAC).

Al Zamil believes that most countries in the region are still over-protective of the traditional ways of doing business.

"I believe that industry in this region will be hit by globalisation. When you have no border controls, you cannot remain small. You must look to grow and this is where strategic alliances are very important," says Al Zamil.

"I believe the challenge today is in two areas - product reliability and innovation. Unfortunately this region seems to shun them. There must be a proactive exercise to improve productivity with a concerted campaign to look at production costs per unit and an emphasis on cost reduction," says Al Zamil.

"But product improvement has limitations and this is where innovation is vital. Unfortunately I have yet to see a single innovative product coming out of this region and this must be our objective."

Al Zamil believes that for innovation to develop, there needs to be support from governmental authorities and organisations.

"We need government to support and encourage research and development in companies with merit and potential. We also need a professional system of patent registration," says Al Zamil.

"SASO (Saudi Arabian Standards Organisation) is also a vital part of the equation as the threat to Saudi industry is in the absence of standards which will result in local companies reducing standards to compete. In the end, the consumer will end up paying in terms of quality and safety."

Al Zamil also believes that export incentives are important in the form of guarantees and financing for industry which will help stimulate exports of non-oil products.

Finally, Al Zamil wants to see more companies embracing technology.

"A lot of companies are not adopting information technology to the level that they should. It is vitally important that manufacturers have a fully integrated supply chain and that they use technology to achieve this," says Al Zamil.