Beirut (APD) - GCC countries operate more than 300 assembly factories of automotive parts with investments exceeding $1.1 billion with a total work force of 26,000, the Kuwait-based AL-QABAS daily reported Tuesday.
These factories are mainly assembly plants of truck bodies, truck trailers, cisterns, and refrigerated vehicles.
Saudi Arabia comes first among GCC countries in the automotive assembly industry with 183 factories with investments worth $980 million, according to a report by the Qatar-based Gulf Organization for Industrial Consulting (GOIC).
Kuwait comes second with 16 plants and $67 million in investments followed by UAE with investments of $56 million and 78 plants.
GOIC called on GCC governments to enter into partnership with the private sector in motor vehicle manufacturing since this industry is a capital intensive industry.
GCC countries import annually $8 billion of vehicles and another $1 billion of spare parts.
As these countries are already producing automotive spare parts such as air and grease filters, brake pads, car batteries, transmission belts and radiators it would be easy for them to shift to car manufacturing, the report said.
Spare parts production is mainly located in Saudi Arabia, Oman and Kuwait. In Bahrain aluminum wheels are manufactured in large quantities. But basic parts such as spark plugs, alternators, fuel injectors and security belts are not produced in GCC countries. [FC]
By Shikrallah Nakhoul
© APD (Arab Press Digest) 2005
