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Mazaya Monthly Real Estate Report -
Week 3 - JULY 2015
The Role of the Private Sectors:
Al-Mazaya
Report
believes
the
region’s strong intention to raise the
contribution of some economic sectors
– mainly industrial sector - in their
GDP may stimulate local as well as
private sectors to seriously engage in
the industrial sector considering this
investment momentum and the endless
attention given to industrial SMEs. The
Government’s concern concentrated
in this direction broadens more by
allocating special finance mechanisms
mainly to support industrial SMEs
regardless of their specialty. Meaning
that, investment opportunities in this
sector will multiply creating additional
employment and even more investment
opportunities. The region now counts
on the role of the private sector to
take major part in GCC economies
engaging in local, regional and world
business partnerships as many GCCs
have already provided the proper
and advanced industrial, logistic and
competitive infrastructure to facilitate
the role private sector should be
playing. Countries of the region have
further organized local and regional
promotions to introduce the investment
opportunities and services availed in
special economic zones finalised so far.
By 2020 industrial investment in countries
throughout the region will total USD one
trillion, effectively engaging in private
sector partnership and establishing
additional world alliances for the
transfer and improvement of technology.
Simultaneously, the GCCs aim to increase
the industrial sector’s contribution in the
GDP to 25% by the same year compared to
its current contribution of 10% benefiting
from the continuous growth of the sector
and the increasing government and
private sector’s investments driven by the
opportunities available therein the sector.
Al-Mazaya Report concludes stressing on
the current significance given to industrial
SME’s suggesting it should have been
given earlier. The Report also calls upon
availing the facilities required to turn the
planned industrial projects into successes
resting on their interrelated and integrated
role with all other sectors. The real-estate
sector currently enjoys one of its best
conditions given its ability to attract huge
investments up to the present moment.
Moreover, the real-estate sector has
managed to take many of the countries
in the region into world competition -
equally influencing investor’s appetite
for secure and rewarding opportunities.
The industrial sector’s role is further
supporting and integrating this objective,
thus enhancing sustainable growth across
all sectors, especially as industrial sector
projects enjoy more certain potential
to succeed compared to other projects
operating in similar circumstances.