OCCASION This publication has been made available to the public on the occasion of the 50th anniversary of the United Nations Industrial Development Organisation. DISCLAIMER This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. FAIR USE POLICY Any part of this publication may be quoted and referenced for educational and research purposes without additional permission from UNIDO. However, those who make use of quoting and referencing this publication are requested to follow the Fair Use Policy of giving due credit to UNIDO. CONTACT Please contact [email protected] for further information concerning UNIDO publications. For more information about UNIDO, please visit us at www.unido.org UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Tel: (+43-1) 26026-0 · www.unido.org · [email protected] Industrial in »he ARAB COUNTRIES . INDUSTRIAL DEVELOPMENT 1 IN THE ARAB COUNTRIES PART I Progress and prob Urns PART II Development of key industries PART III Industrial situation in Iraq • Jordan • Kuwait • Lebanon Saudi Arabia • Syria and Yemen Selected documents presented to the Symposium on Industrial Development in the Arab Countries Kuwait, 1-10 March 1966 I UNITED NATIONS N«w York, 1967 NOTE „^S«n»i.| .he Italulx». o( «. Ir«»wri. L ÌD/C0NF.I/R.B.P./6 j UNITIUNITED NATIONS PUBLICATION Skies No.: 66. IIB. 23 Price: »2.50 (or equivalent m other currencies) CONTENTS ¡'age INTRODUCTION 1 PAK I. PKOGXESS AND PROBLEMS A. Co-oferation in the Arab world to footnote programmes of industrial development 1. Integration of industrial development in the Arab world 3 2. Industrial development planning in the Arab countries 5 3. Industrial planning, programming and policies in selected countries of the Middle East g 4. Financing of manufacturing industry in selected countries of the Middle East 13 5. Industrial co-ordination among the Arab countries 15 6. Standardization and industrial development within the framework of an Arab common market Ig 7. Co-ordination of the sugar and paper industries in the Arab countries 20 8. Co-operation with foreign industrial firms in the establishment of industrial projects in Kuwait 22 B. Problems of industrialization 1. Industrial development and the first five-year plan in Kuwait 23 2. Industrial planning in Iraq in the light of the over-all economir P»n 27 3. Industrial manpower problems in Iraq 30 4. Industrial estates in Kuwait 31 5. The Lebanese experience in industrial research and studies and pro- vision of basic technological services for industrial development 33 6. Standardization of specifications and measures: a necessary step for the achievement of industrial and economic co-ordination amonr the Arab States * 35 PAIT II. DEVELOPMENT OF KEY INDUSTRIES 1. Prospects of petrochemical development in the Arab countries 37 2. Development of the petrochemical industry in the Organization of Petroleum Exporting Countries (OPEC) and non-member Arab countries 39 3. Petrochemicals : a practical start in the direction of Arab industrial co-operation 42 4. Petrochemical projects in Iraq 42 5. Sectoral studies on selected industries in Middle Eastern countries 44 6. Creation of an iron and steel industry in the Arab countries 47 7. The fishing industry in the Arab countries 49 8. The Arab potash project 51 Ui é Pap, 9. The food industry in Syria ^ 10. The spinning and weaving industry in Syria 5^ 11. Small-scak industries in Iraq jg 12 1 industries in Kuwait and their im ¿OTLT * P"* on the national ' 60 PA.T III. THE IKDUlTmiAL «TUAT«» IN THE AHA» COUNTWES 1. The industrial situation in Iraq « 2. The industrial situation in Jordan g3 3. The industrial situation in Kuwait 92 4. The industrial situation in Lebanon l06 5. The industrial situation in Saudi Arabia j {2 6. The industrial situation in Syria u6 7. The industrial situation in Yemen 135 INTRODUCTION iJKÄÄvm^ ^T^ at ^ ei«h teent h ««^ ¡" 1963 adopted resolution 19W (XVIII) calling for the convening off an InternationalT Symposium on Industrial Development, to be preceded as appropriate by regional and siib- regtonal symposia which would prepare the ground for the international symposium. In accordance with this resolution, regional symposia were held in Asia and ft u ,££ iD5cem^er 1965)- Airi•1 (January 1966) and Latin America (March 1966) under the auspices of the United Nations economic commissions of the «spectiye regions, in co-operation with the United Nations Centre for Industria Development at Headquarters. During the same period, a Symposium on Industrial Development in the Arab Countries was held from 1 to 10 March 1966 v,tat,on oi the ?í • !" T . Government of Kuwait, with the technical co-operation of the United Nations and m particular of the United Nations Economic and Social Office in Beirut. The present volume contains extracts of selected documents presented to the Symposium on Industrial Development in the Arab Countries. The purpose of the regional meetings was to study the existing situation and future prospects for industrial development in each region and to consider possible action which could be taken on a national, regional and international level to accelerate industrial development. .. Î9f ,he «""*»?» participating in the Symposium on Industrial Development in Africa. UK following countries also participated in the Symposium on the Industrial Development of the Arab Countries : Algeria, Libya, Morocco, Sudan. Tunisia and the United Arab Republic ) 1 Part I. PROGRESS AND PROBLEMS A. in tk* Armb world t* •/ iman*triti 1. htofratlM «C H»eh»s«rial n\ the Ara» wary* In the Arab countries there is a strong desire to explained by the reliance of the authorities on tariff develop the industrial sector of the economy. This desire protection for local industries. is reflected in the numerous economic development plans The result may be unhealthy competition, as evidenced that have been, or are about to be implemented. However, regardless of the varying degrees of progress in the case of two industries in particular. The first is the iron and steel industry, which already exists m that have been achieved, particularly during the last the United Arab Republic, has been started in Tunis«, decade, one cannot consider that the Arab world, looked and is being planned in Iraq and Syria The latter two upon a« a unit, has developed sufficiently to warrant its countries seem to have planned for the establishment of inclusion among the industrially advanced regions or such an industry despite the fact that sucres* m this neM countries of the world. requires the fulfillment of certain conditions such aa Arab industries are mainly of the light consumer the existence o." a large market, whether internal or goods type that rely on the processing of available external; invstment of very considerable human and domestic raw materials to meet part of the local demand. financial resources; and the establishment fir existence Furtliermore, the small-scale establishment is the of subsidiary industries based on the waste» and dominant type of industrial enterprise in the Arab world. by-products of the iron and steel industry. The second Small-scale production has contributed to the ineffi- example is the petrochemical industry. This is a ciency that prevails in Arab industrial establishments. highly complex and dynamic industry that uses *àv»œeé Reliance on primitive methods and equipment has had technological processes and requires considerable capital the inevitable result that Arab industry has failed to and large markets. The petrochemical industry also laces benefit from recent scientific and technological advances. strong competition from industrial countries that have This gives rise to two problems: first, the high acquired wide experience and have greater potent wHfie* production costs affect local consumers and the ability in this field Nevertheless, Arab countries producing of Arab industrial products to compete in foreign petroleum and natural gas are insisting on, or seriously markets; secondly, Arab industries are in general considering, the establishment of petrochemical compelled to operate behind tariff walls. industries The results may prove to be disappointing in With regard to the extractive industries (mining and the long run. quarrying), it can be safely said that this vital field Other examples may be found which show the risk« has not lieen sufficiently developed. Furthermore, the implicit in the tendency to industrialize each Aran role played by most Arab countries has been confined country in isolation from the developments that are to the extraction and export of minerals (phosphate, taking place in other Arab countries iron ore, manganese, petroleum etc.) in crude form. Modification of this policy is desirable