Local assembly and manufacturing Middle East
Establishing the right network is the basis for successful local operations.
In the recent years, governments and companies have begun to localize their supply chains.
Production is set-up in different locations globally to minimize costs, be closer to the customer, have less exposure to possible risks and have a better controlled answer to public health disruptions.
In the Middle East, governments are implementing policies to promote localisation with the objective to get a bigger percentage of the global value chain, further diversify their economies and minimize the risk of external macroeconomic shocks. There are a few factors driving this change:
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Governments prioritize local initiatives
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Customers prefer locally produced products
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Improvements in technologies (e.g. a higher level of automation in production, increased digitalization)
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Improved logistics infrastructure (e.g. establishment of logistics free zones in Dubai and Qatar)
Besides energy production and food and agriculture, highly automated manufacturing facilities have been established producing a wide array of products. There are a few challenges though:
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Limited labor force (both availability and skills)
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Limited industrial clustering (both manufacturing capacity as well as components supply)
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Business environments that are restrictive and overall limited regional integration (the absence of a business-friendly environment, consistent regulations and regional commercial integration)
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​There are several government-initiated programs to support industrial growth in the region. For instance the ‘Make in the Emirates campaign’ and the ‘Made in Saudi’ program.
Gateway MedTech has the network to support you in establishing local assembly or manufacturing operations and make the connection with qualified local partners.
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