Manufacturing faces growth barriers in Middle East

Subject Manufacturing in the Middle East and North Africa. Significance The era when a country's manufacturing success was determined mainly by cheap wages and good infrastructure has now given way to technology, innovation and post-production support and services. However, countries in the Middle East and North Africa (MENA) are lagging in terms of their transition towards high research-intensive industries. Impacts Lack of diversification into high-tech manufacturing will inhibit the manufacturing sector as a whole. The region will struggle to develop hubs for the established global production networks of Europe, North America and Asia. Manufacturing will fail to provide sufficient employment opportunities for the youth. Developing technology-intensive manufacturing will be vital to the Gulf's preparation for a post-oil economy.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abobakr Aljuwaiber

Purpose This paper aims to offer a wider examination of the research concerning entrepreneurship characteristics in the Middle East and North Africa (MENA) region via a review of recent studies relevant to this topic. Research publications concerning entrepreneurship within the MENA region evidence growing interest in this field of study, with the potential to boost and drive future economic development and growth. This focus within entrepreneurship research is because of the economic development in the region, which is becoming increasingly important for policymakers and businesses. Design/methodology/approach The author performed a systematic literature review to produce robust information about entrepreneurship in the MENA region, followed by a thematic analysis to identify key research themes within each category. Findings Despite the growth in entrepreneurship research in the MENA region, research on certain factors is lacking. An analysis of 271 studies published between 2009 and 2019 identifies 9 main research categories, within which 30 themes have attracted significant academic attention. Female entrepreneurship and gender, youth entrepreneurship and entrepreneurship behaviour and orientation are the three key categories influencing perspectives on entrepreneurship in the MENA region. This study highlights research gaps and provides recommendations to guide future research on the sustainable development of entrepreneurship in the MENA region. Originality/value This paper highlights trends in entrepreneurship research amongst scholars within the MENA region and suggests paths for future research efforts.


2019 ◽  
Vol 16 (3) ◽  
pp. 305-324 ◽  
Author(s):  
Britta Holzberg

Purpose The purpose of this paper is to introduce the notion of crossvergence from international human resource management (IHRM) as a conceptual lens for understanding and analyzing the formation of socially (ir)responsible employment practices in supplier firms in global production networks (GPNs). The crossvergence perspective can particularly contribute to understanding how the agency of suppliers is influenced by the interaction of global–local dynamics. Design/methodology/approach The paper illustrates how the formation of socially (ir)responsible employment practices can be understood as a process of crossvergence. Subsequently, it reviews and structures insights from GPN and IHRM literature to detail the process. Findings The paper underscores the complicated role of suppliers in ensuring decent work in GPNs. Suppliers face a multitude of global and local interacting, and partially conflicting, demands. They process these demands as active agents and need to develop suitable employment practices in response. Originality/value The paper supports the nascent discourse on supplier agency in forming socially responsible employment practices. It connects different streams of literature to illuminate the perspective of suppliers, introduces IHRM insights to the debate and offers conceptual guidance for analyzing interacting global and local pressures on suppliers.


2011 ◽  
Vol 1 (1) ◽  
pp. 1-10
Author(s):  
Brian Vejrum Waehrens ◽  
Dmitrij Slepniov

Subject area Operations strategy/global operations/value chain. Study level/applicability BA/Master level – the case can be applied to support operations strategy discussions related to the link between context, configuration and capabilities, and particularly to discuss internationalization strategy and global operations. Case overview The case examines how Gabriel, a Danish textile company, transformed itself from being a traditional textile manufacturer to becoming an innovative virtual servi-manufacturer. The case covers the main milestones in Gabriel's recent history, explores the main reasons for the transformation that started in the late 1990s and studies how this transformation towards becoming a virtual servi-manufacturer was dealt with. The case closes with the sections examining the role of innovation activities in the newly transformed company. Expected learning outcomes The case is expected to build an understanding of the organisational and operational implications of the journey towards the virtual production company. While the case is broad in its scope, it provides an opportunity to go into details on a number of interrelated topics: operations strategy; global production networks; communication and coordination; interdependencies; and outsourcing and offshoring. The story of Gabriel illustrates a highly successful globalization journey and its underlying dynamics. The case highlights how the operations configuration and the relationships between key parties do not stay constant over time. They rather shift and adapt to internal and external stimuli. The case explores these stimuli in retrospect and describes how the company attempts to reconcile market requirements with its operations configurations and capabilities. Supplementary materials Teaching note.


Subject Sugar market dynamics. Significance There were protests in Egypt in October and November after the price of sugar doubled this year from a low of around 10 cents per pound in 2015. The sugar price swings much more widely than any other commodity traded frequently on world markets. Latin America consumes the most sugar per capita but also produces the most. The Middle East and North Africa (MENA) produce little, but imports the most per capita, leaving the region vulnerable. Impacts Higher taxes may reduce demand for sugar for processed food and drinks but demand for use in renewable energy will likely remain high. China is the world's largest sugar importer and its policies have a large influence on sugar prices. NAFTA encouraged Mexico to raise its sugar output but Donald Trump's election has raised doubts over the agreement's future.


Significance Tribe-state relations have experienced various levels of tension and cooperation in the monarchies of the Middle East and North Africa: Jordan, Morocco, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). Throughout the region, there is much discussion of a claimed tribal resurgence. In reality, however, tribes have always had a significant political role, co-existing with the modern nation-state. Impacts Potential electoral reforms to de-emphasise traditional tribal boundaries or legalise political parties could disempower tribes. Slow and cumbersome bureaucracies will encourage people to trade on tribal affiliations in order to circumvent procedures. Where central governments become weaker, especially in cases of civil conflict, tribes may step in to fill the political power vacuum.


Subject Prospects for the Middle East in the second quarter. Significance With average oil prices in 2015 likely to be 30-40% lower than in 2014, most countries in the Middle East and North Africa (MENA) region will see a huge change in their financial performance. Oil exporters could face major falls in fiscal revenue and foreign exchange earnings, while oil importers will receive a welcome boost to their budgetary and external accounts. On the security front, regional governments will focus on the threat from an expanding Islamic State group (ISG), and the fallout from a possible nuclear deal between the P5+1 world powers and Iran.


Significance This, with his recently acquired Beltone Financial Holding SAE, will create Egypt's second largest investment bank. Yet the profitability of the Middle East and North Africa (MENA) for the investment banking industry is unlikely to rise in the short term. Impacts Demand for Middle East bonds in 2016 will decline compared to 2014 and the first half of 2015. Yields will increase and issue size will decline, particularly for the weaker Gulf economies, Bahrain and Oman. This will reduce investors' interest in corporate bonds, which will mean more companies may cancel issues. In North Africa, lacklustre capital markets will not see enough reform to generate a recovery there.


Significance Under the deal, the UN arms embargo will remain in force for five years, while the ban on ballistic missile sales will stay for eight years. This means that Russia's plans to supply Iran with the advanced S-300 missile system will face further delays. However, Moscow is not only focusing on arms sales to Iran, but is looking more widely across the Middle East and North Africa (MENA) region. The Kremlin will become increasingly dependent on high-value, high-technology military sales while oil prices stay low and Western sanctions remain. Impacts Russia has rebounded to become the second largest arms seller in the Middle East behind the United States. The durability of Russian equipment and its comparable cheapness to US systems will be key attractions for buyers. Russia has become the main global supplier of the anti-access, area-denial weapons. Iran will refrain from progressing controversial Russian weapons sales that could damage its detente with the West.


Significance The overnight operation was in response to a chemical gas attack attributed to the Syrian government in the village of Khan Sheikhoun in Idlib province on April 4. The air raid, apparently using a nerve agent such as sarin, killed at least 72 people, including children, and caused global outrage. However, Moscow yesterday blocked a condemnatory UN resolution, causing Washington to threaten unilateral action. Impacts Trump's demonstrated willingness to use force could cause foreign leaders to view him with more caution. Moscow is unlikely to call off a planned visit by the US Secretary of State on April 11-12. Russia may reconsider any plans to supplant US primacy elsewhere in the Middle East and North Africa. The risk of retaliation against South Korea and Japan will dissuade Trump from similar action against North Korea.


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