Middle East and North Africa

Abu Dhabi flagAbu Dhabi Industrial Development Strategy (2010)

Challenge: Abu Dhabi's rapid economic growth over the past few decades has been based on the oil sector. While the oil sector has generated and will continue to generate the resources required to build a modern and successful economy, it is also recognized that the oil sector is dependent on international hydrocarbon markets and prices over which individual producers have limited control. In particular, the volatility of the international oil price makes the achievement of stable and steady economic growth difficult.

Abu Dhabi's Economic Vision 2030 put forth a goal for the non-oil sector to raise its contribution to GDP from 41% in 2005 to 64% by 2030. In order to accomplish this goal, economic diversification with a focus on the manufacturing industry were key priorities.

Solution: To ensure that the industrial sector will contribute fully to the achievement of Abu Dhabi's economic diversification goals by 2030, one of ECG's experts was contracted by the Emirate of Abu Dhabi's Department of Economic Development in 2010 as a key member of a consulting team to articulate a comprehensive and fully integrated, cluster-based medium term (five-year) industrial development strategy for the Emirate.

The objective of the Abu Dhabi Five-Year Industrial Strategy was to provide a focused and coherent framework for industrial planning in the medium term, linking the industrial strategy of the Emirate to the overall Government and departmental strategies. This was achieved via a structured collaborative/consultative process led by the Department of Economic Development and involving all key public and private stakeholders within the industrial sector in the Emirate.

The exercise involved a rigorous and detailed quantitative and qualitative analysis of the current industrial structure of Abu Dhabi, of the policy environment in which the industrial sector operates, and of the current and potential comparative and competitive advantages that the Emirate possesses for industrial development.

Results: The resulting Industrial Development Strategy contained an overall industrial strategy framework for the Emirate and individual development strategies for each of ten focus industries and potential clusters including: aerospace, renewable energies, semiconductors, steel, aluminum, engineered metal products, petrochemicals and plastics products. In addition, it outlined the economic, social, environmental, and regional development impact of the industrial strategy, related enabler requirements, and investment promotion activities to support the focus industries.

This strategy and associated recommended initiatives set the stage for a series of detailed implementation plans for the years 2011 – 2015 for key government and private sector actors, that paves the way for Abu Dhabi to achieve its economic diversification goals.

Turkish flagEC-Funded Technical Assistance for Industrial Restructuring of Şanliurfa Project (Turkey) (2009)

In 2009-10, for the UNDP and with funding through the European Commission, ECG's principals helped implement the Industrial Restructuring of Şanliurfa Project in Turkey.

Challenge: Turkey's Şanliurfa province has benefited from a range of national economic development instruments including large-scale public investments as well as interregional transfers and incentives. The heavy public investments have had a positive impact on Sanliurfa's economy, expanding slightly the range of basic commodity crops, and paving the way for the emergence of rudimentary manufacturing, including cotton ginning, limited cotton yarn production, niche irrigation equipment manufacturing, and basic food processing.

Despite the high level of investments, income per capita remains around half the Turkish average and the economy of the province still exhibited an unhealthy reliance on public investments/spending, commodity crops, inefficient agricultural methods and low technology usage. It was evident that it was critically important to organize the industrial sectors' and other economic development actors for Şanliurfa to more effectively capitalize on the province's rich natural and industrial attributes.

Solution: In 2009, one of ECG's experts was retained by the UNDP as Team Leader of an international consulting team to implement a key portion of the EC-funded Industrial Restructuring of Şanliurfa (IRS) Project. Three strategic industrial sectors possessing the potential for being competitive nationally and internationally were identified. Rigorous competitiveness assessments were conducted of these sectors, agri-food, textiles and apparel and specialized manufacturing for agriculture. Then the next phase of the project was executed using a participatory approach, building capacity for public-private dialogue fostering the development of an environment conducive to improving the competitiveness, innovation and export of Turkish enterprises.

Results: These efforts resulted in the development of an Integrated Industrial Development Plan which put forth a policy framework and specific recommendations to implement the economic vision for Sanliurfa as a whole. In addition, it included detailed roadmaps for the three priority sectors, a long list of project-based interventions for the short, medium and longer terms and 13 detailed project fiches for attracting investment. Further, throughout the strategy development process, tangible shifts in the mentality of a key set of entrepreneurs and their government/university counterparts were noted, who were making progress on specific joint initiatives that resulted in the introduction of new products and technologies, and expanded access to markets.

For more information please see:

Turkish flagCompetitiveness Agenda for Southeast Turkey (2007)

For the United Nations Development Program (UNDP), ECG assembled a team of ten international experts for a 3-month engagement to develop a new strategy for this region, the most backward in Turkey. Despite $35 million in mainly infrastructure investments over the past 15 years, the gap between incomes and quality of life in the region had not improved.

Turkish buildings

We developed recommendations for a significant shift in policy, featuring a public/private partnership approach, intensive internationalization program, and regional branding as the emerging world's leading renewable energy & organic product center (e.g. organic food products and cotton for baby clothes), along with targeted applied technology centers and privatization of significant portions of the irrigation system. The recommendations have been adopted by the Deputy Prime Minister and the GAP Administration, and implementation is anticipated to start soon.

Moroccan flagMorocco : Le Maroc Compétitif (1995-96)

In May, 1995, after twelve years of macroeconomic adjustment and reform, Morocco was still experiencing highly volatile economic growth rates, unpredictable export earnings, and an increasingly urgent unemployment situation. To help generate employment opportunities and enhance the competitiveness of its export industries, Morocco launched a new kind of economic development project with the help of ECG and financing from the World Bank and European Union. Le Maroc Compétitif is an ambitious project devoted to creating a new movement for "collaborative" economic action and change in Morocco.

During its first year (1995-96), the project mobilized more than 150 top business and government leaders in four of Morocco's most important industrial clusters (textiles/apparel, tourism, seafood products, and electronics and information technology. Each of these clusters formed working groups which brought public and private leaders together to articulate more than 30 concrete action initiatives that have demonstrated the viability of a participative, action-oriented approach to economic change in Morocco. Among these initiatives are the establishment of trade and investment promotion centers, training centers, and new enterprise incubators. To ensure the ability of the working groups to implement these initiatives, the private sector has demonstrated its commitment to the project by financing and launching the LMC Association, a new economic organization established to coordinate the continued implementation and operation of the project and its initiatives.

Click Here to Return to the Projects Overview >>