A new whitepaper by Alvarez & Marsal has outlined a strategic roadmap aimed at accelerating industrial localisation across the GCC, arguing that Gulf economies could reduce traditional industrial development timelines from decades to just years through coordinated policy action and technology transfer.
The report, titled Industrial Manufacturing Localization: A Strategic Imperative – Middle East, comes at a time of shifting geopolitical dynamics, changing trade flows and growing global competition for industrial investment. According to the study, the region now has a narrowing opportunity to strengthen domestic industrial capabilities and secure long-term competitiveness.
Drawing on case studies from aerospace and automotive sectors in countries including Italy, Turkey, Brazil, China and Mexico, the whitepaper noted that industrial ecosystems historically took between 25 and 50 years to mature. However, the report argued that GCC countries are uniquely positioned to accelerate this process through decisive government intervention, structured public-private collaboration and targeted knowledge transfer initiatives.
The study stressed that successful localisation extends beyond factory construction and assembly operations. Instead, long-term economic value depends on developing domestic engineering expertise, innovation capabilities and ownership of product design and manufacturing processes.
Angelo Carella said industrial localisation required more than financial investment alone. He noted that experiences in Turkey and China demonstrated how strong enforcement of technology transfer obligations, supplier development programmes and research and development targets could accelerate industrial growth.
The report also highlighted the need for countries to move beyond assembly-led manufacturing towards innovation-led ecosystems capable of supporting globally competitive industries.
Andrea Di Lello said the Middle East had reached a critical stage in its industrial transformation journey. He added that governments across the GCC had already made substantial commitments to localisation, but sustained investment in technology transfer, research and development and policy execution would determine long-term success.
Central to the report is A&M’s four-step industrial localisation model. The framework begins with establishing regulatory foundations and assembly operations before advancing towards technology transfer through joint ventures, licensing agreements and supplier development.
The third stage focuses on ecosystem maturity, including investment in engineering education, vocational training, research centres and certification capabilities. The final stage involves integrating local industries into global markets through international standards alignment, partnerships and consolidation.
The report highlighted progress already being made in Saudi Arabia, particularly in aerospace, shipbuilding and automotive manufacturing. According to the study, the Kingdom is now entering a more advanced localisation phase centred on innovation, supply chain development and industrial research capabilities.
In Oman, the paper pointed to a different strategy aligned with Oman Vision 2040, with greater emphasis on advanced engineering and design capabilities supported by universities and public-sector collaboration.
The whitepaper concluded that countries able to embed innovation ecosystems and retain design ownership would be best positioned to build sustainable and globally competitive industrial sectors.
GCC urged to speed industrial localisation
