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Tribune News Network
Doha
PwC on Wednesday launched a new paper in Qatar, ‘Driving Value Creation in the Qatari Industrial Manufacturing Industry’. Considered through the lens of the global pandemic, with significantly reduced demand, supply chain disruption, working capital issues and the impact of local lockdowns, the paper gives an overview of the journey to value creation within the Qatari industrial manufacturing industry.
The paper identifies four key areas to drive positive transformation in Industrial Manufacturing including:
1. Building supply chain
resilience
Qatar was well positioned to weather supply chain disruptions due to its ambitious diversification programme. Qatar’s Tawteen programme and Qatar Vision 2030 are driving forward localisation opportunities as the world adapts to new market realities. The pandemic has further amplified the need for supply chain transformation and localisation, with organisations casting an eye on supply chain partners to identify new synergies, unlock deal value and explore strategic acquisitions that would further boost the resilience of the sector. As such, additional vertical integration is likely to occur in the sector.
2. Championing technological innovation
Lockdowns and work restrictions have emphasised the need to automate factories for enhancing resilience by reducing the need for human operators present onsite. Manufacturers in the country are recommended to maintain sight of emerging technologies to transform operations, enhance efficiencies and ultimately create new value levers, such as 3D printing for more flexible production of parts and components. Qatar has a cost advantage with 3D printing raw materials due to its strong local petrochemical industry.
3. Optimising investment strategy
Recovery through building resilient supply chains and championing technological advances can only be achieved through a robust investment strategy. Investment leaders need to ensure they have a robust value creation strategy, and clear objectives (ROI, sector focus, etc.) provided by the shareholders which set the framework of the investment strategy, whether organic or inorganic (M&A), whilst optimising operations and balance sheets.
Qatar abounds with investment opportunities, driven in part by the strong local demand for large infrastructure projects in the country and the upcoming FIFA 2022 World Cup. Export opportunities could also be seized by virtue of Qatar’s developed air and marine port infrastructure.
4. Aligning with Qatar Vision 2030
This rests on the four pillars of economic, environmental, social and human development. The Qatar Development Bank (QDB) has launched initiatives such as Jahiz which aims to support SMEs by providing ready-to-operate industrial facilities for leasing. Given economic development and diversification priorities, and the increasing focus on ESG both on both the world stage and in capital markets, a prosperous industrial manufacturing sector would prove crucial in pivoting away from an oil and hydrocarbon economy, and to ensure a more sustainable and resilient economy to weather future crises.
Kamal Fayed, Transaction Services Partner based in Doha and PwC’s Deals practice lead in Qatar, said: “PwC’s comprehension and understanding of Qatar stretches beyond tax and taps deeper into a fundamental appreciation of the unique value proposition of the vast and developing sectors in this vibrant country. Industrial Manufacturing is a key growth sector within the country and is at the heart of Qatar National Vision 2030 aims to develop a competitive and diversified economy.”
“During the course our research for this paper, we uncovered valuable insights and recommendations that may prove valuable in reshaping Qatari Industrial Manufacturing and in seizing opportunities that are presented in a post-pandemic world. The value chain across many organizational structures has received a shock, however there is considerable opportunity here for the country, as globalization affords new deal opportunities in Qatar.”
The pandemic caused widespread business disruption, both creating and further accelerating distress in many markets and economies. Far from ‘business as usual’, whole business models and industries are having to rethink and reconfigure themselves in the wake of new challenges. With significantly reduced demand, supply chain disruption, working capital issues and the impact of local lockdowns, businesses need to find new ways to create value.
Most importantly, it is apparent that the ‘new normal’ is here to stay, with some of the disruptions and operational transformations evolving into a sustainable strategy that leads to long-term growth. It is apparent that the current uncertainty and turmoil within the industry can be leveraged into a world of opportunity and a more resilient future.
Doha
PwC on Wednesday launched a new paper in Qatar, ‘Driving Value Creation in the Qatari Industrial Manufacturing Industry’. Considered through the lens of the global pandemic, with significantly reduced demand, supply chain disruption, working capital issues and the impact of local lockdowns, the paper gives an overview of the journey to value creation within the Qatari industrial manufacturing industry.
The paper identifies four key areas to drive positive transformation in Industrial Manufacturing including:
1. Building supply chain
resilience
Qatar was well positioned to weather supply chain disruptions due to its ambitious diversification programme. Qatar’s Tawteen programme and Qatar Vision 2030 are driving forward localisation opportunities as the world adapts to new market realities. The pandemic has further amplified the need for supply chain transformation and localisation, with organisations casting an eye on supply chain partners to identify new synergies, unlock deal value and explore strategic acquisitions that would further boost the resilience of the sector. As such, additional vertical integration is likely to occur in the sector.
2. Championing technological innovation
Lockdowns and work restrictions have emphasised the need to automate factories for enhancing resilience by reducing the need for human operators present onsite. Manufacturers in the country are recommended to maintain sight of emerging technologies to transform operations, enhance efficiencies and ultimately create new value levers, such as 3D printing for more flexible production of parts and components. Qatar has a cost advantage with 3D printing raw materials due to its strong local petrochemical industry.
3. Optimising investment strategy
Recovery through building resilient supply chains and championing technological advances can only be achieved through a robust investment strategy. Investment leaders need to ensure they have a robust value creation strategy, and clear objectives (ROI, sector focus, etc.) provided by the shareholders which set the framework of the investment strategy, whether organic or inorganic (M&A), whilst optimising operations and balance sheets.
Qatar abounds with investment opportunities, driven in part by the strong local demand for large infrastructure projects in the country and the upcoming FIFA 2022 World Cup. Export opportunities could also be seized by virtue of Qatar’s developed air and marine port infrastructure.
4. Aligning with Qatar Vision 2030
This rests on the four pillars of economic, environmental, social and human development. The Qatar Development Bank (QDB) has launched initiatives such as Jahiz which aims to support SMEs by providing ready-to-operate industrial facilities for leasing. Given economic development and diversification priorities, and the increasing focus on ESG both on both the world stage and in capital markets, a prosperous industrial manufacturing sector would prove crucial in pivoting away from an oil and hydrocarbon economy, and to ensure a more sustainable and resilient economy to weather future crises.
Kamal Fayed, Transaction Services Partner based in Doha and PwC’s Deals practice lead in Qatar, said: “PwC’s comprehension and understanding of Qatar stretches beyond tax and taps deeper into a fundamental appreciation of the unique value proposition of the vast and developing sectors in this vibrant country. Industrial Manufacturing is a key growth sector within the country and is at the heart of Qatar National Vision 2030 aims to develop a competitive and diversified economy.”
“During the course our research for this paper, we uncovered valuable insights and recommendations that may prove valuable in reshaping Qatari Industrial Manufacturing and in seizing opportunities that are presented in a post-pandemic world. The value chain across many organizational structures has received a shock, however there is considerable opportunity here for the country, as globalization affords new deal opportunities in Qatar.”
The pandemic caused widespread business disruption, both creating and further accelerating distress in many markets and economies. Far from ‘business as usual’, whole business models and industries are having to rethink and reconfigure themselves in the wake of new challenges. With significantly reduced demand, supply chain disruption, working capital issues and the impact of local lockdowns, businesses need to find new ways to create value.
Most importantly, it is apparent that the ‘new normal’ is here to stay, with some of the disruptions and operational transformations evolving into a sustainable strategy that leads to long-term growth. It is apparent that the current uncertainty and turmoil within the industry can be leveraged into a world of opportunity and a more resilient future.
