ABSTRACT
This chapter focuses on industrialization in individual Arab countries, and the problems and conditions of Arab industrial integration. It considers the political and economic motivations behind the industrial drive in the Arab countries. The chapter assesses the results achieved so far in terms of job creation and the secondary sector's contribution to the gross domestic product. It also considers the consequences of current individual or "go-alone" industrial policies. The chapter proposes a set of principles and conditions that constitute a prerequisite to any Arab industrial integration. There are different motivations for different countries, but one can distinguish between economic and political motivations. The industrial sector is perceived as the main source of development because, in the past, its growth has been greater than that of any other sector. Given the exhaustibility of oil and the quasi-nonexistence of any agricultural potential, the exportation of goods and services appears to be the only future source of foreign exchange earnings.
