ABSTRACT
This chapter focuses on the hydrocarbons as a resource and as a crucial factor in promotion of resource-based industrialization. Manufacturing industry in the Gulf is characterized by unbalanced growth, where it has developed strong linkages with the petroleum sector. Much of the style and content of the Gulf industrialization was set by the necessity of developing resource-based, capital-intensive and labour-saving industry. However, with the emergence of economic aspirations in the Arab Gulf, the role and position of the oil companies has changed. Aside from liquified natural gas and natural gas liquids, development of the petrochemicals industry is the best candidate for the Gulfs competitive advantage in gas-based industrialization. Nonetheless, Iraq's agro-industry, together with the marine industry in the shoreline states, add new dimensions to industrialization in the Gulf region.
