Transfer of Technology in the Arab Steel Industry

Abstract

The Arab iron and steel industry is in its early stages of development. Nevertheless, Arab countries today are all aware of the importance of this industry to the national economy. The steel industry, generally speaking, is the pillar of industrialization because of its forward and backward linkages to the economy. It is given high priority in the development plans of most Arab countries because of its dynamic effect on the economy as a whole. Following the 1975 UNIDO conference in Lima, Peru, industrial development targets were set for LDCs by the year 2000. The goal for industrial production was set for 25% of world industrial production as compared with around 7% in 1975. These targets imply that installed steel production capacities should increase from 750 million tons (MT) in 1975, to 1750 MT in 2000. In trying to acquire the appropriate technology to develop the steel industry, the Arab countries, like most developing countries, are faced with all the constraints for the speedy implementation of high-cost hardware to practice the imported technology. A study of the history of steel development in many countries would indicate that a gestation period of about 10 years is usually required for absorbing and developing the required technical know-how and skills, as well as for the development of other interrelated sectors.