Bosch continues to expand its activities in the Middle East
With annual population growth of more than 2 percent, Pakistan has one of the highest growth rates in Asia. From 1950 to 2015, the population grew approximately fivefold, to 190 million inhabitants. In comparison, Germany has a population of around 82 million, while Japan has 127 million. Pakistan is the sixth most populous country in the world, making it a very attractive market indeed for the Bosch Group. “On account of the growing population and the low median age of 22, we see good business opportunities in Pakistan for Bosch in the long term,” said Steven Young, president of the Bosch Group in the Turkey and Middle East region. According to the International Monetary Fund, Pakistan’s economy is likely to post steady growth of around 5 percent per year up to 2020. The reasons for this include the low inflation rate and a steadily growing middle class, which is forecast to increase in size in the years ahead by around 6 percent annually. Both factors are having an overall positive effect on local purchasing power. For example, GDP per capita has doubled over the past ten years, and is now at more than 1,400 U.S. dollars (just under 1,300 euros). “Against this backdrop of expected growth, our first office in Pakistan is an important step toward our long-term success in the Middle East. Above all, the central location of the major city of Lahore offers the best possible conditions for our branch office.” Lahore is located in Punjab, the most populous province in Pakistan, with more than 100 million inhabitants.
Bosch’s long-term growth strategy in the Middle East
The opening of a branch office in Pakistan is part of Bosch’s consistent and long-term growth strategy in the Middle East. The company is looking to seize the region’s potential while supporting the local economy with expertise. Steven Young is happy that Bosch will be a part of Pakistan’s growth story: “Our Pakistani customers will definitely benefit from our company’s innovations. Ultimately, we also contribute to improving quality of life for local people with our products and services.” Here, the company benefits from its many years of experience in the region, he added. The Bosch Group has been active in the Middle East for over 90 years and is present in 16 countries in the region today. Business there developed positively in 2015. In 2014, Bosch generated sales of around 240 million euros in the Middle East.