GCC seeks investments in aluminium

GCC governments are now moving to attract international investors in the downstream aluminium industry, seeking to further utilize aluminium in diversified industries, according to Mahmoud Al Daylami, General Secretary of Gulf Aluminium Council.

The aggressive positioning of the GCC region also reflects the growing dynamism in the global aluminium industry, which is on track to achieve an 8.4 per cent growth in 2013 compared to 3.7 per cent in 2012.

The surging demand in key international markets such as China and the rest of Asia, North America, Latin America, East Europe and the Middle East is fuelling the optimism among aluminium manufacturers and investors in the GCC, as up to 80 per cent of the region’s aluminium production is exported worldwide. Moreover, the sustained growth in construction activities is likewise creating new business opportunities with up to 80 per cent of aluminium supplied in the region being used in the construction sector.

Aluminium smelters operating in the GCC are Aluminium Bahrain (Alba) in Bahrain, Dubai Aluminium (Dubal) in Dubai, Emirates Aluminium (EMAL) in Abu Dhabi, Qatar Aluminium (Qatalum) in Qatar and Sohar Aluminium in Oman. These smelters have collectively produced 3,739,290 tonnes of primary aluminium in 2012, which account for nine per cent of total world production, compared to 3,488,357 in 2011.

With the aggressive expansion drive in the region, the GCC is expected to account for 13 per cent of the world’s total aluminium production by the end of 2013. Moreover, GCC countries are expected to collectively boost aluminium production capacity by up to 40 per cent to reach 5 million metric tons by 2014, from around 3.7 million tonnes in 2012.

Mahmoud Al Daylami, General Secretary of Gulf Aluminium Council, said: “The growth potential of the GCC’s aluminium industry remains exceptionally high and the government’s proactive efforts to expand the industry towards the downstream sector is expected to unlock more growth opportunities in the future. The collective thrust of GCC countries to attract foreign investors and to expand the industry strongly reinforces the growing reputation of the region as a major aluminium hub.

“The upcoming Aluminium Middle East 2013 in Dubai will therefore serve as a very important platform to identify various challenges and explore new possibilities to sustain the long-term growth of the region’s aluminium industry. The Gulf Aluminium Council is supporting this initiative as the continuing success of Aluminium Middle East serves as a strong manifestation of the region’s enormous growth potential and the level of attention that the GCC has received from global industry players and investors.”

Mohammed Bader-Eddin, Show Director of Aluminium Middle East 2013, said: “International investors are showing strong interest in the GCC’s aluminium industry, given the region’s strategic location, abundant energy resources and the proactive efforts of the GCC governments to cultivate an environment conducive for sustainable growth, as confirmed by the Gulf Aluminium Council. The positive feedback that we have received from confirmed exhibitors and trade visitors of Aluminium Middle East 2013 clearly underlines the enthusiasm of regional and global industry players towards the GCC. With around 159 exhibitors from at least 25 countries attending the exhibition, we are confident that this year’s edition of Aluminium Middle East will again generate new investment opportunities for the GCC’s aluminium industry.”

Aluminium Middle East 2013, the third edition of the leading exhibition for aluminium products, technologies and investments in the Middle East, will be attended by 159 exhibitors from 25 countries showcasing their latest technologies and innovations. Formerly known as Aluminium Dubai, Aluminium Middle East is one of several global aluminium events overseen by Reed Exhibitions. The show will be held from April 23 to 25, 2013 at the Dubai International Convention and Exhibition Centre.

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