GCC's aluminium investments could hit $55bn
Upcoming smelter expansions, new projects bolster aluminium industry.
Investments in the Gulf’s aluminium industry are currently estimated at $30 billion, and could reach as much as $55billion by 2020 due to upcoming smelter expansions and new projects.
A fully-integrated aluminium industrial complex being built as a JV between Alcoa and Saudi Arabian Mining Co. (Ma’aden) alone involves a capital investment of about $10.5billion.
More foreign investors are looking to the Gulf for aluminium business due to its inexpensive gas stocks and strategic geographic location, with Europe already sourcing around 6% of its aluminium demand from the region.
The UAE and Saudi Arabia rank among the Gulf’s two biggest aluminium markets. Smelting operations managed by Dubai Aluminium Company Ltd. (Dubal) and Emirates Aluminium in Abu Dhabi produce around 1.8 million tons of aluminium a year or 40% of total annual Middle Eastern production.
“Aluminium has emerged as one of the key economic activities of the Arab World, and complements region-wide efforts to diversify national development beyond oil and gas,” said Gulf Aluminium Council general secretary Mahmood Daylami.
Aluminium Dubai runs from 9 to 11 May at the Dubai International Convention and Exhibition Centre.