Low oil prices benefit GCC aluminium industry

Official said low oil prices are creating more opportunities in the sector and is the “next big driver of the GCC’s economic diversification"

This photo is for representational purposes only.
This photo is for representational purposes only.

The decline in oil prices have proven beneficial to the GCC aluminium industry, said H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, UAE Minister of Finance, and Chairman of Dubai Aluminium (DUBAL).

The Shiekh made his comments on the sidelines of the 20th Arab International Aluminium Conference (ARABAL), the Middle East’s premier aluminium industry gathering, which opened in Dubai on Tuesday, WAM reported.

Sheikh Hamdan said: “Due to the slump in oil prices, many aluminium smelters are replacing oil with natural gas and clean coal in running their operations.”

''While some global smelters have stopped growing and others plunged into recession, aluminium plants in the UAE and GCC are evolving and expanding into other world markets.”

''There is no glut in the UAE market and our prime objective is to market our products,'' Sheikh Hamdan added.

In another report, Abdulla Jassem bin Kalban, MD and CEO of Emirates Global Aluminium said that low oil prices are creating more opportunities in the sector and is the “next big driver of the GCC’s economic diversification" to further non-oil private sector growth.

To maintain a balanced budget, the UAE federal government has set a spending target of AED48.5bn ($13bn) for 2016 with several infrastructure projects continuing, Kalban noted.

He stressed however that social welfare is a priority, though economic diversification away from oil remains key.

Most popular

Awards

Deadline approaches for CW Oman Awards 2020 in Muscat
You have until 20 January to submit your nominations for the ninth edition of the

Conferences

CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this
CW In Focus | Leaders in Construction Summit UAE 2019
A roundup of Construction Week's annual summit that was held in Dubai this September

Latest Issue

Construction Week - Issue 765
Jun 29, 2020