Construction industry emerges as GCC top sector for aluminum products

The GCC's building and construction industry currently consumes up to 400,000 tonnes of aluminium annually making it one of the biggest markets for aluminium products in the region. In particular, construction projects in the Kingdom of Saudi Arabia, the UAE, Qatar and Kuwait have been key growth markets that are driving the surge in demand for aluminum.

According to Deloitte Middle East's GCC Powers of Construction 2010 report, the UAE has 36% worth USD 958 billion of total construction projects in the region and is expected to see its construction industry grow by a compound annual growth rate of 9.6% between 2010 and 2014. KSA on the other hand, currently has 38% share of the total construction projects in the region and is expected to launch contracts worth USD 86 billion in 2011.

Currently the Kingdom has USD 624 billion worth of projects planned or underway. Qatar has 15% share and the country has the biggest growth potential as its CAGR from 2010 to 2014 is estimated to reach 12%. Aluminium has a significant influence on the building and construction sector in these countries and in the rest of the GCC because of the diversity of ways of processing aluminium and its excellent properties that unlock a virtually unlimited potential for creativity and innovation in the design of projects.

Likewise in Kuwait, the government's firm commitment to its infrastructure stimulus measures will continue to drive growth in the construction sector in 2011. According to Business Monitor International in Kuwait construction industry value of USD 2.4 billion is forecast for 2011 with year on year growth reaching 2.4%.

Catering to the spiralling regional demand for aluminium will be one of the key issues to be discussed at the 2nd edition of Aluminum Dubai, the local version of Reed Exhibitions' global series of aluminium events which also covers India, China and Germany. The leading aluminium trade show for the Middle East will be held from May 9 to 11, 2011 at Sheikh Saeed Halls 2 and 3 of the Dubai International Convention and Exhibition Centre.

Mr Mahmood Daylami general secretary of Gulf Aluminum Council said that "KSA, the UAE and Qatar easily combine for majority of ongoing construction projects in the GCC and are likewise expected to continue to dominate the construction landscape in the future. The building and construction sector will definitely be a key factor in sustaining the strong demand for aluminum in the GCC.”

Mr Tarek Ali show manager of Aluminum Dubai, Reed Exhibitions said that "Aluminum Dubai 2011 creates opportunities and opens exciting possibilities for the world's top aluminium companies and other key industry players to take advantage of the enormous growth potential of the GCC's aluminium market. We certainly expect the growth trend in the GCC to sustain its momentum as developers and contractors in the region remain eager to take advantage of the excellent properties of aluminium to suit the aesthetic, budget and quality demands of their projects. Moreover, Aluminum Dubai will also help boost awareness about the benefits and strategic advantages of aluminium as a truly modern building material that can be used in all types of building and construction projects including the world's biggest and tallest structures."