Gulf aluminium industry investments to soar

Doha: Business circles expect the Gulf region’s current $30 bn investment in the aluminium industry to soar to the tune of $55bn by 2022 due to future expansion plans and new projects.

In 2000, GCC’s share in world aluminium production was to the tune of 1.8 million tons annually and it soared to 2.2million tons （5.4 percent ） by 2008. By 2015, the GCC’s aluminium production is expected to rise to 6 million tonnes annually and to 9 million tonnes by 2020, more than 13 percent of world production.

More investment opportunities in aluminium industry in the Gulf region will be disclosed at the Dubai Aluminium Fair in Mayi 2011, said Mahmoud Al Dulaimy, General Secretary of the Gulf Aluminium Council,quoted by London-based daily Al Hayat.

The GCC states currently have mega aluminum projects. Sultanate of Oman established an aluminium smelting plant in Sahar area, Qatar Aluminium Plant Qatalum is progressing well. United Arab Emirates has implemented two major aluminium projects of a capacity of 1.3 million tonnes,and Saudi Arabia has implemented two mega projects of a capacity of 1.4 million tonnes.

Aluminium industry is a key manufacturing industry in GCC states as strategic option in addition to oil and petrochemical industries. During the past 10 years, GCC states conducted long term studies aimed at developing aluminium industry which has enabled the region to become one of the world’s key aluminum producers.

More foreign investors look to work in the GCC’s aluminium sector for its strategic geographical location and cheap oil prices. Europe is importing currently about 6 percent of aluminium demand from the Gulf region.

Saudi Arabia and the United Arab Emirates top Gulf aluminium markets. Some 2 million tons,40 percent of the Middle East annual aluminium products are provided by Dubai Aluminium Company and Emirates Aluminum Company.

Aluminium industry in the Gulf region started early where Bahrain Aluminium Company started its production in 1971 of a capacity of 120,000 annually and Dubai Aluminium Company in 1979 of a capacity of 135,000. Due to the expansion in the two plants, production was doubled to the tune of 1.8 million tonnes. Some $7bn were invested in 2008 in this field.