Gulf set to become global aluminum destination
According to Frost & Sullivan, the Gulf Cooperation Council region’s aluminum industry is set to contribute 10% to 11% of global output thus growing to the stature of global aluminum destination, next to oil wealth.
The GCC possesses some great advantages such as low power cost and gas prices favorable logistics owing to well connected airports and sea ports to all global destinations and skilled manpower supply from Asian neighbors sustaining over four decades to provide knowledge transfer to the local manpower adding to their employment opportunities.
Frost & Sullivan said that GCC smelters are now actively engaged in downstream development to instigate local demand and value addition to primary aluminum production.
Another advantage to the GCC down stream industry is the availability of liquid metal which provides further competitive edge on production costs over other international players. This is also appropriately supported by the respective governing ministries to promote the aluminum industries development by facilitating rapid clearance and awarding subsidies for the green field projects.
Earlier a report by Ventures Middle East had estimated Qatar’s demand for fabricated aluminum products to grow by an average 12% during the next 4 years to reach USD 436 million by 2015 in view of the buoyancy in the construction market.
Property development in Qatar is expected to witness tremendous growth following the country winning the bid to host the FIFA World Cup in 2022. The construction boom in Qatar has also boosted the country’s aluminum sector with demand for fabricated aluminum products in the construction industry expected to increase at CAGR of 12% from USD 252 million in 2010 to USD 436 million in 2015.
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