The Gulf possesses advantages such as low power cost and gas prices, favourable logistics owing to well connected airports and sea ports to all global destinations and skilled manpower supply.
“GCC smelters are now actively engaged in downstream development to instigate local demand and value addition to primary aluminium production,” Frost & Sullivan said.
Another advantage to the GCC downstream industry is the availability of liquid metal, which provides a further competitive edge on production costs over other international players, according to the report.
This is supported by the governing ministries which promote the aluminium industry’s development by facilitating rapid clearance and awarding subsidies for greenfield projects, it said.
Earlier a report by Ventures Middle East had estimated Qatar’s demand for fabricated aluminium products to grow by an average 12% during the next four years to reach $436M by 2015 in view of the buoyancy in the construction market.
Property development in Qatar is expected to witness tremendous growth following the country’s winning bid to host the FIFA World Cup in 2022, according to various reports.
The construction boom in Qatar has also boosted the country’s aluminium sector with demand for fabricated aluminium products in the construction industry expected to increase at a CAGR of 12% from $252M in 2010 to $436M in 2015.