Pedal to the metal

The GCC’s building and construction industry currently consumes up to 400,000t of aluminium a year, making it one of the biggest markets for aluminium products in the region.

In particular, construction projects in Saudi Arabia, the UAE, Qatar and Kuwait have been key growth markets that are driving the surge in demand for aluminium.

According to Deloitte Middle East’s GCC Powers of Construction 2010 report, the UAE has 36%, worth $958bn, of total construction projects in the region, and is expected to see its construction industry grow by a compound annual growth rate (CAGR) of 9.6% between 2010 and 2014.

Saudi Arabia, on the other hand, currently has a 38% share of total construction projects in the region, and is expected to launch contracts worth $86bn in 2011.

Currently the Kingdom has $624bn worth of projects planned or underway. Qatar has a 15% share, and 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 due to the diversity of ways of processing aluminium, combined with its excellent properties, which 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, a construction industry value of $2.4bn is forecast for Kuwait in 2011, with year-on-year growth of 2.4%.

“KSA, the UAE and Qatar easily combine to account for the 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 aluminium in the GCC,” said Mahmood Daylami, general secretary of the Gulf Aluminium Council.

Demand for fabricated aluminium in the UAE is set to grow to $838m a year until 2015, representing about 9% growth year-on-year from its 2010 figure of $555m. This increased activity has, in turn, increased the demand for aluminium and aluminium extruded products in the UAE, as the demand for sustainability and green building increases.