Saudi Arabia’s aluminium foil import estimated to drop in 2018

Saudi Arabia, one of the fastest growing economies of the Gulf region, is on the verge of entering a post-oil era. The economic drivers in this phase are going to be aluminium, building and construction, and port industry. With stellar urbanization, consumer durables sectors like aluminium foil packaging, appliances and automobiles will witness significant growth.

Five-year data of aluminium foil import by Saudi Arabia shows this correlation:

From 8975 tonnes in 2014, Saudi Arabia’s aluminium foil import has surged to 59,513 tonne in 2017. In 2015, the volume reached its highest at 60343 tonnes. However, macro and micro-economic factors remaining constant, aluminium foil import by the Gulf country is estimated to drop to 45214 tonnes in 2018.

Saudi Arabia’s GDP stood at US$646.4 billion in 2016. The International Monetary Fund (IMF) has raised its economic growth forecast for the country as oil price is on the rise. The international finance body pegs GDP growth of Saudi Arabia at 1.6 per cent.

At the recently held World Economic Forum (WEF) in Davos, Switzerland, Fahd al Rasheed, managing director and chief executive of King Abdullah Economic City (the world's first publicly listed city) said Tuesday, January 23, "The message is that we are entering a post-oil era in which we are diversifying the economy. We had a hard 2016 to 2017 in terms of economic growth, but I think 2018, with the highest ever government budget announced in the kingdom's history, (it should improve)."