Developing strategies for common issues

IMNE: What are the primary operatives of the Council and how has it impacted the overall aluminium industry in terms of growth and work practices?

Daylami: Six smelters of the Gulf, namely ALBA (Bahrain), DUBAL (Dubai), SOHAR (Oman), Qatalum (Qatar), EMAL (Abu Dhabi) and Ma’aden (Saudi Arabia), located in the six countries of the Gulf Cooperation Council (GCC) now together produce approximately 3.6 million tonnes of aluminium every year. Aluminium is one of the major, non-oil export-oriented industries, with an investment of US$40 billion.

Gulf in recent times has become one of the most important centres for aluminium production. It is not only adding to each country's respective GDP but is also boosting business and increasing employment opportunities. Hence, this council – headquartered in Dubai, United Arab Emirates - was formed to safeguard and help the competitiveness of the industry, to act as its spokesperson on forums, as well as to ensure that a common strategy is disseminated to all stakeholders. Established in 2008, the GAC kicked off its activities in 2010 and our operatives are spread across the downstream industry as well. Our focus is not on the primary producers of aluminium but also on the users of it.

IMNE: Has the climatic change impacted the overall aluminium production over the years?
Daylami: Aluminium production in the Gulf has been ongoing since the past 40 years. During this time period, the production soared from 120,000 tonnes a year to 3.6 million tonnes a year, illustrating that the climate has not impacted the growth or progression of this sector. Having said that, it is a heated environment in the Gulf but taking corrective managerial decisions to ease off the operating pressure during the hotter months has helped.

IMNE: How much is the Gulf aluminium industry worth and what are the future prospects?
Daylami:  An additional US$15 billion dollars is expected to be invested in Saudi Arabia and UAE by 2015.  The sector is contributing four to twelve percent to the GDP, depending on the particular Gulf economy. However, the worth of the industry cannot be assessed by the existing assets and investments alone but also by the potential that it holds. More foreign investment is expected to pour in due to the region’s strategic location and abundant gas stocks. Additionally, aluminium is proving to be a vibrant economic sector and a forefront activity of the Arab World. It is also helping diversify national development beyond oil and gas. Currently, we produce 7% of the world’s output and we expect to see that share going up to ten percent.

IMNE: What are the major export markets for the Gulf aluminium industry? Has recent financial fragilities across the West impacted this sector? Which markets hold immense potential?
Daylami: Besides catering to the local regional market, aluminium is exported to European, Far-Eastern and Asian markets. The overall financial instabilities in Europe have impacted the market dynamics but the overall demand has been quite positive. In fact, Europe seems like a promising market for aluminium export. As for other lucrative markets, Gulf countries, China and Far East have immense potential.

IMNE: Which industries are the major users of aluminium in today's world?
Daylami:  Aluminium is consumed virtually everywhere. Be it transport, electrical supplies, packaging, building & construction or food and beverage, aluminium is an integral item.

IMNE: Is demand expected to increase any further with the global economy recovering?
Daylami: It should. Fifty percent of the total aluminium productionNew Balance Mens Shoes