- UAE has 36 per cent of total construction projects in region, worth USD 958 billion
The GCC’s building and construction industry currently consumes up to 400,000 tonnes of aluminium annually, making it one of the biggest markets for aluminium products in the region. In particular, construction projects in the Kingdom of Saudi Arabia (KSA), 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 per cent – worth USD 958 billion – 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 per cent between 2010 and 2014. KSA on the other hand, currently has a 38 per cent share of the total construction projects in the region, and is expected to launch contracts worth USD 86 billion in 2011. Currently the Kingdom has USD 624 billion worth of projects planned or underway. Qatar has a 15 per cent share, and the country has the biggest growth potential as its CAGR from 2010 to 2014 is estimated to reach 12 per cent. Aluminium has a significant influence on the building and construction sector in these countries and in the rest of the GCC because of the diversity of ways of processing aluminium and its excellent properties that 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, in Kuwait construction industry value of USD 2.4 billion is forecast for 2011 with year on year growth reaching 2.4 per cent.
Catering to the spiralling regional demand for aluminium will be one of the key issues to be discussed at the 2nd edition of ALUMINIUM Dubai, the local version of Reed Exhibitions’ global series of aluminium events which also covers India, China and Germany. The leading aluminium trade show for the Middle East will be held from May 9 to 11, 2011 at Sheikh Saeed Halls 2 and 3 of the Dubai International Convention and Exhibition Centre.
“KSA, the UAE and Qatar easily combine for 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, Gulf Aluminium Council.
Tarek Ali, Show Manager, ALUMINIUM Dubai, Reed Exhibitions, said: “ALUMINIUM Dubai 2011 creates opportunities and opens exciting possibilities for the world’s top aluminium companies and other key industry players to take advantage of the enormous growth potential of the GCC’s aluminium market. We certainly expect the growth trend in the GCC to sustain its momentum as developers and contractors in the region remain eager to take advantage of the excellent properties of aluminium to suit the aesthetic, budget and quality demands of their projects. Moreover, ALUMINIUM Dubai will also help boost awareness about the benefits and strategic advantages of aluminium as a truly modern building material that can be used in all types of building and construction projects, including the world’s biggest and tallest structures.”
In light of the region’s extreme weather conditions, aluminium has become popular in building and construction projects in the GCC because it combines lightweight and high strength and has good corrosion resistance, resulting in long service lifecycle and huge cost savings in maintenance and repair. Moreover, aluminium is also characterised by its formability, machinability and ease of use, giving aluminium manufacturers the freedom to develop a limitless range of designs and functionalities.
ALUMINIUM Dubai 2011 seeks support the growth of the aluminium sector by providing a conducive networking platform for manufacturers, suppliers and buyers from the GCC. This year’s event also aims to build on the success of the show’s 2010 edition, which gathered 165 exhibitors from 23 countries and over 3,000 visitors from 61 countries. For this year’s event, a total of 93 companies have already confirmed participation, with several more exhibitors from all over the world are expected to follow.
