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Aluminium in the UAE

Aluminium production in the UAE is booming and set to grow further. Recent developments and expansions mean that the UAE is now capable of producing around 1.80 million tonnes of aluminium annually, making it the world's fifth largest supplier, providing  about 4.1 per cent of the world's total aluminium output, and 51 per cent of the production in the Gulf Cooperation Council (GCC).

The aluminium industry of the Gulf States has grown rapidly since its inception in the 1970s and it has become the most important non-oil industry sector.

History

The history of aluminium smelting in Dubai began in 1979, when Queen Elizabeth II and HH Sheikh Rashid turned the tap at the brand new DUBAL desalination plant in Jebel Ali, and marked the official opening of the second aluminium smelter in the region and the beginning of a valuable industry in the UAE.

By October that year the first reduction cell powered up; by November the first metal was tapped; and on 31st December the first green anode was produced by the green mill.  At the time, it was one of the biggest basic industry development projects in the world.

Celebrating more than 30 years of development and success, Dubal is now one of the largest non-oil contributors to Dubai's economy. The company contributed some Dhs5.4 billion to Dubai's economy in 2009. This equated to 1.895 of the city's Gross Domestic Product (GDP) and 15.45% of the manufacturing sector's USD9 billion contribution to Dubai's GDP.

Despite being ranked in 2008 as one of the largest single-site smelters in the world and the seventh-largest producer of primary aluminium, DUBAL still looked for ways to develop and expand, with a stated goal of being one of the world's top five producers of primary aluminium by 2015. The company has achieved this ambition three years early, thanks to a strategic joint protocol signed with Mubadala Development Company, a wholly-owned investment vehicle of the government of the Emirate of Abu Dhabi, in 2006

The joint venture pairs Dubal's expertise, market knowledge and firm hold on critical bauxite and alumina supplies, with Abu Dhabi's vast energy and financial resources. The result is the creation of the Emal Project. Emal is designed to be the largest aluminium smelter in the world. It is being built in two Phases, with an ultimate capacity of 1.5 million tonnes per annum. Construction of phase one is complete, including a power plant with generating capacity of 2,000 MW, and the facility is now producing 750,000 tonnes a year; a healthy addition to Dubal's capacity of around 1.02 million tonnes per annum. However, Emal's output is expected to double to 1.3 million tonnes annually when new expansions are completed in 2014.

Demand

The aluminium produced in the UAE is mainly for export, with nearly 90% of production travelling overseas. Dubal's exports for 2009 break down into 37% Asia, 23% GCC, 20% Europe, 12% Middle East and Africa and 8% for North America. The demand in markets in Europe and North America is expected to grow as primary aluminium smelters in some industrialised countries are rapidly becoming uneconomic. Labour and energy costs are escalating, paving the way for further growth in GCC supplies, which benefit from lower production costs and access to cheaper energy supplies.

In the recent past, the increasing wealth and expanding economies of developing countries such as China and India, have fuelled the increasing demand for aluminium. However, there is also a growing home market. While the bubble may have burst in the real estate market, construction is still the GCC's top sector for aluminium products, consuming 400,000 tonnes annually.

Products

Aluminium products produced in the UAE are used extensively in transport, packaging and general engineering, as well as building and construction. DUBAL finished product, made-to-order for more than 300 customers worldwide, includes foundry alloy for the automotive industry; extrusion billet for construction, transport and industrial applications; billets for forging processes in automotive industries; and high purity primary aluminium for the electronics and aerospace industries.
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