THE Gulf is on the threshold of a big surge in investments in the aluminium sector, aluminium market analyst Harbor Intelligence says.

Harbor forecasts that investments will rise from $30 billion in 2011 to $55 billion in 2020 because of smelter expansions and new projects. According to the Gulf Aluminium Council, output will rise to five million tonnes by 2015, accounting for 17.5 per cent of global production, compared with 3.7 million tonnes in 2012 or 11 per cent of total world production.

The Gulf aluminium industry is said to be growing by 8.4 per cent annually, compared with an average annual global expansion of 3.5 per cent, making the Middle East the fastest growing aluminium market in the world.

“The aluminium industry contributes significantly to region-wide efforts to diversify economies beyond oil and gas. With widening scope, facilities and capabilities, the sector has helped increase foreign trade, create more jobs and expand regional economies,” observed Reed Exhibitions group exhibition director Daniyal Qureshi.

Qureshi believes the Gulf aluminium industry has several competitive advantages over its counterparts across the globe.

“These include huge reserves of raw materials, energy and natural gas. The region is not only one of the key aluminium producers in the world, but is also among major consumption markets of the metal. Aluminium smelters in the Gulf region are modern and use sophisticated techniques that consume less energy, enabling them to reduce cost, achieve price flexibility, and increase their competitiveness in global markets,” he said.

“The Gulf aluminium industry also benefits from the presence of a world-class infrastructure network, cheaper skilled labour, unique geographic location and advanced logistics,” he added.

Reed Exhibitions is the organiser of Aluminium Middle East exhibition’s fourth edition which will be held from April 14 to 16 next year at the Dubai International Convention and Exhibition Centre.

Under the theme of “Forging Connections ... Building Possibilities,” the event will bring together top regional and international producers, suppliers and investors expected to attract more than 200 exhibitors from 25 countries. “These partnerships offer an opportunity for the Middle East, in general, and the Gulf region, in particular, to consolidate its position as a major player in the global market, which is expected to reach up to 70 million tonnes by 2020,” Qureshi said.