Engr. Salam AL SHARIF President & CEO Sharif Group of Companies BIR Ambassador to the Middle East Former Vice President- NF Division Former Chairman, Ambassadors Committee and Board Member, Shredders Committee President, Bureau of Middle East Recycling (BMR)
Ladies and Gentlemen, distinguished guests very good morning! It s my great privilege to be asked by Metal Bulletin to give the Welcome Speech to kick off this conference. First of all, I like to welcome everybody here today, to the Pearl of the Gulf to the Middle East Commercial Capital to the Middle East Aluminum Hub... WELCOME TO DUBAI For some of you who don t know where the name of Dubai has come from let me tell you a little story ---- 2bai ---.
Independence and Interdependence
I am glad to see more worldwide conferences are chosen to be held here in our region. Why Dubai is the choice?!
1991
Dubai Pearl of the Gulf! Often dubbed "The Pearl of the Gulf," a throwback to times when gathering pearls was a major industry. Natural Arabian Gulf pearls
Dubai Commercial Capital of the Middle East! Dubai has been transformed from a small pearl-fishing community into one of the fastest growing cities on earth! Whether it is aviation, retail, leisure, technology, media, construction, industry or banking services, Dubai offers a world of opportunities! Enter DUBAI the small city that thinks BIG!
Booming on the back of Arab Spring Was it Spring or Autumn? Arab Spring has brought rosy spring season to some countries while ended spring season in others Advantages: Immigration Walloped by global recession, investors and tourists flock back to Dubai fleeing instability in neighboring countries Demography Economic Advantages Structural changes Foreign investment attraction Political reform GDP Growth Petro-dollar rehabilitation Industrialization Tax Haven Production compensation Disadvantages: 1. 2. 3. Economic growth has hit 4.4% in 2012, highest rate since 2006. Dubai airport is expected to become the world's busiest by 2015. 7th most popular tourist destination in the world.
The GCC economies stepping up to future challenges o o o o +50 conferences per year are held up in Dubai 70 conferences in all of UAE At least 11 of them relate to Recycling & Environment Creating networking, investment opportunities, real estate growth and tourism boom The GCC Economies, Stepping Up to Future Challenges
The GCC countries have embarked on major diversification programs during the last decade. o Energy & renewable energy related projects o Industrial projects, i.e. refineries o Construction and Infrastructure projects o Mining & Metal Manufacturing o Financial Services o Hospitality & tourism 5% 8% 10% 13% 34% 30%
Economic diversification to non-oil industry Turn of fortune for GCC US$ 250 billion rail project Nominal GDP in GCC put at US$ 1.56 trillion GCC s non-oil growth set to hit 6% on public spending US$ 1.5 trillion construction in GCC with UAE & Saudi continuing to lead GCC contracting projects reach US$ 900 billion in investment GCC infrastructure projects now worth US$ 119.6 billion GCC countries to invest US$ 155 billion in solar power projects A US$ 2.54 Trillion on-going industrial and refineries project GCC hospitality market to reach US$ 24 billion by 2016 Expo 2020 to be awarded by end of this month. Benefits: 490k acres 31 billion investment 277k employment opportunities Expecting huge investment likely in all sectors, i.e. logistics, healthcare, cleantech, education, arts, culture, tourism, hospitality, infrastructure, etc.
Global economy s axis shifts from West to East
World Economic Growth Share why the shift?! 1982-1987 30% Developing countries In developing countries. Developed countries 70% 80% world population 70% world foreign exchange reserves 75% world land mass, albeit 34% world GDP Demography leads to growth +30 years 2017 75% Developing countries If growth to double Developed countries 25%
Troubled Global Economy The Eurozone and the Great Recession. o o o The European recession is part of the Great Recession, which sparked by the outbreak of the U.S. subprime mortgage crisis and financial crisis of 2007-2008. The crisis spread rapidly and affected much of the region with several countries already in recession as of February 2009 and then a two year long recession. Up until 2011, the recession and the recovery had mostly tracked each other on both sides of the Atlantic. Like giants riding a seesaw, the world's major economies can't manage to be up at the same time.
Aluminum Hub GCC has been a core attraction for the Aluminum industry and world players in this industry have joined venture with the GCC countries.
Who has the oil?!
GCC, focal attraction for the aluminum global players GCC governments are moving to attract international investors in the aluminum industry, seeking to further utilize aluminum in diversified industries. Bahrain Bretons, Germany - ALBA is a joint venture between Bahraini and Saudi public authorities and Bretons of Germany; it has the largest and most modern smelter in the world. Qatar Hydro, Norway - Qatalum is an equal joint venture between Qatar Petroleum and Hydro Aluminum of Norway; Qatalum s complex facilities include a carbon plant, port and storage facilities, as well as a captive power plant. Saudi Alcoa, US Ma aden, a joint venture with the Saudi Arabian Mining Company and Alcoa, to build the largest and lowest-cost integrated aluminum facility in the highly populated Middle East region, where infrastructures are developing to keep pace with growing consumer demand. Oman Alcan, Canada - Sohar Aluminum, an Omani Company, is a joint venture between Oman Oil Company, Abu Dhabi Water and Electricity Authority, and Alcan, who have combined to launch what will be a significant boost to the industrial development of Oman and the Batinah Region in particular. GCC Tomorrow s Aluminum Powerhouse
Let s look at the Primary Aluminum scale throughout the GCC countries
Aluminum smelters in the GCC These smelters have collectively produced 3,739,290 tons of primary aluminum in 2012 from around 3.7 Million tons in 2012 expected to collectively boost production capacity by up to 40% to reach 5 Million MT by 2014 o o o o o Aluminum Bahrain (Alba), Bahrain Dubai Aluminum (Dubal), Dubai Emirates Aluminum (EMAL), Abu Dhabi Qatar Aluminum (Qatalum), Qatar Sohar Aluminum, Oman which account for 10% of total world aluminum production compared to 3,488,357 in 2011 By 2020, GCC will contribute to 25% of the world s Aluminum production, estimated at 7 million tons/year. expected to account for 13% of the world s total aluminum production by end of 2013 The aluminum industry in GCC contributes 4-12% to the regional GDP.
GCC Downstream Industry Aluminum Downstream Development Due to the region s significant power advantage:- Growing at a rapid pace Development of new aluminum smelters and expansion of existing smelters = more secondary remelting opportunities Will have a great scope to localize products which are currently imported from a few regular import partners. GCC Secondary aluminum market - key contributor to the recycling Industry, will undoubtedly generate valuable metal scrap. Increase in scope of using more aluminum scrap in re-melting activities for downstream players by procuring the right alloy grade, recycling and thereby saving cost and energy and reducing carbon footprint. The rise of the packaging industry, growth in automotive, construction and consumer sectors in the GCC are expected to further drive the aluminum scrap generation. Secondary aluminum market in the GCC will create huge employment opportunities in the next 10 years.
GCC current market volume for Aluminum scrap 35-40% UBC 5-7% Cable Scrap (Talon) and other type of mixed alloy scraps 4% Sheet Scrap (Taint Tabor) Key end-user sectors that contribute to regional macro and micro growth that are expected to play a significant role in the next 5-10 years:- Construction Electrical Packaging Transportation Industrial based applications 30-35% Door and Windows Scrap 11% Engine Scrap (TENSE) 5% Wheel Scrap (TROMA)