Industry

Capivest to float US$1bn magnesium venture

Bahrain-based Islamic investment bank Capivest is to float a US$1 billion company to build a series of magnesium smelter units in the Middle East and North Africa (MENA) region.

The bank however, did not specify the location and the commencement date of the first plant, saying they would be revealed at a later stage. Feasibility studies for the project were complete and the first plant will have an initial production capacity of 30,000 tonnes to 60,000 tonnes per year.

Gold sales plunge 30 percent in Saudi Arabia

Sources in Saudi Arabia’s gold and jewellery market assert a 30 percent dip in sales volume conducted during the first half of this year as opposed to the same period of 2007. Instead, customers throughout the Kingdom are turning to buying ‘accessories’ – the local euphemism for gold or silver-plated jewellery.

Traders owe the transformation in customer trends to the 50 percent soar in the yellow metal’s price over a 12 month period, coupled with the lack of investor demand to mobilise their savings into gold assets – unlike other world countries where the yellow metal is seen as the ultimate safe haven for wary investors troubled with stock market fluctuations.

Saudi Arabia: Mining IPO

Ma'aden, the state mining company, has announced an IPO of 462,500,000 shares, with the aim of raising capital of some SR9.25 billion (US$2.5 billion). The issue will represent 50 percent of the company's capital, with the other half staying in state hands in the shape of the Public Investment Fund, under the guidance of the Finance Ministry.

The funds secured by the offering are anticipated to cover major project costs, including ambitious plans to build a 740,000 tonne aluminium smelter in cooperation with Australian mining giant Rio Tinto. Further plans include a 3 million tonne phosphate plant in association with Saudi Basic Industries Corporation (SABIC).

Middle East maritime boom draws US$33bn

Oil-fuelled growth has pushed up the Middle East's seaport and maritime facilities development and expansion bill to AED121 billion (US$33 billion), as major shippers are increasing their order-book.

""There are currently around 50 major seaport projects valued at more than US$33 billion across the Middle East with individual budgets ranging from US$10 million to US$5.5 billion,"" according to research company Proleads, which monitors all major regional construction.

Chinese shipbuilder wins US$500m Al Jaber contract

The Al Jaber Group announced that it has awarded a US$500 million (AED1.835 billion) contract to Chinese shipbuilder, Jiangsu Hangtong Ship Heavy Industry, to build and supply eight bulk carriers.

""The deal that was signed with Jiangsu Hangtong Ship Heavy Industry will position Al Jaber Shipping Agency and Marine Works as the biggest privately-owned shipping company in the Middle East with a total capacity of 651,800 deadweight tonnes,"" said a company statement. The deal will complement Al Jaber's fleet of 38 vessels. Al Jaber will receive the first vessel in October 2010, followed by a new vessel every four months.

Midal Cables to build US$100m plant

Bahrain-based Midal Cables, one of the world’s largest manufacturers of aluminium rods and conductors, and the United Arab Emirates’ state-run industrial investment house, Abu Dhabi Basic Industries Corporation (ADBIC), are to set up a $100 million aluminium rod plant in Taweelah, Abu Dhabi.

Midal’s Managing Director and ADBIC Senior Vice President of Metals signed the joint venture agreement for the 150,000 tonne per annum capacity plant. Midal, which has over 30 years’ experience in the field, will provide the technology and expertise for the project as well as investment capital.

UAE's manufacturing sector slows down

The UAE's manufacturing sector is starting to show signs of slowing down, as its share in the country's gross domestic product (GDP) has declined by 1.2 percent between 2001 and 2006, according to a government report.

Data compiled by the Ministry of Economy shows that the manufacturing sector's share of the country's total non-oil GDP has slumped from 20 percent in 2001 to 18.8 percent in 2006, averaging 19 percent during the period. While the sector is still the leading non-oil GDP contributor, a review by the Dubai Chamber of Commerce and Industry shows that other forms of businesses are fast catching up, with the trading sector posting promising growth from 12.7 percent in 2001 to 16.9 percent in 2006.

Qatar Steel eyes capacity expansion

A series of expansion initiatives under way at Qatar Steel Company is expected to help it meet local demand and strengthen its standing as one of the leading players in the region. In line with its commitment to meet the growing demand for steel in the region, Qatar Steel Company (QSC) is in the midst of a series of initiatives aimed at increasing its production capacity. The ongoing modernisation and technically-advanced expansion projects are designed to produce world-class products, which will further enhance the company’s presence in the world of steel production.

NoozzVIEW; Egypt returns to gold

Egypt is returning to commercial production of the precious metal with which it was once most widely associated – gold (242 lbs of it were used in the manufacture of Boy King Tutankhamen’s funerary mask and coffin alone).

After a gap of some 50 years, the Egyptians, who once considered gold to be the skin of the gods, are returning to their forgotten status as a commercial gold producer, and investing in Egyptian gold is starting to gain some serious attention among foreign companies. The industry finally ground to a halt in 1958 because the volume mined was considered too small to be profitable.