Industry

News Analysis: Saudi industrialisation key to employment puzzle

High oil prices are providing Saudi Arabia with the cushion it needs to invest heavily in the industrial development necessary to complete the economic diversification process that began three decades ago. Going hand-in-hand with economic diversification is long-overdue economic reform, and employment creation for the Kingdom’s young and still rapidly growing population.

Expanding the Saudi non-oil minerals industry will, over the next three years alone, generate 35,000 new jobs according to the Ministry of Petroleum & Mineral Resources and the Saudi Geological Survey.

Abu Dhabi’s industrial investments at AED30bn

The aggregate investment volume pumped into various industrial cities in Abu Dhabi currently amounts to more than AED30 billion.

Upon the inauguration of two copper and cable factories at the Abu Dhabi Industrial Zone, an official source disclosed that the Higher Corporation for Specialized & Economic Zones intends to draw larger groups of investors to take up projects in the emirate’s industrial areas. The Dubai Cable Company (DUCAB) launched operations from its new copper bars and cables plant at the Abu Dhabi Industrial Zone recently.

Sohar Aluminium kicks-off

The first 'hot metal' was successfully produced at the Sohar Aluminium (SA) smelter on 11 June, on schedule and after three years of construction and planning. The smelter will take six months to reach full production capacity.

The Sohar Aluminium Smelter Project is located approximately 12 kms inland from Sohar. Using Alcan/AP smelter technology, this US$2.4 billion greenfield project involves the construction of a single 360 pot AP35G aluminium smelter potline with a capacity of approximately 350,000 metric tonnes per year, a carbon anode plant, a metal casting facility, and a port facility for product storage and ship loading and unloading. When complete, the potline will be the largest single potline in the world. The company expects full production by December 2008.

GCC countries invest US$10 billion to build 10 steel manufacturing plants

Despite a decree issued by the Prime Minister of the UAE, and Ruler of Dubai, exempting cement and reinforced steel from custom duties until further notice to keep the momentum of property development investment, the price of structural steel has recently risen by between 15 and 25 percent.

In response, developers are raising their voices louder than ever to call for other measures to protect them from brokers, hoarding and black market speculation, and to allow them to import cement and reinforced steel without restriction so that they can overcome the soaring prices. The hike in the price of reinforced steel is not limited to Dubai or the UAE, but is rather a trend that can be seen throughout the GCC countries, and which is driven by the real estate boom and the recycling of surplus petrodollars.

Norway's Eitzen Maritime buys Dubai supply firm

Norwegian Eitzen Maritime Services has agreed to buy Dubai-based Seven Seas Shipchandlers for US$115 million on a debt-free basis to boost its position in the ship supplies business.

The purchase will be financed with an Eitzen Maritime equity issue, a seller's credit and bank financing, Eitzen said.

Egypt: Looking for gold

Egypt is hoping to draw investors to its gold mining sector, announcing a new national company to explore the country's gold reserves and a revamp of the legislative framework governing the industry.

The Ministry of Petroleum and Mineral Resources has recently announced plans for the creation of a new company to explore gold reserves in the country's eastern desert. Sameh Fahmi, Minister of Petroleum and Mineral Resources, said on the ministry's website that after establishing the new mining corporation, the government would sell part of its shares on the open market, in order to fund feasibility studies for other potential gold mining plots.

QPIC nears closing deal with Algeria’s Sonatrach

The Qurain Petrochemical Industries Co. (QPIC) of Kuwaiti is leading a coalition to partner with Algerian state-owned energy company Sonatrach to forge a joint venture to establish, manage, operate and maintain a methanol factory and sell its output.

Sources disclosed that the agreement is due to be signed next July 7th. The new plant project is estimated to require consuming 1 million tonnes of natural gas per year to produce its methanol output.

Oman signs aluminium deal with Indian firm

A joint venture agreement involving a government-owned investment vehicle and a major Indian metals producer promises to boost the growth of Oman's nascent aluminium downstream processing industry.