Demand for aluminium products in Saudi Arabia’s construction sector is set to increase at a CAGR of nine per cent from $920 million in 2010 to $1.44 billion in 2015, said the organisers of an upcoming aluminium trade show in Dubai.

The second edition of Aluminium Dubai, the leading aluminium trade show, will be held from May 9 to 11 at the Dubai International Convention and Exhibition Centre.

According to a recent report by Ventures Middle East, the value of Saudi Arabia’s construction sector is expected to increase from $27 billion in 2010 to $44 billion in 2015, witnessing a compound average growth rate (CAGR) of 10 per cent. Total building construction spend is estimated to be $217 billion – excluding projects on hold.

The demand in volume is expected to increase at a CAGR of 10 per cent, from 5.4 million sq m (and 249,000 linear metres for kitchens) in 2010 to 8.4 million sq m (and 377,000 linear metres) in 2015.

Products with the greatest aluminium demand by value are: windows, 33 per cent; curtain walls, 17 per cent; and cladding, 17 per cent. Aluminium demand by volume is highest for windows, 35 per cent; cladding, 24 per cent; and curtain walls, 15 per cent, the report said.

“The highly positive outlook of the Saudi Arabia report only confirms our confidence in the regional aluminium market as led by the Kingdom,” said Tarek Ali, show manager, Aluminium Dubai, Reed Exhibitions.

“Demand for aluminium in Saudi Arabia continues to surpass the global level, which has been growing at around six per cent per year over the past decade. At the upcoming edition of Aluminium Dubai, industry players will be able to get deep insights into Saudi Arabia’s high potential market for aluminium.”

“The event connects regional and international suppliers, customers and investors from both government and the private sector to make best use of the business opportunities offered by the region’s high-growth market, while exposing them to the latest technology and concepts in the aluminium industry,” Ali added.

Saudi Arabia recently announced three aluminium smelting projects at a total value of $19.5 billion.

The total capacity of the planned projects is estimated to increase from 740,000 metric tonnes (MT) in 2013 to 2.4 million MT in 2016. As for the downstream aluminium industry, Saudi Arabia is now base for the largest number of aluminium processing factories in the region, which are in excess of 100.

The five largest extrusion companies have a combined production capacity of around 144,000 MT per annum.

A total of 93 companies have already confirmed participation at Aluminium Dubai 2011, with several more exhibitors from all over the world expected to follow. – TradeArabia News Service