Hot on the heels of Saudi Arabia’s decision to invest a massive $12 billion in its aluminium sector, Abdullah Alrashidi and Haitham Abughazaleh from Frost & Sullivan delve into the strategic significance of the aluminium industry in the Kingdom’s Vision 2030.
Saudi Arabia is keen on industrial development and progress in various fields in line with its goal to diversify its non-oil economy as part of its Vision 2030 ambitions. With its rich mineral deposits, Saudi Arabia has the potential to become a powerhouse in the sector – including in aluminium.
At the recently held Arab International Aluminium Conference in Riyadh, Khalid Al-Mudaifer, Saudi vice minister for Mining Affairs, announced that Saudi Arabia aspires to become one of the world’s 10 largest producers of aluminium.
“Aluminium has been identified as a key sector for growth and value creation for sectors such as automotive, defense, and aerospace,” said Abdullah Alrashidi, Consulting Analyst at Frost & Sullivan. “Mega projects such as Neom and Al Qiddiya are fueling opportunities in the building & construction sectors.”
In the automotive segment, the launch of Lucid’s first car manufacturing facility (which aims to produce 155,000 electrical vehicles annually) will open up significant avenues in aluminium downstream and component manufacturing.
Among the major integrated aluminium facilities being realised are those in Yanbu and Ras Al Khair, with the Royal Commission for Jubail and Yanbu forecasting cumulative investments of over $11 billion.
Haitham Abughazaleh, Account Manager in the Chemicals & Materials practice at Frost & Sullivan, noted that supply will struggle to keep in pace with the surge in demand. “We expect a demand-supply gap of up to 100%, particularly in aluminium foil packaging and building construction.”
One of the leading growth-focused consulting firms in the world and region, Frost & Sullivan supports clients in the metals and minerals sector with growth advisory services, offering detailed & pre-feasibility analysis, business plan development, strategic roadmaps, and sourcing strategy.
Saudi Arabia’s $12 billion aluminium investment is part of a wider $32 billion sum the nation will invest in the mining industry.
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