Middle East aluminium producers are shrugging off record global energy prices as they exploit a competitive advantage of cheap gas-generated electricity and a construction boom to increase world market share. Analysts say that the oil and gas rich region is expected to produce 10 percent of world aluminium by 2020, up from 7 percent now.
"Global output is expected to reach 60 million tonnes by 2020. When the new planned projects come on stream, the Middle East could even double its production," an industry expert said. State-owned Dubai Aluminium Co (Dubal) and Bahrain Aluminium (Alba) are among those expanding to take advantage of cheaper power bills, which account for around one-third of an aluminium smelter's total costs.