DUBAI – A United Arab Emirates' total exports of aluminum and its products rose by 102 percent ($1.5 billion) during the first half of 2012 in comparison with the same period in 2011, the Ministry of Foreign Trade (MoFT) said in a study. The growth is a continuation of previous increases of 56 percent and 42 percent in 2010 and 2011 respectively. The study noted that UAE exports of aluminum products have achieved a competitive global edge and were capable of reaching 124 countries - especially in Asia and Europe - due to their production according to international standards and their high purity, as well as their widespread and intensive use in the automobile and aircraft manufacturing industry in the European Union. The study, which was conducted by MoFT economic adviser Dr. Abdul Hamid Radwan under the supervision of Director of MoFT's Analysis and Trade Information Department Dr. Mattar Ahmed, pointed out that the UAE came in first out of the Gulf Cooperation Council countries in terms of aluminum production and the accumulative investments and workforce it has in the sector. The UAE came in the 34th position globally in its aluminum exports in 2011, advancing by seven places from the previous year, the study noted, yet it “does not reflect the country's international standing in terms of aluminum production,” where it stands among the top 10 countries in the world, exporting around 92 percent of its domestic aluminum production. India was the foremost receiving country of UAE aluminum exports in 2011, which were worth around $145 million (representing a 12.7 percent share of the UAE's total exports of the product), followed by Iran with $115 million (10.1 percent), according to the study. The study pointed out that the value of UAE imports of aluminum reached $1.2 billion in 2011, up by 3.4 percent from the year before. It also stated that an aluminum import saving was achieved (worth $371 million) as a result of a 56 percent registered increase in the exports of the product compared to a lower 3 percent increase in its imports, resulting in a 87 percent decrease from 2010 - 2011 in the trade deficit of the product to $54 million. In terms of the competitiveness of UAE aluminum exports, the study reported an improvement in this regard in 2011 according to the findings of the Revealed Comparative Advantage (RCA) index, which is based on the Balassa index that is widely used around the world in calculating foreign trade indicators. The study pointed out that the global aluminum manufacturing market is not a highly competitive one since global production is spread out among a limited number of global companies. It added that the world's aluminum production reached 43.99 million metric tons in 2011 with China, the largest global aluminum producer, owning a 40 percent stake of the world's production of the product. The study revealed that the value of international imports of aluminum and its products in 2011 was around $162.7 billion, achieving a growth of 17 percent from the previous year, with Germany (owning an 11.9 percent share of the world's aluminum imports), the USA (10 percent) and China (6 percent), being the world's foremost aluminum importers, respectively. In terms of exports, the study revealed that global aluminum exports grew by 17 percent in 2011 with China and Germany being the world's foremost exporters of the product owning an 11.3 percent share and 10.9 percent share of the world's total aluminum exports during that year, respectively. The UAE has two plants for aluminum production: Dubai Aluminum DUBAL, one of the most important smelting installations in the gulf region. The facility was established in 1979 with an annual 135 thousand ton production capacity, gradually increasing over the years through a series of upgrades and expansions to 1 million metric tons per year. Around 92 percent of the company's annual production is exported to global markets. The second facility is Emirates Aluminum EMAL, which was established in February 2007 and is expected, upon completion, to become the world's largest single smelter complex for the production of primary aluminum with an annual production capacity of 1.325 million tons. The facility was constructed over two phases, with the first phase now already operational with an annual production capacity of up to 750 thousand metric tons, while the second phase is scheduled for completion in December 2013 and will become fully operational at the onset of 2014. — WAM
