Industry
From The Report: Bahrain 2016
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Bahrain is investing heavily in expanding its industrial sector, as the non-oil sector continues to drive growth in the kingdom. The oil and gas sector grew by 3% in 2014, while the non-hydrocarbons sectors expanded by 4.9%. In the first quarter of 2015, manufacturing was up 5.9% year-on-year. In June 2015 Aluminium Bahrain (Alba) announced it would be going ahead with a sixth production line, a $3.5bn project designed to boost annual production by 55%, or 514,000 tonnes, to 1.45m tonnes, making it the world’s biggest single-site smelter. The aluminium industry represents a major contributor to both GDP and export revenues. According to the Economic Development Board, the two most valuable non-oil export commodities from January to May 2015 were aluminium wires, worth $234m, and aluminium rods, worth $196.5m.

This chapter contains an interview with Tim Murray, CEO, Aluminium Bahrain (Alba).

Articles from this Chapter

Overview

Keeping busy: The kingdom is investing in capacity expansion as the non-oil sector drives growth
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After a year characterised by falling global prices for both crude oil and aluminium, there is a surprising degree of optimism in Bahrain’s economy. With major investments in its infrastructure being financed by the Gulf Development Fund and Aluminium Bahrain’s (Alba) sixth pot line moving ahead, there is a sense that Bahrain is busy, from its factory floors to its construction sites. At the same time visitor numbers are up, particularly from Saudi Arabia, increasing custom and confidence for…

Interview

Vigilant measures: OBG talks to Tim Murray, CEO, Aluminium Bahrain (Alba)
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Interview:Tim Murray What are the most significant market challenges in the aluminium industry at present, and how is Alba addressing them? TIM MURRAY: The main headlines for 2015 were the collapse of all-in prices – namely, those on the London Metal Exchange (LME) and regional premiums as well as the drop in oil prices. We recognise that the key challenge for the aluminium industry is low LME prices, which are expected to drop in 2016 to as low as $1300 per tonne – the lowest point in…

Analysis

Timing investment: Adding a sixth production line in preparation for a recovery in aluminium prices
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As Aluminium Bahrain (Alba) celebrates the 45th anniversary of aluminium production in Bahrain, the firm is looking to the future and working on the construction of its sixth pot line, an expansion plan that will make the company the world’s largest single-site smelter. A few weeks after Alba announced it would be going ahead with the expansion in July 2015, the company released its half-year results. Total sales were up by 8% year-on-year to BD405.9m ($1.1bn) and net income for the same period…

Analysis

Sweet tooth: Confectioners are investing locally to feed growing populations across the region
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The Middle East’s appetite for sweets and savoury snacks can be thanked for more than $240m worth of investments in Bahrain in just two years. In 2016 the new $90m Mondelez factory is due to start producing biscuits that will be shipped all over the MENA region and parts of Asia. It is opening two years after Arabian Sugar’s $150m refinery launched in the kingdom. Feeding the growing populations of the region is proving to be big business, and the business environment in Bahrain is clearly tempting…