Industry
From The Report: Abu Dhabi 2019
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Sixty years after Abu Dhabi’s first oil discovery at the Murban Bab oilfield, industry is proving to be an engine of growth and economic diversification in 2019, as Emirati entrepreneurs explore and nurture new opportunities to reduce reliance on the volatile energy sector. Their efforts to diversify include vertical development into downstream industries such as petrochemicals, plastics and by-products like sulphur; horizontal moves into energy-intensive manufacturing of steel and aluminium that in turn feeds production clusters; and lateral shifts into the technologies of the future that are expected to shape the Fourth Industrial Revolution. This chapter contains interviews with Jamal Salem Al Dhaheri, CEO, Senaat; and Abdulla Jassem Kalban, Managing Director and CEO, Emirates Global Aluminium.

Articles from this Chapter

Overview

Diversification drive: The emirate continues to branch out into new industries to increase competitiveness and expand non-oil growth
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Sixty years after Abu Dhabi’s first oil discovery at the Murban Bab oil field, industry is proving to be an engine of growth and economic diversification in 2019, as Emirati entrepreneurs explore and nurture new opportunities to reduce reliance on the volatile energy sector. Their efforts to diversify include vertical development into downstream industries such as petrochemicals, plastics and by-products like sulphur; horizontal moves into energy-intensive manufacturing of steel and aluminium that…

Interview

A strategic approach: Jamal Salem Al Dhaheri, CEO, Senaat, on adapting to the pressures of rising market competition and energy prices
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Interview:Jamal Salem Al Dhaheri How does Senaat ensure the stability of industrial businesses amid volatile market conditions? JAMAL SALEM AL DHAHERI: Senaat has a diversified portfolio which allows for the mitigation of challenges in any given industry. While the metals segment is experiencing significant pressure from market competition and feedstock prices, Senaat can balance these headwinds with its participation in other fast-growing industries. This in turn enhances our overall resilience…

Analysis

Interdependent industries: Chemical and petrochemical companies continue to expand, working towards a circular economy for the plastics industry
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Abu Dhabi has set its sights on diversifying its economy at a rapid pace in the next decade, setting aside hundreds of square kilometres of land for the development of new interdependent industries. Various elements are being drawn together to create a chemical industries hub on part of the 410-sq-km Khalifa Industrial Zone Abu Dhabi (KIZAD), with billions of dirhams of investment being made. The emirate may owe its fortune to the extraction of oil and gas, but it is planning to boost its…

Interview

Responsible development: Abdulla Jassem Kalban, Managing Director and CEO, Emirates Global Aluminium (EGA), on the outlook for aluminium
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Interview:Abdulla Jassem Kalban What is the long-term outlook for aluminium amid global protectionism and price volatility? ABDULLA JASSEM KALBAN: EGA began production in 1979 at our Jebel Ali smelter, which was then known as Dubai Aluminium, so we have been in this business for almost four decades. Although political issues are leading to some volatility in the global market at the moment, I believe the long-term fundamentals are as strong today as they have ever been. The reason for this…

Analysis

Sino-Emirati ties: Partnerships between China and Abu Dhabi in infrastructure development continue, to the benefit of both parties
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China sees significant advantages in investing in Abu Dhabi as part of its long-term Belt and Road Initiative. Although Abu Dhabi sits midway between the overland Silk Road to the north and the Maritime Silk Road to the south, its increasingly close ties with China suggest the emirate will avoid being bypassed by the global flow of goods planned by the Chinese government. In February 2018 the Bank of China’s chief economist told a forum in Abu Dhabi that China’s outbound investments on…

Analysis

Build up: Upwards trend in factory licensing as new investors come into the market, offering more opportunities for diversification
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Diversification is a central part of the Abu Dhabi Economic Vision 2030, and the emirate is offering incentives to attract investors and bolster its manufacturing sector. While secondary industries are not all located in designated industrial parks or zones, many companies see the benefits of joining dedicated clusters. In 2017, 37 new factories obtained licences and started production, 85% more than in 2016. The official government news outlet, Emirates News Agency, reported that the combined…

Overview

Into high gear: Economies around the world are preparing for the opportunities and challenges brought about by the next industrial revolution
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The global economy is entering the Fourth Industrial Revolution (4IR), or Industry 4.0, based on the application of new digital and automated technologies in production processes and service delivery. These changes are bringing emerging markets improved productivity, as well as risks – namely, reshoring and the displacement of human labour by automation. Wealthier emerging markets, such as the Gulf states, which have the resources to invest in new technologies, and those with more established manufacturing sectors, such as countries in South-east Asia, appear best placed to reap the benefits of the 4IR. Many of these economies are creating…

Overview

Into high gear: Economies around the world are preparing for the opportunities and challenges brought about by the next industrial revolution
OBG
plus

The global economy is entering the Fourth Industrial Revolution (4IR), or Industry 4.0, based on the application of new digital and automated technologies in production processes and service delivery. These changes are bringing emerging markets improved productivity, as well as risks – namely, reshoring and the displacement of human labour by automation. Wealthier emerging markets, such as the Gulf states, which have the resources to invest in new technologies, and those with more established manufacturing sectors, such as countries in South-east Asia, appear best placed to reap the benefits of the 4IR. Many of these economies are creating…