The concept
It is estimated that energy costs are the highest component in high thermal manufacturing processes, and sometimes as high as 30-40%.
The UAE's natural gas reserves (estimated at 212 trillion cubic feet; Oil & Gas Journal) are the world's fifth largest after Russia, Iran, Qatar, and Saudi Arabia. Qatar's proven natural gas reserves stand at 910.5 trillion cubic feet and are the third-largest in the world, while Saudi Arabia has the fourth largest proven natural gas reserves in the world estimated at 240 trillion cubic feet.
Dolphin Energy’s Dolphin Gas Project is one of the largest single energy initiatives ever undertaken in the Middle East and will create a gas grid among Qatar, the UAE and Oman, bringing Qatar's gas to these two GCC countries.
The abundant and comparatively cheaper gas available in this region, can be used as a power source for the energy intensive thermal manufacturing processes in the production of steel, aluminium, cement, glass and ceramics.
The region is also rich in raw materials that go into making of some of these materials like limestone, gypsum, sand etc. This natural advantage of cheap energy and availability of some raw materials have helped the GCC states in setting up production units for aluminum, steel, glass, cement, ceramics and other high thermal industries.
Another factor that is of immense advantage to the sector is the availability of economical labour and experienced personnel, mainly, from the traditional manufacturing countries of the Subcontinent and Asian. Furthermore, Free zones & Industrial Zones in the Gulf offer attractive investment opportunities for thermal manufacturing businesses, with tax-free returns, 100 per cent ownership and complete repatriation of profits, encouraging investors to base their operations here.
The Middle East provides a substantial domestic market, where steel, aluminum, cement, glass and ceramics are in great demand, feeding the on-going construction and infrastructure developments taking place.
Excess capacities can easily be exported to the surrounding markets of the Indian Subcontinent, China, South East Asia, CIS countries and Europe. Excellent ports and shipping intervals in most Middle East countries add to the attraction as a manufacturing base.
The efforts of the GCC nations to diversify their economies, and the availability of considerable monetary surpluses due to high oil prices and foreign direct investment, have led to a boom in investment in diverse sectors, fuelling demand for steel, aluminium, cement, glass, ceramics and related construction materials and services.
GCC Economies - galloping ahead
A total of two trillion US dollar worth of infrastructure projects are under way in the GCC, with the UAE accounting for a lion's share – 37 per cent, according to
recently released figures. The UAE has also registered the highest growth, with total project values in the federation rising by 46 per cent over the past 12 months.
The efforts of the GCC nations to diversify their economies, and the availability of considerable monetary surpluses due to high oil prices and foreign direct investment, have led to a boom in investment in diverse sectors, fuelling demand for steel, aluminium, cement, glass, ceramics and related construction materials and services.
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