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UAE firms sign over $5b project in KSA

DUBAI - Two UAE companies have signed a Memorandum of Understanding (MoU) with Saudi Arabian General Investment Authority (SAGIA) and Emaar, The Economic City (Emaar EC) to develop an aluminium smelter complex in Saudi Arabia.

According to a Press statement issued here yesterday, Dubai Aluminium Company Limited (Dubal) and Mubadala Development Company PJSC (Mubadala) join hands with SAGIA and Emaar EC on $5 billion-plus project to be set up in King Abdullah Economic City.

Should it proceed, the green-field project will entail feasibility and environmental impact studies prior to the development and construction of the proposed aluminium smelter complex and associated infrastructure.

Dubal and Mubadala's responsibilities will be fulfilled by EMAL International, a joint vehicle owned equally by the two companies, the statement said.

The initial production design capacity of the proposed smelter will be approximately 700,000 metric tonnes per annum, complemented by a purpose-built power utility capable of providing a guaranteed, uninterrupted long-term supply of the power required to properly and fully operate the proposed smelter.

The development will feature Dubal's proprietary smelter technology and will leverage the company's project management skills, operational efficiency and global market position. The project will also benefit from Mubadala's expertise in structuring and financing multibillion dollar projects.

It is estimated that the project could create about 2,500 direct employment opportunities within the completed smelter complex; as well as spawning a substantial number of indirect employment opportunities (a multiplier effect of approximately two times is anticipated).

Moreover, the smelter project would strongly boost Emaar EC's drive to develop industrial zones within the King Abdullah Economic City, ultimately attracting downstream investments in the aluminium industry, and resulting in further job creation and GDP development for the Kingdom of Saudi Arabia.

SAGIA has expressed its commitment to supporting the hiring and training of a Saudi workforce for the project.

Also, Emaar EC has indicated its willingness to identify a 4 square-kilometre site within the industrial zone of King Abdullah Economic City that is not only suitable for the development of the smelter, but which also offers good access to suitable deep water port, utilities and all road transport links. Should the project go-ahead, Emaar EC would also help provide temporary and permanent accommodation for the construction and project personnel; and would include adequate healthcare facilities, schools and other social infrastructure requirements in the overall development of King Abdullah Economic City.

'Dubal's involvement in this project is extremely gratifying, as it pays tribute to the wealth of experience and advanced technologies developed by our company over the past 28 years of so,' says Dubal CEO, Abdulla Kalban.

Mubadala's CEO and MD, Khaldoon Khalifa Al Mubarak, adds, 'Both Mubadala and Dubal enjoy the capabilities and resources to design, implement and run a project of this magnitude.'

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