Saudi Arabia is gearing up for a sharp rise in aluminum demand, with annual consumption potentially reaching 1.8 million tonnes by 2030.
Major exhibitions and preparations for the 2034 FIFA World Cup are set to drive this expansion, adding fresh momentum to the Kingdom’s rapidly growing aluminum market.
World Cup Fuels Aluminum Demand
Speaking on the sidelines of the Fastmarkets International Aluminium Conference in Budapest, Ahmad Al-Alshaikh, executive vice president of Maaden’s Aluminum Business Unit, noted that the construction of 15 new stadiums for the 2034 FIFA World Cup is adding another layer to Saudi Arabia’s growing aluminum demand.
Despite the regional disruption caused by the US-Israeli war on Iran, its impact on Maaden remained limited.
In this context, Al-Alshaikh underscored that consistent efforts among Gulf Cooperation Council countries helped mitigate the war’s effects.
Meanwhile, Saudi Arabia’s aluminum market is poised for continued expansion. Annual demand is projected to reach at least 1.6 million tonnes by 2030, compared with around 1 million tonnes today, while consumption could potentially double within five to seven years.
What Is Driving Maaden’s Growth?
Currently, Maaden produces around 780,000 tonnes of primary aluminum each year, as well as approximately 1 million tonnes of cast metal.
According to Al-Alshaikh, about 85% of the company’s output is sold within the domestic market.
The Kingdom’s aluminum momentum is also reflected in Maaden’s bottom line.
The unit recorded its strongest quarterly financial performance on record in the second quarter, as revenue jumped 49% year on year to $1.01 billion.
Meanwhile, earnings before interest, taxes, depreciation and amortization more than doubled to $411 million, according to the company’s August results.
Supporting this remarkable success, higher realized aluminum prices provided another boost to Maaden’s performance, which rose 51% year on year to $3,915 per tonne. Production volumes also reached 242,000 tonnes during the quarter.
Aluminum Powers Industrial Diversification
Aluminum stands out as a key pillar of Saudi Arabia’s industrial diversification plans, supporting the growth of several sectors including automotive, aerospace, renewable energy, and advanced manufacturing.
The Kingdom is now building further capacity around this industrial base, with Maaden’s integrated complex in Ras Al-Khair serving as a key asset.
In January, then-Industry Minister Bandar Alkhorayef said initial terms had been signed with Red Sea Aluminium Holdings for an integrated aluminum complex in Yanbu.
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