Middle East Metal Casting Market Outlook to 2028

Middle East Metal Casting Market Overview

The Middle East metal casting market reached a valuation of USD 7.96 billion in 2023, propelled by the significant demand in automotive, construction, and oil & gas industries. The market is expanding due to the region's industrialization, infrastructure development, and the adoption of lightweight materials in automotive manufacturing.

The market is characterized by key players such as Emirates Global Aluminium (EGA), Saudi Arabian Amiantit Company, and Oman Aluminium Rolling Company. These companies are noted for their extensive production capacities, strong regional presence, and strategic investments in new technologies. Their dominance is reinforced by robust distribution networks and a focus on meeting both regional and global demand.

In May 2023, EGA signed a long-term agreement with Alcoa to procure up to 15.6 million metric tons of smelter-grade alumina over eight years, starting in 2024. This agreement is significant as it aligns with EGA's sustainability goals and secures a substantial portion of its alumina needs from a long-term supplier.

The Northern region of the Middle East, encompassing countries like Saudi Arabia and the UAE, dominates the metal casting market. This dominance is attributed to the advanced industrial infrastructure, significant investments in manufacturing facilities, and the presence of key market players in this region. The ongoing industrialization and government-led initiatives in these countries continue to fuel market growth.

Middle East Metal Casting Market Segmentation

The Middle East metal casting market can be segmented by various factors like Material Type, End-User Industry, and Region.

By Material Type: The Middle East metal casting market is segmented by Material Type into Aluminum, Steel, and Iron. In 2023, Aluminum dominated the segment due to its lightweight properties and high demand in the automotive and construction industries. The growing trend towards energy-efficient and lightweight vehicles has led to an increased preference for aluminum castings.

By End-User Industry: The market is segmented by End-User Industry into Automotive, Construction, and Oil & Gas. In 2023, the automotive industry dominated due to the increasing production of vehicles in the region, particularly in Saudi Arabia and the UAE. The industry's shift towards electric vehicles and the use of lightweight components have further fueled the demand for metal casting products.

By Region: The Middle East and Africa metal casting market is segmented by Region into Israel, United Arab Emirates, Jordan, Morocco, South Africa, and Rest of MEA. In 2023, the United Arab Emirates dominated the market due to its advanced manufacturing capabilities, strategic investments in industrial development, and favorable government policies promoting local production.

Middle East Metal Casting Market Competitive Landscape

Company Name

Establishment Year

Headquarters

Emirates Global Aluminium (EGA)

1979

Dubai, UAE

Saudi Arabian Amiantit Company

1968

Dammam, Saudi Arabia

Oman Aluminium Rolling Company

2011

Sohar, Oman

Qatar Aluminium Manufacturing Co

2018

Doha, Qatar

Egypt Aluminum Company

1972

Nag Hammadi, Egypt

In 2024, Saudi Arabian Amiantit Company secured a contract worth $46.3 million for supplying metal pipes and castings for a major water infrastructure project in Saudi Arabia. This contract aligns with the Kingdoms Vision 2030 plan to improve its water supply infrastructure, and it significantly boosts the companys order book, reinforcing its leadership in the regional market.

Emirates Global Aluminium (EGA) introduced its Green Finance Framework in 2024 to support decarbonization projects and initiatives that contribute to the transition to a low-carbon economy. It aims to facilitate access to diversified funding sources for loans and bonds, potentially reducing borrowing costs while enhancing transparency.

Middle East Metal Casting Industry Analysis

Middle East Metal Casting Market Growth Drivers

Government Regulations and Economic Diversification: The Middle East governments, particularly in Saudi Arabia and the UAE, have implemented economic diversification strategies under Vision 2030 and similar initiatives. By 2024, the Saudi government had invested $2 billion in new industrial zones, significantly boosting the local metal-casting market.

Increased Demand from the Automotive Sector: The Dubai Water and Electricity Authority anticipates that the number of electric vehicles will rise by 2025, creating a higher demand for lightweight metal castings that enhance vehicle efficiency and performance. This trend is expected to contribute to the expansion of the metal casting market, particularly in the automotive sector, which accounted for 27.4% of the market share in 2022.

Technological Advancements in Casting Processes: The Middle East metal casting market is benefiting from advancements in casting technologies, such as the adoption of 3D printing techniques, which are expected to enhance production efficiency and reduce waste. In 2024, it is estimated that around 20% of metal castings will be produced using advanced manufacturing technologies.

Middle East Metal Casting Market Challenges

Environmental Regulations and Compliance Costs: Stringent environmental regulations in the Middle East are increasing the operational costs for metal casting companies. Saudi Arabia, in 2023, introduced new emission standards that required facilities to invest in advanced waste management systems. These regulations led to an industry-wide expenditure of $300 million, adding financial pressure on companies to comply with environmental standards.

Competition from Global Markets: The Middle East metal casting industry faces stiff competition from international markets, particularly from low-cost producers in Asia. In 2024, there was a 20% increase in imports of metal castings from countries like China and India, undercutting local manufacturers.

Middle East Metal Casting Market Government Initiatives

UAEs Operation 300bn (Launched in 2021): Operation 300bn is the UAEs ambitious plan to boost its industrial sector over ten years. By 2024, the initiative had drawn over $1 billion in investments into the metal casting industry, focusing on upgrading production facilities and enhancing export capabilities. This strategy is part of the UAEs broader goal to increase the industrial sectors contribution to GDP.

Omans Industrial Strategy 2040 (Launched in 2019): Omans Industrial Strategy 2040 has set the foundation for significant growth in the manufacturing sector, including metal casting. The government has invested $500 million in the development of industrial zones, particularly in the Sohar region, aimed at increasing production capacity and fostering innovation in metal casting. This initiative positions Oman as a competitive player in the regional market.

Middle East Metal Casting Market Future Outlook

The Middle East metal casting market is expected to experience significant growth by 2028, with a steady CAGR driven by ongoing industrialization, infrastructure development, and the adoption of advanced manufacturing technologies. The market will benefit from increased investments in local manufacturing and government-led initiatives aimed at diversifying economies and reducing reliance on imports.

Future Trends

Adoption of Advanced Manufacturing Technologies: By 2028, the Middle East metal casting market will see widespread adoption of advanced manufacturing technologies, including 3D printing and automation. These innovations will significantly enhance production efficiency, lower costs, and enable manufacturers to produce complex, high-precision components, particularly benefiting the automotive and aerospace industries.

Expansion of Renewable Energy Projects: The region's focus on renewable energy projects will intensify by 2028, driving increased demand for specialized metal castings. Companies will invest heavily in developing cast components tailored for solar and wind energy applications, supporting the Middle East's efforts to diversify its energy sources and reduce carbon emissions.
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