meed-logo

line1 line2 line3
SIGN IN / REGISTER

Alba positions for the future

6 November 2024

 

Aluminium Bahrain (Alba) is a key player in the Bahraini economy. It began aluminium smelting in Bahrain more than 50 years ago, in 1971. Today, it is the largest company listed on the Bahrain Bourse by market cap, and its smelter in Asker is the world’s largest single-site aluminium smelter outside of China. 

Its capacity has been growing since the opening of Line 6 in 2019. In 2023, it set a new record with 1,620,665 metric tonnes of production, up 1.3% from 2022.

Despite this success, it is far from business as usual for Alba this year, as it seeks to position itself as an industrial leader for the next 50 years. On 24 October, it informed the Bahrain Bourse, where it is listed, that it had appointed advisers to guide its due diligence process as it explores a potential business combination with Saudi Arabian Mining Company (Maaden).

“The logic is that Maaden will contribute its aluminium smelter assets, which are held within Maaden Aluminium Company, their alumina refinery and bauxite mining, in return for the issuance of shares in Alba,” said Alba chairman Khalid Al-Rumaihi while speaking on stage at the Gateway Gulf investor forum in Bahrain on 4 November. 

The deal gives Alba vertical integration with Maaden’s bauxite mines and alumina refining and local access to the growing Saudi market. For Maaden, the deal gives it greater market reach using Alba’s established sales network.

The appointed advisers for the transaction are Moelis & Company as financial adviser, Hatch as technical adviser, McKinsey & Company as commercial adviser, PricewaterhouseCoopers as financial and tax adviser, Teneo as public relations adviser and Freshfields Bruckhaus Deringer as legal adviser.

The announcement to merge with Maaden followed the signing of an agreement in September by Saudi Basic Industries Corporation (Sabic) with Maaden to sell its 20.62% shareholding in Alba. Sabic expects to make sales proceeds of $965m-$1.06bn from the transaction, the completion of which is subject to regulatory approvals from relevant authorities in Saudi Arabia and Bahrain.

Change of plan

Alba has also changed its expansion plans. Instead of building a new Line 7, the aluminium producer plans to install new production facilities to replace the existing lines 1, 2 and 3. 

“Now the intention is to demolish or stop the old lines, which are efficient from 1971. They are more than 50 years old, and we will replace them with new lines. Technically, this is not a new Line 7 project anymore because we are going to close lines 1, 2 and 3,” Alba CEO Ali Al-Baqali told MEED on the sidelines of Gateway Gulf. 

The feasibility study for the project has already started and is being executed by US firm Bechtel. In 2022, Bechtel was appointed to conduct a feasibility study for Line 7. The firm was also the contractor for Line 6, which was commissioned in 2019. 

Replacing lines 1, 2 and 3 will also allow Alba to increase capacity by installing more efficient, modern production plants while at the same time utilising existing assets at the Alba site in Bahrain. 

“There is no need for power because we are going to utilise the same power,” Al-Baqali said. “We also do not need a new cast house.”

The plans to replace lines 1, 2 and 3 are separate from plans to enhance the capacity of lines 4 and 5. In September this year, the Alba board approved an estimated $30m project known as Lines 4-5 Creep-up, which, upon completion, is expected to increase Alba’s metals production capacity by 8,000 metric tonnes a year.

Further announcements

Alba also made two other announcements at Gateway Gulf. Alba and Japan’s Daiki Aluminium Industry Company will form a joint venture known as Alba-Daiki Sustainable Solutions (ADSS) to develop an aluminium dross processing facility in Bahrain. Alba will hold a 70% stake in the joint venture, while Daiki will own the remaining 30%. Both partners intend for the aluminium dross plant to commence operations by September 2026.

Alba and Bahrain-based Array Innovation also announced plans to accelerate Alba’s Industry 4.0 digitalisation journey with advanced artificial intelligence (AI), data analytics and automation solutions to optimise Alba’s operations and boost efficiencies.

Looking to the future, Bahrain is also seeking to move up the value chain and further develop its downstream aluminium production capabilities. 

“Alba existed in a certain time. We were looking at electricity being cheaper in this part of the world. You could import alumina, apply electricity to the production process and export. We live in a new reality now where that electricity competitiveness is no longer present,” said Al-Rumaihi.

“What we have to do is think about what the industries will be like in the future. Every country in the Gulf is thinking about this. How can we introduce manufacturing in my economy? How can we widen the manufacturing base to move from being a consumer to a producer?” 

Steps have been taken to achieve this. For example, Spain’s Aleastur, in partnership with the kingdom’s sovereign wealth fund Bahrain Mumtalakat Holding Company, has established an aluminium grain refining operation in Bahrain.

“We want to do more. We’re still very low on the value chain, and aluminium is a metal of the future,” said Al-Rumaihi.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12863343/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Seven seeks contractors for Dammam water park and hotel

    21 July 2026

     

    Saudi Entertainment Ventures (Seven), a wholly owned subsidiary of the Public Investment Fund, is preparing to shortlist general contractors for the main construction package of its Dammam Water Park & Hotel project in the Al-Hamra district.

    The waterfront development sits on a 324,300-square-metre (sq m) plot.

    A notice was issued to contractors in July, and the client is expected to finalise the shortlist by the end of this month.

    Seven is seeking firms capable of delivering a lump-sum, turnkey solution for both the water park and a 321-key lifestyle hotel. Construction is expected to take 24 months from contract award.

    The water park is designed around five themed zones and will feature what is billed as the world’s first double-tornado/triple-wave waterslide.

    The park will include 21 major rides and attractions, 21 food and beverage outlets, 66 cabanas, parking for 1,100 vehicles and a daily peak capacity of 4,500 guests.

    Slide procurement has already been completed directly by Seven. The selected contractor will be responsible for locally sourcing slide towers, integrating them with rockwork and secondary steel, and installing the units.

    Detailed design and issued-for-construction packages are complete.

    Marine works, piling, dewatering and site utilities are being progressed separately by the existing early works contractor.

    The hotel component covers roughly 31,700 sq m of gross floor area and will offer 321 guest rooms, four F&B outlets, spa and wellness facilities, a family pool, and meeting, incentive, conference and exhibition space.

    The new contractor’s scope includes superstructure concrete works, façade and roof works, mechanical, electrical and plumbing, interior fit-out and landscaping.

    Seven will consider only contractors with demonstrated experience delivering water parks with complex aquatics, theming and rockwork – either directly or through clearly defined subcontractor partnerships – along with a track record in high-end turnkey hotel fit-outs.

    Construction of Seven’s Dammam entertainment complex is currently under way. In October 2023, Saudi Binladin Group won contracts worth around SR5bn ($1.3bn) from Seven to build two entertainment destinations in the Dammam and Al-Khobar areas of the Kingdom’s Eastern Province.

    The Al-Khobar entertainment complex is being built on reclaimed waterfront land. The complex spans around 300,000 sq m and is also known as ‘The Waves’.

    The Dammam entertainment complex spans 360,000 sq m and is being built on reclaimed land on the Dammam waterfront.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17710096/main.jpg
    Yasir Iqbal
  • Al-Ula appoints equestrian village early works contractor

    21 July 2026

     

    Saudi Arabia’s Royal Commission for Al-Ula (RCU) has awarded a contract for early construction works at the Al-Muatadil Equestrian Village.

    The contract was awarded to Al-Khobar-based Al-Shalawi International Company.

    Canadian engineering firm AtkinsRealis is the project management consultant. UK-headquartered Baker Wilkins & Smith and local firm Al-Hoty Company are the cost consultants.

    Dubai-based SSH is the supervision consultant, and UK-based Hopkins Architects is the lead design consultant.

    RCU announced the project plans in March 2023, including the development of an equestrian hub with two arenas that can accommodate 5,000 and 1,400 spectators, respectively.

    The venue will also include grass polo, sand polo and endurance facilities, with capacities of 600, 400 and 600 seats, respectively.

    These facilities will be complemented by visitor amenities, two stable compounds with capacity for 740 horses, and accommodation and retail outlets for event participants and workers.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17710170/main.jpeg
    Yasir Iqbal
  • Contractors await decision on Riyadh airport sewage plant

    21 July 2026

     

    Seven contractors are awaiting a decision on a contract to build a sewage treatment plant at the King Salman International airport (KSIA) development in Riyadh, according to sources.

    It is understood that bids were submitted to King Salman International Airport Development Company (KSIADC) in March, following the tender’s release earlier this year.

    The plant will treat wastewater generated by the airport and surrounding developments, including passenger terminals, runways, residential districts, commercial facilities and logistics areas.

    The facility will have a treatment capacity of 92,000 cubic metres a day. The contract is estimated to be worth SR700m ($187m).

    The bidders (all local) are:

    • Al-Rawaf Trading & Contracting
    • Almajal Alarabi
    • Nesma Water & Energy
    • Safari Company
    • Saudi Services for Electro-Mechanic Works
    • Washnah Contracting
    • Water & Environment Technologies (Wetico)

    The project scope includes the construction of the treatment plant, the installation of preliminary, secondary and tertiary treatment systems, sewage collection and conveyance pipelines, pumping stations, and electrical and control systems.

    US-headquartered Jacobs is acting as the main project consultant. Commercial operations for the plant are scheduled for 2029.

    The sewage treatment plant is one of several water infrastructure packages planned for the airport. KSIADC is also evaluating bids for a separate $30m engineering, procurement and construction contract covering potable water and fire water tanks and an associated pumping station. The same seven companies have submitted bids for that package.

    Earlier in July, MEED exclusively reported that a joint venture of Beijing-headquartered China Civil Engineering Construction Corporation and Dammam-based Mofarreh AlHarbi & Partners had won a deal to undertake the enabling and substructure works for Terminal 6 at KSIA.

    The latest development followed KSIADC’s receipt of prequalification statements from contractors on 1 July for two new packages at KSIA.

    These include the construction of a permanent East-West corridor and landside access roads serving the North and South terminals.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17709281/main.jpg
    Mark Dowdall
  • Dubai Municipality awards Tasreef drainage contract

    21 July 2026

     

    Dubai Municipality has awarded local firm Detech Contracting the engineering, procurement and construction (EPC) contract for the TF-15-C1 package of its Tasreef Rainwater Drainage Network programme.

    It is understood the municipality issued the letter of award for the contract earlier this month, covering the construction of a stormwater drainage system along Al-Wasl Road and communities west of the Dubai Canal.

    The project includes the construction of a gravity-based stormwater pipeline network with diameters of up to 3.5 metres. It is estimated to cost $100m.

    It was tendered in February through the government’s Sewerage and Recycled Water Projects Department, with bids submitted in April.

    The package forms part of the wider Tasreef initiative, which is intended to improve Dubai’s flood resilience.

    The TF-15-C2 package was recently awarded to China State Construction Engineering Corporation for a stormwater drainage network project located along Umm Suqeim Road in the Al-Barsha and Al-Quoz areas of Dubai.

    The project is estimated to cost $162m and includes the construction of about 20 kilometres of new stormwater pipelines. Similar to the C1 package, it is located west of the Dubai Canal and will connect the Al-Quoz 3 and Al-Quoz 4 industrial areas with Al-Quoz 1.

    Separately, Al-Kharafi has won a drainage EPC contract (Ds207) to upgrade an existing pumping station for the municipality, a source said. The package focuses mainly on mechanical works and is valued at about $39m.

    In May, MEED reported that local firm Nael Construction & Contracting had signed a contract with Dubai Municipality to build a sewage and stormwater drainage system in Dubailand.

    The project (DS-204-C1) involves the construction of a drainage system with sewage gravity pipelines of up to 2,200mm in diameter.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17707980/main.jpg
    Mark Dowdall
  • Qatari Diar unveils $30bn Egypt project masterplan

    21 July 2026

    Qatari Diar, the real estate arm of the Qatar Investment Authority, has announced the masterplan for its $30bn Alam Al-Roum project on Egypt’s north coast.

    The masterplan was developed by US-based architectural firm Skidmore, Owings & Merrill.

    The master-planning team also includes US-based landscape architecture firm SWA; UK-headquartered marina design and operations consultant Marina Projects; and French transport and traffic engineering consultant Setec.

    The development will cover more than 20 million square metres and include 7.2 kilometres of private beachfront on the Mediterranean Sea.

    The site is about 20 minutes from Marsa Matrouh and 50 minutes from Ras El-Hekma.

    According to a statement, the project includes $3.5bn in direct cash investment and is designed as an integrated, year-round Mediterranean destination.

    Alam Al-Roum expands Qatari Diar Egypt’s portfolio, which includes CityGate, New Giza and The St Regis Cairo.

    Qatari Diar and Egypt’s New Urban Communities Authority signed the project agreement for Alam Al-Roum in November 2025.

    The estimated value of the deal to Egypt is $7.5bn. Under the agreement, Cairo will receive an upfront payment of $3.5bn by late December 2025 for the initial land purchase and is expected to receive an in-kind stake in the project, estimated to be worth $1.8bn.

    Qatari Diar’s broader investment plans for the area include spending up to $26.2bn in addition to the $3.5bn already allocated for the land purchase.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17707658/main.jpg
    Yasir Iqbal