The hydrocarbon-rich Gulf states, which are focusing on low-carbon metals manufacturing as part of their economic diversification strategies, could gain an early mover advantage as the EU prepares to impose comprehensive carbon tariffs in 2026.
The Gulf region is a global leader in aluminium production, accounting for roughly 10 per cent of output. Nearly a third of the GCC’s aluminium production is exported to the US and the EU.
The lightweight metal has gained importance in recent years, particularly for its use in battery casings and other components for electric vehicles.
However, aluminium production is energy-intensive and emits about 3 per cent of the world’s direct industrial carbon-dioxide emissions, according to the International Energy Agency.
This could become a challenge as the EU gets set to fully implement the Carbon Border Adjustment Mechanism (CBAM) in 2026. CBAM, which seeks to protect European companies that pay for their emissions under the EU's trading system from unfair competition, will impose a carbon price on certain goods imported into the bloc.
The regulation currently focuses on carbon-intensive goods like cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen products.
“A number of Middle Eastern aluminium producers have made clear efforts to offer low-carbon emissions aluminium products to the wider market, including products with higher recycled content, as part of a response to growing demand for this material as well as preparation for the implementation of CBAM in the EU in 2026,” Khaula Bhatti from S&P Global Commodity Insights told The National.
The CBAM will initially focus on the direct emissions (Scope 1) for all covered products, but will also include indirect emissions (Scope 2) for imported fertiliser, cement and electricity.
“Middle Eastern producers are in a favourable position in the European market when considering both Scope 1 and Scope 2 emissions, meaning they are more competitive in terms of overall emissions compared to other global competitors,” she said.
The UAE is responsible for 44 per cent of GCC’s aluminium production and its main company – Emirates Global Aluminium – has been early to the game.
In 2021, EGA became the first company in the world to make aluminium commercially using solar power, producing almost 39,000 tonnes that year. Output increased to 66,000 tonnes last year.
In January, Saudi Arabia Mining Company (Ma'aden) and US-based solar start-up GlassPoint announced the first phase of project development for the world’s largest industrial solar thermal project to decarbonise the miner’s aluminium supply chain.
The initial phase will integrate direct heat generation and storage to deliver a continuous supply of nine tonnes per hour of steam to Ma'aden’s alumina refinery in Ras Al Khair, in Saudi Arabia’s Eastern Province.
“New policies such as the EU’s CBAM will tax high-carbon imports and make low-carbon aluminium, enabled by solar thermal solutions, even more appealing,” Ma'aden said in a statement at the time.
Growing market share
Last week, Ma'aden agreed to acquire Sabic’s 21 per cent stake in Aluminium Bahrain (Alba), the world's largest aluminium smelter outside of China.
The two companies last month also signed a non-binding agreement to begin due diligence on a potential business combination involving segments of Ma'aden’s aluminium strategic business unit. This combination could reshape the global aluminium industry, positioning the merged entity as “one of the largest aluminium producers worldwide”, Alba said in a statement at the time.
“The potential partnership accelerates Alba’s growth strategy, creating a global champion and cementing our position as the largest regional aluminium producer,” Khalid Al Rumaihi, Alba’s chairman.
The combined entity could optimise or expand operations in the earlier stages of aluminium production, such as the supply of raw materials and calcined coke, which is essential for producing aluminium anodes, a Wood Mackenzie analyst told The National.
“The Ma’aden – Alba potential merger shouldn’t make a difference in terms of access to the EU. The combined entity may be able to exploit some synergies with commercial offices abroad, including the EU," said Edgardo Gelsomino, research director, aluminium.
The potential deal may also be influenced by China’s aluminium production limit of 45 million tonnes. This cap, imposed by Beijing in 2017, aims to prevent oversupply and phase out older, less efficient plants. China's production of the metal reached 41.66 million tonnes in 2023, data from the International Aluminium Institute showed.
“China is bent on keeping its primary aluminium capacity at 45 million tonnes and is unlikely to budge,” said Andy Farida, base metals research analyst at Fastmarkets.
“That made the joint co-op between Ma'aden and Alba more appealing since the GCC sees this as an opportunity to step up, fill in the market share and put the aluminium industry as a key player for many years to come,” he told The National.
“China remains the largest factory of the world, but I think the GCC is trying to take some of the burden off.”
Despite being a dominant force in the global metals market, Chinese exports are often viewed negatively in the West. The US and the EU have repeatedly accused China of unfairly subsidising its aluminium and steel sectors, claiming that the resulting overproduction is saturating global markets.
“China’s geopolitical tensions with the West will only benefit the Middle Eastern economies,” Mr Farida said.
Green steel
While the Middle East is not a big player in steel, the move by some regional companies to specialise in green or low-carbon steel could potentially give them an advantage over exports from China and India in certain markets, according to experts.
EMSTEEL, formerly known as Emirates Steel Arkan, has nearly completed a pilot project with Masdar, which involves the use of green hydrogen, instead of natural gas, to extract iron from iron ore, a senior executive at the company told The National.
Green steel is produced using a specific technology, making it difficult for competitors to enter the market, Saeed Alghafri, chief executive of Emirates Steel, a part of EMSTEEL group, said.
“The UAE, and specifically the Mena region, is really pioneering and leading, so naturally, this place can be an anchor for export,” Mr Alghafri said. “What's really critical is the reception and the willingness to buy such products. In Europe today, they're really asking for this product, and they want it.”
The EU is currently the world’s largest steel importer. In 2023, the bloc imported 37.3 million tonnes of steel, an 8.7 per cent increase over the previous year, according to the International Trade Administration.
“The impact of the CBAM on EU steel imports and domestic production will be felt around the globe, as European countries weigh up whether to import finished steel, green direct reduced iron to produce steel or additional scrap,” Wood Mackenzie said in a research note this year.
“Emissions-intensive Chinese and Indian flat steel will be hit hardest.”
China has a production capacity of 1 billion tonnes, and a surge in exports to any country, to counter a slowdown in its domestic economy, will create a “huge imbalance” in that market, Mr Alghafri said. “If you look around, everyone is afraid that this would happen.”
He said both the US and the EU had announced protective measures in response to Chinese steel imports.
“We've established ourselves, and if we don't do like the other [markets], then they [Chinese exports] will end up coming here … we're really watching the Chinese market and their economic growth very closely,” Mr Alghafri said.
“The good thing here is we have very much established a diversified portfolio. We really have strategies in place, specifically when it comes to sustainability and technology, to really fight or tackle any Chinese products,” he added.
Killing of Qassem Suleimani
Sly%20Cooper%20and%20the%20Thievius%20Raccoonus
%3Cp%3E%3Cstrong%3EDeveloper%3A%3C%2Fstrong%3E%20Sucker%20Punch%20Productions%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Sony%20Computer%20Entertainment%3Cbr%3E%3Cstrong%3EConsole%3A%3C%2Fstrong%3E%20PlayStation%202%20to%205%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%205%2F5%3C%2Fp%3E%0A
Juliot Vinolia’s checklist for adopting alternate-day fasting
- Don’t do it more than once in three days
- Don’t go under 700 calories on fasting days
- Ensure there is sufficient water intake, as the body can go in dehydration mode
- Ensure there is enough roughage (fibre) in the food on fasting days as well
- Do not binge on processed or fatty foods on non-fasting days
- Complement fasting with plant-based foods, fruits, vegetables, seafood. Cut out processed meats and processed carbohydrates
- Manage your sleep
- People with existing gastric or mental health issues should avoid fasting
- Do not fast for prolonged periods without supervision by a qualified expert
BACK%20TO%20ALEXANDRIA
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ETamer%20Ruggli%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ENadine%20Labaki%2C%20Fanny%20Ardant%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3.5%2F5%3C%2Fp%3E%0A
The biog
Name: Sari Al Zubaidi
Occupation: co-founder of Cafe di Rosati
Age: 42
Marital status: single
Favourite drink: drip coffee V60
Favourite destination: Bali, Indonesia
Favourite book: 100 Years of Solitude
More on animal trafficking
Look%20Both%20Ways
%3Cp%3EDirector%3A%20Wanuri%20Kahiu%3Cbr%3EStars%3A%20Lili%20Reinhart%2C%20Danny%20Ramirez%2C%20David%20Corenswet%2C%20Luke%20Wilson%2C%20Nia%20Long%3Cbr%3ERating%3A%203%2F5%3Cbr%3E%3C%2Fp%3E%0A
KILLING OF QASSEM SULEIMANI
The years Ramadan fell in May
Results:
Men's wheelchair 800m T34: 1. Walid Ktila (TUN) 1.44.79; 2. Mohammed Al Hammadi (UAE) 1.45.88; 3. Isaac Towers (GBR) 1.46.46.
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
More from Neighbourhood Watch:
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ESmartCrowd%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ESiddiq%20Farid%20and%20Musfique%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%20%2F%20PropTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3E%24650%2C000%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2035%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EVarious%20institutional%20investors%20and%20notable%20angel%20investors%20(500%20MENA%2C%20Shurooq%2C%20Mada%2C%20Seedstar%2C%20Tricap)%3C%2Fp%3E%0A
'The Sky is Everywhere'
Director:Josephine Decker
Stars:Grace Kaufman, Pico Alexander, Jacques Colimon
Rating:2/5
Zayed Sustainability Prize
Previous men's records
- 2:01:39: Eliud Kipchoge (KEN) on 16/9/19 in Berlin
- 2:02:57: Dennis Kimetto (KEN) on 28/09/2014 in Berlin
- 2:03:23: Wilson Kipsang (KEN) on 29/09/2013 in Berlin
- 2:03:38: Patrick Makau (KEN) on 25/09/2011 in Berlin
- 2:03:59: Haile Gebreselassie (ETH) on 28/09/2008 in Berlin
- 2:04:26: Haile Gebreselassie (ETH) on 30/09/2007 in Berlin
- 2:04:55: Paul Tergat (KEN) on 28/09/2003 in Berlin
- 2:05:38: Khalid Khannouchi (USA) 14/04/2002 in London
- 2:05:42: Khalid Khannouchi (USA) 24/10/1999 in Chicago
- 2:06:05: Ronaldo da Costa (BRA) 20/09/1998 in Berlin
The biog
Name: Shamsa Hassan Safar
Nationality: Emirati
Education: Degree in emergency medical services at Higher Colleges of Technology
Favourite book: Between two hearts- Arabic novels
Favourite music: Mohammed Abdu and modern Arabic songs
Favourite way to spend time off: Family visits and spending time with friends
Teenage%20Mutant%20Ninja%20Turtles%3A%20Shredder's%20Revenge
%3Cp%3E%3Cstrong%3EDeveloper%3A%20%3C%2Fstrong%3ETribute%20Games%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Dotemu%3Cbr%3E%3Cstrong%3EConsoles%3A%20%3C%2Fstrong%3ENintendo%20Switch%2C%20PlayStation%204%26amp%3B5%2C%20PC%20and%20Xbox%20One%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
More coverage from the Future Forum
UAE currency: the story behind the money in your pockets
Mohammed bin Zayed Majlis
French Touch
Carla Bruni
(Verve)
Zayed Sustainability Prize
Killing of Qassem Suleimani
PSA DUBAI WORLD SERIES FINALS LINE-UP
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
Tour de France Stage 16:
165km run from Le Puy-en-Velay to Romans-sur-Isère
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
Walls
Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
Last-16
France 4
Griezmann (13' pen), Pavard (57'), Mbappe (64', 68')
Argentina 3
Di Maria (41'), Mercado (48'), Aguero (90 3')
The five pillars of Islam
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
UAE currency: the story behind the money in your pockets
TECH%20SPECS%3A%20APPLE%20WATCH%20SERIES%208
%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2041mm%2C%20352%20x%20430%3B%2045mm%2C%20396%20x%20484%3B%20Retina%20LTPO%20OLED%2C%20up%20to%201000%20nits%2C%20always-on%3B%20Ion-X%20glass%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20Apple%20S8%2C%20W3%20wireless%2C%20U1%20ultra-wideband%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECapacity%3A%3C%2Fstrong%3E%2032GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%201GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPlatform%3A%3C%2Fstrong%3E%20watchOS%209%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EHealth%20metrics%3A%3C%2Fstrong%3E%203rd-gen%20heart%20rate%20sensor%2C%20temperature%20sensing%2C%20ECG%2C%20blood%20oxygen%2C%20workouts%2C%20fall%2Fcrash%20detection%3B%20emergency%20SOS%2C%20international%20emergency%20calling%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20GPS%2FGPS%20%2B%20cellular%3B%20Wi-Fi%2C%20LTE%2C%20Bluetooth%205.3%2C%20NFC%20(Apple%20Pay)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDurability%3A%3C%2Fstrong%3E%20IP6X%2C%20water%20resistant%20up%20to%2050m%2C%20dust%20resistant%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%20308mAh%20Li-ion%2C%20up%20to%2018h%2C%20wireless%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECards%3A%3C%2Fstrong%3E%20eSIM%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFinishes%3A%3C%2Fstrong%3E%20Aluminium%20%E2%80%93%20midnight%2C%20Product%20Red%2C%20silver%2C%20starlight%3B%20stainless%20steel%20%E2%80%93%20gold%2C%20graphite%2C%20silver%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20Watch%20Series%208%2C%20magnetic-to-USB-C%20charging%20cable%2C%20band%2Floop%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20Starts%20at%20Dh1%2C599%20(41mm)%20%2F%20Dh1%2C999%20(45mm)%3C%2Fp%3E%0A
Killing of Qassem Suleimani
PROFILE OF STARZPLAY
Date started: 2014
Founders: Maaz Sheikh, Danny Bates
Based: Dubai, UAE
Sector: Entertainment/Streaming Video On Demand
Number of employees: 125
Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
More from Neighbourhood Watch:
The five pillars of Islam
Stats at a glance:
Cost: 1.05 billion pounds (Dh 4.8 billion)
Number in service: 6
Complement 191 (space for up to 285)
Top speed: over 32 knots
Range: Over 7,000 nautical miles
Length 152.4 m
Displacement: 8,700 tonnes
Beam: 21.2 m
Draught: 7.4 m
The years Ramadan fell in May
More from Neighbourhood Watch:
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
MATCH INFO
Manchester United v Manchester City, Wednesday, 11pm (UAE)
Match is on BeIN Sports
More from Rashmee Roshan Lall
KILLING OF QASSEM SULEIMANI
More from Neighbourhood Watch
UAE currency: the story behind the money in your pockets
BUNDESLIGA FIXTURES
Friday Hertha Berlin v Union Berlin (11.30pm)
Saturday Freiburg v Borussia Monchengladbach, Eintracht Frankfurt v Borussia Dortmund, Cologne v Wolfsburg, Arminia Bielefeld v Mainz (6.30pm) Bayern Munich v RB Leipzig (9.30pm)
Sunday Werder Bremen v Stuttgart (6.30pm), Schalke v Bayer Leverkusen (9pm)
Monday Hoffenheim v Augsburg (11.30pm)
Read more about the coronavirus
%3Cp%3EThe%20Department%20of%20Culture%20and%20Tourism%20-%20Abu%20Dhabi%E2%80%99s%20Arabic%20Language%20Centre%20will%20mark%20International%20Women%E2%80%99s%20Day%20at%20the%20Bologna%20Children's%20Book%20Fair%20with%20the%20Abu%20Dhabi%20Translation%20Conference.%20Prolific%20Emirati%20author%20Noora%20Al%20Shammari%2C%20who%20has%20written%20eight%20books%20that%20%20feature%20in%20the%20Ministry%20of%20Education's%20curriculum%2C%20will%20appear%20in%20a%20session%20on%20Wednesday%20to%20discuss%20the%20challenges%20women%20face%20in%20getting%20their%20works%20translated.%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
KILLING OF QASSEM SULEIMANI
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Mohammed bin Zayed Majlis
The five pillars of Islam
Poacher
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ERichie%20Mehta%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Nimisha%20Sajayan%2C%20Roshan%20Mathew%2C%20Dibyendu%20Bhattacharya%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
House-hunting
Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
- Westminster, London
- Camden, London
- Glasgow, Scotland
- Islington, London
- Kensington and Chelsea, London
- Highlands, Scotland
- Argyll and Bute, Scotland
- Fife, Scotland
- Tower Hamlets, London
Killing of Qassem Suleimani