UAE based Emirates Global Aluminum intends to become global champion

DUBAI (Scrap Monster) : The decision by  Dubai and Abudhabi to merge the state-owned entities to form a new company would give birth to the world’s fifth largest aluminum company.

The merger of Dubai Aluminum (Dubal) and Emirates Aluminum (Emal) to form a new company named Emirates Global Aluminum is considered by the commercial world as a major stepping stone towards UAE’s journey to become a global champion. The governments of both Dubai and Abudhabi decided to merge the two companies in a bid to expand and reinforce its global market presence.

Dubai state-owned Dubal has history many years of joint operation with Emal. The merger of the entities would usher in a new era of co-operation between the two emirates within the UAE. Emirates Global Aluminum will now compete with world’s fourth largest aluminum company-Aluminum Bahrain.

Being a region where lots of construction activities take place, UAE’s domestic demand for aluminum is estimated to remain at high levels during the years to come. The consolidation of business of Dubal and Emal is also expected to create immense job propose opportunities in the region.

The merger agreement was signed between the Mubadala Development Company of Abu Dhabi and the Investment Corporation of Dubai. The new company with an enterprise value of approximately $15 billion is expected to start its operations by first half of 2014.