ABU DHABI: Emirates Aluminium (Emal), a joint venture between Abu Dhabi investment fund Mubadala and Dubai Aluminum, is planning a further smelter expansion around 2017, its CEO said.
The group is on track to complete its $ 4 billion phase two by the end of 2014, when it capacity will rise to 1.3 million tons from the current 800,000 tons a year, making it one of the largest single-site smelters in the world.
The global aluminum industry is already facing a massive stock overhang, which is growing each month as smelters produce more than the world economy needs.
Emal is still planning to build more capacity, however, as it expects demand for aluminum to rise from 46 million tons to 60 million tons by 2015, Emal CEO Saeed Al-Mazrooei told reporters during a visit to the smelter complex sited between Abu Dhabi and Dubai.
“The international market is growing for aluminum in many countries — China, India, Brazil, the US. This demands us to grow,” he said.
Asked if a third phase could be launched around 2017, Al-Mazrooei said he hoped so, adding that the company’s state-backed owners would unveil details later.
Emal exports the majority of its production to the US, Europe, southeast Asia and the Middle East. Only about 200,000 tons is consumed locally, he said.
Emal, which burns vast quantities of natural gas to make the electricity it needs to operate the energy-intensive aluminum industry, has secured supplies for phase one and two from Abu Dhabi National Oil Co. (ADNOC), Al-Mazrooei said.
Cheap gas supplied to state-linked industry has driven a boom of energy-intensive development in the UAE over the last decade which, combined with rapid immigration, has turned the UAE from a gas exporter into a net gas importer.
Because there is not enough gas to go around, Dubai, which owns half of Emal, has to import increasing volumes of expensive liquefied natural gas (LNG) from around the world to meet demand for electricity.
$ 4 bn aluminum project on track
$ 4 bn aluminum project on track
PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025
RIYADH: Saudi Arabia’s Public Investment Fund-backed AviLease achieved exceptional performance and sustainable business growth during 2025, supported by the strategic expansion of its global platform.
According to its financial results for 2025, AviLease recorded total revenues of $664 million, an annual increase of 19 percent, driven by disciplined growth in its asset portfolio and strong performance in aircraft remarketing amid sustained global demand for modern, fuel-efficient aircraft, the Saudi Press Agency reported.
Profit before tax doubled compared to the previous year, reaching $122 million. The year witnessed an expansion in AviLease’s portfolio, reaching 202 owned and managed aircraft, leased to over 50 airline companies in more than 30 countries.
The total value of the company’s assets stabilized at $9.3 billion. AviLease maintained a 100 percent fleet utilization rate, reflecting the resilience of its business model, the efficiency of its asset management, and the strength of its strategic relationships with airlines around the world.
AviLease concluded purchase agreements for aircraft from Airbus, including the A320neo family and A350F, and Boeing 737 aircraft, aiming to enhance its future asset portfolio with modern, fuel-efficient aircraft. This step will contribute to supporting future growth and meeting increasing customer demand for the latest aircraft, aligning with the Kingdom’s ambitions to become a leading global aviation hub.
AviLease strengthened its prestigious credit standing by obtaining a strong Baa2 credit ratings from Moody’s and BBB from Fitch, reflecting its financial solidity, managerial discipline, and efficiency in managing leverage. The company also successfully issued senior unsecured bonds worth $850 million last November under Regulation 144A/RegS. This issuance contributed to diversifying its funding sources and enhancing its financial flexibility.
Commenting on the results, AviLease CEO Edward O’Byrne said: “This exceptional performance reflects the quality of the company’s investment portfolio, the strength of its partnerships with airlines, and its strategic focus on responsibly deploying capital into highly sought-after, efficient, modern aircraft assets.”
He added: “As aviation markets continue to grow, AviLease is strategically positioned to continue its expansion plans and deliver sustainable long-term value for shareholders, contributing to the Kingdom’s ambitions.”
Throughout 2025, AviLease continued to play a pivotal role in the Kingdom’s growing aviation sector and contributed directly to the launch and scaling of the new national carrier, Riyadh Air, by completing a sale and leaseback transaction for a Boeing 787-9 aircraft, which thereby became the first aircraft to join the airline’s fleet.
AviLease also established a strategic partnership with Hassana Investment Co. This partnership aims to provide an opportunity for local and international investors to enter the aircraft financing asset class and benefit from AviLease’s technical expertise and operational capabilities to support partnership growth and enhance performance.
Hassana Investment Co. has agreed to acquire an initial portfolio of 10 modern aircraft from AviLease.
