Bahrain Sand Shortage: Help (Sand) is On the Way

Picture Copyright Gulf Daily News

Good news for the Bahrain construction industry.

UAE and Bahrain Rulers Join Forces to Combat Sand Shortage

26 November marks the last official day of Saudi sand exports to Bahrain.

As of tomorrow, there will be an official sand drought in Bahrain.

As noted in an earlier report, the Nass Company has already begun importing sand from Oman.

I was trying to think of a funny spin to put on this.  But it is a serious problem and steps are being taking to resolve it.

AA will, however, keep his eye on Saudi exploration to discover new sand reserves.

Earlier posts can be found through the use of the label "sand".

Oman to the Rescue: Sand Shipments Arriving in Bahrain - Formation of OSEC Near?

Picture in Public Domain as Per WikiCommons

Good News!

While intensive exploration for sand in Saudi Arabia continues, Bahrain has begun importing Omani sand.

And it seems testing other countries' sand to determine if they have the quality required.

Can the formation of OSEC (the Organization of Sand Exporting Countries) be far distant?

Background on critical sand shortage here.

AA will continue to follow this story.  Stay tuned.

Falcon Market Poised to Soar

By now many of you are probably "long" sand based on my earlier post.

Now is your chance to get in on ground floor in the falcon market.

The Saudi Gazette reports that Sa'eed Al-Huweiti recently sold a bird he found in the Qais Mountains for SAR 299,000 (US$79,733).

As Sa'eed said, "The price for falcons seems to still be on the rise"

Tell your broker you heard it from Suq al Mal.

(Picture copyright Saudi Gazette)

Critical Sand Shortage in the Gulf

It may sound strange: a GCC state that needs to import sand.   A bit like carrying coals to Newcastle.

But that's the case with Bahrain.  Without imports of sand and gravel, its construction and real estate sectors would be seriously hurt. Costs would escalate.

What's perhaps even more strange:  a GCC country banning the export of sand and gravel because of concerns over a potential shortage.

Earlier this month Saudi Arabia announced that at the end of November it would cease exports of all sand and gravel.  It appears the Rub Al-Khali (Empty Quarter) may indeed be empty.

Two remarkable events.  And two contradictory accounts.

The first in English from Bahrain's Gulf Daily News is the more upbeat of the two.  From this the problem is manageable, though if it so modest, it's not clear why government support is needed.

From across the King Fahd causeway on which the sand comes (at least until the end of November), a much different story in Arabic from AlWatan.    Prices of sand up 30% since the announcement of the impending ban as Saudi and Bahraini merchants prudently hoard stockpiles in anticipation of further price increases in December.  As well, an account of a dramatic price increase from BD1.5 per m3 to BD4.5 over some unspecified time.  And a picture of "sand pirates" busy scooping up the precious commodity near Dammam.

There was a similar sand crisis in 2003 - also triggered by a Saudi ban.  Subsequent consultations between the two governments led to the apparent discovery of additional Saudi sand.

One hopes that similar exploration will be successful this year,  not only for the industry but also for the banks that finance it.