2030 GCC Steel Manufacturing Industry: Green Steel, Smart Plants & More

GCC Steel Manufacturing Market Outlook (2025–2030)

The GCC steel manufacturing market is poised for stable expansion, having been valued at USD 20.66 billion in 2024 and projected to reach USD 28.79 billion by 2030. This growth is primarily driven by the increasing demand from the construction and infrastructure sectors, spurred by national transformation plans such as Saudi Vision 2030, the UAE's Operation 300bn, and Qatar National Vision 2030. Ongoing mega projects like NEOM, Etihad Rail, and various urban development initiatives across the region are significantly contributing to the growing need for high-performance steel materials.

Moreover, localization of steel production and reduced dependency on imports are becoming strategic imperatives for GCC nations, with increased investments in electric arc furnace (EAF) technology and scrap-based production to boost sustainability and energy efficiency. The adoption of greener steel-making technologies and capacity expansions by leading market players are expected to improve regional supply and reduce volatility in steel prices. Additionally, advancements in shaping, coating, and heat treatment processes are enhancing the application of steel products across a variety of end-user industries.

Research Objectives

To analyze and forecast the GCC steel manufacturing market size from 2025 to 2030.
To identify market drivers, challenges, and emerging trends in the industry.
To segment the market based on material, manufacturing process, and forming technique.
To analyze the competitive landscape and key player strategies.
To provide actionable recommendations for stakeholders and investors.

Browse data Figures spread through 180 Pages and an in-depth TOC on " GCC Steel Manufacturing Market.” - https://www.techsciresearch.com/report/gcc-steel-manufacturing-market/28268.html

Market Driver Analysis

A major driver to the GCC steel manufacturing market is the accelerating expansion of infrastructure and construction projects. In 2024, more than USD 2.5 trillion worth of infrastructure investment are in the pipeline or being planned across GCC countries and Saudi Arabia alone committing more than USD 1.3 trillion for large-scale projects for urban infrastructure such as NEOM and Qiddiya. These initiatives require large quantities of structural steel to construct bridges or buildings, rails and pipelines for energy. In the UAE the Ministry of Energy & Infrastructure has allocated substantial funds for sustainable transportation and smart infrastructure which increases demand for premium steel components.

Furthermore, the growing urbanization rate and the projected growth of urbanization to reach 89% across the GCC by 2030, is fuelling the demand for commercial and residential real estate, which is resulting in an increase in steel consumption. The government mandates for localization of steel as well as industrial diversification particularly in Saudi Arabia under its Vision 2030 and Vision 2030, are resulting in significant investments in the steel mills. Additionally, the oil and gas industry is currently undergoing major refinery expansions and pipeline expansions is the biggest user of structural and tubular steel. With the push for sustainable manufacturing and energy efficiency as well as the shift towards Electric Arc Furnace technology is also rewarded by the regulatory frameworks in the region.

Market Trends Analysis

One of the most notable developments within the GCC steel manufacturing market is the shift to sustainable and low carbon steel production. The governments throughout the region are increasingly promoting the use of Electric Arc Furnaces (EAFs) which utilize recycled scrap instead pure iron ore, thereby cutting emissions. Companies like Al-Ittefaq Steel and Star Steel Manufacturing LLC are investing heavily in EAF capacity to ensure that they are in line with ESG standards and to reduce energy costs. This is also in line with the global push towards circular economies.

Another trend that is emerging is the automation and digitalization of steel manufacturing processes. As Industry 4.0 principles becoming more popular manufacturers are incorporating AI robotics, robotics, as well as data analytics into shaping, machining and coating processes to increase productivity and reduce human errors. In addition, there is increasing attention to advanced surface treatment techniques which improve resistance to corrosion particularly in steel products employed in the offshore and petrochemical industries. The use of heat-treated and coated steel in high-stress applications is becoming increasingly widespread. Additionally strategic joint ventures with international metalurgical firms allow GCC businesses to use top-of-the-line manufacturing methods that ensure the quality of their products and enhancing export competitiveness.

Market Challenges Analysis

Despite its optimistic future, the GCC steel manufacturing industry faces numerous issues. Price volatility in raw materials such as scrap and iron ore, can significantly impact the structure of costs and profits of producers of steel. The region's dependence of imported raw materials exposes the supply chain to global disruptions and price fluctuations. Another reason to be concerned is the increasing competition from steel exporters internationally including China and India and India, where lower production costs provide competitors with an advantage in pricing. In addition carbon taxation pressures are slowly being implemented in a few GCC countries, which requires costly upgrade of production facilities and emission-control technology. The shortage of skilled workers in advanced metallurgical expertise and a lack of regional R&D infrastructure for steel technology also hamper technological advancement. The high cost of manufacturing steel exposes it to delays in projects and financing obstacles, particularly in volatile oil prices which affect budgets of oil exporting GCC countries.

Market Segmentation

By Material:

Iron Ore
Scrap

By Manufacturing Process:

Blast Furnace
Electric Arc Furnace

By Forming Technique:

Shaping
Machining
Joining
Coating
Heat Treatment
Surface Treatment

Regional Analysis

The market for steel manufacturing throughout the GCC is characterized by regional differences in capacities for production as well as resource availability and demand from the end-user. Saudi Arabia dominates the regional scene, accounting for more than 50% of the total steel production due to its massive infrastructure initiatives, oil and gas pipeline extensions, as well as Vision 2030 industrialization initiatives. Major players such as Al-Ittefaq Steel and AIC Steel increases its market dominance. The local procurement policies of the government have boosted investment in new EAF-based factories which are in line with its carbon neutral goals.

The UAE is closely followed with its investments in real infrastructure, tourism infrastructure as well as high-rise construction. With more than USD 400 billion worth of construction projects currently underway the demand for machined and coated steel is increasing. Dubai as well as Abu Dhabi also serve as export hubs due to their modern port infrastructure.

Qatar following the World Cup is reorienting its attention to industrial manufacturing, and plans to expand steel capacity, thereby reducing dependence on imports. Oman as well as Bahrain are emerging as players especially in the production of steel pipes for exports of oil and gas using their strategic ports. Oman's Duqm industrial zone is attracting significant investment in steel due to incentives for land and taxation.

Kuwait although smaller in terms of market size is seeing an increase in investment in infrastructure for commercial and energy transmission, which requires top-quality steel parts for joining and structural construction.

In general, regional demand for steel is strongly correlated with the speed of diversification and infrastructure plans. Countries with strong government support trade logistics, as well as access to raw materials will likely see a higher rate of growth in the next few years.

Analyst Recommendations

Encourage the investment in EAF-based green steel production to reduce the environmental footprint and be in line with global decarbonization targets.
Create a regional scrap recycling infrastructures to guarantee a consistent feedstock to ensure sustainable production.
Encourage Public-private R&D initiatives to improve coating, forming and forming of steel and treatment techniques to create added value products.
Improve workforce development programs to develop local talents in steel and metallurgy engineering.
Develop frameworks for trade facilitation within the GCC to ease logistical bottlenecks and ensure that raw material flows are maintained.

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