GCC Steel Manufacturing Market, By Material (Iron Ore, and Scrap), By Manufacturing Process (Blast Furnace, and Electric Arc Furnace), By Forming Technique (Shaping, Machining, Joining, Coating, Heat Treatment, Surface Treatment), By Country, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

GCC Steel Manufacturing Market was valued at USD 20.66 Billion in 2024 and is expected to reach USD 28.79 Billion by 2030 with a CAGR of 5.53% during the forecast period. 

Steel manufacturing is the industrial process of producing steel, an alloy made primarily of iron and carbon, along with other elements such as manganese, chromium, and nickel. The process begins with the extraction of raw materials like iron ore, coal, and limestone. These materials are processed in a blast furnace to create molten iron, also known as pig iron. This molten iron is then refined to reduce impurities and adjust the chemical composition through methods such as the Basic Oxygen Furnace (BOF) or Electric Arc Furnace (EAF).

In the BOF method, oxygen is blown into the molten iron to remove excess carbon, while the EAF method involves melting scrap steel using high-powered electric arcs. Once the steel is refined, it is cast into various shapes such as slabs, billets, or blooms. These semi-finished products undergo further processing through rolling, forging, or other shaping techniques to produce finished goods like beams, sheets, pipes, and wires.

Steel manufacturing is a critical industry that supports infrastructure, construction, transportation, energy, and countless other sectors. Due to its strength, durability, and recyclability, steel remains one of the most widely used materials in the modern world, making its production a cornerstone of industrial development

Key Market Drivers

Industrial Diversification and Economic Reforms

One of the most significant drivers of the GCC steel manufacturing market is the region’s push for economic diversification. Traditionally reliant on oil revenues, GCC countries are increasingly investing in non-oil sectors to build resilient economies. Steel manufacturing has been identified as a key industry within this diversification strategy due to its importance in supporting sectors like construction, transportation, shipbuilding, and machinery. Saudi Vision 2030: Targets a significant increase in non-oil GDP contribution from the industrial sector, including steel. UAE Industrial Strategy 2031: Aims to raise the industrial sector’s contribution to GDP from USD 35 billion to USD 86 billion by 2031.

Government policies and reforms are encouraging the growth of domestic manufacturing through favorable regulations, subsidies, and the establishment of industrial zones. For instance, Saudi Arabia’s National Industrial Development and Logistics Program (NIDLP) promotes investment in heavy industries, including steel, by offering incentives and streamlined business processes. Similarly, the UAE has launched initiatives to localize industrial production, aiming to reduce reliance on imports and boost national output.

These reforms are attracting foreign direct investment and enabling public-private partnerships that enhance the competitiveness of the local steel sector. By building vertically integrated steel plants, companies can better control raw materials, reduce costs, and improve product quality. This strategic focus not only meets domestic demand but also allows GCC countries to become exporters of steel products to neighboring regions, including Africa and South Asia.

Rising Demand from the Oil & Gas Sector

The oil and gas industry, which remains a dominant economic sector in the GCC, continues to drive significant demand for steel. Steel is critical in the development of energy infrastructure, including pipelines, drilling rigs, refineries, and offshore platforms. High-performance steel products like seamless pipes, pressure vessels, and structural tubing are essential for withstanding harsh environments and high-pressure operations commonly found in the oil and gas sector. Oil & gas infrastructure projects (pipelines, refineries, offshore rigs) account for up to 30–35% of total steel demand in some GCC countries, especially Saudi Arabia and the UAE.

As GCC nations modernize and expand their oil and gas facilities, the need for durable and specialized steel increases. This includes demand for corrosion-resistant alloys, heat-treated steels, and custom-fabricated components tailored to oilfield applications. National oil companies such as Saudi Aramco, ADNOC (UAE), and Kuwait Petroleum Corporation have launched major upstream and downstream projects, all of which require substantial quantities of steel products.

In addition, the growth of petrochemical industries and liquefied natural gas (LNG) projects in the region further fuels steel consumption. To ensure long-term sustainability, GCC steel manufacturers are aligning their production capabilities with industry-specific requirements, investing in R&D, and forming partnerships with global engineering firms. As energy demand rises globally, the continued expansion of oil and gas activities will remain a key pillar supporting steel market growth in the region.

Strategic Geographic Location and Export Potential

The GCC region enjoys a strategic geographic location, situated at the crossroads of Asia, Europe, and Africa. This positioning provides significant advantages for steel manufacturers looking to access international markets. Proximity to emerging economies in South Asia and East Africa creates opportunities for exporting steel products to regions with growing infrastructure and construction needs. The GCC region is centrally located between Europe, Asia, and Africa, enabling efficient access to over 2 billion consumers within a 4-6 hour flight radius.

Many GCC countries have invested heavily in building world-class ports, logistics hubs, and free trade zones to support exports. For example, Jebel Ali Port in Dubai and King Abdullah Port in Saudi Arabia serve as major gateways for international trade. These logistics facilities streamline the export process, reduce shipping times, and lower distribution costs for steel producers. Additionally, the GCC has established numerous trade agreements and regional partnerships that facilitate cross-border commerce. As global demand for steel increases, particularly in developing markets, GCC manufacturers are well-positioned to capture a share of this growth. Local steel companies are increasingly producing value-added products such as galvanized sheets, coated steel, and precision-engineered parts to cater to niche export markets.

Export-oriented growth not only enhances profitability but also helps stabilize domestic markets by absorbing surplus production. It encourages economies of scale and promotes the adoption of global standards and best practices, further elevating the GCC’s reputation as a reliable steel supplier on the world stage.

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Key Market Challenges

Volatility in Raw Material Prices and Supply Chain Disruptions

One of the most pressing challenges for the GCC steel manufacturing market is the volatility in raw material prices and the disruption of global supply chains. Steel production relies heavily on key raw materials such as iron ore, scrap metal, coking coal, and limestone—many of which are not available in sufficient quantities within the GCC region. As a result, manufacturers are heavily dependent on imports, primarily from countries like Australia, Brazil, and India.

Fluctuations in the global prices of iron ore and scrap steel can significantly impact production costs. For instance, during times of geopolitical tension, mining strikes, or global trade restrictions, the prices of raw materials can spike dramatically. This makes it difficult for GCC producers to maintain competitive pricing, especially when competing with international players who may have direct access to cheaper inputs. Moreover, supply chain disruptions caused by global events such as the COVID-19 pandemic, the Russia-Ukraine conflict, or Red Sea shipping route risks have exposed vulnerabilities in logistics and material availability. Delays in shipping, increased freight costs, and port congestions can all cause significant production slowdowns or even plant shutdowns.

To mitigate this challenge, GCC countries are working on improving strategic reserves, investing in scrap collection and recycling infrastructure, and exploring long-term procurement contracts. However, dependency on foreign raw material sources still limits the industry's ability to respond quickly to market changes. Until a more secure and sustainable supply chain is established, the steel sector in the GCC will remain exposed to global market shocks.

Overcapacity and Intense Regional Competition

Another critical challenge facing the GCC steel manufacturing industry is the issue of overcapacity and increasing competition both within the region and from international suppliers. Over the past decade, GCC countries have heavily invested in expanding their steel production capacities to meet anticipated demand from infrastructure and industrial projects. However, in some cases, the pace of capacity expansion has outstripped actual demand, leading to an oversupplied market.

This overcapacity results in downward pressure on prices, reduced profit margins, and increased competition among local producers. Smaller and less efficient steel plants often find it difficult to compete with larger, vertically integrated facilities that benefit from economies of scale. Moreover, state-owned enterprises or heavily subsidized producers can operate at lower costs, creating market imbalances.

Adding to this challenge is the influx of cheaper imported steel from countries like China, India, and Turkey. These countries often export excess steel at discounted rates, making it harder for GCC manufacturers to compete on price without compromising on quality or incurring losses.

In response, some GCC governments have introduced protective measures such as tariffs and anti-dumping duties to shield local producers. However, these are short-term fixes and may not fully address structural imbalances in supply and demand. To ensure long-term sustainability, GCC steel manufacturers must focus on innovation, cost optimization, product diversification, and tapping into export markets where demand is still growing.

Key Market Trends

Shift Towards Green and Sustainable Steel Production

One of the most significant trends in the GCC steel manufacturing market is the growing emphasis on sustainability and eco-friendly production processes. With increasing global attention on climate change, environmental regulations, and carbon emissions, GCC countries are aligning their industrial sectors with sustainable development goals. Governments and manufacturers are focusing on reducing the carbon footprint of steel production, which has traditionally been a carbon-intensive industry.

Major steel producers in the region are now exploring low-carbon technologies such as hydrogen-based steelmaking, carbon capture and storage (CCS), and electric arc furnace (EAF) methods that rely on recycled scrap rather than raw iron ore. The use of renewable energy sources like solar and wind power in industrial operations is also gaining momentum, particularly in countries like the UAE and Saudi Arabia, which have invested heavily in clean energy. Additionally, the circular economy model is becoming more prominent, with increased efforts in steel recycling and waste minimization. Companies are investing in scrap collection infrastructure and promoting steel's recyclability as a key advantage. These green initiatives not only improve environmental performance but also enhance the global competitiveness of GCC steel in international markets where buyers are placing higher value on sustainable products.

Digital Transformation and Smart Manufacturing

Digitalization is rapidly transforming the GCC steel manufacturing industry. As global competition intensifies, companies in the region are adopting advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), big data analytics, and automation to improve efficiency, quality, and operational transparency.

Smart manufacturing allows for real-time monitoring of production lines, predictive maintenance of equipment, and optimized energy usage. These innovations reduce downtime, minimize waste, and lower production costs. For instance, AI-driven quality control systems can detect defects instantly and ensure consistent product standards, which is crucial for meeting the specifications required in large infrastructure and energy projects. Moreover, enterprise resource planning (ERP) systems are helping manufacturers streamline supply chains, manage inventories, and enhance customer service. By integrating digital technologies across the value chain, GCC steel companies can improve responsiveness to market demands and gain a competitive edge.

Governments in the region are also supporting Industry 4.0 adoption through national transformation programs and funding initiatives. The move towards digital steelmaking is not only boosting productivity but also positioning the GCC as a forward-thinking industrial hub in the global steel market.

Segmental Insights

Material Insights

The Scrap held the largest market share in 2024.  Scrap metal has emerged as the dominant raw material in the GCC steel manufacturing market due to a combination of economic, environmental, and technological factors. One of the primary reasons is the widespread use of Electric Arc Furnace (EAF) technology in the region. EAFs primarily rely on recycled scrap steel as their main input, offering a more cost-effective and energy-efficient alternative to the traditional blast furnace method, which requires iron ore and coking coal—materials that are largely imported into the GCC.

The GCC region lacks significant natural reserves of iron ore, making reliance on iron ore economically challenging. Importing iron ore involves high transportation and processing costs, which impacts the competitiveness of steel producers. In contrast, scrap metal is more readily available, and several countries in the GCC have developed strong scrap collection and recycling systems to support domestic steel production.

From an environmental perspective, scrap-based steelmaking has a significantly lower carbon footprint compared to iron ore-based production. This aligns with the GCC's broader sustainability goals under initiatives like Saudi Vision 2030 and the UAE’s Net Zero Strategy, which emphasize greener industrial practices and reduced emissions. Additionally, EAF technology allows for faster and more flexible production, making it ideal for meeting fluctuating demand in sectors like construction and infrastructure. The modular nature of EAFs also makes them more adaptable and suitable for the regional scale of production compared to large integrated steel mills.

Manufacturing Process Insights

The Electric Arc Furnace held the largest market share in 2024.  The Electric Arc Furnace (EAF) technology dominates the GCC steel manufacturing market due to its economic, environmental, and operational advantages, which align well with the region’s industrial goals and resource availability.

EAFs are highly efficient and cost-effective for steel production, particularly in regions like the GCC where natural gas and electricity are abundant and relatively low-cost. This energy advantage supports the high power requirements of EAFs, making the process economically viable compared to the traditional blast furnace route, which relies heavily on imported iron ore and coking coal—resources that are limited or absent in the GCC.

EAFs use scrap metal as their primary input, which supports the growing emphasis on sustainability and circular economy principles in the region. With global pressure to reduce carbon emissions, GCC countries—especially Saudi Arabia and the UAE—are promoting green industrial practices. EAFs produce significantly lower CO₂ emissions compared to blast furnaces, aligning with national visions such as Saudi Vision 2030 and the UAE’s Net Zero 2050 strategy.

The flexibility of EAFs is a strong advantage. They can be rapidly started or shut down, allowing producers to respond quickly to demand fluctuations—critical in a region experiencing cyclical construction and industrial growth. EAFs also allow greater product variation and customization, catering to the GCC's diverse steel demands in construction, oil & gas, and infrastructure.

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Country Insights

Largest Country

Saudi Arabia held the largest market share in 2024. Saudi Arabia holds a dominant position in the GCC steel manufacturing market due to a combination of economic scale, strategic investments, and government-led industrial initiatives. As the largest economy in the Gulf Cooperation Council, Saudi Arabia accounts for a significant share of the region’s construction, infrastructure, and industrial activity—all of which are key drivers of steel demand.

The government’s ambitious Vision 2030 plan has accelerated infrastructure development across the Kingdom, including mega-projects such as NEOM, The Line, and Red Sea Global. These developments require vast quantities of steel, particularly in construction, transportation, and energy sectors, thereby creating strong domestic demand that supports local steel production.

To demand-side factors, Saudi Arabia has made strategic investments in steel manufacturing capacity. It is home to major steel producers like Saudi Iron and Steel Company (Hadeed) and Rajhi Steel, which operate large-scale and technologically advanced plants. These companies benefit from access to low-cost energy, a skilled workforce, and a growing base of raw materials such as scrap, further enhancing their competitiveness. Moreover, the government has implemented supportive policies such as import tariffs on foreign steel and incentives for local manufacturers, helping to protect and grow the domestic steel industry. The development of industrial zones, such as the Jubail Industrial City, has also fostered vertical integration and supply chain efficiency.

Geographically, Saudi Arabia’s central location in the GCC, combined with well-developed logistics infrastructure, enables it to serve both regional and export markets efficiently.

Emerging Country

Qatar is emerging as a significant player in the GCC steel manufacturing market due to its strategic investments, strong infrastructure development, and focus on industrial self-sufficiency. As part of its National Vision 2030, Qatar aims to diversify its economy and reduce reliance on hydrocarbon revenues by developing a robust manufacturing base—steel being a key pillar in this strategy.

One of the major drivers behind Qatar’s rise in the steel sector is its sustained investment in infrastructure and mega projects, particularly in preparation for global events such as the FIFA World Cup 2022 and ongoing urban expansion. These developments have fueled demand for construction steel, including rebar, structural sections, and flat steel products. Local steel manufacturers like Qatar Steel have capitalized on this demand by increasing production capacity, improving operational efficiency, and focusing on quality and sustainability.

Qatar Steel, a pioneer in the region, operates using the Electric Arc Furnace (EAF) method, which relies primarily on scrap metal—making it more environmentally friendly and cost-effective. The company is also ISO-certified and exports to several regional and international markets, enhancing Qatar’s presence on the global steel map.

Qatar benefits from stable energy resources, a strategic geographic location, and well-developed logistics infrastructure, which collectively support efficient manufacturing and export operations. Government support, in the form of favorable policies and investment in industrial zones, has further strengthened the competitiveness of the domestic steel sector.

Recent Developments

• In April 2024, ArcelorMittal launched The Steel Works, a new initiative aimed at showcasing the innovation, sustainability, and advanced technologies behind modern steel production. This platform highlights the company's commitment to decarbonization, circular economy practices, and the vital role steel plays in building a sustainable future. The Steel Works also serves as an educational and engagement hub, offering insights into steel’s applications across industries and emphasizing ArcelorMittal’s leadership in driving the transformation of the global steel industry.
• In 2024, Kametstal introduced 13 new types of steel products, marking a significant expansion of its production capabilities. This development reflects the company’s strategic focus on innovation, diversification, and meeting evolving market demands. The new product range enhances Kametstal’s ability to serve various industries, including construction, automotive, and manufacturing. By broadening its portfolio, Kametstal aims to strengthen its competitive edge and reinforce its position as a leading player in the regional and international steel markets.
• In May 2024, JFE Steel has launched JFE Resolus™, a new manufacturing solutions business aimed at providing advanced, value-added services across the steel industry. This initiative focuses on integrating digital technologies, automation, and customized engineering solutions to enhance production efficiency and meet specific customer needs. JFE Resolus™ represents the company’s strategic shift toward smart manufacturing and sustainable practices, positioning JFE Steel as a forward-thinking leader committed to driving innovation and operational excellence in the evolving global steel landscape.

Key Market Players

• Al-Ittefaq Steel
• Ezzsteel
• Al Yamamah Company
• Star Steel Manufacturing LLC
• Zamil Structural Steel Company Ltd.
• AIC Steel
• Al Azman Steel Company
• Al Naseer Industrial Enterprises LLC
• Attieh Steel
• Baghlaf Steel

Report Scope:

In this report, the GCC Steel Manufacturing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• GCC Steel Manufacturing Market, By Material:

o   Iron Ore

o   Scrap

• GCC Steel Manufacturing Market, By Manufacturing Process:

o   Blast Furnace

o   Electric Arc Furnace  

• GCC Steel Manufacturing Market, By Forming Technique:

o   Shaping

o   Machining

o   Joining

o   Coating

o   Heat Treatment

o   Surface Treatment

• GCC Steel Manufacturing Market, By Country:

o   Saudi Arabia

o   UAE

o   Oman

o   Qatar

o   Kuwait

o   Bahrain

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the GCC Steel Manufacturing Market.

Available Customizations:

GCC Steel Manufacturing Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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