Saudi Arabia has announced investment opportunities exceeding SR60bn ($16bn) across seven targeted product areas in its fast-growing iron and steel industry.
The initiative, unveiled by Minister of Industry and Mineral Resources Bandar Alkhorayef, underscores the sector’s central role in Saudi Vision 2030 and its industrial diversification agenda.
Speaking at the 3rd Saudi International Iron and Steel Conference in Riyadh, Alkhorayef said the government had approved the National Steel Sector Restructuring Plan in August 2024 as a comprehensive roadmap to develop, empower, and ensure the sustainability of the industry.
Saudi iron and steel
He noted that a detailed market study by the Industrial Centre confirmed the sector’s strong fundamentals and need for further qualitative investment to enhance competitiveness.
The updated plan will also review related regulations to strengthen sustainability and improve the investment environment.
During a presentation titled “Enabling steel value chain localisation in support of economic growth and diversification,” the minister said the iron sector’s development rests on three main pillars:
- Rising demand from priority industries such as renewable energy, building materials, and automotive manufacturing—key to the National Industrial Strategy’s localisation goals
- Saudi Arabia’s strategic advantages, including its location connecting three continents, competitive energy prices, and advanced infrastructure
- A shift toward green metals production, with the Kingdom aiming for renewable energy to account for 50 per cent of total power generation by 2030
Alkhorayef said the Kingdom currently imports 4 million tons of iron ore annually but expects to increase total iron production to 25 million tons by 2035.
He acknowledged recent challenges such as surplus rebar output, limited capacity for high-value products, and import competition that has reached twice the domestic production capacity for flat-steel products.
Global steel leaders in Riyadh
On the sidelines of the conference, Alkhorayef held bilateral meetings with senior executives from leading local and international iron and steel companies to explore investment opportunities and highlight the Kingdom’s competitive advantages.
Executives in attendance included representatives from Saudi Iron and Steel Company (Hadeed), Al Yamamah Company for Reinforcing Steel Bars, Al-Tilal Steel Company Limited, Baosteel—China’s largest iron and steel producer—and India’s Essar Steel.
The event gathered industry leaders, experts, and decision-makers from more than 35 countries, providing a global platform to discuss the future of iron and steel production and the Kingdom’s role as a regional hub for green metals.
Industrial ambitions
Alkhorayef reaffirmed that Saudi Vision 2030 aims to diversify the national economy, expand the production base, and increase the private sector’s contribution to 65 per cent of GDP, while raising the share of non-oil exports to 50 per cent of non-oil GDP.
By unlocking SR60bn ($16bn) worth of industrial opportunities and promoting advanced, sustainable production, the Kingdom aims to position its iron sector as a cornerstone of regional manufacturing growth and global energy-transition supply chains.
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