Minister of Industry and Mineral Resources Bandar Alkhorayef highlighted the significant growth of Saudi Arabia’s iron sector and the promising investment opportunities it presents across seven targeted product areas, with a total value exceeding SAR60 billion ($16 billion).
Alkhorayef made the remarks during the 3rd annual Saudi International Iron and Steel Conference, held in Riyadh in the presence of Egypt’s Deputy Prime Minister for Industrial Development and Minister of Transport and Industry Kamel Al-Wazir, along with senior industry and mining officials and a wide range of decision-makers and investors within Saudi Arabia and beyond in the iron and steel sector.
The minister underscored that Saudi Vision 2030 has outlined a clear path focused on diversifying the national economy, expanding the production base, and increasing the private sector’s contribution to 65% of gross domestic product (GDP), as well as raising the share of non-oil exports to 50% of non-oil GDP.
Recognizing the pivotal role of the iron sector in achieving these goals, approval was granted for the National Steel Sector Restructuring Plan in August 2024, the minister stated. The plan serves as a roadmap for developing, empowering, and ensuring the sustainability of the industry.
Alkhorayef highlighted a comprehensive study conducted by the Industrial Center on the domestic iron market, including analysis on consumption rates, import volumes, and specifications. The study confirmed the sector’s attractiveness and the need for further qualitative investments to enhance its competitiveness.
He underscored the center’s assignment of updating the National Steel Sector Restructuring Plan and reviewing related policies and regulations to strengthen sustainability and improve the investment environment.
During the conference, Alkhorayef took part in a ministerial fireside chat dubbed “Enabling steel value chain localization in support of economic growth and diversification.”
He stressed that the development of Saudi Arabia’s iron sector is based on three main pillars. The first focuses on projected demand from priority sectors with the National Industrial Strategy focusing on localizing promising industries, including renewable energy, building materials, and automotive industries. These efforts are expected to drive higher demand for iron and steel products, he added.
The second pillar builds on Saudi Arabia’s strategic advantages, the minister said. These include a strategic location connecting three continents, competitive energy prices, and advanced infrastructure.
The third pillar, Alkhorayef stated, is the Kingdom’s direction toward green metals production, with Saudi Arabia aiming to diversify its energy mix and enable renewable energy sources to account for 50% of total power generation by 2030.
Saudi Arabia currently imports 4 million tons of iron ore annually, the minister said.
Meanwhile, it is expected to increase its total iron production to 25 million tons by 2035.
He underscored several challenges the sector has faced in recent years, including a surplus in rebar production, limited production capacity for high-value products, and competition from imports, which have reached twice the local production capacity of flat steel products.
