Saudi Arabia is strongly positioned to become a future “power house” in iron and steelmaking, as it diversifies its steel production to cater for the establishment of new domestic industries under Saudi Vision 2030. So said Saudi Arabian investment minister Khalid Al-Faleh on Monday.

Historically, Saudi Arabia has relied on the oil & gas, construction and banking industries, meaning steelmakers have focused on developing products for these sectors. Economic diversification will see the harnessing of mineral resources and creation of new manufacturing industries, resulting in the need to develop new steel products, Al-Faleh said at the Saudi International Iron & Steel Conference 2022 in Riyadh, for which Kallanish is programme partner.

Steel demand in Saudi Arabia should grow 5% annually to 2025, the minister continued, with Saudi Arabia one of the fastest recovering economies in the world following the Covid-19 pandemic. GDP growth is forecast at almost 8% this year.

The steel sector will benefit from the Saudi Green Initiative, which is targeting new energy resources. The kingdom is forecast to produce 4 million tonnes/year of blue hydrogen by 2030, which direct reduced iron-based steelmakers will be able to use instead of natural gas.

The Saudi steel industry will have a competitive advantage in future thanks to its harnessing of new energy resources and technology, Al-Faleh commented. It also enjoys some of the best industrial infrastructure in the world and is able to exploit a strategic geographical location, he added. Attracting further foreign direct investment is also high on the agenda.

“I ask all investors to take advantage of this opportunity,” the investment minister concluded.