Saudi Iron Sector Offers Investment Opportunities Worth Over SAR 60 Billion Amid Economic Diversification Efforts

Saudi Arabia's iron sector is experiencing significant growth, with investment opportunities valued at over SAR60 billion across seven targeted product areas. This was highlighted by Minister of Industry and Mineral Resources Bandar Alkhorayef during the 3rd annual Saudi International Iron and Steel Conference in Riyadh. The event was attended by Egypt’s Deputy Prime Minister for Industrial Development Kamel Al-Wazir, senior officials, and investors from the iron and steel industry.

The minister emphasized that Saudi Vision 2030 aims to diversify the national economy, expand production, and increase private sector contributions to 65% of GDP. It also seeks to raise non-oil exports to 50% of non-oil GDP. Recognizing the iron sector's role in these goals, the National Steel Sector Restructuring Plan was approved in August 2024 as a roadmap for industry development and sustainability.

Alkhorayef noted a study by the Industrial Center on domestic iron market consumption rates, import volumes, and specifications. The findings confirmed the sector's attractiveness and need for qualitative investments to boost competitiveness. The center is tasked with updating the National Steel Sector Restructuring Plan and reviewing policies to enhance sustainability and improve investment conditions.

During a ministerial chat titled "Enabling steel value chain localization in support of economic growth and diversification," Alkhorayef discussed three pillars underpinning Saudi Arabia’s iron sector development. The first pillar focuses on demand from priority sectors like renewable energy, building materials, and automotive industries. These sectors are expected to drive higher demand for iron and steel products.

The second pillar leverages Saudi Arabia’s strategic location connecting three continents, competitive energy prices, and advanced infrastructure. The third pillar involves transitioning toward green metals production. By 2030, Saudi Arabia aims for renewable energy sources to account for 50% of total power generation.

Currently, Saudi Arabia imports 4 million tons of iron ore annually but plans to increase total iron production to 25 million tons by 2035. However, challenges persist such as rebar production surplus, limited capacity for high-value products, and competition from imports exceeding local flat steel production capacity.

Alkhorayef stressed that addressing these challenges is crucial for achieving Vision 2030 goals. By focusing on strategic advantages and sustainable practices, Saudi Arabia aims to strengthen its position in the global iron market while supporting economic diversification efforts.

With inputs from SPA