Saudi Steel Industry Thrives Under Vision 2030 Investments
Saudi Arabia's steel industry has seen remarkable growth, driven by government policies and strategic investments. The country's import substitution strategy has protected domestic steelmakers from external market volatility, ensuring steady demand. State-owned Hadeed steelworks, the largest in the Gulf Cooperation Council (GCC), produces 6-7 million tonnes of finished steel annually, with a focus on long products like rebar and wire rod.
Hadeed has undergone significant modernisation, including upgrades to its electric arc furnace (EAF) and continuous casting line, enabling the production of premium high-carbon steel. This shift allows Saudi Arabia to reduce imports of high-strength wire, steel rebar, and automotive components. The company is also expanding its hot-rolled coil (HRC) production for the automotive industry, aiming to lower production costs and increase capacity by 1 million tonnes per year.
Other key players include Al-Rajhi Steel, acquired by the Public Investment Fund (PIF) in 2024, and Al-Ittefaq Steel Products Co., the largest private manufacturer. Al-Rajhi Steel is upgrading its plants to produce premium steel rebar and installing robotic systems for ready-made frames and meshes. Meanwhile, a $4 billion joint project with Baosteel and Saudi Aramco is underway in Ras al-Khair to produce heavy plate (HP), ensuring self-sufficiency and potential exports to MENA countries.
The Saudi Vision 2030 program aims to achieve a 99% share of basic construction steel by 2030. With ongoing investments and strategic partnerships, the country is positioning itself as a leading steel producer in the region.