Saudi Arabia’s ongoing construction boom continues to drive strong demand for steel, positioning the sector as a key beneficiary of Vision 2030’s infrastructure and industrial expansion agenda.
At the 3rd Saudi International Iron & Steel Conference, industry executives noted that the Kingdom’s construction sector now exceeds SAR 400 bln (USD 106.6 bln) annually, supported by major projects in Riyadh, Jeddah, the Red Sea region, and the Eastern Province. Within this, the basic materials segment, including steel, wood, and aluminum, is valued at around SAR 200 bln (USD 53.3 bln).
Masdar Building Materials Co., which operates across 29 cities with 104 branches, told Argaam that Saudi Arabia’s annual iron consumption stands at roughly 14 mln tons, including 10 mln tons produced locally and 4 mln tons imported. Demand for flat steel products is forecast to grow by over 7pct annually, outpacing long products at 4-5pct, driven by industrial expansion and downstream manufacturing.
Despite challenges from global price volatility, domestic opportunities remain strong as construction activity accelerates. The Public Investment Fund’s recent 30pct stake acquisition in Masdar reflects continued investor confidence in the sector’s long-term outlook.
Osama Hamdan, Vice President for Metals and Minerals Clusters at the National Industrial Development Center (NIDC), said Saudi Arabia’s steel industry remains globally competitive, attracting increasing international investment interest. He added that scrap metal supply remains a key challenge, prompting the NIDC and the Ministry of Industry and Mineral Resources to develop an integrated system for collection, processing, and distribution.
Domestic steel demand reached around 16 mln tons in 2024 and is projected to climb to 26 mln tons by 2035, underscoring the sector’s pivotal role as both a driver and byproduct of the Kingdom’s expanding construction landscape.
1 USD / 3.75 SAR
