The Kingdom of Saudi Arabia has become one of the favorite destinations for the steel majors due to thriving construction sector, and soaring steel demand. The construction sector in the country is considered as the largest and the fastest growing market in the Gulf region, with a huge growth potential. As the appetite for steel is growing in the Kingdom, its production will also grow at a CAGR of around 9% during 2012-15, estimates our latest research report.
According to “Saudi Arabia Steel Industry Forecast to 2013”, the steel consumption in Saudi Arabia has grown rapidly in the past few years on back of rising construction activities, growing investment in Railways, and cheap and reliable energy supply. In the next five years, the Kingdom is expected to sustain its leadership in construction activities in the entire Middle East.
Our report discusses how the Kingdom showed its resilience to the downturn in the construction industry, which affected all Gulf Cooperation Council (GCC) countries. With multi-billion dollar projects underway in both public and private sectors, the country has gained a significant share in the total GCC construction spending. Also, its economy is being propelled onto a whole new level with the building of four integrated economic cities.
After analyzing the industry-specific statistics, for which we have carried out an in-depth research, it was found that the steel industry in Saudi Arabia is highly import oriented. According to our anticipations, the apparent steel consumption in Kingdom has reached around 12.1 Million Metric Tons in 2011. Due to such a strong demand and soaring domestic steel prices, the share of imported steel is expected to witness an upward trend in the coming years.
With the industry’s immense growth potential, our study foresees huge opportunities for both existing and new market players. Considering the prominent steel industry value chain determinants like production, consumption, pricing and key players, the report has presented a look at the sector’s past, present, and future scenario. It also studied how the regulatory environment and initiatives taken by the government are affecting the market. Through the section of steel pricing analysis, we have tried to update clients about the fluctuating pricing trend and factors responsible for it.