Middle East Steel Market: Infrastructure Boom, Capacity Expansion & Long-Term Growth Outlook

According to IMARC Group's latest research publication, Middle East steel market size reached USD 45,012.1 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 65,178.0 Million by 2034, exhibiting a growth rate (CAGR) of 4.20% during 2026-2034.

How AI is Reshaping the Future of Middle East Steel Market

• Leading producers like EMSTEEL in the UAE have rolled out over 30 AI-powered solutions, using predictive tools to fine-tune electric arc furnaces and rolling mills for better efficiency and lower energy use in daily operations.
• In Saudi Arabia, companies such as Saudi Steel are pushing digital transformation with AI-driven predictive maintenance and real-time monitoring, cutting downtime and boosting overall production reliability across their facilities.
• Government efforts under Vision 2030, including the AI Center for Manufacturing and Mining by the Ministry of Industry and SDAIA, encourage steel firms to adopt data analytics and smart tech for stronger industrial growth.

Get In-Depth 2026 Industry Insights & Projections

Middle East Steel Market Trends & Drivers:

The Middle East steel market continues to experience robust momentum from extensive infrastructure development and rapid urbanization across the region, particularly in GCC countries. Ambitious government-led initiatives, such as large-scale projects in transportation, housing, and smart cities, sustain high demand for structural and construction-grade steel. These efforts focus on economic diversification away from hydrocarbons, with mega-developments in transportation networks, airports, and commercial complexes driving consistent consumption. Population growth and urban expansion further amplify the need for durable building materials, supporting long-term market stability and encouraging local production enhancements to meet rising requirements.

Industrialization and manufacturing sector expansion serve as key forces propelling the steel industry forward in the Middle East. Countries pursue robust manufacturing ecosystems through strategic investments and policies that promote domestic capabilities and attract foreign participation. This shift boosts demand for various steel types in machinery, equipment, and industrial facilities, while oil and gas infrastructure upgrades require specialized grades for pipelines and processing units. Such developments foster technological adoption in production processes, improving efficiency and quality to align with evolving industrial standards and regional economic goals.

Growing emphasis on sustainability and environmental considerations increasingly influences steel market dynamics in the Middle East. Producers adopt cleaner technologies and explore low-carbon alternatives to address global concerns about emissions and resource efficiency. Government support for green initiatives, including renewable energy projects and hydrogen-based processes, encourages the integration of eco-friendly practices in steel manufacturing. This trend enhances competitiveness, attracts international partnerships, and aligns with broader regional commitments to reduce environmental impact while maintaining strong output to support ongoing construction and industrial activities.

Middle East Steel Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Flat Steel
• Long Steel

Product Insights:

• Structural Steel
• Prestressing Steel
• Bright Steel
• Welding Wire and Rod
• Iron Steel Wire
• Ropes
• Braids

Application Insights:

• Building and Construction
• Electrical Appliances
• Metal Products
• Automotive
• Transportation
• Mechanical Equipment
• Domestic Appliances

Country Insights:

• Saudi Arabia
• Turkey
• Israel
• United Arab Emirates
• Iran
• Iraq
• Qatar
• Kuwait
• Oman
• Jordan
• Bahrain
• Others

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Middle East Steel Market

• February 2026: EU's CBAM enters its definitive phase, prompting MENA steel producers to accelerate adoption of higher transparency, efficiency, and low-carbon standards to maintain export competitiveness to Europe, positioning the region as a key future source of low-emission steel.
• January 2026: EMSTEEL in the UAE becomes the first in MENA to secure global ResponsibleSteel™ certification, highlighting leadership in sustainable practices while reporting 7% YoY growth in total steel sales volumes and a 16% increase in finished steel sales to 3.3 million tons in 2025.
• January 2026: Meranti Green Steel in Oman secures full offtake agreements for 2.5 million tons per year of green hot briquetted iron (HBI) from its Duqm project, using natural gas blended with green hydrogen to produce low-carbon iron for electric arc furnace steelmaking.
• January 2026: Oman advances its green steel corridor through partnerships, including fast-tracking initiatives with China's Tsingshan Group for low-carbon production facilities, alongside plans for a final investment decision on Vale's low-carbon steel mega hub.
• December 2025: EMSTEEL launches the world's first Electric Process Gas Heater (ePGH) pilot in steelmaking at its DRI plants, replacing gas-fired heaters with electric alternatives to eliminate over 2,200 tonnes of CO₂ annually, as part of broader decarbonization efforts targeting 40% GHG reduction by 2030.

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