Saudi Arabia Steel Market: Vision 2030 Projects, Industrial Scale-Up & Supply Chain Shifts

According to IMARC Group's latest research publication, the Saudi Arabia steel market size was valued at USD 8.7 Billion in 2024. The market is projected to reach USD 11.8 Billion by 2033, exhibiting a growth rate (CAGR) of 3.40% during 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Steel Market

• Predictive Maintenance and Equipment Monitoring: AI algorithms analyze real-time sensor data from machinery, predicting failures 24-48 hours in advance and cutting unplanned downtime by 15-20% across major Saudi mills.
• Automated Quality Control and Defect Detection: Machine learning systems scan steel surfaces during production, identifying micro-defects instantly with 98% accuracy, reducing waste and ensuring higher-grade output for infrastructure projects.
• Energy and Process Optimization: AI optimizes furnace temperatures and energy consumption patterns, reducing electricity use by 12-18% while maintaining output quality, supporting Saudi Arabia's sustainability targets under Vision 2030.
• Supply Chain Forecasting and Inventory Management: Advanced analytics predict construction cycles and project demands, helping producers maintain optimal stock levels and reduce warehousing costs by up to 25% through data-driven planning.
• Real-Time Production Monitoring: AI-powered systems track production metrics continuously, enabling instant adjustments to maintain consistent quality and throughput rates while minimizing material waste throughout the manufacturing process.

How Vision 2030 is Revolutionizing Saudi Arabia Steel Industry

Vision 2030 is fundamentally transforming Saudi Arabia's steel sector through unprecedented infrastructure investments. Mega-projects like NEOM (with a $500 billion investment), The Line (a 170 km linear city), Qiddiya entertainment complex, and Riyadh Metro are generating massive steel demand across construction, transport, and urban development. The government allocated $2.66 billion in 2024 specifically for 18 new logistics zones, targeting 59 zones by 2030, all requiring extensive structural steel. These projects aren't just consuming steel—they're driving localization efforts. The Ministry of Industry and Mineral Resources is pushing import-substitution measures, incentivizing domestic production through subsidies and streamlined regulations. With Saudi Arabia's crude steel production capacity reaching 12 million tons annually and major producers like Hadeed (producing 5.5 million tons) expanding operations, the Kingdom is positioning itself as a regional steel powerhouse while creating thousands of local jobs and strengthening industrial supply chains.

Access the Latest 2026 Data & Forecasts:

Saudi Arabia Steel Market Trends & Drivers:

The steel market is experiencing robust growth driven by Vision 2030's infrastructure boom, with over 12,000 new building approvals granted in 2024 alone. Major urban centers like Riyadh, Jeddah, and Dammam are expanding rapidly, fueled by population growth from 35 million in 2024 toward 40 million by 2030, with urbanization rates expected to hit 90%. Affordable housing initiatives and mixed-use developments are creating sustained demand for structural steel and rebar. Beyond residential construction, the transportation infrastructure sector is expanding dramatically, with investments in highways, the Riyadh Metro (176 km across six lines), new railways, ports, and airports all requiring substantial steel for bridges, frameworks, and support structures. The construction of 18 new logistics hubs and ongoing rail network extensions are further accelerating steel consumption across the Kingdom.

The oil and gas sector remains a steady steel consumer despite economic diversification efforts. As the world's largest oil exporter, Saudi Arabia continues investing heavily in refineries, pipelines, drilling platforms, and storage facilities. These installations require specialized high-grade, corrosion-resistant steel capable of withstanding harsh extraction and transportation conditions. Offshore rigs, pipelines, and petrochemical facilities use substantial quantities of specialized steel alloys. The downstream sector, including refining and petrochemical production, is expanding simultaneously, with Saudi Aramco announcing strategic partnerships in 2025 to establish advanced manufacturing facilities in the Eastern Province. This ongoing energy infrastructure modernization ensures consistent demand for industrial-grade steel products.

The renewable energy sector is emerging as a new growth driver for steel demand. Saudi Arabia's renewable energy capacity reached 2.1 Gigawatt in 2024, with aggressive expansion planned under Vision 2030 to reduce oil dependency. Solar power plants require extensive steel frameworks for panel support structures, while wind energy projects need substantial steel for turbine foundations and towers. NEOM announced plans in March 2025 for a state-of-the-art manufacturing center featuring AI-integrated production systems, which will support renewable infrastructure development. Additionally, the Ministry of Industry announced industrial incentives in September 2025 benefiting downstream steel processing for construction and fabrication, strengthening local supply chains.

Saudi Arabia Steel Market 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

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

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 Saudi Arabia Steel Market

• December 2025: Fastmarkets launches world's first Saudi Arabia domestic steel scrap index in August, decoupling from Turkey prices with 73.4% negative correlation, enabling local benchmarking for negotiations amid Vision 2030-driven demand.
• October 2025: Saudi mills achieve 8.87 million tonnes steel production January-October, surging 12.9% from prior year, fueled by Al Qaryan and Watania expansions plus SOLB Steel EAF restart in May.
• June 2025: Government raises import duties to 20% on billets, rebar, and wire rods, boosting domestic manufacturing and Vision 2030 localization amid infrastructure boom.
• May 2025: Zamil Structural Steel expands Dammam plant to heighten capacity for giga-projects, integrating robotics and CNC for precision fabrication and efficiency gains.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.