Middle East and Africa Steel Rebar Market

Middle East Steel Rebar Market Size (2024-2029):

The Middle East Steel Rebar Market was worth US$ 8.59 billion in 2023 and is anticipated to reach a valuation of US$ 13.19 billion by 2029 and it is predicted to register a CAGR of 7.4% during the forecast period 2024-2029.

Market Drivers and Restraint:

Middle East countries are known for their huge reserve of oil and production of the same. In the past few years, these countries have been stepping up to improve their infrastructure. One of the main reasons has been the growth of tourism in these countries. To support the oil and gas industry, the steel industry is also growing to provide robust infrastructure. In African countries, better healthcare facilities, and residential and community buildings are a few segments that have been in focus in the past few years. These segments have a high consumption of steel for construction purposes. All these factors have played a key role in triggering the growth of the steel rebar industry.

Factors holding back the market are

Middle East countries have strict laws and economic policies. This is one of the main reasons that they experience a lack of foreign investments. The majority of the projects have to be dependent on the local industries for the production of steel.
In African countries, the purchasing power of the local residents is very low and thus investors are reluctant to take up mega infrastructure projects. Modern infrastructure is viewed as a luxury and people expect more money to be spent on the basic needs of the people.

Market Recent Developments:

• Concrete continues to be the first choice for engineers and architects in the Middle East and North Africa region, this allows them to design and create some impressive edifices.

• Hamriyah Steel has completed the engineering phase on the International Maritime Industries drilling rigs, and it is undergoing preparations for fabrication and construction. Delivery remains on track for 2022.

Market Segmentation:

Middle East Steel Rebar Market - By Process:

• Basic Oxygen Steelmaking

• Electric Arc Furnace

The electric arc furnace segment recorded significant development in this market in the review period due to the rising demand for the steel industry, which is supported by its environmental benefits compared to its counterpart.

Middle East Steel Rebar Market - By Coating Type:

• Plain Carbon

• Galvanized

• Epoxy Coated

Middle East Steel Rebar Market - By Bar Size:

• #3 Bar Size

• #4 Bar Size

• #5 Bar Size

• #8 Bar Size

• Others

Middle East Steel Rebar Market - By End-Use Sector:

• Infrastructure

• Housing

• Industrial

Impact of COVID-19 on the Middle East and Africa Steel Rebar Market:

The COVID-19 pandemic has brought a halt to the otherwise growing steel and rebars industry in the Middle East and African countries. In the Middle East region saw a huge dip in the demand for oil globally and thus any progress had to be halted. Losses piled up and all the construction work was halted. Qatar undertaking the FIFA 2020 WC project was also affected by its construction sector. African countries saw a break in the investment chain and foreign companies were forced to leave as a result of no demand in the construction sector. The oil consumption was reduced and people seeking real estate properties vanished. This all made the situation worse.

Market Geographical Analysis:

Most of the GCC countries have been steel importers but in the past few years, all GCC countries except UAE have become net steel exporters. Middle East Steel Rebar Market is primarily dominated by the Kingdom of Saudi Arabia due to the aggressive investment in infrastructure projects taken up by the government.

Market Key Players:

1. Hyundai Steel (South Korea)
2.   Kobe Steel, Ltd. (Japan)
3. Jiangsu Shagang Group Co., Ltd. (China)
4. JFE Steel Corporation (Japan)
5. Commercial Metals Company (U.S.)
6. Daido Steel  (Japan)