The Gulf steel industry is changing dramatically as a result of decarbonisation, increased infrastructure needs, and tighter global supply chains. With global iron ore loadings expected to reach 1.247 billion metric tonnes by 2025 and China absorbing the majority of imports, Gulf companies are focusing on securing raw materials and limiting vulnerability to price volatility, particularly if mechanisms such as the EU’s CBAM alter trade flows. Despite market swings, the iron ore sector is predicted to consistently expand until 2032.

Regional steelmakers are seizing this opportunity to deepen backward integration and increase low-carbon output. Companies in Oman and Saudi Arabia are emerging as significant participants in green steel, due to abundant renewable energy and cutting-edge DRI-EAF technology. This change is seen in projects such as Vulcan Green Steel and the Ras Al-Khair unit of Essar Group.

MTG is introducing hydrogen-based ironmaking methods and cost-effective pelletising systems, while Jindal Steel Oman pushes its sustainability approach with top efficiency rankings, a 280MW solar project, and a hydrogen-ready complex in Duqm. It’s the Sohar pellet factory, which sources ore from Cameroon, adding to supply security.

Digitalisation strengthens these efforts. AI-driven forecasting, predictive maintenance, and carbon-cost analytics are improving competitiveness.