At the recently held 17th Arab Steel Summit, HE Saad bin Sherida al-Kaabi, the Minister of State for Energy Affairs, addressed a pressing concern for the Arab steel industry: its low production levels compared to global standards. With the region currently producing around 40 million metric tons of steel annually against a staggering global output of about 2 billion metric tons, the need for innovation and additional investments has never been clearer. The summit, attended by key figures including Awwad al-Khaldi, chairman of the Arab Iron and Steel Union, aimed to assess the industry's current state and chart a path forward.
Minister al-Kaabi highlighted the recent strong demand for steel in the Arab region, driven by significant infrastructure projects and a robust real estate market. This demand indicates a strategic opportunity for Arab steel producers to reinforce their position in global markets. However, the stark contrast between local production and global demand underscores the need for a comprehensive strategy to enhance competitiveness, focusing on both economic growth and environmental sustainability.
To balance these competing goals, al-Kaabi pointed to the importance of reducing carbon footprints, a critical element of sustainability strategies. Qatar Steel, for instance, has successfully maintained a low carbon footprint since its inception in 1978, leveraging technologies like Midrex and electric arc furnaces to cut CO₂ emissions significantly. Such examples serve as a model for other Arab steel manufacturers, showcasing that investments in advanced technologies can yield both environmental benefits and economic gains.
The summit also underscored the significance of investing in research and development, particularly in areas like artificial intelligence. Al-Kaabi stressed that the future of the Arab steel industry hinges on its ability to embrace innovative practices. As demand for iron and steel continues to rise across the region, fueled by mega-infrastructure projects, the strategic value of the steel sector will only grow. This creates a pressing need for investment in new technologies that can enhance production efficiency and product quality.
Participants at the summit, including Sultan al-Khater, a consultant to the Minister of Commerce and Industry, pointed out the remarkable growth opportunities in emerging markets like Asia and Africa. With infrastructure projects booming in these regions, Arab steel producers have a golden opportunity to tap into these markets. Al-Khater emphasized the importance of regional integration, advocating for more bilateral and multilateral agreements to facilitate trade and mitigate the impact of protectionist measures that currently stifle growth.
Furthermore, the importance of energy security was highlighted as a crucial factor for the industry’s future. Qatar's efforts in clean energy production have positioned it as a potential leader in the sector, attracting investment through favorable industrial and free zone policies. These measures include tax exemptions and incentives, providing Arab steel producers with the leverage needed to expand their market reach.
