The Middle East and Africa Green Steel Market is projected to grow at a CAGR of 38% in the forecast period of 2025-30, cites MarkNtel Advisors in the recent research report. This is because of the increasing inclination towards sustainable and carbon free solutions and technologies. High levels of carbon emissions from steel industry combined with government efforts to move towards green and clean economy by reducing the carbon footprint of its hard to abate industries such as cement, steel, automotive would become a major factor for the growth of green steel market across the GCC countries in the forthcoming years.
Further, governments along with the key players involved in the manufacturing of steel in the region are discovering options and are continuously involved in the research & development for pacing up the decarbonization of its major industries which would consequently support the market for green steel in the coming years. For instance,
Additionally, the countries in the region such as the UAE, the kingdom of Saudi Arabia, Qatar, etc. are witnessing the fast development of the commercial sector including corporate offices, shopping complexes, entertainment zones, healthcare infrastructure, residential units on account of increasing investments in the region. This is the result of the government efforts to raise the sources of revenue for their economies on account of the major dependence on one industry i.e., oil & gas. Thus, developments in the infrastructure is expanding the market for steel in the region. This combined with the setting up of codes for the creation of green buildings in Middle East and Africa such as Abu Dhabi Urban Planning Council’s Estidama, etc. would significantly become a major reason in the forecast years for the demand and sale of green steel in the region, further states the research report, “The Middle East and Africa Green Steel Market Analysis, 2023.”
Development of Building & Construction Sector in the Region to Become a Major Reason for the Growth of Green Steel Market in the Region
On the basis of end user, the market is segmented into Buildings & Construction, Automotive & Transportation, and others (Industrial Equipment, FMCG, Defence, etc.). The demand for green steel across the building & construction sector is estimated to surge gradually in the forecast years. It owes primarily to active efforts by governments of several countries, like Egypt, the UAE, Qatar, etc., toward escalating the use of sustainable building materials in construction activities. In addition, the rising interest of these countries in the development of green buildings is another crucial aspect projected to amplify the demand for green steel across the building & construction sector.
Steel is one of the extensively used materials in construction activities. With increasing population & growing urban developments, the demand for both commercial & residential high-rise buildings has grown dramatically in recent years, i.e., one of the key growth areas for the utilization of green steel as a sustainable raw material to reduce greenhouse gas emissions.
The UAE to Lead the HVAC Rental Market Growth in GCC
Based on countries, the market is divided into The UAE, Saudi Arabia, Oman, Egypt, South Africa, Morocco, and Rest of the Middle East and Africa. Of all the nations, the UAE is expected to create a huge share of demand for green steel in the upcoming years. This is owing to the country’s efforts towards establishing a green economy as part of its commitment to sustainable development & reducing its carbon footprint. The country has set ambitious targets to reduce its greenhouse gas emissions, including a commitment to reduce carbon emissions by around 31% by 2030.
Further, construction is one of the crucial industries in the country, which further consistently requires steel. Green steel has the ability to reduce energy usage, carbon emissions, and waste while simultaneously promoting the development of new & creative technologies. Thus, the government is growing its accessibility of green hydrogen through initiatives such as the UAE Hydrogen Leadership Roadmap & Abu Dhabi Hydrogen Alliance. Such initiatives, combined with the growth in the renewable energy mix, would create opportunities for the Green Steel market in the coming years.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Emirates Steel Arkan, Jindal Shaheed Iron & Steel LLC, Arcelor Mittal South Africa, Essar Group, Arab Steel Co., ThyssenKrupp AG, Qatar Steel, Voestalphine AG, Outokumpu Oyj Middle East FZCO, EZZ Steel are looking forward to strengthening their market position.
Key Questions Answered in the Research Report