Middle East and Africa Green Steel Market Research Report: Forecast (2025-2030)

Market Definition

Green steel is a type of steel that is produced using renewable energy sources and recycled materials. It can be produced using a range of technologies, including electric arc furnaces powered by renewable energy sources, such as solar or wind power, and processes that capture and utilize carbon emissions to produce cleaner steel. Green steel aims to reduce the environmental impact of steel production, which is traditionally known for being a major contributor to global carbon emissions and create a more sustainable and environmentally friendly steel industry that contributes to the transition to a low-carbon economy.

Market Insights & Analysis: Middle East and Africa Green Steel Market (2025-30)

The Middle East and Africa Green Steel Market is projected to grow at a CAGR of around 38% during the forecast period, i.e., 2025-30 owing to the growing inclination towards sustainable and environment friendly products in the region. The government of the countries in the region such as the UAE, Saudi Arabia are taking several initiatives to reduce their carbon emissions which involves decarbonization of its steel industry. For instance,

• In 2022, the UAE Ministry of Climate Change and Environment revised its target of reducing its greenhouse gas emissions target by 2030. The country has raised the commitment to 31% from 23.5% set up in 2020. It included the total annual carbon emissions of 207.8 million tonnes of carbon dioxide equivalent (CO2-eq) by 2030.

Further, the high contribution of building and construction sector in greenhouse gas emissions is raising the focus of governments towards green and sustainable buildings. The development of building codes in countries such as the Abu Dhabi Urban Planning Council’s Estidama, Global Sustainability Assessment System, the Lebanese Green Building Council’s ARZ by the UAE, Qatar and Lebanon respectively is building up the market for green steel in the region. Additionally, the high rate of ongoing development in the region in response to the economic initiatives of countries such as the UAE, Egypt, Oman, etc. is generating the demand for steel from different industries including automotive, electronics, machinery, etc. Also the development of food packaging industry in nations such as Saudi Arabia, The UAE in the backdrop of increasing consumer base is fueling up steel demand in the region. For instance,

• In 2022, the Ministry of Industry and Mineral Resources, Saudi Arabia, announced an investment of nearly USD6 billion in a steel plate complex & a factory for electric car battery metals.

Further, the low cost involved with the production of solar energy in the region is leading to increase in investment in the renewable energy. According to International Renewable Energy Agency (IRENA), the cost of producing solar PV electricity in Middle East is possible at as low rate as USD0.01/kWh. This combined with the ongoing projects for building renewable energy capacity in countries such as Saudi Arabia, Morocco, UAE, Israel and Egypt would raise the production of green steel in the region in the upcoming years.

Thus, high demand for steel from various industries on account of the major presence of developing countries in the region along with the rising focus of governments towards adoption of green and sustainable practices and the role of steel in reducing the carbon emissions would raise the overall demand for green steel in Middle East and Africa in the upcoming years.

Middle East and Africa Green Steel Market Driver:

Surging Proclivity Towards the Use of Green Steel in the Automotive Industry to Propel the Market Growth - The automotive sector is one of the major users of steel, hence providing an enormous opportunity for implementing green steel as an alternative to conventional steel in the production process to reduce their carbon footprint. According to World Steel Association, an average vehicle uses approximately 2000 pounds of steel, making the automobile sector a significant consumer of steel.

Automotive companies aim to clean every step of the entire production process of vehicles. Various automotive companies, like General Motors (GM), Honda, and Volvo, among various others, have shown keen interest in integrating green steel during the production of vehicles in the coming years. Therefore, green steel is expected to play a vital role in this transition which would strongly contribute to the growth of the Green Steel market in the forthcoming period. Along with this, several firms like Volvo, BMW, and Mercedes-Benz committed to reducing CO2 emissions per vehicle by 50% by 2030 compared to 2019, which is, projected to open an opportunity for providers of green steel. Therefore, the automotive industry holds immense opportunities for green steel & would become a lucrative area of investment for automakers in the coming years.

Middle East and Africa Green Steel Market Possible Restraint:

Hefty Switching Costs from Conventional Manufacturing Process to Green Steel Manufacturing Process - Shifting from conventional steel to a green steel production process is highly capital intensive, as it requires restructuring the entire manufacturing process. Hence, it has been posing a challenge to conventional steel manufacturers to transition to green steel. Such as setting up & supporting infrastructures like grid lines to source renewable electricity & green hydrogen transport & storage facility requires a hefty amount of monetary investment.

Moreover, green hydrogen is also in its nascent stage and thus has not reached its economies of scale, resulting in a costly technology for the application. According to JSW Steel, the transition to low-carbon steel manufacturing would cost around USD1.35 billion to the company, including setting up of infrastructures, such as renewable power production plants, benefaction plants, and slurry pipelines to improve the quality of ore in a furnace, along with technological equipment to facilitate green steel production. Hence, heavy switching cost has been impacting the Green Steel Market in the current years.

Middle East and Africa Green Steel Market (2025-30): Segmentation Analysis

The Middle East and Africa Green Steel Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2025–2030 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:

Based on Energy Source:

• Solar
• Wind
• Others (Hydro, Biomass, etc.)

Among these, solar energy is estimated to lead the share of the Middle East and Africa Green Steel Market owing to the strong potential of the growth of this sector in the region on account of the presence of sun-rich countries. This is due to the increasing focus of the government of nations such as The UAE, Saudi Arabia, and Iraq towards the development of solar power as a part of the transition towards renewable energy and sustainability. For instance,

• In 2022, the Electricity Ministry of the Iraqi government announced the development of solar power projects having a total generation capacity of 7,500 MW.

Such efforts and development in the region would provide an advantage to the countries in the region in the production of green steel in the coming years.

Based on End User:

• Buildings & Construction
• Automotive & Transportation
• Others (Industrial Equipment, FMCG, Defence, etc.)

Of these, building & construction would create huge demand for green steel in the Middle East and Africa in the forecast years. This is attributable to the high rate of both the infrastructural development and emissions released from buildings in the atmosphere. Some countries in the region, such as the UAE, Oman, Saudi Arabia are taking steps to invest in green steel for building construction as construction is responsible for around 40% of the total emissions in the region. Thus, the fast rate of construction and the increasing inclination towards sustainability would escalate the demand for green steel in Middle Eastern & African counties in the estimated years.

Middle East and Africa Green Steel Market Regional Projection

Geographically, the Middle East and Africa Green Steel Market expands across:

• The UAE
• Saudi Arabia
• Oman
• Egypt
• South Africa
• Morocco
• Rest of Middle East and Africa

The UAE is expected to register considerable growth in the forecast period, 2025-2030 owing to the significant advantage of the country in producing green steel due to its abundant supply of renewable energy sources, particularly solar energy. The country has set ambitious targets to increase its renewable energy capacity to 50% by 2050, majorly driven by solar energy, which is expected to significantly drive the growth of the green steel industry. Several companies in the UAE such as Emirates Steel Arkan, Jindal Shadeed Iron & Steel are planning to start production of green steel.

Thus, crucial role played by green steel in reducing country’s carbon footprint combined country's abundant supply of renewable energy sources, and investments by companies in the industry, and the development of hydrogen economy would support the market for green steel in the UAE in the upcoming years.

Middle East and Africa Green Steel Industry Recent Developments 

• In 2022, Emirates Steel Arkan (ESA) partnered with ITOCHU Corporation and JFE Steel to develop plans for the construction of a ferrous raw material production facility in Abu Dhabi. This was done to meet the growing demand for green steel in the region.

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