Saudi minister announces national scrap metal firm amid $16bn steel sector push

16/10/2025 01:05 AST

Saudi Arabia is set to create a national company to import scrap metal as it seeks to bolster a sector which has SR60 billion ($15.9 billion) worth of investment opportunities.

Speaking at the third Saudi International Iron and Steel Conference in Riyadh, Minister of Industry and Mineral Resources Bandar Alkhorayef said the Kingdom wants to boost local manufacturing and curb import reliance.

He said the ministry had assessed the market to address supply gaps and enhance local production of high-value steel products.

The initiative forms part of the Kingdom's wider industrial strategy under Vision 2030, which seeks to localize key materials, attract foreign investment, and increase the manufacturing sector's contribution to non-oil gross domestic product.

Amidst what the minister described as ongoing "challenges and developments" in the iron and steel sector, he urged industry companies to collaborate on implementing key strategic recommendations.

These include the establishment of a dedicated steel academy to qualify Saudi talent and the founding of a national company to import and supply scrap metal.

"This [scrap metal company] will have a direct impact on improving costs and supporting the growth of the sector," Alkhorayef stated, highlighting the initiative's potential to enhance competitiveness.

"We have studied the best options to cover the deficit in the local market and reduce imports of steel plates, with investment opportunities estimated at around SR60 billion distributed across a range of products important for the local industry," he told delegates.

Furthermore, he called on the sector to continue its pivot toward high-economic-impact industries and to invest in high-value, quality products.

The three-day conference, which started on Oct. 14, has drawn thousands of participants from more than 50 countries and is supported by the Federation of Saudi Chambers of Commerce.

This year's edition focuses on sustainable production, technological innovation, and supply-chain resilience across the Middle East's rapidly evolving iron and steel industry.

The conference will convene industry leaders, government officials and experts from the global steel supply chain to debate key themes such as upstream raw material access, green steel technologies, regulatory shifts, and supply chain dynamics.