Steel demand in the MENA region is predicted to rebound by 5.7% this year following a 2% contraction in 2011, according to the World Steel Association, with regional production increases in both steel and iron driving the region to ‘world centre’ status within a decade.
The growth is driven by the construction programmes planned for GCC countries – contributing to a Middle East sector predicted to grow 3.5% through 2015 and worth $4.3 trillion by 2020 – and huge state-funded investments facilitated by high oil prices over the last three years.
In a global steel market report, Frost and Sullivan attributed the 2% contraction witnessed in 2011 to regional political turmoil, but concluded the sector now poses “immense future business opportunities”, regionally. 
Currently the region is the second largest producer globally, with a production compound annual growth rate (CAGR) of 5.9%; while this puts is more than four times ahead of the third highest producer – the rest of Africa with 1.2% CAGR, it is significantly behind leading producer Asia, at 11%.
Around 2% of global crude steel production was from the MENA region in 2010, mainly contributed by Iran, Egypt, Saudi Arabia and Qatar. There are currently 67 steel plants in the GCC and demand for the product is rising higher than the current global production capacity.
