Commentary
Colin Foreman
Editor

Read the August 2024 issue of MEED Business Review

The statistics are not good for the steel industry’s environmental performance. The industry accounts for 7-9% of global carbon emissions, and improving its green credentials requires billions of dollars of investment in new technologies and energy sources.

Unlike other regions, the Gulf is well-placed to lead these efforts. As a relative newcomer to the steel industry, producers mostly operate newer plants that emit less carbon dioxide.

Expansion is also on the agenda. Industrial development is a key priority for governments across the region as they seek to diversify away from hydrocarbons and create investment and employment opportunities. For example, in the UAE, the government launched Operation 300bn in 2021, which aims to raise the industrial sector’s contribution to the national GDP to AED300bn ($81.7bn) by 2031.

As the industrial base expands and steel producers increase capacity to meet growing demand, they can invest in even newer equipment and clean energy sources. This is evidenced by projects planned for Saudi Arabia, the UAE and Oman that will use the latest technologies and, in some cases, explore the use of alternative energy sources.

Investing in green steel will allow the Gulf to position itself as an exporter to a global customer base that is increasingly aware of its net-zero commitments.

Domestically, green steel will help the Gulf achieve its development goals more sustainably. It was a record year for contract awards on the region’s projects in 2023 and all but a few exceptions will require significant volumes of steel.

Projects are turning to regional producers for low-carbon steel. In July, UAE-based steel producer Emirates Steel announced a steel supply agreement for the Trojena Ski Village project in Saudi Arabia. The producer will supply beams made of low-carbon steel.

As more projects move into construction and steel producers continue with their investments, the region can expect more of these deals in the future.

Must-read sections in the August 2024 issue of MEED Business Review include:

> AGENDA: Gulf charts green steel pathway; Steel takes on decarbonisation

> CURRENT AFFAIRS: Iranian election delivers reformist victory

> INTERVIEW: Wood seeks to improve grip on Gulf market

> LEADERSHIP: Sandboxes spur innovation in the Middle East

> RIYADH REGION MUNICIPALITY: Transforming Riyadh into a world-class city

> MAGHREB MARKET REPORT:

> POLITICS: Maghreb region grapples with governance
> ECONOMY: Olive oil and renewables offer respite
> INVESTMENT: Morocco garners increased foreign investment 
> ALGERIA OIL SECTOR: Chevron deal raises Algerian oil and gas hopes
> LIBYA OIL SECTOR: Libya struggles to stabilise energy sector
> MOROCCO OIL SECTOR: Oil and gas companies press on in Morocco
> HYDROGEN: Maghreb eyes hydrogen breakthrough
> POWER: Algeria jumpstarts its renewables programme
> RAIL: Maghreb rail sector heads for boom
> CONSTRUCTION: Maghreb construction sector brightens
> MAGHREB DATABANK: Maghreb markets improve metrics

> MEED COMMENTS: 
> Saudi projects move to reflect World Cup focus
> Doha steps up drive to foster demand for projects
> PIF hydrogen move changes game
> Aramco gives shape to massive gas portfolio

> GULF PROJECTS INDEX: Iraq drives Gulf projects market growth

> JUNE 2024 CONTRACTS: Saudi Arabia contributes almost half of regional total

> ECONOMIC DATA: Data drives regional projects

> OPINION: The death of political risk

> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts