Housing boom set to bolster steel demand

An increase in the number of housing projects in the private sector across the GCC will bolster the demand for steel, experts at the 2016 Middle East Steel Conference (MESC) noted.
Speaking on the sidelines of the event, Abdullah Awadh Al Gahtani, vice-governor of Standards & Laboratories Saudi Standards, Metrology & Quality Organisation, described steel as a high-risk product, which is a critical part of a big industry.
"Construction is a huge industry in the Gulf countries. Demand for construction materials, such as steel and cement, relies heavily on government spending. When you see the construction sector booming, you will also find the demand for steel rising. Once the construction business slows down, then the demand for steel will also decrease."
"There is a paradigm shift, however, in both Saudi Arabia as well as the rest of the GCC, where the private sector is becoming more and more engaged. The private sector is catching up with the government sector when it comes to projects, especially in the housing segment. will be favourable in the steel industry as long as there is a shift in projects from the government sector to the private sector," he explained.
Hosted by Neft Management, in collaboration with a committee of regional and international oil company representatives, the fourth edition of MESC brings together regional and international experts and facilitates the exchange of practical experiences in all aspects of steel production and protection engineering.
The three-day show, which is showcasing major exhibitors such as Saudi Steel Pipe Company, Hidada, Global Pipe Company, Carboline, Conxtech, National Pipe Company, 3M from the Mena region and Europe, will end on Tuesday.
"Low oil prices seem to have no negative sentiments for steel experts. Turning out to be a magnet for the industry leaders, the fourth edition of the Middle East Steel Conference is a milestone for us. We are overwhelmed by the response and hope the conference will serve as an insightful forum for knowledge sharing and best practices," said Rafeeq Kunhi, director, Neft Management.The UAE's steel demand has made it one of the largest consumers in the GCC. The region is investing billions of dollars in construction projects, mostly in preparations for the Expo 2020 in Dubai and the Fifa World Cup 2022 in Qatar. It is anticipated that steel consumption in the UAE will grow at a CAGR of eight per cent from 2016 to 2020.
Despite fluctuations in the construction market, the demand for steel products in the UAE is stable and has been on a growing trend. Over the past few years, the UAE's steel industry has witnessed an upswing in the range of five to 15 per cent growth annually.
- rohma@khaleejtimes.com