Arab steel industry should capitalise on growing Asia, Africa demand: Al-Khater
Sultan al-Khater (Consultant to HE Minister of Commerce and Industry), along with other panellists, at the 17th Arab Steel Summit. PICTURE: Santhosh V Perumal
“We are seeing really a very rapid growth in demand in Asia and Africa…This throws greater opportunities for the Arab countries to tap into these markets and to try to optimise the production and qualities of their products in order really to meet the growth in these regions,” Sultan al-Khater, consultant to HE the Minister of Commerce and Industry, told the 17th Arab Steel Summit, which got underway on Monday.
Apart from tapping the markets, he said, there was a need for additional investments and focus on technology.
His comments come amidst an update released by Tthe World Steel Association on short range outlook for 2024 and 2025, which forecasts that steel demand in other emerging economies of the world, such as the Middle East and North Africa and the Association of Southeast Asian Nations regions, is expected to rebound in 2024 after a significant slowdown over 2022-23.
In this regard, al-Khater highlighted that infrastructure projects in Africa are “tremendous”, which offer larger scope for the Arab steel producers.
Stressing that energy security is a pivotal element for this industry, he said Qatar has tapped into this field and since the early 1990s, and the country has demonstrated to the world that it can contribute to the ecosystem, growth and development worldwide by producing clean energy.
Highlighting that Qatar’s industrial and free zones are attracting investors and industries due to the advantage of global access, low cost energy and incentives as tax exemptions and waivers; he said Arab steel producers have to tap into these opportunities and open up to the markets around the region.
This came as response to remark made by Joachim Schroeder, chairman and chief executive officer of Research and Consulting Group, that the European steel manufacturers now have difficult time due to energy prices, “which have gone over the roof”.
Reminding that the trade policy and protectionist measures are hindering the growth of steel and other industries; al-Khater said there are lots of corridors and paths that can be taken to mitigate the negative impacts (of those protectionist measures).
“We need to look at increasing more of regional integration and alignments, among countries and steel producers and suppliers by (going in for) more bilateral as well and multilateral agreements and free trade agreements in order to mitigate these kind of barriers,” he said, adding the Arab steel producers could benefit from the economic blocs that exist today within the North Africa, the Middle East and the Gulf Cooperation Council.
“There are so many agreements that facilitate the exchange and the momentum that the steel industry needs,” said al-Khater.
