GCC construction boom, heavy real estate investment and rising incomes pushing steel demand
A joint venture has been formed by investors from the UAE, Saudi Arabia and Oman to build a steel plant in Oman with a capital of $400m.
The UAE-based Al Suwaidi Group, Saudi-headquartered Al Tuwairqi Group and Oman’s Salalah Development Company said the Dhofar Steel plant will produce one million tonnes of steel a year.
Analysts say the recent construction boom, growth in the real estate investment and rising income level have been major factors behind the surge in demand for steel products over the past few years.
Consumption of finished steel products is seen to exceed eight million metric tonnes by the end of 2014.