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GCC investing US$18 billion in new steel plants.

 
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19 May 2008

More than US$18 billion is being invested in 46 steel manufacturing plants throughout the Arabian Gulf in an attempt to close the widening gap between supply and demand for steel - a major component for the construction industry as well as materials handling machinery for manufacturing, according to latest industry research.

"While there is talk of a slowdown in other parts of the world, the growth in the Middle East manufacturing base continues to expand with demand for steel far outstripping supply," said Spencer Felix, Exhibition Manager of the Middle East Manufacturing Exhibition (MEMEX), which takes place at the Abu Dhabi National Exhibition Centre from 23 to 25 November 2008.

"In the race to plug the supply gap a swathe of new steel plant projects as well as expansions to existing plants have been unveiled across the region with huge potential business opportunities for industry stakeholders," added Felix.

GCC investing US$18 billion in new steel plants.

According to the database of research company Proleads, which monitors major construction projects across the region from initial study to completion, Saudi Arabia with 17 and the United Arab Emirates with 16 are leading the way in steel plant projects individually varying in value from US $2 billion to US$15 million. Oman has six steel plants on the books, Bahrain four and Qatar three.

Topping the list of projects is an integrated complex of steel factories in Saudi Arabia which will turn out 500,000 tons a year of railway track, three million tons a year of iron and steel processing and production plant and 800,000 tons a year of pipeline manufacturing plant. Of the top ten projects, four are in Saudi Arabia, three in the UAE, two in Qatar and one in Oman (click to see table with details).

MEMEX provides a unique platform for suppliers to network and conduct business with organisations currently producing or manufacturing in the Middle East or with plans to do so. After its successful debut in 2007, MEMEX has established itself as the region's leading manufacturing exhibition.

New this year will be Industryscape, a complementary vertical show which runs in parallel with MEMEX. Industryscape will be the region's first dedicated trade show for industrial, manufacturing and production real estate. Industryscape, managed by the organisers of Cityscape, the world’s largest business-to-business real estate show, will bring together international investors, developers, governments and investment authorities, leading architects, designers and consultants.



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